SEC Publishes Annual Reports on Credit Rating Agencies
No fraud or misconduct was found in the SEC’s 2019 annual reports on nationally recognized statistical rating organizations (NRSROs), which instead highlighted regulatory improvements, expanded transparency, and ongoing oversight by SEC staff across eight statutory review areas.
The SEC’s Office of Credit Ratings released two annual reports detailing its oversight of NRSROs, finding no fraud, misconduct, or financial penalties. The reports noted improvements in regulatory compliance, expanded commentary on risk-related topics, and enhanced transparency among NRSROs, with examinations covering eight statutory areas. The SEC staff, including Diane Audino, Michael Bloise, and others, conducted risk-based reviews focused on competition, conflicts of interest, and registration applicants, concluding with recommendations for continued oversight rather than enforcement actions.
The SEC’s Office of Credit Ratings published two annual reports in 2019 detailing its regulatory oversight of nationally recognized statistical rating organizations (NRSROs), with no findings of fraud, misconduct, or financial penalties. The reports confirmed that NRSROs had made measurable improvements in compliance, transparency, and the scope of their public commentaries on risk-related issues. Staff conducted statutory examinations across eight required areas, employing a risk-based approach to identify both mandated and emerging areas for review. The reports also assessed the state of competition among NRSROs, evaluated potential conflicts of interest, and tracked new applicants seeking NRSRO registration. No individuals or firms were accused of wrongdoing, and the outcomes centered on regulatory engagement and structural enhancements rather than sanctions or settlements. The SEC credited a team of 32 staff members—including Diane Audino, Michael Bloise, and Jessica S. Kane—for their contributions to the oversight process. The overall message emphasized proactive monitoring and continuous improvement in credit rating oversight to protect investors, not punitive action.
Exhibits & Attached Documents (2)
Extracted insights
- agency director of sec's office of credit ratings
- person each nrsro
- person jessica s. kane
- person risk assessment process
- agency sec office of credit ratings
- agency sec staff
- SEC Office Of Credit Ratings released Two Annual Staff Reports
- NRSROs made Certain Improvements In Response To Staff Examinations
- Range Of NRSROs expanded Commentaries And Topics Covered
- Jessica S. Kane is Director Of SEC's Office Of Credit Ratings
- SEC Staff examine and engage with Each NRSRO
- Staff engages in Risk Assessment Process
- Report On NRSRO Examinations summarizes Findings And Recommendations In Eight Review Areas
- Report On NRSROs discusses State Of Competition, Transparency, And Conflicts Of Interest
- SEC Staff contributed to 2019 NRSRO Examinations And Reports
Two annual SEC staff reports released today highlight the important work of the Office of Credit Ratings in examining and monitoring nationally recognized statistical rating organizations (NRSROs). The reports indicate that the NRSROs made certain improvements in response to the staff's examinations and that both the range of NRSROs issuing commentaries as well as the topics covered by those commentaries has expanded. "We continue to regularly examine and engage with each NRSRO to promote regulatory compliance and effective oversight for the protection of investors," said Jessica S. Kane, Director of the SEC's Office of Credit Ratings. “Staff engages in a careful risk assessment process to focus on the statutory review areas, while also identifying additional risk-based areas for review." The report on NRSRO examinations summarizes the staff's essential findings and recommendations in each of the eight review areas required by statute. The report on NRSROs discusses the state of competition, transparency, and conflicts of interest among the firms and also identifies any applicants for NRSRO registration. The following SEC staff contributed to the 2019 examinations and reports: Diane Audino, Chichita Becton, Michael Bloise, Sondra Boddie, Rita Bolger, Patrick Boyle, Aaron Byrd, Roseann Catania, Kristin Costello, Doreen Crawford, Jeannette Crawford, Scott Davey, Ilya Fradkin, William Garnett, Kenneth Godwin, Michael Gonzalez, Barry Huang, Julia Kiel, Russell Long, Kevin O’Neill, Harriet Orol, Abraham Putney, Jeremiah Roberts, Carlos Rodriguez, Mary Ryan, Cynthia Sargent, Andrew Smith, Alexa Strear, Warren Tong, Evelyn Tuntono, Chris Valtin, Kevin Vasel, Andrew Vita, and Michele Wilham.