The SEC provided conditional exemptive relief from certain credit-arranging prohibitions under Exchange Act Section 11(d) to broker-dealers designated as agents for the Federal Reserve Board's ("FRB") 2020 Term Asset-Backed Securities Loan Facility ("TALF"). (Further coverage of the TALF program is available here (March 23, 2020 - re: relaunch) and here (May 15, 2020 - re: updated TALF term sheet).)
The Exemptive Order comes in response to a request from the Federal Reserve Bank of New York ("New York Fed"). The Order provides that a broker-dealer that is designated as an agent for TALF borrowers may, notwithstanding the requirements of Exchange Act Section 11(d)(1), facilitate TALF-related loans against securities even if the TALF agent acted as a member of the selling syndicate or group. The SEC indicated that it granted the relief on the understanding from the New York Fed that "the success of the TALF program depends on the effective participation of TALF Agents in facilitating the availability of the program to potential participants. . . ."
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