In a traditional ABS transaction process, before a final market plan is delivered to investors, term sheets and computational materials regarding the transaction are distributed. Brokers also publish research reports about ABS simultaneously with a newly registered, similar ABS. The SEC has targeted these practices with no-action letters and a specific rule concerning ABS informational and computational materials. The new definition, which encompasses all permissible varieties of materials, allows term sheets to refer to "static pool data," as described under the proposed rules for Disclosure, and states that this pool data concerns only assets that are similar to the newly registered assets, but are not the actual securitized assets themselves. This will highlight the historical performance of assets originated or purchased by an ABS sponsor during specific periods in the past, allowing investors to extrapolate the future potential of the new assets in an ABS offering. Many investors, especially those involved in MBS transactions, have requested the delivery of information pertaining to the originator's previous experience with mortgage loans prior to the issuance of a final prospectus.

The proposed rules also add to the definition that term sheets may reveal the identity of the issuer of an ABS offering, without the inclusion of identities of any other key parties involved. The rules also contend that term sheets are not permitted to include structural information normally included in structural term sheets, such as servicing terms, ratings, legal investment, tax and ERISA information.

The SEC proposes to establish a precedent where a broker's publications of research reports which concern a particular ABS type, while the broker is involved in an offering of a similar ABS, will not be viewed as an illegal offer of that ABS in which the broker is participating.