The U.S. Securities and Exchange Commission (SEC), while expanding disclosure requirements for one set of asset-backed securities, has stepped back from a plan to shed more light on a major part of the market.
On Wednesday, the five SEC commissioners unanimously approved a rule to offer investors more details on bonds backed by assets such as mortgages and car financing, including specific data on individual loans, and new practices such as a cooling-off period to review documents before certain bond sales.
Dropped from the rules: a requirement that issuers of private securities be ready to furnish to buyers the same type of information that's available for publicly registered debt. The SEC said in a Federal Register posting proposing the rule in 2010 that such a step would bring “transparency to formerly opaque” markets.
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