United States

Regulators Finalize Risk-Retention Rule for ABS

Nov 13, 2014
From the Financial Reporting View and the IFRS Institute

This edition of Defining Issues reports that federal regulators recently published a final risk-retention rule (Final Rule) that requires sponsors of securitized financial assets to retain a minimum of five percent of the credit risk unless certain exceptions are met. The Final Rule implements Section 941 of the Dodd-Frank Act, which is intended to encourage sound underwriting practices and to better align the interests of securitizers with investors in both public and private transactions.

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