3235-AL54 202110 The Regulatory Plan and the Unified Agenda of Federal Regulatory and Deregulatory Actions 3235 Securities and Exchange Commission SEC Credit Rating Agencies -- Conflicts of Interest and Transparency

The Office of Credit Ratings is considering recommending that the Commission propose rules and amendments designed to address the conflicts of interest associated with the issuer-pay business model (i.e., the NRSRO receives compensation from issuers and obligors for rating the securities of the issuer or the obligor) and increase  transparency and promote competition for the ratings of securities. The recommendation would include proposed rules and amendments designed to increase transparency of (i) the procedures and methodologies NRSROs use to determine credit ratings and how the NRSROs implement their procedures and methodologies, including qualitative factors considered, and adherence to and deviations from established procedures and methodologies; and (ii) climate and ESG factors considered as part of the rating determination process.

]]> Substantive, Nonsignificant Previously Published in The Unified Agenda Long-Term Actions Undetermined No Not Yet Determined 15 U.S.C. 78o-7 15 U.S.C. 78q 15 U.S.C. 78mm No Next Action Undetermined To Be Determined Undetermined None No No No Harriet Orol Office of Credit Ratings 3235 Securities and Exchange Commission SEC 212 336-0554 orolh@sec.gov Brookfield Place, 200 Vesey Street, Suite 400, New York NY 10281-1022