On December 23, 2011, the SEC extended for a second time the comment period on its proposed rule under the Dodd-Frank Act prohibiting certain conflicts of interest in asset-backed securities transactions. This extension coincides with the extension of the comment period on the proposed rules implementing the Volcker Rule and is intended to give the public a better opportunity to consider any potential interplay between the proposed rule and the Volcker Rule (see Legal Update, Agencies Issue Proposed Regulations Implementing the Volcker Rule). The SEC will accept comments until February 13, 2012.

For more information on the proposed rule, see Legal Update, SEC Proposes ABS Conflict of Interest Prohibition under Dodd-Frank.