Excerpt: “The staff’s 2024 NRSRO examinations reviewed several areas, including:
- the process by which NRSROs determine whether their methodologies are appropriately designed to reflect their view of relevant credit risks as conditions evolve;
- surveillance practices of NRSROs to assess compliance with statutory and rule requirements, such as the requirement to have an effective internal control structure;
- commercial real estate related rating activity to assess NRSRO adherence to rating methodologies and surveillance requirements; and
- securities ownership policies for NRSRO employees and directors to assess whether such policies are reasonably designed to address and manage the related potential conflicts of interest.”
Report
(48 pages)