NABL says munis should be excluded from SEC's proposed rules related to asset-backed securities

By Lisa Kerner

Charlotte, N.C., Nov. 22 - The National Association of Bond Lawyers said it has "fundamental concerns" with the Securities and Exchange Commission's proposed rules regarding asset-backed securities as they apply to the municipal securities market.

According to NABL, municipal securities should not be covered under the SEC's proposed rules because inclusion is not needed to achieve the purposes of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

The inclusion of municipal securities under the proposed rules will not offer investors in them additional protection and will "unduly burden municipal securities issuers," NABL said in its comments to the SEC.

NABL made its comments in response to the SEC's request for comments on its releases 33-9148 and 34-63029 (File No. S7-24-10) and 33-9150 and 34-63091 (File No. S7-26-10).

The SEC sought feedback related to its proposal to implement Section 943 of the Dodd-Frank Wall Street Reform and Consumer Protection Act relating to representations and warranties in asset-backed securities offerings.

In addition, the SEC solicited comments on a proposed rule requiring that issuers and underwriters of asset-backed securities file a disclosure form relating to the findings and conclusions of third-party due diligence providers.

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