SEC PROPOSES MORE DISCLOSURE ON ASSET-BACKED SECURITIES

The Securities and Exchange Commission announced proposed changes to its securities regulation that would require issuers and raters of asset-backed securities to provide investors with additional disclosures, the Wall Street Journal reported today. The regulator said yesterday that as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act it is required to prescribe regulations on representations, warranties and enforcement mechanisms available to investors before Jan. 14, 2011. "The Dodd-Frank Act imposes new disclosure obligations so that investors receive information about the representations and warranties and repurchase history so they may identify originators with clear underwriting deficiencies," according to the SEC statement. The comment period for these proposals ends Nov. 15.