The Securities and Exchange Commission (SEC) has charged six credit rating agencies with “significant recordkeeping failures” and imposed almost $50 million in fines.
The Securities Exchange Act requires credit rating agencies to retain all internal and external communications received and sent by the agencies as well as their employees that are related to rating activities. The SEC found that the firms violated these recordkeeping provisions, according to a Sept. 3 statement.
Employees at Moody’s were found to have communicated through their personal mobile devices using messaging platforms such a WhatsApp, according to an SEC order. These messages included discussions regarding initiating, determining, maintaining, monitoring, changing, or withdrawing a credit rating.
The SEC found that Moody’s “failed to maintain or preserve messages concerning Credit Rating Activities” as required by regulations. As such, the firm was determined to have violated Section 17(a) of the Securities Exchange Act.
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Credit Rating Agencies Fined Nearly $50 Million for ‘Recordkeeping Failures’
- by: Naveen Athrappully
- 2024-09-05
- Source:
The Epoch Times
- 09/05/2024
A person holding credit cards against a white background wall. by Avery Evans is licensed under unsplash.com
A person holding credit cards against a white background wall. by Avery Evans is licensed under unsplash.com
