SEC released two reports on nationally recognized statistical rating organizations (NRSROs), which 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. The report on NRSRO examinations summarizes the 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 identifies applicants for NRSRO registration.
The NRSRO summary report summarizes the findings and recommendations within each of the eight review areas required by statute, which are policies, procedures, and methodologies; management of conflicts of interest; implementation of ethics policies; internal supervisory controls; governance; DCO activities; complaints; and post-employment factors. The report summarizes the examinations conducted by the SEC staff under Section 15E(p)(3) of the Securities Exchange Act of 1934. This regulatory regime was established by the Credit Rating Agency Reform Act of 2006 and amended by the Dodd-Frank Act. The 10 credit rating agencies registered as NRSROs as of November 30, 2018 are A.M. Best Rating Services Inc, DBRS Inc, Egan-Jones Ratings Company, Fitch Ratings Inc, HR Ratings de México S.A. de C.V., Japan Credit Rating Agency Ltd, Kroll Bond Rating Agency Inc, Moody’s Investors Service Inc, Morningstar Credit Ratings LLC, and S&P Global Ratings. Overall, the credit rating agencies registered with SEC continue to promote compliance by enhancing their policies, procedures, and internal controls in response to SEC rules and staff examinations.
Keywords: Americas, US, Banking, Insurance, Securities, CRAs, NRSRO Reports, NRSRO, Dodd Frank Act, SEC
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI published the key findings of a study on third-party risk management.
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.