FEI Comments to SEC on definition of NRSROs

Conflicts of interest of rating agencies must be identified and addressed, a committee of Financial Executives International said in a letter sent Friday to the Securities and Exchange Commission. FEI urged the SEC to restrict rating agencies from providing both advisory, fee-based services and rating services to the same issuer.

"We strongly believe a limitation of this type would reduce concerns regarding rating inflation," wrote Dennis Ling, Senior Vice President, Finance and Treasurer Avon Products, Inc., and Chairman of FEI's Committee on Corporate Finance. "Beyond this, we ask the SEC to mandate that credit rating agencies be required to identify the types of conflicts of interest that arise in their business and the procedures they have implemented to address, minimize or avoid those conflicts."

See full Article and the FEI Comments.