- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2023-11-28T14:25:00
The Securities and Exchange Commission (SEC) moved quickly to adopt an unfulfilled mandate of the Dodd-Frank Act to prevent the sale of certain securities if there is a conflict of interest.
The rule, finalized Monday, was reintroduced for comment in January after not being acted upon since it was first put forward in 2011. It will take effect 60 days after publication in the Federal Register.
The rule establishes Securities Act Rule 192, which “prohibits a securitization participant, for a specified period of time, from engaging, directly or indirectly, in any transaction that would involve or result in any material conflict of interest between the securitization participant and an investor in the relevant ABS (asset-backed securities),” said the SEC in a press release. The prohibition will remain in place for one year after the ABS’s first sale.
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