SEC Wants More Disclosure For Structured Notes

Law360, New York (April 18, 2012, 4:04 PM EDT) -- The U.S. Securities and Exchange Commission on Tuesday told banks issuing structured notes — debt products bundled with derivatives — to disclose more information to investors, including a clear estimate of the financial products' fair value when purchased.

In a letter to an undisclosed number of banks, the SEC's Division of Corporation Finance said that financial institutions should give a “more balanced” view of structured notes' potential risks and benefits, and should give a more detailed accounting of how they will use the proceeds of the...
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