PlainBillCongress, translated.Legislation. Context. Public interest.Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Congressional Research Service
Version 17 · Reported to House with amendment(s) · Jun 29, 2006
Credit Rating Agency Duopoly Relief Act of 2006 - (Sec. 4) Amends the Securities Exchange Act of 1934 to define a credit rating agency as any person: (1) engaged in the business of issuing credit ratings on the Internet or through another readily accessible means, for free or for a reasonable fee; (2) employing either a quantitative or qualitative model, or both, to determine credit ratings; and (3) receiving fees from either issuers, investors, or other market participants, or a combination of them.
Defines a nationally recognized statistical rating organization (NRSRO) as a credit rating agency that has been in business for at least three consecutive years and is registered under this Act.
Prescribes procedural requirements for mandatory NRSRO registration and certification.
Showing the opening paragraphs of the official summary.
Authorizes the Securities and Exchange Commission (SEC) to: (1) take action against any NRSRO that issues credit ratings in contravention of the procedures, criteria, and methodologies it includes in its registration application or makes and disseminates in required reports; and (2) censure, place limitations on the activities, functions, or operations of, suspend for a period not exceeding 12 months, or revoke the registration of any NRSRO for violations of this Act.
Declares it is unlawful for an NRSRO to represent or imply that it has been sponsored, recommended, or approved, or that its abilities or qualifications have in any respect been passed upon, by any federal agency or officer. Makes it unlawful for an unregistered credit rating agency to state that it is an NRSRO.
Requires an NRSRO to establish and enforce written policies and procedures to: (1) prevent the misuse in violation of this Act of material, nonpublic information by the NRSRO or any associated person; and (2) address and manage potential conflicts of interest.
Grants the SEC discretion to adopt rules or regulations to prohibit, or require the management or disclosure of, any conflicts of interest relating to the issuance of credit ratings by an NRSRO.
Authorizes the SEC to adopt rules that prohibit unfair, coercive, or abusive practices relating to the issuance of credit ratings by an NRSRO.
Requires an NRSRO to: (1) designate a compliance officer for ensuring compliance with securities laws and regulations; and (2) file with the SEC certified statements of financial condition.
Requires the SEC, within 30 days of enactment of this Act, to cease designation of persons and companies as NRSROs, as the term is used under current regulations.
Declares void and of no force or effect the no-action relief that the SEC has granted with respect to the designation of certain NRSROs.
(Sec. 5) Includes an NRSRO among the financial entities required to maintain SEC-prescribed records and reports.
(Sec. 6) Instructs the Comptroller General to study and report to certain congressional committees on: (1) factors that have led to the consolidation of credit rating agencies; (2) the resulting impact upon securities markets; (3) the problems, if any, faced by business organizations resulting from limited competition among credit rating agencies; and (4) whether and to what extent federal or state regulations impede such competition.
People & committees
Rep. Fitzpatrick, Michael G. [R-PA-8] · R–PA
Legislative record
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Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Motion to reconsider laid on the table Agreed to without objection.
On passage Passed by recorded vote: 255 - 166 (Roll no. 368).
House roll call 368 · Individual votesPassed/agreed to in House: On passage Passed by recorded vote: 255 - 166 (Roll no. 368).
House roll call 368 · Individual votesThe House adopted the amendment in the nature of a substitute as agreed to by the Committee of the Whole House on the state of the Union.
The previous question was ordered pursuant to the rule. (consideration: CR H5094)
The House rose from the Committee of the Whole House on the state of the Union to report H.R. 2990.
DEBATE - Pursuant to the provisions of H. Res. 906, the Committee of the Whole proceeded with 20 minutes of debate on the Kanjorski amendment.
DEBATE - Pursuant to the provisions of H. Res. 906, the Committee of the Whole proceeded with 10 minutes of debate on the Oxley amendment.
GENERAL DEBATE - The Committee of the Whole proceeded with one hour of general debate on H.R. 2990.
The Speaker designated the Honorable John Boozman to act as Chairman of the Committee.
House resolved itself into the Committee of the Whole House on the state of the Union pursuant to H. Res. 906 and Rule XVIII.
Rule provides for consideration of H.R. 2990 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Specified amendments are in order.
Considered under the provisions of rule H. Res. 906. (consideration: CR H5080-5094; text of measure as reported in House: CR H5087-5089)
Rule H. Res. 906 passed House.
Rules Committee Resolution H. Res. 906 Reported to House. Rule provides for consideration of H.R. 2990 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Specified amendments are in order.
Placed on the Union Calendar, Calendar No. 306.
Reported (Amended) by the Committee on Financial Services. H. Rept. 109-546.
Reported (Amended) by the Committee on Financial Services. H. Rept. 109-546.
Mr. Price (GA) asked unanimous consent that the Committee on Financial Services have until 12:00 p.m. on July 7 to file a report on H.R. 2990. Agreed to without objection.
Ordered to be Reported (Amended) by Voice Vote.
Committee Consideration and Mark-up Session Held.
Sponsor introductory remarks on measure. (CR H5255)
Referred to the House Committee on Financial Services.
Introduced in House
Introduced in House
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Source last updated: Apr 7, 2025. Consult Congress.gov for the current record.
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