Page:United States Statutes at Large Volume 124.djvu/1900

 124 STAT. 1874 PUBLIC LAW 111–203—JULY 21, 2010 (F) in the matter preceding subparagraph (A), as so redesignated, by striking ‘‘The Commission’’ and inserting the following: ‘‘(1) IN GENERAL.—The Commission’’; (G) in subparagraph (D), as so redesignated— (i) by striking ‘‘furnish’’ and inserting ‘‘file’’; and (ii) by striking ‘‘or’’ at the end. (H) in subparagraph (E), as so redesignated, by striking the period at the end and inserting a semicolon; and (I) by adding at the end the following: ‘‘(F) has failed reasonably to supervise, with a view to preventing a violation of the securities laws, an indi- vidual who commits such a violation, if the individual is subject to the supervision of that person. ‘‘(2) SUSPENSION OR REVOCATION FOR PARTICULAR CLASS OF SECURITIES.— ‘‘(A) IN GENERAL.—The Commission may temporarily suspend or permanently revoke the registration of a nation- ally recognized statistical rating organization with respect to a particular class or subclass of securities, if the Commis- sion finds, on the record after notice and opportunity for hearing, that the nationally recognized statistical rating organization does not have adequate financial and manage- rial resources to consistently produce credit ratings with integrity. ‘‘(B) CONSIDERATIONS.—In making any determination under subparagraph (A), the Commission shall consider— ‘‘(i) whether the nationally recognized statistical rating organization has failed over a sustained period of time, as determined by the Commission, to produce ratings that are accurate for that class or subclass of securities; and ‘‘(ii) such other factors as the Commission may determine.’’; (4) in subsection (h), by adding at the end the following: ‘‘(3) SEPARATION OF RATINGS FROM SALES AND MARKETING.— ‘‘(A) RULES REQUIRED.—The Commission shall issue rules to prevent the sales and marketing considerations of a nationally recognized statistical rating organization from influencing the production of ratings by the nationally recognized statistical rating organization. ‘‘(B) CONTENTS OF RULES.—The rules issued under subparagraph (A) shall provide for— ‘‘(i) exceptions for small nationally recognized statistical rating organizations with respect to which the Commission determines that the separation of the production of ratings and sales and marketing activi- ties is not appropriate; and ‘‘(ii) suspension or revocation of the registration of a nationally recognized statistical rating organiza- tion, if the Commission finds, on the record, after notice and opportunity for a hearing, that— ‘‘(I) the nationally recognized statistical rating organization has committed a violation of a rule issued under this subsection; and ‘‘(II) the violation of a rule issued under this subsection affected a rating.