H.R. 6934 — what changed
Uniform Treatment of NRSROs Act
From Introduced in House to Engrossed in House. 1 section amended and 1 added between Introduced in House and Engrossed in House.
Section 1 Short title
added This Act may be cited as the “Uniform Treatment of NRSROs Act”.
removed
In general— Section 4003 of the CARES Act (15 U.S.C. 9042), as amended by section 902, is further amended by adding at the end the following:
removed
“(m) Uniform treatment of NRSROs
removed
“(1) In general—If, in carrying out this section or any other program making use of a facility established under section 13(3) of the Federal Reserve Act in response to the COVID–19 emergency, the Secretary of the Treasury or the Board of Governors of the Federal Reserve System establishes a requirement for an entity, security, or other instrument to carry a minimum credit rating, the Secretary or the Board of Governors shall accept credit ratings provided by any nationally recognized statistical rating organization with respect to such entity, security, or other instrument, if the Securities and Exchange Commission has approved the nationally recognized statistical rating organization to issue credit ratings with respect to the applicable asset class of the entity, security, or other instrument.
removed
“(2) Exception
removed
“(A) In general—The Secretary or the Board of Governors may exclude a nationally recognized statistical rating organization from the application of paragraph (1) if, in consultation with the Securities and Exchange Commission, the Secretary or Board of Governors, as applicable, determines that the nationally recognized statistical rating organization is unable to provide reliable and accurate ratings for a particular asset class and that such exclusion is in the public interest.
removed
“(B) Report—If the Secretary or the Board of Governors excludes a nationally recognized statistical rating organization from the application of paragraph (1) pursuant to subparagraph (A), the Secretary or Board of Governors, as applicable, shall, as soon as practicable after such exclusion, disclose to the public the reasoning for such exclusion.
removed
“(3) Nationally recognized statistical rating organization—In this subsection, the term “nationally recognized statistical rating organization” has the meaning given that term under section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c).”
removed
GAO study—
removed
Study— The Comptroller General of the United States shall carry out a study on—
removed
the quality of credit ratings across nationally recognized statistical ratings organizations (as defined under section 3 of the Securities Exchange Act of 1934), including during the 2008 economic crisis;
removed
the effect of competition on the quality of credit ratings and on the ability of small- and mid-size companies and financial institutions to access the capital markets; and
removed
the implementation of the amendment made by subsection (a).
removed
Report— Not later than one year after the date of enactment of this Act, the Comptroller General shall issue a report to the Congress containing all finding and determinations made in carrying out the study required under paragraph (1).
Sec. 2 Uniform treatment of NRSROs
added
added
In general— Section 4003 of the CARES Act (15 U.S.C. 9042), as amended by section 902, is further amended by adding at the end the following:
added “(m) Uniform treatment of NRSROs
added “(1) In general—If, in carrying out this section or any other program making use of a facility established under section 13(3) of the Federal Reserve Act in response to the COVID–19 emergency, the Secretary of the Treasury or the Board of Governors of the Federal Reserve System establishes a requirement for an entity, security, or other instrument to carry a minimum credit rating, the Secretary or the Board of Governors shall accept credit ratings provided by any nationally recognized statistical rating organization with respect to such entity, security, or other instrument, if the nationally recognized statistical rating organization is registered with the Securities and Exchange Commission to issue credit ratings with respect to the applicable asset class of the entity, security, or other instrument.
added “(2) Exception
added “(A) In general—The Secretary or the Board of Governors may exclude a nationally recognized statistical rating organization from the application of paragraph (1) if, in consultation with the Securities and Exchange Commission, the Secretary or Board of Governors, as applicable, determines that the nationally recognized statistical rating organization is unable to provide reliable and accurate ratings for a particular asset class and that such exclusion is in the public interest.
added “(B) Report—If the Secretary or the Board of Governors excludes a nationally recognized statistical rating organization from the application of paragraph (1) pursuant to subparagraph (A), the Secretary or Board of Governors, as applicable, shall, as soon as practicable after such exclusion, disclose to the public the reasoning for such exclusion.
added “(3) Nationally recognized statistical rating organization—In this subsection, the term “nationally recognized statistical rating organization” has the meaning given that term under section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c).”
added
GAO study—
added
Study— The Comptroller General of the United States shall carry out a study on—
added
the quality of credit ratings across nationally recognized statistical ratings organizations (as defined under section 3 of the Securities Exchange Act of 1934), including during the 2008 economic crisis;
added
the effect of competition on the quality of credit ratings and on the ability of small- and mid-size companies and financial institutions to access the capital markets; and
added
the implementation of the amendment made by subsection (a).
added
Report— Not later than one year after the date of enactment of this Act, the Comptroller General shall issue a report to the Congress containing all finding and determinations made in carrying out the study required under paragraph (1).