SEC Proposes New Rules For Asset-Backed Securities

On May 3, 2004, the U.S. Securities and Exchange Commission ("SEC") proposed new and amended rules and forms (the "Proposal") to address comprehensively the registration, disclosure, and reporting requirements for publicly offered asset-backed securities ("ABS") under the U.S. Securities Act of 1933 ("Securities Act") and the U.S. Securities Exchange Act of 1934 ("Exchange Act"). Much of the Proposal seeks to codify (and expand) existing SEC interpretations and staff "no action" letters.¹ The SEC is soliciting comments from industry participants within 60 days of the Proposal's publication in the Federal Register.

Although the new ABS rules would technically apply only to public offerings of ABS in the United States, the market will nonetheless need to consider how the new regime may affect private ABS offerings made in reliance on Rule 144A.