20 February 2012

IOSCO consults on principles for ongoing disclosure for asset-backed securities

IOSCO has published a consultation report containing principles designed to provide guidance to securities regulators who are developing or reviewing their regulatory regimes for ongoing disclosure for asset-backed securities (ABS).

The objective of the ABS Ongoing Disclosure Principles is to enhance investor protection by facilitating a better understanding of the issues that should be considered by regulators in developing or reviewing their ongoing disclosure regimes for ABS. The ABS Ongoing Disclosure Principles were developed as a complement to the Disclosure Principles for Public Offerings and Listings of Asset-Backed Securities, issued in April 2010, which provide guidance on disclosure regimes for offerings and listings of ABS, but do not expressly address continuous reporting disclosure mandates or requirements to disclose material developments.

The ABS Ongoing Disclosure Principles recommend disclosures for those securities that are primarily serviced by the cash flows of a discrete pool of receivables or other financial assets - either fixed or revolving - that by their terms convert into cash within a finite period of time. These principles would not apply to securities backed by asset pools that are actively managed, such as securities issued by investment companies or collateralised debt obligations, or that contain assets that do not by their terms convert to cash.

Press release

Full consultation paper

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