SEC Adopts Rule 15Ga-2 and Rule 17g-10 Regarding Disclosure of Third-Party Due Diligence Services Relating to Asset-Backed Securities
16 September 2014
Mayer Brown Legal Update
On August 27, 2014, the US Securities and Exchange Commission adopted new rules for nationally recognized statistical rating organizations, or NRSROs, implementing rulemaking requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act, including new rule 15Ga-2 and new rule 17g-10. The new rules implement certain requirements of Section 15E(s)(4) of the Securities Exchange Act of 1934 relating to the disclosure of third-party due diligence services employed in connection with the issuance of rated asset-backed securities. Notably, the new rules require the disclosure of certain services that are typically performed by accountants pursuant to agreed-upon procedures and Rule 193 engagements. The new rules will take effect on June 15, 2015.