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The Securities Industry and Financial Markets Association (SIFMA) today released the final version of its revised guidelines for delivery of offering materials relating to GSE securities. The revisions move the guidelines to an “access = delivery” model by permitting electronic delivery of documentation for GSE securities. SIFMA recommends implementing the revised guidelines for when there is a delivery obligation of GSE offering materials on or after February 1, 2008. Please see a SIFMA Implementation Note for more information.
As part of the publication of the guidelines, SIFMA is also publishing a revised Master Agreement to be used by market participants for the distribution of GSE securities that incorporates by reference the new guidelines and a form of a Negative Consent Amendment to be used for existing Master Agreements executed between market participants that references the new guidelines.
SIFMA issued an exposure draft of the revised guidelines for industry comment earlier this year.
“The guidelines facilitate the timely availability of information to market participants, make the delivery process more efficient and, by moving to an “access = delivery” model, the new guidelines represent a step forward for a significant reduction in the industry’s costs,” said Robert Toomey, managing director and associate general counsel at SIFMA. “We appreciate the feedback from the market in our efforts to update these procedures.”
The new guidelines detail five steps for delivery of offering materials relating to GSE securities. They were established for the provision of access and the distribution of offering materials to investors in securities issued by the Farm Credit System, the Federal Home Loan Bank System, the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association. All firms participating in the distribution of GSE securities are expected to follow the guidelines.
