• SEC Proposes Significant Enhancements to Regulation of Asset-Backed Securities
  • April 30, 2010
  • Law Firm: Cadwalader, Wickersham & Taft LLP - New York Office
  • On April 7, 2010, the Securities and Exchange Commission (the “SEC”) released proposed rules (the “Proposed Rules”) that would significantly revise Regulation AB (“Reg AB”) and other laws governing offerings, sales and reporting for asset-backed securities, including mortgage-backed securities (“ABS”), and would significantly broaden the range of transactions covered by such regulations. Reg AB was initially adopted in January 2005 and established a tailored set of rules governing the issuance of ABS. Reg AB was adopted some 8 months after it was initially proposed by the SEC, following an industry comment process, with an effective date of March 8, 2005. Although the SEC adopted Reg AB to “address comprehensively the registration, disclosure and reporting requirements” for ABS,3 the perceived role of ABS in the recent financial crisis has caused the SEC to re-think the regulation of the ABS markets just over 5 years after the initial effective date of Reg AB.