CSA Proposed Securitized Products Rules - Contrast To U.S. Approach

Pursuant to Reg AB II, theDodd-Frank Act and the rules implementing that Act (the "U.S. Proposals"), U.S. authorities have proposed the most far-reaching substantive and procedural regulations ever applied to the ABS market. In Canada, the CSA have chosen not to propose similar rules at this time but have instead focused almost entirely upon enhanced disclosure; in essence merely bringing Canadian ABS regulations to the standard existing under Reg AB prior to the U.S. Proposals. The implicit rationale for taking this approach is reflected in the third of the general principles which the CSA have indicated have guided them in developing the proposed rules: