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PUBLIC LAW 111–203—JULY 21, 2010 124 STAT. 1875

‘‘(4) LOOK-BACK REQUIREMENT.— ‘‘(A) REVIEW BY THE NATIONALLY RECOGNIZED STATIS- TICAL RATING ORGANIZATION.—Each nationally recognized Procedures. statistical rating organization shall establish, maintain, and enforce policies and procedures reasonably designed to ensure that, in any case in which an employee of a person subject to a credit rating of the nationally recognized statistical rating organization or the issuer, underwriter, or sponsor of a security or money market instrument sub- ject to a credit rating of the nationally recognized statistical rating organization was employed by the nationally recog- nized statistical rating organization and participated in any capacity in determining credit ratings for the person or the securities or money market instruments during the 1-year period preceding the date an action was taken with respect to the credit rating, the nationally recognized statis- tical rating organization shall— ‘‘(i) conduct a review to determine whether any conflicts of interest of the employee influenced the credit rating; and ‘‘(ii) take action to revise the rating if appropriate, in accordance with such rules as the Commission shall prescribe. ‘‘(B) REVIEW BY COMMISSION.— ‘‘(i) IN GENERAL.—The Commission shall conduct periodic reviews of the policies described in subpara- graph (A) and the implementation of the policies at each nationally recognized statistical rating organiza- tion to ensure they are reasonably designed and imple- mented to most effectively eliminate conflicts of interest. ‘‘(ii) TIMING OF REVIEWS.—The Commission shall review the code of ethics and conflict of interest policy of each nationally recognized statistical rating organization— ‘‘(I) not less frequently than annually; and ‘‘(II) whenever such policies are materially modified or amended. ‘‘(5) REPORT TO COMMISSION ON CERTAIN EMPLOYMENT TRANSITIONS.— ‘‘(A) REPORT REQUIRED.—Each nationally recognized statistical rating organization shall report to the Commis- sion any case such organization knows or can reasonably be expected to know where a person associated with such organization within the previous 5 years obtains employ- ment with any obligor, issuer, underwriter, or sponsor of a security or money market instrument for which the organization issued a credit rating during the 12-month period prior to such employment, if such employee— ‘‘(i) was a senior officer of such organization; ‘‘(ii) participated in any capacity in determining credit ratings for such obligor, issuer, underwriter, or LAWS sponsor; or ‘‘(iii) supervised an employee described in clause (ii).PUBLIC with on anorris VerDate Nov 24 2008 00:49 Aug 26, 2010 Jkt 089139 PO 00203 Frm 00501 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 GPO1 PsN: PUBL203