A pragmatic tone hung over last week's American Securitization Forum gathering, as panelists and audience members addressed concerns about impact of the recently passed Sarbanes-Oxley Act on securitization markets in the coming year. While single-party certification is a central concern, there is hope is that the Securities & Exchange Commission will recognize a "reasonable reliance" safe harbor standard for the entity (read individual) that puts its signature and its neck on the line by certifying the accuracy of statements based on information from third parties.
"The SEC believes that the congressional mandate is clear - to have one party certify to the accuracy of financial statements but in securitizations there are multiple parties, each with different liabilities and asset information for transactions," said ASF Executive Director Dwight Jenkins. "The good news is that the Commission reached out to the ASF for industry input." The U.S. Senate approved the Act by a 97-0 margin, with three abstentions.