SFA’s Commentary on SEC’s Proposed Conflict of Interest Rule

The Structured Finance Association (SFA) submitted two comment letters to the Securities and Exchange Commission (SEC) regarding the re-proposed rule on the Prohibition Against Conflicts of Interests in Certain Securitizations. The first letter, dated March 27, 2023, outlined initial concerns about the rule’s broad impact and ambiguities. In a follow-up letter dated July 13, 2023, SFA presented recommended amendments aimed at aligning the rule to protect investors while ensuring the healthy functioning of asset-backed security (ABS) and broader financial markets. These recommendations reflect SFA’s consensus-building approach among its diverse membership base, emphasizing the need for a balanced regulatory framework.