SEC Proposes New Rules For Asset-Backed Securities

Law360, New York (April 7, 2010, 3:59 PM EDT) -- The U.S. Securities and Exchange Commission has proposed new rules that would require sponsors of asset-backed securities to disclose more information to investors and to retain a 5 percent stake in the securities they sponsor, among other new regulations.

The SEC voted unanimously to propose the rules at an open meeting Wednesday. The commission will now consider public comments for 90 days before making a final decision on whether to adopt the rules.

“The proposed rules are intended to better protect investors in the securitization market...
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