The SEC, along with five other federal agencies, has jointly issued a final statement on the complex structured finance transactions (CSFTs) of financial institutions. The statement describes the types of internal controls and risk management procedures that are designed to help financial institutions identify, manage, and address the heightened legal and reputation risks that may arise from certain CSFTs.

Besides the SEC, the final statement was issued by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision. The final statement takes a risk- and principles-based approach to addressing the risks CSFTs may pose to institutions and focuses on those CSFTs that may present elevated levels of legal or reputational risk to institutions.