Treatment of Asset-Backed Issuers Under the Investment Company Act (Proposed Rule)

76 FR 55308 (SEC Release No. IC-29779)

September 7, 2011

The SEC published an advance notice of proposed rulemaking regarding amendments being considered to Rule 3a-7 under the Investment Company Act, which provides, in part, a conditional exclusion from the Act to issuers of asset-backed securities. The proposal is intended to consider, among other things, the role of credit ratings in the context of Rule 3a-7 and how holders of asset-backed securities of Rule 3a-7 issuers should be treated under the Act. A related concept release solicited comment on provisions of the Act that might be applicable to firms in the business of acquiring mortgage securities. Comments are due to the SEC by November 7, 2011.

For more information about this document, you may contact one of the following Cadwalader attorneys: Maurine Bartlett; Dorothy Mehta; Andrew Lom.

Cross References

SEC Press Release No. 2011-176

Investment Company Act Rule 3a-7

76 FR 55300, IC-29778 (related concept release)

73 FR 40124, IC-28327 (withdrawn 2008 proposal)