About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

US SEC Finally Passes New Credit Ratings Agency Rules

Subscribe to our newsletter

Following months of speculation, the US Securities and Exchange Commission (SEC) has finally passed new regulations to tighten its supervision of the credit ratings agency sector. This corner of the market, which is dominated by the big three: Moody’s, Standard & Poor’s and Fitch, has come under heavy critical fire due to its contribution to the financial crisis and plans to overhaul the sector have long been in the pipeline.

The US Senate Banking Committee last month closed its last hearing before its August recess with discussions about proposed ratings agency regulations and it seems these have largely been approved. Accordingly, legislation that mandates the use of ratings for areas such as risk management has been repealed by the SEC in order to reduce reliance on these measures within the financial markets overall. These agencies are also now required to reveal more data about their past ratings in order to permit investors to compare relative performance.

SEC chairman Mary Schapiro explained: “It is incumbent upon us to do all that we can to improve the reliability and integrity of the ratings process and give investors the appropriate context for evaluating whether ratings deserve their trust.”

The SEC is also gathering industry feedback about whether it should require ratings agencies to be liable under securities law for inaccuracies in their ratings. This would mean that these agencies would be regulated as “experts” under securities law, in the same way as auditors, who can currently be more easily sued over their findings. Moreover, the regulator may also require banks and other issuers to disclose preliminary ratings to prevent them from shopping around for better ratings. These proposals are due to be published in a general discussion paper later this month.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Unlocking Transparency in Private Markets: Data-Driven Strategies in Asset Management

As asset managers continue to increase their allocations in private assets, the demand for greater transparency, risk oversight, and operational efficiency is growing rapidly. Managing private markets data presents its own set of unique challenges due to a lack of transparency, disparate sources and lack of standardization. Without reliable access, your firm may face inefficiencies,...

BLOG

Turning Regulation into an Advantage for UK Financial Sector SMEs

By Jon Lucas, Director and Co-Founder, Hyve Managed Hosting. While security and compliance have always been crucial pillars of cloud hosting, the landscape is shifting. New legislation and stricter regulatory frameworks are placing heavier demands on businesses – particularly in sectors like financial services – forcing companies to invest more time, and resources into ticking...

EVENT

AI in Capital Markets Summit London

The AI in Capital Markets Summit will explore current and emerging trends in AI, the potential of Generative AI and LLMs and how AI can be applied for efficiencies and business value across a number of use cases, in the front and back office of financial institutions. The agenda will explore the risks and challenges of adopting AI and the foundational technologies and data management capabilities that underpin successful deployment.

GUIDE

AI in Capital Markets: Practical Insight for a Transforming Industry – Free Handbook

AI is no longer on the horizon – it’s embedded in the infrastructure of modern capital markets. But separating real impact from inflated promises requires a grounded, practical understanding. The AI in Capital Markets Handbook 2025 provides exactly that. Designed for data-driven professionals across the trade life-cycle, compliance, infrastructure, and strategy, this handbook goes beyond...