RULE 15Ga-2 AND FORM ABS-15G Supporting Statement Extension 2018

SUPPORTING STATEMENT
FOR THE PAPERWORK REDUCTION ACT INFORMATION COLLECTION
SUBMISSION FOR RULE 15Ga-2 AND FORM ABS-15G
JUSTIFICATION
1

Circumstances Making the Collection of Information Necessary

The Securities and Exchange Commission (the “Commission”) adopted amendments to
certain rules and form requirements to implement Section 943 of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (“the Act”) relating to asset-backed securities (“ABS”).
The amendments are designed to implement the requirements of Section 943 of the Act by
providing investors with information regarding the use of representations and warranties in the
ABS markets.
“Form ABS-15G” is a collection of information created by Rule 15Ga-1. Form ABS15G contains disclosures required by Rule 15Ga-1 that require securitizers to provide disclosure
regarding fulfilled and unfulfilled repurchase requests with respect to asset-backed securities, as
required by the Act (“Exchange Act-ABS”).
On August 27, 2014, the Commission adopted Rule 15Ga-2 and amendments to Form
ABS-15G. Rule 15Ga-2 requires an issuer or underwriter of certain Exchange Act-ABS that are
to be rated by an NRSRO to furnish a Form ABS-15G on the Commission’s Electronic Data
Gathering, Analysis, and Retrieval (“EDGAR”) system containing the findings and conclusions
of any third-party due diligence report obtained by the issuer or underwriter at least five business
days prior to the first sale in the offering. Rule 15Ga-2 contains the requirements for disclosure
that an issuer or underwriter must provide in Form ABS-15G; the collection of information
requirements, however, is reflected in the burden hours estimated for Form ABS-15G.
2.

Purpose and Use of the Information Collection

The purpose of the collection of information is to implement the disclosure requirements
of Section 943 of the Act to provide information regarding the use of representations and
warranties in the ABS markets.
The purpose of Rule 15Ga-2 and the amendments to Form ABS-15G is to implement
Section 15E(s)(4)(A) of the Exchange Act as added by Section 932 of the Dodd-Frank Act.
Section 15E(s)(4)(A) of the Exchange Act requires the issuer or underwriter of any Exchange
Act-ABS to make publicly available the findings and conclusions of any third-party due diligence
report obtained by the issuer or underwriter.
Users of credit ratings who may or may not be investors may use the information
disclosed about third-party due diligence services on Form ABS-15G pursuant to Rule 15Ga-2 to
evaluate the adequacy and level of the reviews of the assets underlying an Exchange Act-ABS
performed by the third party.
1

3.

Consideration Given to Information Technology

Form ABS-15G is filed electronically using the Commission’s Electronic Data
Gathering, Analysis, and Retrieval (EDGAR) System.
4.

Duplication of Information

We are not aware of any rules that conflict with or substantially duplicate the
requirements of Form ABS-15G.
5.

Reducing the Burden on Small Entities

Form ABS-15G has little impact on small entities since issuers who qualify as a “small
business” or a “small organization” under the Securities Act and Exchange Act rarely, if ever,
are securitizers which are subject to the rule.
6.

Consequences of Not Conducting Collection

The objectives of offering disclosure requirements under the Securities Act and the
ongoing disclosure requirements under the Exchange Act could not be met with less frequent
collection of this information for asset-backed securities.
7.

Special Circumstances

Not applicable.
8.

Consultations with Persons Outside the Agency

No comments were received on this request during the 60-day comment period prior to
OMB’s review of this submission.
9.

Payment or Gift to Respondents

Not applicable.
10.

Confidentiality

Form ABS-15G is a public document.

2

11.

Sensitive Questions

No information of a sensitive nature, including social security numbers, will be required
under this collection of information. The information collection collects basic Personally
Identifiable Information (PII) that may include: name, address and zip code. However, the
agency has determined that the information collection does not constitute a system of record for
purposes of the Privacy Act. Information is not retrieved by a personal identifier. In accordance
with Section 208 of the E-Government Act of 2002, the agency has conducted a Privacy Impact
Assessment (PIA) of the EDGAR system, in connection with this collection of information. The
EDGAR PIA, published on January 29, 2016, is provided as a supplemental document and is
also available at https://www.sec.gov/privacy.
12.

