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MFDF - Mutual Fund Directors Forum - Feb 9 SEC Open Meeting on References to Credit Rating Agencies

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Feb 9 SEC Open Meeting on References to Credit Rating Agencies

On February 9, at 10:00AM EST, the SEC will hold an open meeting to discuss amending rules and forms under the Securities Act of 1933 and Schedule 14A under the Securities Exchange Act of 1934, to replace references to credit ratings with alternative criteria.  The Commission is proposing these changes pursuant to Section 939A of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which requires the agency to review reliance in rules and forms on credit rating agencies, or "nationally recognized statistical rating organizations" (NRSROs), and eliminate reliance on them where reasonably can do so.  Dodd-Frank requires:

(b) Modifications Required- Each such agency shall modify any such regulations identified by the review conducted under subsection (a) to remove any reference to or requirement of reliance on credit ratings and to substitute in such regulations such standard of credit-worthiness as each respective agency shall determine as appropriate for such regulations. In making such determination, such agencies shall seek to establish, to the extent feasible, uniform standards of credit-worthiness for use by each such agency, taking into account the entities regulated by each such agency and the purposes for which such entities would rely on such standards of credit-worthiness.

The meeting is open to the public on a first come first served basis, and the proceedings will be webcast via a link on the SEC’s website,