Significant Concerns about Credit Risk Transfers (CRTs) under SEC Proposed Rule 192

(Prohibition Against Conflicts of Interest in Certain Securitizations)

Securitization participants should take note of the US Securities and Exchange Commission’s (“SEC”) proposed Rule 192, which prohibits them from engaging in any transaction that would involve or result in a material conflict of interest with investors. This Legal Update discusses significant concerns about whether SPE CRT Transactions are “conflicted transactions” under the rule.

The deadline for comments on proposed Rule 192 is March 27, 2023.