Cybersecurity disclosure rules for ABS should be focused on primary servicers, the Structured Finance Association said in comments to the Securities and Exchange Commission.

The SEC’s proposal on disclosure requirements and other standards for hedge funds, private equity funds and venture capital funds could have negative impacts for CLOs, SFA and others warn.

A new SEC proposal wouldn’t set climate-related disclosures for MBS and ABS, though such standards are still under consideration.

Acting Comptroller of the Currency Michael Hsu said the OCC will continue to ensure banks are not used as a vehicle for "rent-a-charter" arrangements.

When looking at activity by rating services in 2020, the SEC found problems involving ABS and CLOs, among other issues. The regulator as usual didn’t identify the offenders.

The Structured Finance Association said the SEC’s Exchange Act Rule 15c2-11 would lead to illiquidity in the ABS market.

Changes implemented in response to the financial crisis of 2008 helped the MBS and ABS markets perform better than expected at the onset of the pandemic.

During a Capitol Hill hearing, House Democrats focused on credit rating shortcomings that allowed for the subprime crisis of 2007-2008 and inadequate reforms that followed.

One of the five draft bills proposed by the House Democrats this week seeks to establish a board that would be responsible for assigning rating services to provide grades on MBS and ABS.

When Congress passed the Dodd-Frank Act in 2010, the SEC had nine months to issue a rule on conflicts of interest in the securitization market. The proposed rule on the issue has been pending since 2011.