SEC Seeks To Strengthen Rating Agency Conflict Rules

Law360, New York (May 18, 2011, 1:06 PM EDT) -- The U.S. Securities and Exchange Commission proposed rules on Wednesday that would force credit rating agencies to strengthen conflict of interest protections and provide greater disclosure on how they rate securities.

In a unanimous 5-0 vote, the SEC approved the proposed final rules, which are designed to make it easier for investors to determine the creditworthiness of asset-backed securities and other debt securities. The rules, which were required under last July's Dodd-Frank Wall Street Reform and Consumer Protection Act, take direct aim at ratings agencies practices...
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