New US ABS reporting criteria set to disappoint

Author: | Published: 25 Aug 2011

Asset Backed Security (ABS) issuers will be exempt from burdensome periodical reporting requirements when the securities are held only by affiliates, under a Dodd-Frank-mandated rule to take effect on September 22.

But the new exemption is expected to benefit less ABS issuers than the test prior to Dodd-Frank.

On August 17 the Securities and Exchange Commission (SEC) issued the final rule, which amends Exchange Act section 15(d). ABS issuers have been required to file periodic and annual reports since passage of Dodd-Frank, which eliminated...