A Call for Diligent Due Diligence
The SEC has adopted new rules related to NRSROs (nationally recognized statistical rating organizations) originally proposed in May 2011. Among other things, the rules will require issuers and underwriters of asset-backed securities that are rated by NRSROs to provide a form on EDGAR to describe any third-party due diligence report obtained. The rules contain broad definitions that will be implemented nine months after being published in the Federal Register. [9/3/14]