United States:
Federal Register: SEC Proposes Exemption To Rating Agency Disclosure Obligations
11 October 2018
Cadwalader, Wickersham & Taft LLP
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The SEC proposed to codify an existing exemption available to
rating agencies with respect to their obligations under conflicts
of interest. The proposal was
published in the Federal Register. Comments must be received by
November 5, 2018.
As
previously covered, the exemptions under
Exchange Act Rule 17g-5(a)(3) would be available only if (i)
the issuer of the relevant security is not a U.S. person and (ii)
the rating agency reasonably believes that all offers and sales of
the instrument will occur outside the United States, in each case
as such terms are defined in
Regulation S under the Securities Act.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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