FEI Summary

March 15, 2007

On March 15, 2007 FEI’s Committee on Corporate Finance (CCF) submitted written comments to the SEC on their proposed rulemaking implementing the Credit Rating Agency Reform Act of 2006.  The legislation, which was passed late last year, would overhaul the way in which credit rating agencies can be recognized by the SEC. It would also put in place procedures for mitigating conflicts of interest and abusive practices in the credit rating marketplace.

CCF commended the SEC for implementing straightforward rules for avoiding conflicts of interest and abusive practices. CCF further urged the commission to consider undertaking periodic performance audits to ensure that credit rating agencies remain fully capable of discharging their responsibilities as NRSROs.

The SEC expects to finalize their rulemaking sometime this summer. CCF will schedule follow-up meetings with Commission staff as necessary prior to the rulemaking being finalized.

For more information contact Mark Prysock at FEI.