US Code

Public Law 119-73 (01/23/2026)

15 U.S.C. § 78o–9

Study and rulemaking on assigned credit ratings

(a)

Definition

1

1 See References in Text note below.
15 U.S.C. 78c(a)(79)1In this section, the term “structured finance product” means an asset-backed security, as defined in section 3(a)(77)  of the Securities Exchange Act of 1934 [], as added by section 941, and any structured product based on an asset-backed security, as determined by the Commission, by rule.

(b)

Study

The Commission shall carry out a study of—
(1)
the credit rating process for structured finance products and the conflicts of interest associated with the issuer-pay and the subscriber-pay models;
(2)
the feasibility of establishing a system in which a public or private utility or a self-regulatory organization assigns nationally recognized statistical rating organizations to determine the credit ratings of structured finance products, including—
(A)
an assessment of potential mechanisms for determining fees for the nationally recognized statistical rating organizations;
(B)
appropriate methods for paying fees to the nationally recognized statistical rating organizations;
(C)
the extent to which the creation of such a system would be viewed as the creation of moral hazard by the Federal Government; and
(D)
any constitutional or other issues concerning the establishment of such a system;
(3)
the range of metrics that could be used to determine the accuracy of credit ratings; and
(4)
alternative means for compensating nationally recognized statistical rating organizations that would create incentives for accurate credit ratings.
(c)

Report and recommendation

Not later than 24 months after , the Commission shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report that contains—
(1)
the findings of the study required under subsection (b); and
(2)
any recommendations for regulatory or statutory changes that the Commission determines should be made to implement the findings of the study required under subsection (b).
(d)

Rulemaking

(1)

Rulemaking

After submission of the report under subsection (c), the Commission shall, by rule, as the Commission determines is necessary or appropriate in the public interest or for the protection of investors, establish a system for the assignment of nationally recognized statistical rating organizations to determine the initial credit ratings of structured finance products, in a manner that prevents the issuer, sponsor, or underwriter of the structured finance product from selecting the nationally recognized statistical rating organization that will determine the initial credit ratings and monitor such credit ratings. In issuing any rule under this paragraph, the Commission shall give thorough consideration to the provisions of section 15E(w) of the Securities Exchange Act of 1934, as that provision would have been added by section 939D of H.R. 4173 (111th Congress), as passed by the Senate on , and shall implement the system described in such section 939D unless the Commission determines that an alternative system would better serve the public interest and the protection of investors.

(2)

Rule of construction

Nothing in this subsection may be construed to limit or suspend any other rulemaking authority of the Commission.

Pub. L. 111–203, title IX, § 939F124 Stat. 1889(, , .)

Editorial Notes

References in Text

Pub. L. 112–106, title I, § 101(b)(1)126 Stat. 307section 78c(a)(79) of this titleSection 3(a)(77) of the Securities Exchange Act of 1934, referred to in subsec. (a), was redesignated section 3(a)(79) of that Act by , , , and is classified to .

section 941 of Pub. L. 111–203Section 941, referred to in subsec. (a), means .

oSection 15E of the Securities Exchange Act of 1934, referred to in subsec. (d)(1), is classified to section 78–7 of this title.

Pub. L. 111–203section 939D of Pub. L. 111–20315 U.S.C. 78oH.R. 4173, referred to in subsec. (d)(1), became . As enacted, did not add a subsec. (w) to section 15E of the Securities Exchange Act of 1934 (–7) but enacted provisions set out as a note below. For the provisions of section 15E(w) of the Securities Exchange Act of 1934, as that provision would have been added by section 939D of H.R. 4173 (111th Congress), as passed by the Senate on , see 156 Cong. Rec. 80 at pp. S4338, S4339 (daily ed. ).

Codification

Section was enacted as part of the Investor Protection and Securities Reform Act of 2010 and also as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and not as part of the Securities Exchange Act of 1934 which comprises this chapter.

Statutory Notes and Related Subsidiaries

Effective Date

section 4 of Pub. L. 111–203section 5301 of Title 12Section effective 1 day after , except as otherwise provided, see , set out as a note under , Banks and Banking.

Government Accountability Office Study on Alternative Business Models

Pub. L. 111–203, title IX, § 939D124 Stat. 1888

“(a)

Study .—

The Comptroller General of the United States shall conduct a study on alternative means for compensating nationally recognized statistical rating organizations in order to create incentives for nationally recognized statistical rating organizations to provide more accurate credit ratings, including any statutory changes that would be required to facilitate the use of an alternative means of compensation.
“(b)

Report .—

Not later than 18 months after the date of enactment of this Act [], the Comptroller General shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on the results of the study conducted under subsection (a), including recommendations, if any, for providing incentives to credit rating agencies to improve the credit rating process.”
, , , provided that:

section 939D of Pub. L. 111–203section 5301 of Title 12[For definition of “nationally recognized statistical rating organization” as used in , set out above, see , Banks and Banking.]

Definitions

section 5301 of Title 12For definitions of terms used in this section, see , Banks and Banking.