The International Organization of Securities Commissions’ technical committee has published a consultation paper on disclosure principles for public offerings and listings of asset-back
The International Organization of Securities Commissions’ technical committee has published a consultation paper on disclosure principles for public offerings and listings of asset-backed securities.
The committee has developed the principles to provide guidance to securities regulators who are developing or reviewing their regulatory disclosure regimes for public offerings and listings of asset-backed securities.
The principles will apply to listings and public offerings of ABS, defined as those securities that are primarily serviced by the cash flows of a discrete pool of receivables or other financial assets-either fixed or revolving-that by their terms convert into cash within a finite period of time.
The principles are based on the premise that the issuing entity will prepare a document used for a public offering or listing of ABS that will contain all material information, clearly presented, that is necessary for full and fair disclosure of the character of the securities being offered or listed in order to assist investors in making their investment decision. These would not apply to securities backed by asset pools that are actively managed (such as securities issued by investment companies or collateralized debt obligations) or that contain assets that do not by their terms convert to cash.
The disclosure topics highlighted in the ABS Disclosure Principles are intended as a starting point for consideration and analysis by securities regulators.
