SEC voted to propose a rule intended to prohibit certain material conflicts of interest between those who package and sell asset-backed securities (ABS) and those who invest in them.
The proposal, which is not intended to prohibit traditional securitization practices, implements Section 621 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The public comment period on the proposal will last 90 days.
Please click here to access this press release.
Please click here to access the proposed rule.