Securities and Exchange Commission Report to Congress on Assigned Credit Ratings for Structured Finance Products


Recently the Staff of the Division of Trading and Markets (the “Staff”) of the U.S. Securities and Exchange Commission (the “Commission”) published a report to Congress outlining the findings from the study the Commission was required to conduct by Section 939F of the Dodd-Frank Act (the “Report”).

The Commission was directed to deliver a report not later than 24 months after the date of enactment of Dodd-Frank containing the findings of a study on, among other things, matters related to (1) assigning credit ratings for structured finance products and (2) any recommendations for regulatory or statutory changes that the Commission determines should be made to implement the findings of the study.

In creating the Report, the Staff gathered information, conducted meetings with proponents of various models and other stakeholders, and reviewed 32 comment letters – six from nationally recognized statistical rating organizations (“NRSROs”) and 26 from other interested parties, including investors, trade organizations, non-profit organizations, brokerage and financial services firms, academics and individuals.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Topics:  15E(w) System, 17g-5 System, Credit Ratings, Dodd-Frank, Franken Amendment, NRSRO, SEC, SEC Commissioner, Structured Financial Products

Published In: Business Organization Updates, General Business Updates, Finance & Banking Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Dechert LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »