Representatives Huizenga and Wagner and Senator Kennedy, Write to SEC on Re-Proposed Rule on Conflicts of Interest in Securitizations

On March 24, Representatives Ann Wagner (R-MO) and Bill Huizenga (R-MI) submitted a letter to the Securities and Exchange Commission (SEC), on their recently re-proposed rule on the “Prohibition of Conflicts of Interest in Securitizations.” A similar letter was sent by Senator John Kennedy (R-LA) on March 27. The letters noted that due to the significant scope of the rule on securitization markets, the Commission should extend their comment period to at least 90 days to allow adequate time for response and to avoid potential unintended market consequences. The letters also expressed concern over the proposal’s broad scope, sweeping definition of “Covered Persons,” and the lack of clarity around what constitutes “conflicted transactions.” Despite the congressional requests, the SEC did not extend the comment period.

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