Estimate of Respondent Reporting Burden

Form ABS-15G is a collection of information required by Rules 15Ga-1 and 15Ga-2
under the Exchange Act. For just Rule 15Ga-1, Form ABS-15G takes approximately 27.2234
hours per response and is filed by approximately 907 respondents. We estimate that 75% of the
27.2234 hours per response (20.4176 hours) is prepared by the filer for a total annual reporting
burden of 18,519 hours (20.4176 hours per response x 907 responses). For administrative
convenience, the presentation of the totals related to the paperwork burden hours have been
rounded to the nearest whole number. The burden estimate for the hours is made solely for the
purpose of the Paperwork Reduction Act.
For just Rule 15Ga-2, Form ABS-15G takes approximately 2.1279 hours per response
and is filed by approximately 436 respondents. We estimate that 100% of the 2.1279 hours per
response (2.1279 hours) is prepared by the filer for a total annual reporting burden of 928 hours
(2.1279 hours per response x 436 responses). For administrative convenience, the presentation
of the totals related to the paperwork burden hours have been rounded to the nearest whole
number. The burden estimate for the hours is made solely for the purpose of the Paperwork
Reduction Act.
For Rule 15Ga-1 and Rule 15Ga-2 combined, Form ABS-15G takes 19.307 hours per
response and is filed by approximately 1,343 filers. We estimate that 75% of 19.307 per
response (14.48 hours) for a total of 19,447 hours (14.48 hours per response x 1,343 responses).
We derived our burden hour estimates by estimating the average number of hours it would take
an issuer to compile the necessary information and data, prepare and review disclosure, file
documents and retain records. We believe that the actual burdens will likely vary among
individual filers based on the nature of their operations. For administrative convenience, the
presentation of the totals related to the paperwork burden hours have been rounded to the nearest
whole number. The burden estimate for the hours is made solely for the purpose of the
Paperwork Reduction Act.

3

13.

Estimate of Total Annualized Cost Burden

Rule 15Ga-1 and Form ABS-15G – We estimate that 25% of 27.2234 hours per response
is (6.8058 hours) is prepared by outside counsel. We estimate that it will cost $400 per hour
($400 x 6.8058 hours per responses x 907 responses) for a total of $2,469,162.
We estimate that there is no cost associated with this Rule 15Ga-2 and Form ABS-15G
because 100% of the burden is prepared by the filer.
We derived our burden hour estimates by estimating the average number of hours it
would take a filer to compile the necessary information and data, prepare and review disclosure,
file documents and retain records. We believe that the actual burdens will likely vary among
individual filers based on the nature of their operations. For administrative convenience, the
presentation of the totals related to the paperwork burden hours have been rounded to the nearest
whole number. The burden estimate for the hours is made solely for the purpose of the
Paperwork Reduction Act.
14.

Costs to Federal Government

We estimate that the cost of administering Rule 15Ga-2 and Form ABS-15G is
approximately $1,000.
15.

Reason for Change in Burden

The decrease in burden of 9,006 hours and the increase in cost burden of $264,067 is due
to an adjustment in the way the Commission calculated the burden for Rule 15Ga-2 and Form
ABS-15G. Also, an adjustment was made to the burden because of the decrease of filers using
Rule 15Ga-2 and Form ABS-15G. In addition, Rule15Ga-1 and Form ABS-15G had a one-time
reporting requirement which expired as of February 14, 2012, resulting in a decrease of 11,200
burden hours. However, there was increase of 213 burden hours for Rule 15Ga-2 and Form
ABS-15G due to increase in the number of filers using the requirement.
16.

Information Collection Planned for Statistical Purposes

Not applicable.
17.

Approval to Omit OMB Expiration Date

We request authorization to omit the expiration date on the electronic version of the form.
Including the expiration date on the electronic version of the form will result in increased costs,
because the need to make changes to the form may not follow the application’s scheduled
version release dates. The OMB control number will be displayed.

4

18.

Exceptions to Certification for Paperwork Reduction Act Submission

Not applicable.

STATISTICAL METHODS
Not applicable.

5