Financial Times FT.com

Watchdog proposes strict rules

By Jennifer Hughes

Published: May 5 2009 22:11 | Last updated: May 5 2009 22:11

Originators of securitised products will have to take much more care over exactly what goes into the bundles of loans – and be able to prove to investors that the due diligence has been carried out, under proposals put forward by senior regulators.

The measures were part of preliminary suggestions published on Tuesday by the International Organisation of Securities Commissions, which draws together all the main national securities regulators.

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