Asset-Backed Securities Regulation - Comment Letter - Standard & Poor's - November 15, 2010

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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

Disclosure for Asset-Backed Securities Required by Section 943 of the Dodd-Frank Wall Street Reform and Consumer Protection Act
November 15, 2010

According to the comment letter, Standard & Poor's suggests that it would be appropriate if affected institutions were able to decide on their own comparisons in the required disclosure and if nationally recognized statistical ratings organizations (NRSROs) were able to use publicly available information listed by the issuer/sponsor as a means of satisfying the disclosure requirements.

The letter answers several questions posed in the release regarding the proposed rule. One example is as follows:

Q: "Section 932 of the Act further amends the Exchange Act by adding a new paragraph (s) to Section 15E requiring a form to accompany the publication of each credit rating that discloses certain information and requiring that we adopt rules requiring NRSROs to prescribe and use such a form. Would it be appropriate to require the inclusion of the disclosures about representations, warranties and enforcement mechanisms required under proposed Rule 17g-7 in the form used to make the disclosures that will be required under rules adopted pursuant to Exchange Act Section 15E(s)? Are there any timing issues that we should take into account in determining whether to do so?"

A: "We believe it important that the form contemplated by Section 15E(s) of the Exchange Act not require information about representations, warranties and enforcement mechanisms, or similar securities, that is different from, or in addition to, the disclosures required by Rule 17g-7, because investors should not need to consult two different sources to locate relevant information on these topics. We also believe that when the Section 15E(s) form accompanies a rating report, the NRSRO should be permitted to include or refer to the Rule 17g-7 information in the Section 15E(s) form only, in order to avoid repetitive disclosure. We will be in a better position to comment on any timing issues associated with publication of the form after the Commission has proposed implementing rules."


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