An amendment numbered 1 printed in House Report 109-550 to clarify that there is no private right of action for rating agencies registered as `Nationally Recognized Statistical Rating Organizations' or `NRSROs' under the Securities Exchange Act of 1934; allot to the Securities and Exchange Commission (SEC) an additional six months for a total of one year to review and, if necessary, revise its regulations that use the term `NRSRO.'; and make a number of technical amendments clarifying definitions, findings, and disclosure requirements.
What it does: 26 changes: inserts text in 6 places, replaces text in 19 places, strikes text
Rep. Michael G. Oxley (R-OH)Description
Manager's amendment consists of the text of the amendment contained in House Report 109-550 and printed on page H5089 in the Congressional Record for July 12, 2006.
What it changes
26 changes to H.R. 2990 · 8 shown in the bill's text
Change 1: Inserts “staff” after “its”
…its[inserted: staff]…
Original wording
Page 3, line 20, insert “staff” after “its”.
Change 2: Replaces “will” with “would”
[struck: will][inserted: would]Original wording
Page 4, line 1, strike “will” and insert “would”.
Change 3: Inserts “but does not include a commercial credit reporting company” after “fee”
In H.R. 2990 · Reported in House
"(61) Credit rating agency.--The term 'credit rating agency' means any person--
"(A) engaged in the business of issuing credit ratings on the Internet or through another readily accessible means, for free or for a reasonable fee[inserted: but does not include a commercial credit reporting company];
"(B) employing either a quantitative or qualitative model, or both, to determine credit ratings; and
Original wording
Page 4, line 16, insert “but does not include a commercial credit reporting company” after “fee”.
Change 4: Replaces “for at least three” with “as a credit rating agency for at least the past 3”
In H.R. 2990 · Reported in House
"(62) Nationally recognized statistical rating organization or nrsro.--The term 'nationally recognized statistical rating organization' means a credit rating agency that--
"(A) has been in business [inserted: as a credit rating agency ]for at least
[struck: three ][inserted: the past 3 ]consecutive years; and"(B) is registered under section 15E.
Original wording
Page 5, line 3, strike “for at least three” and insert “as a credit rating agency for at least the past 3”.
Change 5: Replaces “filing” with “furnishing”
[struck: filing][inserted: furnishing]Original wording
Page 6, line 1, strike “filing” and insert “furnishing”.
Change 6: Replaces “filing with” with “furnishing to”
In H.R. 2990 · Reported in House
"(a) Registration Procedures.--
"(1) Filing of application form.--A credit rating agency that elects to be treated as a nationally recognized statistical rating organization for the purposes of Federal statutes, rules, and regulations may be registered by
[struck: filing with][inserted: furnishing to] the Commission an application for registration in such form and containing such of the following and any other information and documents concerning such organization and any persons associated with such organization as the Commission, by rule, may prescribe as necessary or appropriate in the public interest or for the protection of investors:"(A) any conflicts of interest relating to the issuance of credit ratings by a nationally recognized statistical rating organization;
Original wording
Page 6, line 5, strike “filing with” and insert “furnishing to”.
Change 7: Inserts “(as applicable)” after “periods”
In H.R. 2990 · Reported in House
"(B) the procedures and methodologies such nationally recognized statistical rating organization uses in determining credit ratings;
"(C) credit ratings performance measurement statistics over short-term, mid-term, and long-term periods [inserted: (as applicable) ]of such nationally recognized statistical rating organization;
"(D) policies or procedures adopted and implemented by such nationally recognized statistical rating organization to prevent the misuse in violation of this title (or the rules and regulations thereunder) of material, non-public information; and
Original wording
Page 6, line 21, insert “(as applicable)” after “periods”.
Change 8: Replaces “filing” with “furnishing”
[struck: filing][inserted: furnishing]Original wording
Page 7, line 9, strike “filing” and insert “furnishing”.
Change 9: Replaces “filing” with “furnishing”
[struck: filing][inserted: furnishing]Original wording
Page 7, line 20, strike “filing” and insert “furnishing”.
Change 10: Replaces “subsection (b)” with “subsection (d)”
[struck: subsection (b)][inserted: subsection (d)]Original wording
Page 8, line 11, strike “subsection (b)” and insert “subsection (d)”.
Change 11: Replaces “filed with” with “furnished to”
In H.R. 2990 · Reported in House
"(C) Grounds for decision.--The Commission shall grant such registration if the Commission finds that the requirements of this section are satisfied. The Commission shall deny such registration if it does not make such a finding or if it finds that if the applicant were so registered, its registration would be subject to suspension or revocation under subsection (b).
