SECURITIES LAW ALERT: SEC Proposes Rules to Increase Investor Protections in Asset-Backed Securities

    9 April 2010

    On April 7, 2010, the Securities and Exchange Commission (SEC) voted to release a proposed rule designed to revise Regulation AB and other rules regarding the offering process, disclosure and reporting for asset-backed securities (ABS). Generally, the proposal seeks to strengthen the disclosure requirements for ABS issuers, revise the current SEC shelf registration rating requirements for ABS or structured finance products; and increase the transparency of private transactions.

    Once published in the Federal Register, the SEC will commence a 90-day public comment period. In addition to public comments, the SEC has also indicated a willingness to continue working with other agencies and legislators, even suggesting a joint rulemaking could be possible.