The securitisation industry is on notice that it must start preparing to operate without the support of the Australian Office of Financial Management.Treasury executive director, markets group, Jim Murphy, told delegates at the Australian Securitisation Forum conference in Sydney yesterday that the Government regarded the securitisation industry as important for the country's financial system. A lesson from the GFC was the importance of having diversified funding sources.However, it was appropriate for the industry to start looking at ways to make the transition from the support of the AOFM to being a sustainable industry operating without government assistance.The AOFM has invested $14 billion in 52 issues of residential mortgage-back securities since November 2008, involving 20 issuers. Its investment has facilitated the raising of $35 billion in total.In April, the Treasurer increased the AOFM's budget for investment in RMBS from $16 billion to $20 billion.Murphy said: "That is a big investment for the Government. It is a big ask to get a government to agree to support any sector at the level this government has supported the securitisation market. "The AOFM program has proved successful in mitigating the effects of the financial crisis. It has helped small lenders and it has allowed the securitisation industry to keep its infrastructure in place. "It is unlikely we will see the market return to pre-financial crisis prices and volumes. We would like the market to be successful in its own right. The industry has to transition to a sustainable model operating without support."