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pursuant to subsections (g) and (h), and for ensuring com-
pliance with the securities laws and the rules and regula-
tions thereunder, including those promulgated by the 
Commission pursuant to this section. 
‘‘(k) STATEMENTS
OF FINANCIAL CONDITION.— 
Each nationally recognized statistical rating organization 
shall, on a confidential basis, furnish to the Commission, 
at intervals determined by the Commission, such financial 
statements, certified (if required by the rules or regula-
tions of the Commission) by an independent public ac-
countant, and information concerning its financial condi-
tion as the Commission, by rule, may prescribe as nec-
essary or appropriate in the public interest or for the pro-
tection of investors. 
‘‘(l) ELIMINATION OF COMMISSION STAFF’S DES-
IGNATION PROCESS FOR NRSRO’S.— 
‘‘(1) CESSATION OF DESIGNATION.—Within 30 
days after the enactment of the Credit Rating Agen-
cy Duopoly Relief Act of 2006, the Commission staff 
shall cease to designate persons and companies as 
nationally recognized statistical rating organizations, 
as that term is used under rule 15c3–1 of the Com-
mission’s rules (17 CFR 240.15c3–1). 
‘‘(2) PROHIBITION ON RELIANCE ON NO-ACTION 
RELIEF.—The no-action relief that the Commission 
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staff has granted with respect to the designation of 
nationally recognized statistical rating organizations, 
as that term is used under rule 15c3–1 of the Com-
mission’s rules (17 CFR 240.15c3–1), shall be void 
and of no force or effect. 
‘‘(3) NOTICE TO OTHER AGENCIES.—Within 30 
days after the date of enactment of the Credit Rat-
ing Agency Duopoly Relief Act of 2006, the Com-
mission shall give notice to the Federal agencies 
which employ the term ‘nationally recognized statis-
tical rating organization’ (as that term is used under 
rule 15c3–1 of the Commission’s rules (17 CFR 
240.15c3–1)) in their rules and regulations regard-
ing the actions undertaken pursuant to this section. 
‘‘(4) REVIEW
OF
EXISTING
REGULATIONS.— 
Within 360 days after the date of enactment of the 
Credit Rating Agency Duopoly Relief Act of 2006, 
the Commission shall review its existing rules and 
regulations which employ the term ‘nationally recog-
nized statistical rating organization’ or ‘NRSRO’ 
and promulgate new or revised rules and regulations 
as the Commission may prescribe as necessary or 
appropriate in the public interest or for the protec-
tion of investors.’’. 
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(b) CONFORMING
AMENDMENTS
TO
THE
1934 
ACT.— 
(1) 
Section 
15(b)(4)(B)(ii) 
(15 
U.S.C. 
78o(b)(4)(B)(ii)) is amended by inserting ‘‘nationally 
recognized statistical rating organization,’’ after 
‘‘transfer agent,’’. 
(2) 
Section 
15(b)(4)(C) 
(15 
U.S.C. 
78o(b)(4)(C)) is amended by inserting ‘‘nationally 
recognized statistical rating organization,’’ after 
‘‘transfer agent,’’. 
(3) Section 21B(a) (15 U.S.C. 78u–2(a)) is 
amended by inserting ‘‘15E,’’ after ‘‘15C,’’. 
(c) OTHER CONFORMING AMENDMENTS.— 
(1) Section 2(a) of the Investment Company 
Act of 1940 (15 U.S.C. 80a–2(a)) is amended by 
adding at the end the following new paragraph: 
‘‘(53) The term ‘credit rating agency’ has the 
same meaning as given in section 3 of the Securities 
Exchange Act of 1934.’’. 
(2) Section 9(a)(1) of the Investment Company 
Act of 1940 (15 U.S.C. 80a–9(a)) is amended by in-
serting ‘‘credit rating agency,’’ after ‘‘transfer 
agent,’’. 
(3) Section 9(a)(2) of the Investment Company 
Act of 1940 (15 U.S.C. 80a–9(a)) is amended by in-
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serting ‘‘credit rating agency,’’ after ‘‘transfer 
agent,’’. 
(4) Section 202(a) of the Investment Advisers 
Act of 1940 (15 U.S.C. 80b–2(a)) is amended by 
adding at the end the following new paragraph: 
‘‘(28) The term ‘credit rating agency’ has the 
same meaning as given in section 3 of the Securities 
Exchange Act of 1934.’’. 
(5) Section 203(e)(2)(B) of the Investment Ad-
visers Act of 1940 (15 U.S.C. 80b–3(e)) is amended 
by inserting ‘‘credit rating agency,’’ after ‘‘transfer 
agent,’’. 
(6) Section 203(e)(4) of the Investment Advis-
ers Act of 1940 (15 U.S.C. 80b–3(e)) is amended by 
inserting ‘‘credit rating agency,’’ after ‘‘transfer 
agent,’’. 
(7) Section 1319 of the Housing and Commu-
nity Development Act of 1992 (12 U.S.C. 4519) is 
amended by striking ‘‘effectively’’ and all that fol-
lows through ‘‘broker-dealers’’ and inserting ‘‘that is 
a nationally recognized statistical rating organiza-
tion, as such term is defined in section 3(a) of the 
Securities Exchange Act of 1934’’. 
(8) Section 439 of the Higher Education Act of 
1965 (20 U.S.C. 1087–2) is amended in subsection 
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(r)(15)(A) by striking ‘‘means any entity recognized 
as such by the Securities and Exchange Commis-
sion’’ and inserting ‘‘means any nationally recog-
nized statistical rating organization as that term is 
defined under the Securities Exchange Act of 1934’’. 
(9) Section 601(10) of title 23, United States 
Code, is amended by striking ‘‘identified by the Se-
curities and Exchange Commission as a Nationally 
Recognized Statistical Rating Organization’’ and in-
serting ‘‘registered with the Securities and Exchange 
Commission as a nationally recognized statistical 
rating organization as that term is defined under the 
Securities Exchange Act of 1934 (15 U.S.C. 78 et 
seq.)’’. 
SEC. 5. ANNUAL AND OTHER REPORTS. 
Section 17(a)(1) (15 U.S.C. 78q(a)(1)) is amended— 
(1) by inserting ‘‘nationally recognized statis-
tical rating organization,’’ after ‘‘registered transfer 
agent,’’; and 
(2) by adding at the end the following: ‘‘Any re-
port a nationally recognized statistical rating organi-
zation may be required by Commission rules under 
this paragraph to make and disseminate to the Com-
mission shall be deemed furnished to the Commis-
sion.’’. 
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SEC. 6. GAO STUDY AND REPORT REGARDING CONSOLIDA-
TION OF CREDIT RATING AGENCIES. 
(a) STUDY REQUIRED.—The Comptroller General of 
the United States shall conduct a study— 
(1) to identify— 
(A) the factors that have led to the consoli-
dation of credit rating agencies; 
(B) the present and future impact of the 
condition described in subparagraph (A) on the 
securities markets, both domestic and inter-
national; and 
(C) solutions to any problems identified 
under subparagraph (B), including ways to in-
crease competition and the number of firms ca-
pable of providing credit rating services to large 
national and multinational business organiza-
tions that are subject to the securities laws; 
(2) of the problems, if any, faced by business 
organizations that have resulted from limited com-
petition among credit rating agencies, including— 
(A) higher costs; 
(B) lower quality of services; 
(C) anti-competitive practices; 
(D) impairment of independence; and 
(E) lack of choice; and 
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