SEC Problems Report on Examination Findings of Credit History Agencies

On December 23, the SEC circulated its yearly staff report in the findings of exams of credit score agencies registered as nationally recognized rating that is statistical (NRSROs). The SEC must examine each NRSRO at least once per year and provide a report summarizing its findings as required by the Dodd-Frank Act. The staff recommended NRSROs improve a number of areas, including (i) the use of affiliates or third-party contractors in the credit rating process, (ii) management of conflicts of interest related to the rating business operations, and (iii) adherence to policies and procedures for determining or reviewing credit ratings as a result of the examinations. In addition, the agency issued a report that is separate Congress regarding the state of competition, transparency, and disputes of great interest among NRSROs. Continue reading