5. Under what circumstances would the SC approve a foreign Originator in a securitisation transaction?

Subject to compliance with the SC?s requirements on acquisition of foreign securities/assets, the SC may consider granting an exemption from this requirement if the Originator is a foreign subsidiary of a Malaysian company, provided the Originator ensures compliance with all other requirements of the ABS Guidelines, particularly, to mitigate any increased insolvency or bankruptcy risks which might arise in such a structure.

Remark: A Bond is a debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. Bonds are used by companies, municipalities, states and U.S. and foreign governments to finance a variety of projects and activities.