SEC Investor Advocate Defends Dodd-Frank

SEC Investor Advocate Rick A. Fleming asserted that the Dodd-Frank Act had been "successful in addressing some of the real causes of the financial crisis," particularly through its enhancement of regulations concerning asset-backed securities ("ABS"), derivatives and credit rating agencies.

In an address at the University of Maryland Robert H. Smith School of Business Center for Financial Policy, Mr. Fleming stated that the Dodd-Frank Act improved regulation in the following areas:

• Asset-Backed Securities. Mr. Fleming recounted that Dodd-Frank, Act Section 924 compelled the SEC to adopt revisions to rules governing the disclosure, reporting and offering process for various types of asset-backed securities, which enhanced transparency. He emphasized that these rules "enable investors to conduct due diligence to better assess the credit risk of asset-backed securities." Mr. Fleming also noted that the SEC joined with five other federal agencies in adopting