The Securities and Exchange Commission has proposed significant revisions to Regulation AB and other rules regarding the offering process, disclosure and reporting for ABS. The 5-0 vote Friday morning counts the SEC as an added player in the huge push coming from various regulators for more “skin-in-the-game” by ABS issuers.

The 5% risk-retention provision is aimed at better protecting securitization investors by providing them with more detailed information regarding pooled assets and more time to make their investment decisions. It also gives them the benefits of better alignment of the interests of issuers and investors.

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