The Securities and Exchange Commission (SEC) has levied fines on Moody’s Corp., S&P Global Inc., and Fitch Ratings Inc. amounting to a combined total of $48 million. These penalties stem from allegations that the credit-rating firms failed to maintain proper electronic communications, an issue that has come under scrutiny during ongoing WhatsApp investigations.
According to the SEC, both Moody’s and S&P will each be responsible for paying $20 million, while Fitch will contribute $8 million. The credit-rating companies have now acknowledged violations of the SEC’s recordkeeping rules and will subsequently retain compliance consultants to address these deficiencies.
This move by the SEC is part of a broader effort to clamp down on recordkeeping violations in the financial industry. The credit-rating agencies add to a growing list of firms that have faced penalties as part of these regulatory actions. Notably, several banking institutions have already agreed to pay hefty sums in settlement with the SEC regarding similar allegations.
For more detailed information, see the full article on Bloomberg Law.