Conflicts of Interest in Asset-Backed Securitization: An Analysis of Proposed Rule 192 (Volume 56, Number 18—October 25, 2023)
Author: Christopher B. Horn.; Jon A. Schlotterback.
Source: Volume 56, Number 18, October 15 2023 , pp.249-263(15)
Abstract:
On January 25, 2023, the SEC issued proposed Rule 192 (Conflicts of Interest Relating to Certain Securitizations). Proposed Rule 192 would implement the Dodd-Frank Act’s prohibition of material conflicts of interest between securitization participants and investors. This article reviews Proposed Rule 192 and discusses some of the concerns and suggestions expressed by market participants in their comment letters. While the timing of the SEC’s next step is uncertain, a final rule (or a re-proposed rule) could be forthcoming before the end of 2023.Keywords: General Provisions of Proposed Rule 192; Prohibited and “Conflicted” Transactions; Reasonable Investor Standard; Affiliates and Subsidiaries as Securitization Participants
Affiliations:
1: Mayer Brown LLP; 2: Mayer Brown LLP.