SEC Reproposes Rule to Prohibit Conflicts of Interest in Certain Securitizations

The SEC has issued a reproposed rule, Prohibition Against Conflicts of Interest in Certain Securitizations (the original proposal was released in September 2011). The proposal, which was issued in response to a mandate of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, would prohibit “an underwriter, placement agent, initial purchaser, or sponsor of an asset-backed security (including a synthetic asset-backed security), or any affiliate or subsidiary of any such entity, from engaging in any transaction that would involve or result in certain material conflicts of interest.”

Comments on the reproposed rule are due 30 days after the date of its publication in the Federal Register or March 27, 2023, whichever is later.

For more information, see the press release and fact sheet, as well as statements by SEC Chair Gary Gensler and Commissioners Caroline Crenshaw, Hester Peirce, and Mark Uyeda, on the SEC’s Web site.