Securities and Exchange Commission: Issuer Review of Assets in Offerings of Asset-Backed Securities
GAO-11-341R: Feb 8, 2011
GAO reviewed the Securities and Exchange Commission's (SEC) new rule on issuer review of assets in offerings of asset-backed securities. GAO found that (1) the final rule implements section 945 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The rule requires any issuer registering the offer and sale of an asset-backed security (ABS) to perform a review of assets underlying the ABS. The rule also requires the issuer of an ABS to disclose the nature of its review and the findings and conclusions of the issuer's review of the assets; and (2) SEC complied with applicable requirements in promulgating the rule.