In a recent speech (here), SEC Chairwoman Mary Shapiro urged greater regulation and legislation of Asset Backed Securities because there are "gaps" in regulation of ABS. The current disclosure-based regime was designed to deal with issuers in actively-managed businesses, Shapiro said, which are not as suitable for ABS, which are less liquid, and are based on underlying pooled assets. On the legislative front, Shapiro envisioned an entirely new act directed solely at securitizations, which would allow Congress to "specifically tailor solutions for these investment vehicles, much like the Investment Company Act of 1940" -- the law specifically directed at mutual funds. Although her speech lacked specifics, Shapiro stated that "[s]uch a statute could set minimum requirements for the pooling and servicing agreements, such as requiring strong representations and warranties about the assets being securitized and procedures for ensuring those representations and warranties are followed. That's in addition to the disclosure requirements of the Securities Act, which would continue to apply when ABS securities were offered and sold."