CCI staff share recent news, surveys, reports and analysis on risk, compliance, governance, infosec and leadership issues. Share details of your survey with us: editor@corporatecomplianceinsights.com.
SEC fines credit rating agencies $50M over recordkeeping failures, charges broker-dealer with whistleblower violations
The SEC entered September with a head of steam, fining six credit rating agencies nearly $50 million over recordkeeping failures and charging a broker-dealer and two affiliated investment advisers with violating whistleblower protection rules.
In its first announced action, the commission fined credit rating agencies Moody’s and S&P Global $20 million each for failing to maintain records of electronic communications; other fines included:
- Fitch Ratings, $8 million
- A.M. Best Rating Services, $1 million
- HR Ratings de México, $250,000
- Demotech, $100,000
With the exception of A.M. Best and Demotech, each agency will be required to retain a compliance consultant, as those organizations were found to have engaged in early good-faith compliance efforts, the SEC said in a statement.
Fines against the six credit rating agencies came just a few weeks after the SEC announced nearly $400 million in fines related to failed recordkeeping. In that action, three firms saw reduced fines after…