"(3) Public availability of information.--Subject to section 24, the Commission, by rule, shall require a nationally recognized statistical rating organization, upon the granting of registration under this section, to make the information and documents
[struck: filed with][inserted: furnished to] the Commission in its application for registration, or in any amendment filed under subsection (b)(1) or (2), publicly available on the website or comparable readily accessible means of such nationally recognized statistical rating organization."(b) Update of Registration.--
Original wording
Page 8, line 17, strike “filed with” and insert “furnished to”.
Change 12: Replaces “filed” with “furnished”
[struck: filed][inserted: furnished]Original wording
Page 8, line 18, strike “filed” and insert “furnished”.
Change 13: Replaces “the website or” with “its website or through another”
In H.R. 2990 · Reported in House
"(C) Grounds for decision.--The Commission shall grant such registration if the Commission finds that the requirements of this section are satisfied. The Commission shall deny such registration if it does not make such a finding or if it finds that if the applicant were so registered, its registration would be subject to suspension or revocation under subsection (b).
"(3) Public availability of information.--Subject to section 24, the Commission, by rule, shall require a nationally recognized statistical rating organization, upon the granting of registration under this section, to make the information and documents filed with the Commission in its application for registration, or in any amendment filed under subsection (b)(1) or (2), publicly available on
[struck: the][inserted: its] website or [inserted: through another ]comparable readily accessible means of such nationally recognized statistical rating organization."(b) Update of Registration.--
Original wording
Page 8, line 19, strike “the website or” and insert “its website or through another”.
Change 14: Strikes “of such nationally recognized statistical rating organization”
Struck: of such nationally recognized statistical rating organization
Original wording
Page 8, beginning on line 20, strike “of such nationally recognized statistical rating organization”.
Change 15: Replaces “filed” with “furnished”
[struck: filed][inserted: furnished]Original wording
Page 9, line 4, strike “filed” and insert “furnished”.
Change 16: Replaces “a filing” with “an amendment furnished”
In H.R. 2990 · Reported in House
"(b) Update of Registration.--
"(1) Update.--Each nationally recognized statistical rating organization shall promptly amend its application for registration under this section if any information or documents provided therein become materially inaccurate, except that a nationally recognized statistical rating organization is not required to amend the information required to be filed under subsection (a)(1)(C) by
[struck: a filing ][inserted: an amendment furnished ]under this paragraph, but shall amend such information in such organization's annual filing under paragraph (2) of this subsection."(2) Certification.--Not later than 90 days after the end of each calendar year, each nationally recognized statistical rating organization shall file with the Commission an amendment to its registration, in such form as the Commission, by rule, may prescribe as necessary or appropriate in the public interest or for the protection of investors--
Original wording
Page 9, line 5, strike “a filing” and insert “an amendment furnished”.
Change 17: Replaces “filing” with “amendment furnished”
[struck: filing][inserted: amendment furnished]Original wording
Page 9, line 7, strike “filing” and insert “amendment furnished”.
Change 18: Replaces “file with” with “furnish to”
[struck: file with][inserted: furnish to]Original wording
Page 9, beginning on line 11, strike “file with” and insert “furnish to”.
Change 19: Replaces “filing of” with “furnishing”
[struck: filing of][inserted: furnishing]Original wording
Page 11, line 20, strike “filing of” and insert “furnishing”.
Change 20: Replaces “filing a written notice of withdrawal with” with “furnishing a written notice of withdrawal to”
In H.R. 2990 · Reported in House
"(3) is subject to any order of the Commission barring or suspending the right of the person to be associated with a nationally recognized statistical rating organization.
"(e) Withdrawal From Registration.--A nationally recognized statistical rating organization registered under this section may, upon such terms and conditions as the Commission may establish as necessary in the public interest or for the protection of investors, withdraw from registration by
[struck: filing][inserted: furnishing] a written notice of withdrawal[struck: with][inserted: to] the Commission. If the Commission finds that any nationally recognized statistical rating organization is no longer in existence or has ceased to do business as a credit rating agency, the Commission, by order, shall cancel the registration of such nationally recognized statistical rating organization."(f) Representations.--
Original wording
Page 12, line 12, strike “filing a written notice of withdrawal with” and insert “furnishing a written notice of withdrawal to”.
Change 21: Replaces “file with” with “furnish to”
[struck: file with][inserted: furnish to]Original wording
Page 18, line 23, strike “file with” and insert “furnish to”.
