SEC Publishes Annual Staff Report on Nationally Recognized Statistical Rating Organizations
The SEC published a staff report summarizing examinations of Nationally Recognized Statistical Rating Organizations (NRSROs) in 2022, focusing on competition, transparency, and conflicts of interest, without alleging fraud or misconduct.
The SEC's 2022 staff report on NRSROs examines practices related to rating surveillance, ESG products, China-based firm ratings, COVID-19 impacts on commercial real estate, employee securities ownership, and use of unauthorized communication channels. No specific dollar amounts or enforcement actions are disclosed, as the document is purely analytical and compliance-focused. The report aims to enhance investor protection and market integrity through increased oversight.
The Securities and Exchange Commission (SEC) published a staff report summarizing examinations of Nationally Recognized Statistical Rating Organizations (NRSROs) in 2022. The report, issued by the Office of Credit Ratings (OCR), focuses on competition, transparency, and conflicts of interest among NRSROs. It examines key areas such as rating surveillance, ESG product influences, China-based firm ratings, and employee securities ownership. The report does not allege fraud or misconduct, nor does it impose charges or financial penalties, but rather serves as a regulatory oversight summary. The SEC emphasizes its risk-based examination approach to ensure rating accuracy, transparency, and conflict-of-interest mitigation. The report aims to enhance investor protection and market integrity through increased oversight. No specific dollar amounts or enforcement actions are disclosed, as the document is purely analytical and compliance-focused.
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- person gary gensler
- person lori price
- person rating surveillance practices
- agency Securities and Exchange Commission
- person staff report
- Securities And Exchange Commission published staff report
- Staff Report provides summary of examinations of Nationally Recognized Statistical Rating Organizations
- Staff Report discusses state of competition, transparency, and conflicts
- Office Of Credit Ratings is critical to Commission’s work to protect investors
- Gary Gensler said Office Of Credit Ratings is critical to Commission’s work
- Office Of Credit Ratings continues work to ensure credit ratings are accurate, reliable, and fair
- Lori Price said risk-based approach protects investors
- Staff’s NRSRO Examinations considered rating surveillance practices
- Staff’s NRSRO Examinations considered impact of COVID-19 on commercial real estate credit ratings
- Staff’s NRSRO Examinations considered securities ownership by NRSRO employees
- Staff’s NRSRO Examinations considered effect on credit ratings from marketing of stand-alone ESG products
- Staff’s NRSRO Examinations considered ratings of firms based in China
The Securities and Exchange Commission today published a staff report that provides a summary of the staff’s examinations of nationally recognized statistical rating organizations (NRSROs) and discusses the state of competition, transparency, and conflicts of interest among NRSROs. "The Office of Credit Ratings is critical to the Commission’s work to protect investors and ensure the integrity of the rating process, including through the office’s oversight of Nationally Recognized Statistical Rating Organizations," said SEC Chair Gary Gensler. "Through the 2022 staff report, the OCR continues its work to ensure credit ratings are accurate, reliable, and fair." "Our risk-based approach to NRSRO examinations protects investors by focusing on specific NRSRO activities and assessing compliance with applicable laws and rules," said Lori Price, Director of the Office of Credit Ratings. "The comprehensive staff report summarizes the findings from our annual examinations and also provides information about NRSROs, their credit ratings businesses, and the industry more broadly." As described in the report, the staff’s NRSRO examinations during 2022 considered a number of factors, including: Rating surveillance practices; The impact of COVID-19 on commercial real estate credit ratings; Whether business communications are conducted through unauthorized means; Securities ownership by NRSRO employees; The effect on credit ratings from the marketing and development of stand-alone ESG products; and Ratings of firms based in China. Prior years’ reports from the Office of Credit Ratings are available here.
The Securities and Exchange Commission today published a staff report that provides a summary of the staff’s examinations of nationally recognized statistical rating organizations (NRSROs) and discusses the state of competition, transparency, and conflicts of interest among NRSROs. "The Office of Credit Ratings is critical to the Commission’s work to protect investors and ensure the integrity of the rating process, including through the office’s oversight of Nationally Recognized Statistical Rating Organizations," said SEC Chair Gary Gensler. "Through the 2022 staff report, the OCR continues its work to ensure credit ratings are accurate, reliable, and fair." "Our risk-based approach to NRSRO examinations protects investors by focusing on specific NRSRO activities and assessing compliance with applicable laws and rules," said Lori Price, Director of the Office of Credit Ratings. "The comprehensive staff report summarizes the findings from our annual examinations and also provides information about NRSROs, their credit ratings businesses, and the industry more broadly." As described in the report, the staff’s NRSRO examinations during 2022 considered a number of factors, including: Rating surveillance practices; The impact of COVID-19 on commercial real estate credit ratings; Whether business communications are conducted through unauthorized means; Securities ownership by NRSRO employees; The effect on credit ratings from the marketing and development of stand-alone ESG products; and Ratings of firms based in China. Prior years’ reports from the Office of Credit Ratings are available here.