SEC Drafts Guidelines for Asset-Backed Securities' Sale
Borja, Ryan G., Manila Bulletin
The Securities and Exchange Commission (SEC) has set the guidelines for the registration of the asset-backed securities.
Asset-backed securities means securities which represent an undivided ownership interest and the right of the holder to receive payments from the proceeds expected to be derived from the assets forming the asset pool, under the Securities Regulation Code (SRC).
In a draft of the revised rules, the corporate regulator said that only asset-backed securities registered with the SEC in accordance with the SRC and applicable commission rules will be allowed to be offered or sold to the public.
Executive order 318 signed by the president on November 17 orders the government agencies concerned, including the SEC, to develop a legal and regulatory framework which will accelerate the issuance and sale of asset-backed securities.
Specifically, the EO ordered the Department of Finance, the Bureau of Internal Revenue, the Housing and Urban Development Coordinating Council, as well as SEC, to form top level teams to work on the administrative and regulatory framework for the development of a market for asset-backed securities, in consultation with the private sector.
Accordingly, in the guidelines that it issued, the SEC said that no exemption from registration requirement will be granted when solely the reason laid is that assets in the asset pool are themselves securities exempt from registration under the SRC. …