Change 22: Inserts “Staff's” after “Commission”
…Commission[inserted: Staff's]…
Original wording
Page 19, line 5, insert “Staff's” after “Commission”.
Change 23: Inserts “staff” after “Commission”
…Commission[inserted: staff]…
Original wording
Page 19, line 9, insert “staff” after “Commission”.
Change 24: Inserts “staff” after “Commission”
…Commission[inserted: staff]…
Original wording
Page 19, line 15, insert “staff” after “Commission”.
Change 25: Replaces “180 days” with “360 days”
[struck: 180 days][inserted: 360 days]Original wording
Page 20, line 6, strike “180 days” and insert “360 days”.
Change 26: Rewrites page 23, lines 3–6
ReplacesPrinted pageRemoves page 23, lines 3–6 of the printed bill. See that page
Inserted: SEC. 5. ANNUAL AND OTHER REPORTS.
Inserted: Section 17(a)(1) (15 U.S.C. 78q(a)(1)) is amended--
Inserted: (1) by inserting "nationally recognized statistical rating organization," after "registered transfer agent,"; and
Inserted: (2) by adding at the end the following: "Any report a nationally recognized statistical rating organization may be required by Commission rules under this paragraph to make and disseminate to the Commission shall be deemed furnished to the Commission."
Original wording
Page 23, strike lines 3 through 6 and insert the following:
Read automatically from the Congressional Record. Check the original before relying on it.
As printed
Page 3, line 20, insert “staff” after “its”.
Page 4, line 1, strike “will” and insert “would”.
Page 4, line 16, insert “but does not include a commercial credit reporting company” after “fee”.
Page 5, line 3, strike “for at least three” and insert “as a credit rating agency for at least the past 3”.
Page 6, line 1, strike “filing” and insert “furnishing”.
Page 6, line 5, strike “filing with” and insert “furnishing to”.
Page 6, line 21, insert “(as applicable)” after “periods”.
Page 7, line 9, strike “filing” and insert “furnishing”.
Page 7, line 20, strike “filing” and insert “furnishing”.
Page 8, line 11, strike “subsection (b)” and insert “subsection (d)”.
Page 8, line 17, strike “filed with” and insert “furnished to”.
Page 8, line 18, strike “filed” and insert “furnished”.
Page 8, line 19, strike “the website or” and insert “its website or through another”.
Page 8, beginning on line 20, strike “of such nationally recognized statistical rating organization”.
Page 9, line 4, strike “filed” and insert “furnished”.
Page 9, line 5, strike “a filing” and insert “an amendment furnished”.
Page 9, line 7, strike “filing” and insert “amendment furnished”.
Page 9, beginning on line 11, strike “file with” and insert “furnish to”.
Page 11, line 20, strike “filing of” and insert “furnishing”.
Page 12, line 12, strike “filing a written notice of withdrawal with” and insert “furnishing a written notice of withdrawal to”.
Page 18, line 23, strike “file with” and insert “furnish to”.
Page 19, line 5, insert “Staff's” after “Commission”.
Page 19, line 9, insert “staff” after “Commission”.
Page 19, line 15, insert “staff” after “Commission”.
Page 20, line 6, strike “180 days” and insert “360 days”.
Page 23, strike lines 3 through 6 and insert the following:
SEC. 5. ANNUAL AND OTHER REPORTS.
Section 17(a)(1) (15 U.S.C. 78q(a)(1)) is amended--
(1) by inserting “nationally recognized statistical rating organization,” after “registered transfer agent,”; and
(2) by adding at the end the following: “Any report a nationally recognized statistical rating organization may be required by Commission rules under this paragraph to make and disseminate to the Commission shall be deemed furnished to the Commission.”
Legislative Activity
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House amendment agreed to: On agreeing to the Oxley amendment (A001) Agreed to by voice vote.
July 12, 2006 • 2:18 PM
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House amendment agreed to: On agreeing to the Oxley amendment (A001) Agreed to by voice vote.
July 12, 2006 • 2:18 PM
Amendment agreed to Committee of the Whole
July 12, 2006 • 2:18 PM
House amendment offered
July 12, 2006
House amendment offered/reported by : Amendment (A001) offered by Mr. Oxley.(consideration: CR H5089-5090; text: CR H5089)
July 12, 2006 • 2:11 PM
Amendment (A001) offered by Mr. Oxley. (consideration: CR H5089-5090; text: CR H5089)
July 12, 2006 • 2:11 PM
On agreeing to the Oxley amendment (A001) Agreed to by voice vote.
July 12, 2006 • 2:18 PM