Regulation AB
Establishes specific servicing criteria that issuers must adhere to in order to maintain compliance with U.S. securities laws.
What is it?
Regulation AB 1122 is part of the SEC’s framework for asset-backed securities, which establishes specific servicing criteria that issuers must adhere to in order to maintain compliance with U.S. securities laws. It requires that a report be provided by an independent auditor attesting to the compliance of certain servicing practices with the prescribed criteria.
These criteria cover a range of operational and procedural elements, including the management of receivables, payments, and the safeguarding of collateral, among others. The goal of Regulation AB 1122 is to enhance transparency, reliability, and investor confidence in asset-backed securities by ensuring that servicers are following appropriate practices and maintaining effective controls. An audit of these criteria provides critical assurance that your organization is compliant with regulatory standards, which is vital for both investors and regulators.
Our Process
Our approach to Regulation AB 1122 audits is both detailed and efficient, designed to provide the necessary assurance of your compliance while minimizing operational disruptions. The process includes:
1
Initial Consultation & Scoping
We begin by reviewing your ABS structures and related servicing practices, determining the specific scope of the audit to align with the requirements of Regulation AB 1122.
3
Testing & Data Review
We conduct a detailed review and testing of key servicing operations, ensuring they meet the prescribed compliance criteria outlined in Regulation AB 1122.
5
Follow-Up & Remediation Support
Should there be any areas of non-compliance, we offer guidance on remediation and assist with the implementation of necessary changes to meet regulatory standards.
2
Evaluation of Servicing Practices
Our team reviews the relevant servicing criteria to assess whether your practices are in compliance with Regulation AB 1122. This includes analyzing operational processes, internal controls, and documentation.
4
Reporting & Compliance Assessment
After completing the audit, we prepare a comprehensive report documenting our findings, detailing any areas of non-compliance, and providing recommendations for improvement.
Your Deliverables
After completing your Regulation AB 1122 audit, you will receive the following:
Comprehensive Audit Report:
A Comprehensive Audit Report outlines our evaluation of your compliance with the servicing criteria of Regulation AB 1122, including any areas of non-compliance and associated risks.
Recommendations Report:
A Recommendations Report detailing steps to rectify any non-compliance and strengthen internal controls and servicing practices.
Compliance Certification:
A Compliance Certification or opinion that provides assurance on whether your servicing practices align with the requirements of Regulation AB 1122.
Follow-Up Support:
We provide Follow-Up Support to help address any corrective actions and ensure ongoing compliance.
Why Choose NDB?
NDB offers specialized expertise in Regulation AB 1122 audits, with a focus on providing accurate, reliable, and timely assessments that help you navigate the complexities of ABS servicing regulations. Our team is well-versed in the intricacies of asset-backed securities and the regulatory landscape, bringing years of experience in delivering audits that ensure compliance and mitigate risks.
We approach each audit with a meticulous attention to detail, ensuring that all aspects of your servicing practices are thoroughly evaluated and aligned with regulatory standards. By partnering with NDB, you gain a trusted advisor who not only helps you meet your compliance obligations but also provides actionable insights to enhance your operational efficiency and risk management practices.
Key Highlights about NDB:
Expert Team: Certified professionals with extensive experience in compliance and cybersecurity.
Comprehensive Services: Offering a wide range of services, including SOC 1, SOC 2, PCI DSS, ISO 27001, HIPAA, GDPR, CCPA, and more.
Tailored Solutions: Customizing our services to meet the specific needs of various industries and organizational sizes.
Commitment to Excellence: Focused on delivering high-quality services that empower clients to thrive in a complex regulatory environment.
Client-Centric Approach: Prioritizing collaboration and communication to build strong partnerships with our clients.
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