SEC Exemptive Order Extending Temporary Conditional Exemption for Nationally Recognized Statistical Rating Organizations from Exchange Act Rule 17g-5 (Pre-Fed. Reg. Version)

On May 19, 2010, the SEC conditionally exempted, with respect to certain credit ratings and until December 2, 2010, nationally recognized statistical rating organizations ("NRSROs") from certain requirements in Exchange Act Rule 17g-5(a)(3), which had a compliance date of June 2, 2010. Pursuant to the Order, an NRSRO is not required to comply with Rule 17g-5(a)(3) until December 2, 2010 with respect to credit ratings where:

(1) the issuer of the structured finance product is a non-U.S. person; and(2) the NRSRO has a reasonable basis to conclude that the structured finance product will be offered and sold upon issuance, and that any arranger linked to the structured finance product will effect transactions of the structured finance product after issuance, only in transactions that occur outside the U.S. ("covered transactions").

On November 23, 2010, the SEC extended the conditional temporary exemption until December 2, 2011. On November 16, 2011, the SEC extended the conditional temporary exemption until December 2, 2012.

The SEC is now extending the temporary conditional exemption exempting NRSROs from complying with Rule 17g-5(a)(3) with respect to rating covered transactions until December 2, 2013.

Click here to view order in full here (links externally to SEC website). See: Extension Orders, Rel. Nos. 34-63363 and 34-65765; Temporary Exemptive Order, Rel. No. 34-62120. See also: Comments received.Submit comments here.