The Securities and Exchange Commission approved additional disclosure requirements for issuers of asset-backed securities and has tightened its control over credit rating agencies in order to better protect investors, the agency announced on Wednesday.
The SEC unanimously approved the new rules for asset-backed securities such as mortgage and auto loan bonds, requiring banks and firms to provide more transparency by publicly disclosing additional information about them to give investors an accurate idea of the securities’ quality. The rules also give investors more time to review securities offerings.
