Asset-Backed Securities Regulation - Disclosure of ABS - Comment Letter - Investment Company Institute - November 15, 2010
|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
The Investment Company Institute makes recommendations for the improvement of asset-backed securities (ABS) disclosure and nationally recognized statistical ratings organization (NSRSO) disclosure, as well as for the scope of the definition of ABS.
Regarding the definition:
"We urge the Commission, however, to take a holistic approach to such disclosure. We are concerned that a piecemeal approach to municipal securities disclosure would have the unintended effect of creating confusion for investors and issuers alike because different classes of municipal securities would be subject to different disclosure requirements. Instead, we recommend that the Commission expressly exclude municipal securities from the scope of the proposals and wait for the results from its field hearings with municipal market participants,7 as well as the GAO studies on municipal securities mandated by the Dodd-Frank Act, before determining whether to apply the ABS disclosure requirements to a small piece of the municipal securities market.8 We believe this approach would be consistent with the guidance provided by the Dodd-Frank Act conference committee when it stated that, 'Regulators also are required to issue total or partial exemptions from risk-retention and disclosure requirements for municipal securities and for securitizations of assets issued or guaranteed by federal agencies, as long as the exemption is in the public interest and for the protection of investors.'"