SEC Issues ABS Proposal; Adopts Interim Rule on Security-Based Swaps

The SEC says its proposal seeks to enhance ABS disclosure in three ways:

• Issuers of ABS that are registered with the SEC would be required to perform a review of the bundled assets that underlie the ABS.
• Proposed amendments to Regulation AB would require an ABS issuer to disclose the nature, findings and conclusions of this review of assets.
• The issuer or underwriter for both registered and unregistered ABS offerings would be required to disclose the findings and conclusions of any review performed by a third party that was hired to conduct such a review.

The interim rule requires parties to report security-based swap information to the SEC or to a registered security-based swap data repository, according to the SEC. “Parties also are required to preserve data pertaining to the terms of pre-enactment security-based swaps in support of the reporting requirements,” the SEC says.

“This interim final rule provides a means for the Commission to gain a better understanding of the security-based swap markets, including their size and scope,” said Schapiro. “Until such time as final rules are adopted, this interim rule clarifies who needs to do security-based swaps reporting, what needs to be reported, and when such reporting needs to occur.”