Reg AB requirements quirks analysed

Author: | Published: 31 Jan 2013

If finalised as proposed, Regulation AB would bring loan level data transparency to the US securitisation industry and reduce regulators’ reliance on credit ratings. But market participants say tweaks must be made to the proposal for the industry to continue its recovery.

The proposal calls for executive sign-offs and new registration and due diligence requirements among other things. Bankers speaking at this week’s American Securitisation Forum were particularly troubled by performance-based certifications.

Under the proposal, an executive is required to verify...