Bank Seeks SEC Exemption to Serve as Asset-Backed Securities Trustee

A national bank requested SEC relief that would allow it to serve as trustee for certain asset-backed securities issuers even when it is affiliated with the securities’ underwriter.

In a published Notice, the SEC stated that it is considering the bank’s application under Section 6(c) ("Exemptions") of the Investment Company Act for an order exempting the bank from Rule 3a-7(a)(4)(i) ("Issuers of asset-backed securities") under the Act. The requested relief would permit issuers of asset-backed securities relying on Rule 3a-7 to appoint the bank as trustee, notwithstanding its affiliation with an underwriter of the securities.

Interested persons may request a hearing by March 9, 2026.