The SEC has delayed adoption of its "Regulation AB II" (Reg AB II) proposals for asset-backed securities (ABS), which were expected to be approved earlier this month. The action comes in response to public comments the SEC received on the proposals expressing concern regarding potentially sensitive data that would be publicly disseminated as part of the required ABS asset-level disclosures under Reg AB II. Instead, the SEC has proposed an alternate approach to ABS asset-level disclosures and announced that it has re-opened the comment period until March 28, 2014 on the following Reg AB II proposals:

Update: On February 25, 2014, the SEC re-opened the comment period and is now accepting comments until April 28, 2014.

The alternative approach proposed by the SEC for disclosure of asset-level information to ABS investors and potential investors aims to balance the goal of greater investor protection found in these previous Reg AB II proposals with privacy concerns. Under the SEC's new proposal, asset-level information that does not raise a privacy concern would be filed on EDGAR as described in the 2010 ABS Proposing Release. Potentially sensitive asset-level disclosures that raise privacy concerns would be made available to investors and potential investors on a private issuer-sponsored website. Information such as geographic locations, specific credit scores and income and debt amounts of borrowers would be disclosed on the private website in order to provide greater information on the quality of loans and other assets in the securitized asset pool while still restricting access to potentially sensitive information.

Regulation AB is a framework of SEC ABS disclosure rules that became effective in March 2005 and continues to govern ABS disclosure today. Reg AB II would require more extensive ABS disclosure and other requirements in order for ABS to qualify for expedited SEC registration. For more details on Reg AB II, see Practice Note, Summary of the Dodd-Frank Act: Securitization: The SEC's Proposed ABS Shelf Registration Eligibility Requirements: Reg AB II.