SEC Publishes Two Reports on Credit Rating Agencies Showing Continued Focus on Compliance and Competition
No fraud or enforcement action is described in the SEC's 2018 annual report on NRSROs; instead, it details routine compliance improvements, self-reported noncompliance, and ongoing oversight efforts with no allegations, penalties, or dollar amounts cited.
The SEC's 2018 annual report on Nationally Recognized Statistical Rating Organizations (NRSROs) highlights sustained improvements in policies, procedures, and internal controls by rating agencies in response to prior regulatory recommendations. No fraud, misconduct, financial penalties, or charges are mentioned; instead, the report notes self-reporting of noncompliance by some firms and ongoing competition among agencies. The SEC staff, under Director Jessica S. Kane, emphasizes risk-based examinations across eight statutory review areas to protect investors, while also listing contributors and new NRSRO applicants.
The SEC's 2018 annual report on Nationally Recognized Statistical Rating Organizations (NRSROs) is a routine compliance and oversight document, not an enforcement or fraud case. It affirms that NRSROs have maintained improvements in policies, procedures, and internal controls since prior regulatory recommendations, with some firms voluntarily self-reporting instances of noncompliance. The report assesses competition, transparency, and conflicts of interest across the industry, but cites no specific instances of fraud, financial misconduct, or penalties. Director Jessica S. Kane of the SEC’s Office of Credit Ratings emphasized that examinations are risk-based to ensure effective investor protection. The document also outlines findings across eight statutory review areas mandated by law and identifies new applicants seeking NRSRO registration. A comprehensive list of 32 SEC staff members who contributed to the 2018 examinations and reports is included, underscoring the administrative and supervisory nature of the publication. There are no allegations of wrongdoing, no dollar amounts involved, and no legal consequences reported—only observations on industry practices and regulatory progress.
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- person jessica s. kane
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- agency the following sec staff
- Credit Rating Agencies Continue To Promote Compliance
- Credit Rating Agencies Enhance Policies, Procedures, And Internal Controls
- Sec Staff Release Reports On Nationally Recognized Statistical Rating Organizations (Nrsros)
- Some Firms Self-Report Instances Of Noncompliance
- Some Smaller Firms Continue To Compete With The Larger Firms In Certain Rating Categories
- Jessica S. Kane Say Nrsros Have Maintained The Improvements That They Implemented In Prior Years In Response To The Staff's Recommendations
- Sec Assess Potential Risks At Each Nrsro When Determining Areas To Examine
- Sec Provide The Most Effective Oversight For The Protection Of Investors
- The Report On Nrsro Examinations Summarize The Staff’s Findings And Recommendations Within Each Of The Eight Review Areas Required By Statute
- The Annual Report On Nrsros Discuss The State Of Competition, Transparency, And Conflicts Of Interest Among The Firms
- The Annual Report On Nrsros Identify Applicants For Nrsro Registration
- The Following Sec Staff Contribute To The 2018 Examinations And Reports
Credit rating agencies registered with the SEC continue to promote compliance by enhancing their policies, procedures, and internal controls in response to Commission rules and staff examinations. SEC staff reports released today on nationally recognized statistical rating organizations (NRSROs) show that some firms are self-reporting instances of noncompliance and some smaller firms are continuing to compete with the larger firms in certain rating categories. "NRSROs have maintained the improvements that they implemented in prior years in response to the staff's recommendations," said Jessica S. Kane, Director of the SEC's Office of Credit Ratings. "We continue to assess potential risks at each NRSRO when determining areas to examine so that we provide the most effective oversight for the protection of investors." The report on NRSRO examinations summarizes the staff’s findings and recommendations within each of the eight review areas required by statute. The annual report on NRSROs discusses the state of competition, transparency, and conflicts of interest among the firms and also identifies applicants for NRSRO registration. The following SEC staff contributed to the 2018 examinations and reports: Diane Audino, Michael Bloise, Sondra Boddie, Rita Bolger, Patrick Boyle, Aaron Byrd, Roseann Catania, Kristin Costello, Doreen Crawford, Scott Davey, Jill Flory, Ilya Fradkin, William Garnett, Kenneth Godwin, Michael Gonzalez, Barry Huang, Julia Kiel, Russell Long, Chichita Nickens, Sam Nikoomanesh, Kevin O’Neill, Harriet Orol, Abraham Putney, Jeremiah Roberts, Mary Ryan, Cynthia Sargent, Charles Schiller, Andrew Smith, Alexa Strear, Warren Tong, Evelyn Tuntono, Chris Valtin, Kevin Vasel, Andrew Vita, and Michele Wilham.
Credit rating agencies registered with the SEC continue to promote compliance by enhancing their policies, procedures, and internal controls in response to Commission rules and staff examinations. SEC staff reports released today on nationally recognized statistical rating organizations (NRSROs) show that some firms are self-reporting instances of noncompliance and some smaller firms are continuing to compete with the larger firms in certain rating categories. "NRSROs have maintained the improvements that they implemented in prior years in response to the staff's recommendations," said Jessica S. Kane, Director of the SEC's Office of Credit Ratings. "We continue to assess potential risks at each NRSRO when determining areas to examine so that we provide the most effective oversight for the protection of investors." The report on NRSRO examinations summarizes the staff’s findings and recommendations within each of the eight review areas required by statute. The annual report on NRSROs discusses the state of competition, transparency, and conflicts of interest among the firms and also identifies applicants for NRSRO registration. The following SEC staff contributed to the 2018 examinations and reports: Diane Audino, Michael Bloise, Sondra Boddie, Rita Bolger, Patrick Boyle, Aaron Byrd, Roseann Catania, Kristin Costello, Doreen Crawford, Scott Davey, Jill Flory, Ilya Fradkin, William Garnett, Kenneth Godwin, Michael Gonzalez, Barry Huang, Julia Kiel, Russell Long, Chichita Nickens, Sam Nikoomanesh, Kevin O’Neill, Harriet Orol, Abraham Putney, Jeremiah Roberts, Mary Ryan, Cynthia Sargent, Charles Schiller, Andrew Smith, Alexa Strear, Warren Tong, Evelyn Tuntono, Chris Valtin, Kevin Vasel, Andrew Vita, and Michele Wilham.