• SEC Proposes Rules Regarding Third-Party Due Diligence Reports and Certifications for Asset-Backed Securities
  • June 6, 2011 | Authors: Evan M. Drutman; Carol M. McGee; Gary D. Roth
  • Law Firms: Alston & Bird LLP - New York Office ; Alston & Bird LLP - Washington Office ; Alston & Bird LLP - New York Office
  • As part of its continuing efforts to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), on May 18, 2011, the U.S. Securities and Exchange Commission (the “Commission”) unanimously approved for public comment proposed rules that would require nationally recognized statistical rating organizations (NRSROs), issuers and underwriters to make public the findings and conclusions of any due diligence reports prepared by a third-party service provider in an asset-backed securities transaction. When hired by an NRSRO, an issuer or an underwriter, third-party diligence providers would also have to provide a certification to each NRSRO rating the securities.