Newsletter Oct 2006: US Congress passes law to regulate rating agencies

WASHINGTON – Credit rating agencies in the US became subject to a new regulatory regime at the end of September with the signing into law of the Credit Ratings Agency Reform Act by President Bush. The effect of this law will be to give the Securities and Exchange Commission (SEC), the leading regulator for the US securities markets, statutory powers to make rules governing the behaviour and standards of credit rating agencies (CRAs).