Sarbanes Oxley Act Section 702

 

SEC. 702. COMMISSION STUDY AND REPORT REGARDING CREDIT
RATING AGENCIES.
 
(a) STUDY REQUIRED.—
 
(1) IN GENERAL.—The Commission shall conduct a study
of the role and function of credit rating agencies in the operation
of the securities market.
 
(2) AREAS OF CONSIDERATION.—The study required by this
subsection shall examine—
 
(A) the role of credit rating agencies in the evaluation
of issuers of securities;
 
(B) the importance of that role to investors and the
functioning of the securities markets;
 
(C) any impediments to the accurate appraisal by credit
rating agencies of the financial resources and risks of
issuers of securities;
 
(D) any barriers to entry into the business of acting
as a credit rating agency, and any measures needed to
remove such barriers;
 
(E) any measures which may be required to improve
the dissemination of information concerning such resources
and risks when credit rating agencies announce credit
ratings; and
 
(F) any conflicts of interest in the operation of credit
rating agencies and measures to prevent such conflicts
or ameliorate the consequences of such conflicts.
 
(b) REPORT REQUIRED.—The Commission shall submit a report
on the study required by subsection (a) to the President, the Committee
on Financial Services of the House of Representatives, and
the Committee on Banking, Housing, and Urban Affairs of the
Senate not later than 180 days after the date of enactment of
this Act.

 

   

 

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