FACTBOX: Regulatory action in securitized products

(Reuters) - A global market regulatory body on Thursday published its analysis of the U.S. subprime mortgages crisis that led to a global credit squeeze.

The report by the International Organisation of Securities Commissions focused on specific market failings in securitized products that were tied to U.S. home loans on which defaults triggered a global credit crunch.

The report is part of a wider response by leading economies and regulators to apply lessons learned from the subprime crisis.

IOSCO said it would take the following actions covering transparency, risk management, and valuation and accounting in securitized products:

TRANSPARENCY

-- consult with market participants regarding the typical structures and disclosure practices for private placements of asset-backed securities to determine the degree to which these practices are as developed as they are for publicly traded asset-backed securities;

-- develop international principles regarding disclosure requirements for these securities if IOSCO finds that existing standards and principles are inapplicable to such offerings

-- review the degree that investment managers who offer collective investment schemes to retail investors have invested in structured products, the type of due diligence typically conducted when making these investments and the degree to which these investment managers have been affected by the current market turmoil;

-- examine the viability of a secondary market reporting system for different types of structured finance products.