In this NPR, the SEC advances the regulatory changes mandated by provisions in the Dodd-Frank Act that require the elimination of references to the determinations of credit rating agencies (CRAs) in federal regulation. The NPR deletes current references in SEC rules and forms and proposes a new rule that establishes a replacement standard for judgments of creditworthiness at money-market funds (MMFs) and for use on certain forms that disclose credit risk.  The NPR moves away from suggestions that MMFs or other regulated entities develop their own internal models that meet specified criteria or rely on sources that meet eligibility standards (for example, subscriber-paid ratings).  Instead, MMFs could rely on ratings as long as the source providing them is considered reliable for the relevant asset class.

The full report is available to retainer clients.  To find out how you can sign up for the service, click here.

.