SEC floats new rule to prevent conflict of interest in ASB trading

A rule amendment aimed at preventing the sale of asset-back securities (ASB) that are tainted by conflicts of interest has been proposed by the SEC.

The change would be an implementation of Section 27B of the Securities Act of 1933, a provision added by Section 621 of the Dodd-Frank Act. The proposal will be open for comment for 60 days following publication on the SEC website, and would take the form of new Securities Act Rule 192.

The SEC

Free Trial

Register for free to keep reading.

To continue reading this article and unlock full access to GRIP, register now. You’ll enjoy free access to all content until our subscription service launches in early 2026.

  • Unlimited access to industry insights
  • Stay on top of key rules and regulatory changes with our Rules Navigator
  • Ad-free experience with no distractions
  • Regular podcasts from trusted external experts
  • Fresh compliance and regulatory content every day
Register for free Already a member? Sign in