SEC Final Rule: Disclosure for Asset-Backed Securities Required by Section 943 of the Dodd-Frank Wall Street Reform and Consumer Protection Act

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Dodd-Frank Timeline, Disclosure for Asset-Backed Securities, SEC
Final Rule Issue Effective Date Compliance Date
January 26, 2011 March 28, 2011 February 14, 2012

On January 20, 2011, the SEC held an open meeting concerning disclosure for asset-backed securities (ABS) required by Section 943 under the Dodd-Frank Act. Among the topics at this meeting was encouraging transparency and better disclosure for investors in the ABS market.[1] Final rules were added to the Federal Register on January 26, 2011.

Final Rules

  • ABS issuers are now required to disclose repurchase histories on new form ABS-15G, repurchase histories in prospectuses and ongoing reports, and any report accompanying a credit rating by a nationally recognized statistical ratings organization (NRSRO).

Quarterly reports should be filed by the ABS issuer and include:

  1. the "repurchase history for all outstanding ABS (regardless of whether the securities were offered in a transaction registered with the SEC) if the underlying transaction agreements include a covenant to repurchase or replace a pool asset;" and
  2. the "history of all fulfilled and unfulfilled repurchase requests, including investor demands upon a trustee and pending requests."

References

  1. SEC Announcements - SEC Approves New Rules Regulating Asset-Backed Securities. SEC. Retrieved on January 21, 2011.

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