WASHINGTON, Jan 7 (Reuters) - Some asset-backed security issuers may have to begin disclosing more of their financial statements under a proposal by the Securities and Exchange Commission.
The SEC proposed this week to implement a provision in the Dodd-Frank financial law that would ensure investors continue to get information about asset-backed securities, even when issuers are not technically required to file disclosure documents under securities laws.
Securities laws allow companies to stop disclosing financial information if there are fewer than 300 shareholders of record.
Following the financial crisis, however, policy-makers raised concerns investors might not always have the necessary information before investing in certain kinds of securities, such as those linked to subprime mortgages.
The SEC proposal would strike a balance between providing investors more information without imposing undue costs on issuers. As such, the proposal provides for some limited exceptions.
(Reporting by Sarah N. Lynch; editing by Andre Grenon) Keywords: SEC/ABS (sarah.n.lynch@thomsonreuters.com +1 202 354 5831) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The SEC proposed this week to implement a provision in the Dodd-Frank financial law that would ensure investors continue to get information about asset-backed securities, even when issuers are not technically required to file disclosure documents under securities laws.
Securities laws allow companies to stop disclosing financial information if there are fewer than 300 shareholders of record.
Following the financial crisis, however, policy-makers raised concerns investors might not always have the necessary information before investing in certain kinds of securities, such as those linked to subprime mortgages.
The SEC proposal would strike a balance between providing investors more information without imposing undue costs on issuers. As such, the proposal provides for some limited exceptions.
(Reporting by Sarah N. Lynch; editing by Andre Grenon) Keywords: SEC/ABS (sarah.n.lynch@thomsonreuters.com +1 202 354 5831) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.