NRSRO Ratings Removed from Various Rules and Forms

December 27, 2013

The SEC adopted amendments to rules and forms to delete references to credit ratings by nationally recognized statistical rating organizations (NRSROs). The Dodd-Frank Wall Street Reform and Consumer Protection Act mandated the SEC to take this action.
With respect to the Investment Company Act of 1940, the SEC removed credit rating references from:

  • Rule 5b-3 under the Investment Company Act, a rule that permits funds to look through repurchase agreements to the underlying collateral securities for certain counterparty limitation and diversification purposes provided the collateral meets certain credit quality standards; and
  • Forms N-1A, N-2, and N-3, the forms that contain requirements for funds to report information about their activities to shareholders, including information about the credit quality of their portfolios

Click to access the release adopting the rules.


Investment Advisers, Investment Companies