In two newly released reports, SEC staff concluded that nationally recognized statistical rating organizations ("NRSROs") continue to promote compliance with SEC rules and staff examinations. This conclusion is based on the NRSROs' enhanced "policies, procedures, and internal controls."
The SEC found that some NRSROs self-reported instances of noncompliance. SEC staff also noted that certain NRSROs were not adhering to their policies and procedures for:
- determining ratings;
- Rule 17g-7(a) information disclosures;
- "surveillance or withdrawals of outstanding ratings";
- conflicts of interest, such as the "potential influence on an analyst by business considerations";
- the "protection of MNPI such as pending ratings and non-public information obtained to determine ratings";
- "documentation, record retention, and production of records to examination Staff";
- Form ABS Due Diligence-15E disclosures; and
- internal audit reports.
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