SEC Adopts Final Rules Requiring Issuer Review of ABSs

The SEC adopted new requirements in order to implement Section 945 of the Dodd-Frank Act. The new rule requires any issuer registering the offer and sale of an asset-backed security (“ABS”) to perform a review of the assets underlying the ABS. The SEC also adopted amendments to Item 1111 of Regulation AB that would require an ABS issuer to disclose the nature of its review of the assets and the findings and conclusions of the issuer’s review of the assets.