The SEC proposed to codify an existing exemption available to rating agencies with respect to their obligations under conflicts of interest. The proposal was published in the Federal Register. Comments must be received by November 5, 2018.
As previously covered, the exemptions under Exchange Act Rule 17g-5(a)(3) would be available only if (i) the issuer of the relevant security is not a U.S. person and (ii) the rating agency reasonably believes that all offers and sales of the instrument will occur outside the United States, in each case as such terms are defined in Regulation S under the Securities Act.
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