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S 927 IS
111th CONGRESS
1st Session
S. 927
To amend the Securities Exchange Act of 1934 to enhance oversight of nationally recognized statistical rating organizations, and for other purposes.
IN THE SENATE OF THE UNITED STATES
April 29, 2009
Mr. PRYOR introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs
A BILL
To amend the Securities Exchange Act of 1934 to enhance oversight of nationally recognized statistical rating organizations, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
SEC. 2. OVERSIGHT OF NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATIONS.
Section 15E of the Securities and Exchange Act of 1934 (15 U.S.C. 78o-7) is amended--
‘(f) Oversight of Nationally Recognized Statistical Rating Organizations-
‘(1) GENERAL OVERSIGHT RESPONSIBILITY- The Commission shall conduct an annual audit of each nationally recognized statistical rating organization registered under this section (in this section referred to as an ‘NRSRO’).
‘(2) AUDITS REQUIRED- The Commission shall audit the credit rating procedures and methodologies of each NRSRO to assure that--
‘(A) the NRSRO is sufficiently disclosing its rating procedures and methodologies;
‘(B) the rating methodologies of the NRSRO are sound; and
‘(C) the NRSRO is adhering to its rating procedures and methodologies.
‘(3) ANNUAL REPORT- Each NRSRO shall furnish to the Commission an annual report describing--
‘(A) its internal reviews of its rating procedures and methodologies;
‘(B) how well the NRSRO adheres to its rating procedures and methodologies;
‘(C) how the NRSRO manages conflicts of interest and complies with the securities laws;
‘(D) a narrative response agreeing or disagreeing with the audit results of the Commission; and
‘(E) a signed statement by a duly authorized senior executive officer of the NRSRO certifying the accuracy of all statements, representations, and supporting information provided.’; and
(2) in the section heading, by inserting ‘and oversight’ after ‘registration’.
U.S. Congress - Text of S.927 as Introduced in Senate Credit Rating Agency Responsibility Act of 2009
