Six rating agencies, including the big three Moody’s, S&P and Fitch, will pay a total of $49 million in fines for failing to protect their data, the US securities regulator SEC announced on Tuesday. The Securities and Exchange Commission (SEC) has called the agencies into question for “significant record-keeping failures”according to a press release. “The companies acknowledge wrongdoing and agree to pay penalties totaling more than $49 million to settle the SEC’s charges.”it is specified.
Moody’s and S&P have each agreed to pay a fine of $20 million, while Fitch’s fine is $8 million. Three other agencies are also affected by this indictment: HR Ratings de México, which has agreed to pay a fine of $250,000, AM Best Rating Services, which has been fined $1 million, and Demotech, for $100,000.
“Each of the credit rating agencies, with the exception of AM Best and Demotech, must also retain the services of a compliance consultant.”the SEC further indicates in its press release. “We have repeatedly found that failure to keep and preserve required records can hamper staff’s ability to ensure that companies meet their obligations and the Commission’s ability to hold those that fail to meet those obligations to account, often at the expense of investors.”said Sanjay Wadhwa, deputy director of the SEC’s enforcement division, as quoted in the statement.
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