FR 2021-02960

The document in question is a notice from the Securities and Exchange Commission (SEC), inviting public feedback on its collection of information for Form ABS-EE. Under the Paperwork Reduction Act of 1995, the SEC is required to assess the necessity and accuracy of information collection tools like Form ABS-EE, which asset-backed issuers must file to report details about asset-backed securities. This form is crucial for ensuring transparency in the asset-backed securities market. The SEC estimates a significant annual filing activity with 13,374 submissions, demanding a considerable 170,089 hours of effort from respondents.

Summary

The SEC seeks public commentary to ensure that the information collected through Form ABS-EE is both practical and useful. This move is part of a regulatory obligation to ease the administrative burden on respondents while maintaining the quality and effectiveness of disclosures. The agency aims to gather viewpoints on the necessity of the form, the accuracy of the burden estimates, and suggestions for reducing respondent efforts. Comments are requested within a 60-day period.

Significant Issues or Concerns

One noticeable issue is the high estimated annual burden of 170,089 hours for filing Form ABS-EE. Such a substantial amount of time raises questions about possible inefficiencies in the process or the complexity of the form itself. Further clarification and justification from the SEC could provide transparency and confidence in these estimates.

Moreover, the document could benefit from simpler language, particularly concerning the Paperwork Reduction Act, to ensure that non-specialist readers understand the purpose and implications of the notice. This is important because the participation of a diverse audience in the commentary process depends on their comprehension of the technical details involved.

Impact on the Public

For the general public, particularly those investing in asset-backed securities, this form supports transparency by necessitating detailed disclosures from issuers. The SEC’s call for comments provides an opportunity for public involvement in shaping how these disclosures are made, potentially leading to more streamlined and understandable information.

However, if the current reporting burdens are indeed excessive, affected parties may face increased costs and administrative hassles which could, indirectly, affect the pricing or availability of asset-backed securities products for consumers.

Impact on Specific Stakeholders

Issuers of asset-backed securities are the most immediate stakeholders. The high time and potential financial burden associated with completing Form ABS-EE can influence their operational costs. The 25% of burden hours estimated to be carried internally by these companies suggests a significant internal resource allocation for compliance.

For regulatory and oversight bodies, ensuring these burdens are appropriate is crucial for maintaining a fair, transparent market without stifling economic activities. Feedback from the public and industry experts can be invaluable in achieving a balanced approach that safeguards transparency while minimizing unnecessary complexity or costs.

Overall, this notice serves as a foundational step in refining regulatory processes and ensuring they meet the evolving needs of all stakeholders involved. The SEC’s openness to comment reflects a willingness to adapt and improve its methods, which is a positive governance practice.