Document ID: SEC-2012-0002-0001
Agency: sec
Document Type: Proposed Rule
Title: Prohibition Against Conflicts of Interest in Certain Securitizations
Posted Date: 2012-01-03T05:00Z

[Federal Register Volume 77, Number 1 (Tuesday, January 3, 2012)]
[Proposed Rules]
[Pages 24-25]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-33614]

=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

17 CFR Part 230

[Release No. 34-66058; File No. S7-38-11]
RIN 3235-AL04

Prohibition Against Conflicts of Interest in Certain 
Securitizations

AGENCY: Securities and Exchange Commission.

ACTION: Proposed rule; extension of comment period.

-----------------------------------------------------------------------

SUMMARY: The Securities and Exchange Commission is extending the 
comment period for a release proposing a new rule to implement Section 
621 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 
2010 (the ``Dodd-Frank Act'') on material conflicts of interest in 
connection with certain securitizations (the ``ABS Conflicts 
Proposal''). The original comment period for the ABS Conflicts Proposal 
was scheduled to end on December 19, 2011. On December 13, 2011, the 
comment period was extended until January 13, 2012. Today, the 
Commission is again extending the time period in which to provide the 
Commission with comments on the ABS Conflicts Proposal until February 
13, 2012. This action will allow interested persons additional time to 
analyze the issues and prepare their comments.

DATES: Comments should be received on or before February 13, 2012.

ADDRESSES: Comments may be submitted by any of the following methods:

Electronic Comments

    Use the Commission's Internet comment form (http://www.sec.gov/rules/proposed.shtml);
     Send an email to rule-comments@sec.gov. Please include 
File Number S7-38-11 on the subject line; or
     Use the Federal Rulemaking Portal (http://www.regulations.gov). Follow the instructions for submitting comments.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number S7-38-11. This file number 
should be included on the subject line if email is used. To help us 
process and review your comments more efficiently, please use only one 
method. The Commission will post all comments on the Commission's 
Internet Web site (http://www.sec.gov/rules/proposed.shtml). Comments 
are also available for Web site viewing and printing in the 
Commission's Public Reference Room, 100 F Street NE., Washington, DC 
20549, on official business days between the hours of 10 a.m. and 3 
p.m. All comments received will be posted without change; we do not 
edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly.

FOR FURTHER INFORMATION CONTACT: Elizabeth Sandoe, Senior Special 
Counsel, Anthony Kelly, Special Counsel, or Barry O'Connell, Attorney 
Advisor, Office of Trading Practices, Division of Trading and Markets, 
at (202) 551-5720, and David Beaning, Special Counsel and Katherine 
Hsu, Chief, Office of Structured Finance, Division of Corporation 
Finance, at (202) 551-3850.

SUPPLEMENTARY INFORMATION: The Commission has requested comment on 
Proposed Rule 127B under the Securities Act of 1933 (``Securities 
Act'') in the ABS Conflicts Proposal to implement Section 621 of the 
Dodd-Frank Act.\1\ Proposed Rule 127B under the Securities Act would 
prohibit certain persons who create and distribute an asset-backed 
security, including a synthetic asset-backed security, from engaging in 
transactions, within one year after the date of the first closing of 
the sale of the asset-backed security, that would involve or result in 
a material conflict of interest with respect to any investor in the 
asset-backed security. The proposed rule also would provide exceptions 
from this prohibition for certain risk-mitigating hedging activities, 
liquidity commitments, and bona fide market-making. The ABS Conflicts 
Proposal was published in the Federal Register on September 28, 2011.
---------------------------------------------------------------------------

    \1\ Exchange Act Release No. 34-65355 (September 19, 2011), 76 
FR 60320 (September 28, 2011).
---------------------------------------------------------------------------

    The Commission originally requested that comments on the ABS 
Conflicts Proposal be received by December 19, 2011, including comment 
about any potential interplay \2\ between Proposed Rule 127B and the 
``Volcker Rule Proposal.'' \3\ The Volcker Rule Proposal would 
implement Section 619 of the Dodd-Frank Act concerning prohibitions and 
restrictions on proprietary trading and certain interests in, and 
relationships with, hedge funds and private equity funds. The original 
comment period for the Volcker Rule Proposal was scheduled to end on 
January 13, 2012.
---------------------------------------------------------------------------

    \2\ See, e.g., 76 FR 60320, 60341.
    \3\ Exchange Act Release No. 34-65545 (October 12, 2011), 76 FR 
68846 (November 7, 2011).
---------------------------------------------------------------------------

    On December 13, 2011, the Commission extended the ABS Conflicts 
Proposal comment period from December 19, 2011 to January 13, 2012 to 
coincide with the end of the comment period for the Volcker Rule 
Proposal. The Commission extended the Volcker Rule Proposal comment 
period until February 13, 2012.\4\ In an effort to provide the public 
with a better opportunity to consider any potential interplay between 
the ABS Conflicts and Volcker Rule Proposals, the Commission is also 
extending the ABS Conflicts Proposal comment period until February 13, 
2012.
---------------------------------------------------------------------------

    \4\ Exchange Act Release No. 34-66057.
---------------------------------------------------------------------------

    The Commission has determined to provide the public additional time 
to consider simultaneously the ABS Conflicts and the Volcker Rule 
Proposals. This extended opportunity to submit comprehensive comments 
regarding the ABS Conflicts Proposal and any potential interplay with 
the Volcker Rule Proposal would benefit the Commission in its 
consideration of any final rules. Therefore, the Commission is again 
extending the comment period for the ABS Conflicts Proposal until 
February 13, 2012 to coincide with the

[[Page 25]]

---------------------------------------------------------------------------
end of the Volcker Rule Proposal comment period.

    By the Commission.

    Dated: December 23, 2011.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2011-33614 Filed 12-30-11; 8:45 am]
BILLING CODE 8011-01-P