Page:United States Statutes at Large Volume 120.djvu/1369

 120 STAT. 1338

PUBLIC LAW 109–291—SEPT. 29, 2006 ‘‘that is a nationally recognized statistical rating organization, as such term is defined in section 3(a) of the Securities Exchange Act of 1934’’. (5) HIGHER EDUCATION ACT OF 1965.—Section 439(r)(15)(A) of the Higher Education Act of 1965 (20 U.S.C. 1087–2(r)(15)(A)) is amended by striking ‘‘means any entity recognized as such by the Securities and Exchange Commission’’ and inserting ‘‘means any nationally recognized statistical rating organization, as that term is defined in section 3(a) of the Securities Exchange Act of 1934’’. (6) TITLE 23.—Section 181(11) of title 23, United States Code, is amended by striking ‘‘identified by the Securities and Exchange Commission as a nationally recognized statistical rating organization’’ and inserting ‘‘registered with the Securities and Exchange Commission as a nationally recognized statistical rating organization, as that term is defined in section 3(a) of the Securities Exchange Act of 1934’’.

SEC. 5. ANNUAL AND OTHER REPORTS.

Section 17(a)(1) of the Securities Exchange Act of 1934 (15 U.S.C. 78q(a)(1)) is amended— (1) by inserting ‘‘nationally recognized statistical rating organization,’’ after ‘‘registered transfer agent,’’; and (2) by adding at the end the following: ‘‘Any report that a nationally recognized statistical rating organization is required by Commission rules under this paragraph to make and disseminate to the Commission shall be deemed furnished to the Commission.’’. 15 USC 78o–7 note.

SEC. 6. COMMISSION ANNUAL REPORT.

The Commission shall submit an annual report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives that, with respect to the year to which the report relates— (1) identifies applicants for registration under section 15E of the Securities Exchange Act of 1934, as added by this Act; (2) specifies the number of and actions taken on such applications; and (3) specifies the views of the Commission on the state of competition, transparency, and conflicts of interest among nationally recognized statistical rating organizations. SEC. 7. GAO STUDY AND REPORT REGARDING NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATIONS.

(a) STUDY REQUIRED.—The Comptroller General of the United States shall conduct a study— (1) to determine the impact of this Act and the amendments made by this Act on— (A) the quality of credit ratings issued by nationally recognized statistical ratings organizations; (B) the financial markets; (C) competition among credit rating agencies; (D) the incidence of inappropriate conflicts of interest and sales practices by nationally recognized statistical rating organizations; (E) the process for registering as a nationally recognized statistical rating organization; and

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