Securities, Commodities, and Exchanges: SEC Issues NPR on Asset-Backed Securities

On October 4, the Securities and Exchange Commission (SEC) issued a notice of proposed rulemaking to require issuers of asset-backed securities (ABS), and credit rating agencies that rate ABS, to provide investors with new disclosures about representations, warranties, and enforcement mechanisms. As the SEC release about the proposed rulemaking states, section 943 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank)requires the SEC to promulgate regulations on the use of representations and warranties in the ABS market by January 14, 2011, 180 days after enactment of Dodd-Frank.

The deadline for public comments, which may be submitted via the SEC website, is November 15, 2010.