Eric Burner interviewed by Compliance Week on SEC's new rules for asset-backed security issuers
February 2011
SEC Writes New Rules for Asset-Backed Security Issuers
Compliance Week
The Securities and Exchange Commission has adopted a new rule to regulate the financial sector to avoid another credit crisis. The rule requires ABS issuers to design and perform a review of assets in a given securitization to provide investors reasonable assurance that the prospectus disclosure is accurate in all material respects. New York partner Eric Burner notes the review requirement could be problematic because it allows the review to be performed by a third-party diligence provider, so investors may not really know who is doing the review. Burner’s practice focuses on public and private securitization transactions, with a particular emphasis on mortgage and asset-backed securities.