SUMMARY: The Securities and Exchange Commission ( Commission ) is correcting a final

Transcription

1 SECURITIES AND EXCHANGE COMMISSION 17 CFR Parts 232, 240, 249, and 249b Release N A; File N. S RIN 3235-AL15 Natinally Recgnized Statistical Rating Organizatins; Crrectin AGENCY: Securities and Exchange Cmmissin. ACTION: Final rule; crrectin. SUMMARY: The Securities and Exchange Cmmissin ( Cmmissin ) is crrecting a final rule that appeared in the Federal Register f September 15, 2014 (79 FR 55078). The rule applies t credit rating agencies registered with the Cmmissin as natinally recgnized statistical rating rganizatins ( NRSROs ), prviders f third-party due diligence services fr asset-backed securities, and issuers and underwriters f asset-backed securities. 1 DATES: Effective Nvember 14, FOR FURTHER INFORMATION CONTACT: Rse Russ Wells, Senir Cunsel, at (202) ; Divisin f Trading and Markets, Securities and Exchange Cmmissin, 100 F Street NE, Washingtn, DC SUPPLEMENTARY INFORMATION: In FR Dc , appearing n page in the Federal Register f Mnday, September 15, 2014, the fllwing crrectins are made: 1. On page 55261, in the secnd clumn, under the heading Text f Final Rules the wrd Regulatin is crrected t read Regulatins Ga-2 Findings and cnclusins f third-party due diligence reprts. [Crrected] 1 See Natinally Recgnized Statistical Rating Organizatins, Exchange Act Release N (Aug. 27, 2014), 79 FR (Sep. 15, 2014). 1

2 2. On page 55261, in the third clumn, in Part 240 General Rules and Regulatins, Securities Exchange Act f 1934, Sectin Ga-2(a), the citatin (15 U.S.C. 78c(a)(79)) is crrected t read (15 U.S.C. 78c(a)(79))) g-3 Annual financial and ther reprts t be filed r furnished by natinally recgnized statistical rating rganizatins. [Crrected] 3. On page 55263, in the secnd clumn, in Part 240 General Rules and Regulatins, Securities Exchange Act f 1934, Sectin g-3, in amendment 7.f, the instructin In paragraphs (a)(3) intrductry text, (a)(4) intrductry text, and (a)(5) intrductry text, by remving the first wrd An and in its place adding the phrase File with the Cmmissin an unaudited financial reprt, as f the end f the fiscal year, is crrected t read: In paragraphs (a)(3) intrductry text, (a)(4) intrductry text, and (a)(5) intrductry text, by remving the wrds An unaudited financial reprt and in their place adding the phrase File with the Cmmissin an unaudited financial reprt, as f the end f the fiscal year, 4. On page 55263, in the secnd clumn, in Part 240 General Rules and Regulatins, Securities Exchange Act f 1934, Sectin g-3, in amendment 7.g, the instructin In paragraph (a)(6) intrductry text, by remving the first wrd An and in its place adding the phrase Furnish the Cmmissin with an unaudited reprt, as f the end f the fiscal year, is crrected t read In paragraph (a)(6) intrductry text, by remving the wrds An unaudited reprt and in their place adding the phrase Furnish the Cmmissin with an unaudited reprt, as f the end f the fiscal year, g-5 Cnflicts f interest. [Crrected] 2

3 5. On page 55264, in the secnd clumn, in Part 240 General Rules and Regulatins, Securities Exchange Act f 1934, Sectin g-5, amendments 8.b and 8.h are deleted and the remaining amendments are renumbered: 8.a, 8.b, 8.c, 8.d, 8.e, 8.f, 8.g, and 8.h. PART 249b FURTHER FORMS, SECURITIES EXCHANGE ACT OF 1934 [Crrected] 6. On page 55274, in Part 249b, Further Frms, Securities Exchange Act f 1934, in amendment 17, the wrds Frm (referenced in 249b.300) are crrected t read Frm NRSRO (referenced in 249b.300) 7. On pages , in Part 249b, Further Frms, Securities Exchange Act f 1934, amendment 17, the list is crrected t read: I. EXPLANATION OF TERMS. 1. COMMISSION - The U.S. Securities and Exchange Cmmissin. 2. CREDIT RATING [Sectin 3(a)(60) f the Exchange Act] - An assessment f the creditwrthiness f an bligr as an entity r with respect t specific securities r mney market instruments. 3. CREDIT RATING AGENCY [Sectin 3(a)(61) f the Exchange Act] - Any persn: engaged in the business f issuing credit ratings n the Internet r thrugh anther readily accessible means, fr free r fr a reasnable fee, but des nt include a cmmercial credit reprting cmpany; emplying either a quantitative r qualitative mdel, r bth t determine credit ratings; and receiving fees frm either issuers, investrs, ther market participants, r a cmbinatin theref. 4. NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION [Sectin 3(a)(62) f the Exchange Act] - A credit rating agency that: issues credit ratings certified by qualified institutinal buyers in accrdance with sectin 15(a)(1)(B)(ix) f the Exchange Act with respect t: 3

4 financial institutins, brkers, r dealers; insurance cmpanies; crprate issuers; issuers f asset-backed securities; issuers f gvernment securities, municipal securities, r securities issued by a freign gvernment; r a cmbinatin f ne r mre f the abve; and is registered as an NRSRO. 5. PERSON - An individual, partnership, crpratin, trust, cmpany, limited liability cmpany, r ther rganizatin (including a separately identifiable department r divisin). 6. PERSON WITHIN AN APPLICANT/NRSRO The persn filing r furnishing, as applicable, Frm NRSRO identified in Item 1, any credit rating affiliates identified in Item 3, and any partner, fficer, directr, branch manager, r emplyee f the persn r the credit rating affiliates (r any persn ccupying a similar status r perfrming similar functins). 7. SEPARATELY IDENTIFIABLE DEPARTMENT OR DIVISION - A unit f a crpratin r cmpany: that is under the direct supervisin f an fficer r fficers designated by the bard f directrs f the crpratin as respnsible fr the day-t-day cnduct f the crpratin s credit rating activities fr ne r mre affiliates, including the supervisin f all emplyees engaged in the perfrmance f such activities; and fr which all f the recrds relating t its credit rating activities are separately created r maintained in r extractable frm such unit s wn facilities r the facilities f the crpratin, and such recrds are s maintained r therwise accessible as t permit independent examinatin and enfrcement by the Cmmissin f the Exchange Act and rules and regulatins prmulgated thereunder. 4

5 8. QUALIFIED INSTITUTIONAL BUYER [Sectin 3(a)(64) f the Exchange Act] - An entity listed in 17 CFR A(a) that is nt affiliated with the credit rating agency. Dated: Octber 7, 2014 Kevin M. O Neill Deputy Secretary 5