Sec. 702. COMMISSION STUDY AND REPORT REGARDING CREDIT RATING AGENCIES

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## SEC. 702 COMMISSION STUDY AND REPORT REGARDING CREDIT RATING AGENCIES ###

(a)Study Required ####

(1)In general The Commission shall conduct a study of the role and function of credit rating agencies in the operation of the securities market. ####

(2)Areas of consideration The study required by this subsection shall examine— #####

(A)the role of credit rating agencies in the evaluation of issuers of securities; #####

(B)the importance of that role to investors and the functioning of the securities markets; #####

(C)any impediments to the accurate appraisal by credit rating agencies of the financial resources and risks of issuers of securities; #####

(D)any barriers to entry into the business of acting as a credit rating agency, and any measures needed to remove such barriers; #####

(E)any measures which may be required to improve the dissemination of information concerning such resources and risks when credit rating agencies announce credit ratings; and #####

(F)any conflicts of interest in the operation of credit rating agencies and measures to prevent such conflicts or ameliorate the consequences of such conflicts. ###

(b)Report Required The Commission shall submit a report on the study required by subsection

(a)to the President, the Committee on Financial Services of the House of Representatives, and the Committee on Banking, Housing, and Urban Affairs of the Senate not later than 180 days after the date of enactment of this Act.