Form ABS-15G - Supporting Statement.Final

SUPPORTING STATEMENT
FOR THE PAPERWORK REDUCTION ACT INFORMATION COLLECTION
RULE 15Ga-2 and FORM ABS-15G
JUSTIFICATION
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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.
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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

There are no special circumstances.
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

No payment or gift has been provided to any respondents.
10.

Confidentiality

Form ABS-15G is a public document.

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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 March 22, 2023, is provided as a supplemental document and is also
available at https://www.sec.gov/privacy.
12.

Estimate of Respondent Reporting Burden
Estimated Reporting Burden Rule 15Ga-1
Information
Collection Title

OMB
Control
Number

Number of
Responses

Burden
Hours

Form ABS-15G

3235-0675

1,142

23,317

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 1,142 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 23,317 hours (20.4176 hours per response x 1,142 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.

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Estimated Reporting Burden Rule 15Ga-2
Information
Collection Title

OMB
Control
Number

Number of
Responses

Burden
Hours

Form ABS-15G

3235-0675

864

1,839

For just Rule 15Ga-2, Form ABS-15G takes approximately 2.1279 hours per response
and is filed by approximately 864 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 1,839 hours
(2.1279 hours per response x 864 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.
Estimated Reporting Total Burden
Information
Collection Title

OMB
Control
Number

Number of
Responses

Burden
Hours

Form ABS-15G

3235-0675

2,006

25,156

For Rule 15Ga-1 and Rule 15Ga-2 combined, Form ABS-15G takes 16.7205 hours per
response and is filed by approximately 2006 filers. We estimate that 75% of 16.7205 per
response (12.5403 hours) for a total of hours (12.5403 hours per response x 2,006 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.

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13.

Estimate of Total Annualized Cost Burden
Estimated Cost Burden
Information
Collection Title

OMB
Control
Number

Number of
Responses

Cost
Burden

Form ABS-15G

3235-0675

1,142

$4,663,334

For Rule 15Ga-1, we estimate that 25% of 27.2234 hours per response (6.8058 hours) is
prepared by outside counsel. We estimate that it will cost $600 per hour ($600 x 6.8058 hours
per responses x 1,142 responses) for a total of $4,663,334.
We estimate that there is no cost associated for Rule 15Ga-2 because 100% of the burden
is prepared by the filer.
We estimate an hourly cost of $600 for outside legal and accounting services used in
connection with public company reporting. This estimate is based on our consultations with
registrants and professional firms who regularly assist registrants in preparing and filing
disclosure documents with the Commission. Our estimates reflect average burdens, and
therefore, some companies may experience costs in excess of our estimates and some companies
may experience costs that are lower than our estimates. For administrative convenience, the cost
totals have been rounded to the nearest dollar. The cost estimate is made solely for the purpose
of the Paperwork Reduction Act.
14.

Costs to Federal Government

The annual cost of reviewing and processing disclosure documents, including registration
statements, post-effective amendments, proxy statements, annual reports and other filings of
operating companies amounted to approximately $131,724,880 in fiscal year 2023, based on the
Commission’s computation of the value of staff time devoted to this activity and related
overhead.

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15.

Reason for Change in Burden
Estimated Burden Hours and Cost Burden Changes
Information
Collection Title

OMB
Control
Number

Burden Hours
Adjustment

Cost Burden
Adjustment

Form ABS-15G

3235-0675

5,709

$2,194,172

The increase of $2,194,172 in cost burden and the increase of 5,709 in burden
hours are due to adjustments. The increase in cost burden is due to a change in how the
Commission calculates the cost burden. The increase in burden hours is due to increase in
the number of issuers filing Form ABS-15G.
16.

Information Collection Planned for Statistical Purposes

The information collection is not planned for statistical purposes.
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.
18.

Exceptions to Certification for Paperwork Reduction Act Submission

There are no exceptions to certification for Paperwork Reduction Act submissions.

STATISTICAL METHODS
The information collection does not employ statistical methods.

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