SIFMA Supports Increased Transparency Of Offering, Disclosure And Reporting Processes For ABS

The Securities Industry and Financial Markets Association (SIFMA) today issued the following statement from President and CEO Tim Ryan on the Securities and Exchange Commission’s (SEC) vote to propose new regulations regarding the offering process, disclosure and reporting for asset-backed securities (ABS):

“SIFMA believes properly functioning asset-backed securities markets are essential to a broader economic recovery. At its open meeting today, the SEC agreed to propose sweeping changes to the rules that govern the offering process, disclosure, and other aspects of the securitization process. We support in principle the efforts of the SEC to increase the transparency and effectiveness of the disclosure and marketing practices for ABS. This includes reasonable risk retention requirements that are calibrated to align the interests of securitization market participants according to the risks presented by various asset classes and transaction types. We look forward to working with the SEC to refine the risk retention provisions and other aspects of this proposal. In addition, SIFMA echoes the statements of certain Commissioners at the meeting urging coordination among regulators and policymakers to ensure consistency among standards. We will review the proposed regulations in detail with our members when they are published and will provide more comprehensive comments at that time.??”