According to Securities and Exchange Commission Chairman Mary Schapiro, the agency is dealing with a number of credit crisis-related issues associated with money market mutual funds, asset-backed securities, and credit ratings. She also said that the SEC is working on ABS rule proposals that would allow the interests of investors and sellers to align.
The proposals, and other measures, would seek to give investors easier access to loan level data, allow them more time to review products before they invest, create a mechanism to allow for continuous disclosure, and modify “shelf” offerings eligibility standards. Schapiro says that the proposals are meant to be preemptive and would tackle certain areas where issues similar to the ones that surfaced during the current financial crisis might arise in the future.
American and European regulators have been closely examining collateralized debt obligations, mortgage-backed securities, and other ABS because of the large parts they played during the financial collapse. The SEC is reviewing ABS regulations and ABS-related disclosures and reporting. The agency is also seeking to impose more stringent credit quality and maturity requirements for market mutual funds, as well as put into place substantial liquidity standards. Members will be voting on proposed rule amendments meant to strengthen the money market mutual funds’ framework. The SEC is in the process of taking out credit rating references in a number of its regulations and rules.
Schapiro warned that products are going to start appearing faster and will be sold at “lightning speed” to “sometimes devastating” results. She said the SEC also intends to deal with issues related to municipal securities markets, advisory firm roles, proxy voting mechanics, and the relationships between broker-dealers and investment advisers and their retail clients. .Schapiro made her statements on January 20 during an update regarding the agency’s efforts to deal with credit crisis.
The financial crisis has led to investment losses by numerous individuals and entities throughout the US. Our securities fraud lawyers have been working diligently to help stockbroker fraud victims recoup their losses that were caused by investment adviser and broker misconduct.
Related Web Resource:
Speech by SEC Chairman: Embracing the Change, SEC.gov, January 20, 2010