SEC Re-Opens Comment Period for Asset-Backed Securities Rules

February 28, 2014

An update to Regulation AB (“Reg AB II”) was originally proposed by the U.S. Securities and Exchange Commission (the “SEC”) on April 7, 2010, with an initial comment period open until August 2, 2010 (the “Proposal”) to modify the offering, disclosure and reporting requirements for asset-backed securities.2 Reg AB II was opened up for comment a second time on July 26, 2011, with a comment period open until October 4, 2011 (the “Re-Proposal”). The Re-Proposal sought comments on asset-level disclosure provisions and on Section 942(b) of the Dodd-Frank Act, which required the SEC to adopt regulations to require disclosure of asset-level information. The SEC did not take any further action on Reg AB II, until January 29, 2014, when it published its February 5 meeting agenda, which included a scheduled vote on “whether to adopt rules revising the disclosure, reporting and offering process for asset-backed securities.” This vote would have come twenty-eight months after the end of the Re-Proposal’s comment period and almost four years after Reg AB II was initially proposed. The SEC later removed the vote from the meeting agenda on February 3, two days before the vote was to take place.

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