SEC Adopts First of ABS Disclosure Regulations

On January 20, 2011, the Securities and Exchange Commission (SEC) voted on two sets of rules for asset-backed securities (ABS). The Commission approved both rules implementing aspects of section 943 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). One rule affects disclosure by adding a requirement that ABS issuers disclose the history of demands they received and repurchases made related to outstanding asset-backed securities. The second rule addresses issuer review of the underlying assets. All registered offerings of asset-backed securities after December 31, 2011 must comply with these rules.

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