SIFMA Concerned With SEC Due Diligence Rules for Securitization

Release Date: January 20, 2011 
Contact: Katrina Cavalli, 212.313.1181,   

 SIFMA Concerned With SEC Due Diligence Rules for Securitization    

New York, NY, January 20, 2011–SIFMA today issued the following statement from Richard A. Dorfman, managing director and head of the SIFMA Securitization Group, on SEC Section 945:   

“SIFMA appreciates the efforts of the SEC to bring to a conclusion Section 945 rulemaking on due diligence.  We remain concerned, however, with the expert liability issues which we raised in our comments to the SEC in November. Naming a third party conducting a due diligence review an ‘expert’ creates a liability associated with that designation which could limit the availability of these types of services, effectively preventing and/or limiting access to the valuable due diligence provided by these types of firms.  Also, we continue to believe it is unwise for the SEC to delineate minimum standards for diligence reviews, given the complexity of these activities and existing liability of issuers for prospective disclosure.”     


The Securities Industry and Financial Markets Association (SIFMA) brings together the shared interests of hundreds of securities firms, banks and asset managers.  SIFMA's mission is to support a strong financial industry, investor opportunity, capital formation, job creation and economic growth, while building trust and confidence in the financial markets.  SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA).  For more information, visit 




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In New York:
Katrina Cavalli


 Liz Pierce



In Washington:

Carol Danko

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