Asset securitisation is one of the most complicated forms of financing. Asia Pacific issuers face a range of accounting, tax, regulatory, technology and operational challenges. While regulations, laws and accounting principles are not standardised within the Asia Pacific region, the securitisation markets are rapidly evolving to emulate other mature markets. Until these foundational challenges are comprehensively addressed, the process of securitising assets will remain challenging for issuers, investors and deal participants.

This report examines the advantages of conducting thorough due diligence when using securitisation as a funding tool. Applying the appropriate balance of asset due diligence to a securitisation program coupled with other risk mitigation techniques will go a long way to prevent unforeseen events. For issuers to succeed, their asset due diligence programs should include:

• sound practices supported by efficient operational infrastructures
• data quality
• prudent servicing techniques.

For further information, contact Graham Mott, Partner, Assurance and Advisory.

Attachments
Finding the right balance (476 KB)
Deloitte report