V-Rooms Validated for SEC Rule 17g-5 on Structured Financial Products

June 19, 2012

V-Rooms Virtual Data Rooms announced today that it is compliant with SEC Rule 17g-5. V-Rooms Virtual Data Rooms provides a secure, regulation-compliant central document repository for critical information exchange, and will allow rating agencies, arrangers, lawyers, and investors to securely share files, documents and data in compliance with the new SEC rules.

“We are proud to announce that we are fully compliant with SEC Rule 17g-5,” said Karen Perkins, President of V-Rooms Virtual Data Rooms. “V-Rooms is the perfect solution for the additional requirements placed upon structured financial products.”

The recent SEC rule change requires Nationally Recognized Statistical Rating Organizations (NRSRO) and anyone seeking a rating for a structured finance product or security to maintain a password-protected website where all the information is made available to outside NRSROs.

Previously, the issuers of a structured financial product could keep the information in any number of ways, including offline. This lack of a coherent system produced barriers so that fewer NRSROs had access to the information needed to rate the financial product in our marketplace. The SEC made this rule change as a way to remove impediments and thus promote NRSROs who have not been retained by the issuer or arranger of the financial product to also rate it. The rule also requires NRSROs, when conducting their own research into a structured financial product, to make 1 out of every 10 research reports publicly available in the form of a rating. Combined, these two rule changes should increase the number of viewpoints on the financial products of stability, risk, and reward and decrease the likelihood that the only NRSRO to rate a financial product had been compensated by that product for doing so. Those who made the rule change believe it should reduce fraud and bias by increasing the likelihood that all financial players are making decisions with the access to the same information.

“Because V-Rooms provides 24/7/365, password protected, regulation compliant document repository and collaboration solution with online banking level security and full document audit trails, it the perfect solution for compliance with Rule 17g-5,” said Dan Bradbary, CEO of V-Rooms. “V-Rooms provides on-demand, instant access to the files, documents, and data that need to be in your globally distributed teams’ hands but not in front of rest of the word.”

About V-Rooms:

V-Rooms provides a cloud-based, customizable virtual data room (VDR) solution that is designed to streamline document management, collaboration, exchange and archiving for financial, legal and corporate professionals. The V-Rooms Software-As-A-Service (SAAS) secure document portal facilitates the secure exchange of sensitive information providing compliant and auditable transactions. V-Rooms enables the acceleration of complex, information-intensive processes while reducing the time and expenses associated with data distribution, courier, printing and travel. Additional information can be found at http://www.V-Rooms.com.

 

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