Page:United States Statutes at Large Volume 124.djvu/1902

 124 STAT. 1876 PUBLIC LAW 111–203—JULY 21, 2010 ‘‘(B) PUBLIC DISCLOSURE.—Upon receiving such a report, the Commission shall make such information pub- licly available.’’; (5) in subsection (j)— (A) by striking ‘‘Each’’ and inserting the following: ‘‘(1) IN GENERAL.—Each’’; and (B) by adding at the end the following: ‘‘(2) LIMITATIONS.— ‘‘(A) IN GENERAL.—Except as provided in subparagraph (B), an individual designated under paragraph (1) may not, while serving in the designated capacity— ‘‘(i) perform credit ratings; ‘‘(ii) participate in the development of ratings methodologies or models; ‘‘(iii) perform marketing or sales functions; or ‘‘(iv) participate in establishing compensation levels, other than for employees working for that indi- vidual. ‘‘(B) EXCEPTION.—The Commission may exempt a small nationally recognized statistical rating organization from the limitations under this paragraph, if the Commission finds that compliance with such limitations would impose an unreasonable burden on the nationally recognized statis- tical rating organization. ‘‘(3) OTHER DUTIES.—Each individual designated under paragraph (1) shall establish procedures for the receipt, reten- tion, and treatment of— ‘‘(A) complaints regarding credit ratings, models, meth- odologies, and compliance with the securities laws and the policies and procedures developed under this section; and ‘‘(B) confidential, anonymous complaints by employees or users of credit ratings. ‘‘(4) COMPENSATION.—The compensation of each compliance officer appointed under paragraph (1) shall not be linked to the financial performance of the nationally recognized statis- tical rating organization and shall be arranged so as to ensure the independence of the officer’s judgment. ‘‘(5) ANNUAL REPORTS REQUIRED.— ‘‘(A) ANNUAL REPORTS REQUIRED.—Each individual des- ignated under paragraph (1) shall submit to the nationally recognized statistical rating organization an annual report on the compliance of the nationally recognized statistical rating organization with the securities laws and the policies and procedures of the nationally recognized statistical rating organization that includes— ‘‘(i) a description of any material changes to the code of ethics and conflict of interest policies of the nationally recognized statistical rating organization; and ‘‘(ii) a certification that the report is accurate and complete. ‘‘(B) SUBMISSION OF REPORTS TO THE COMMISSION.— Each nationally recognized statistical rating organization shall file the reports required under subparagraph (A) together with the financial report that is required to be submitted to the Commission under this section.’’; Procedures.