From the Regulators

Goal is to enhance investor protection

By James Langton |

The global umbrella group of securities regulators, the International Organization of Securities Commissions, has published new disclosure principles for asset-backed securities.

IOSCO’s technical committee Thursdah published a final report setting out principles designed to provide guidance to securities regulators who are developing, or reviewing, their regulatory disclosure regimes for public offerings and listings of ABS.

“The objective of the ABS Disclosure Principles is to enhance investor protection by facilitating a better understanding of the issues that should be considered by regulators in developing or reviewing their disclosure regimes for ABS,” it says.

It adds that the disclosure topics highlighted in the principles are intended as a starting point for consideration and analysis by securities regulators. “Some regulators may find it useful to incorporate all of the disclosure topics into their ABS disclosure requirements. Others may conclude that the relevance of specific disclosure topics in their jurisdictions may vary according to the characteristics of the issuing entity or the securities involved, and may wish to incorporate the principles on a more selective basis,” it adds.

The new principles come on the heels of the US Securities and Exchange Commission’s decision yesterday to propose a set of reforms to the regulation of ABS issues.

The IOSCO principles were developed following a recommendation in the committee’s report on the subprime crisis, that was published in May 2008.