H.R. 4586 would provide additional discretion to the Securities and Exchange Commission (SEC) in its review of data from the national credit ratings agencies. Under current law, the Office of Credit Ratings (OCR) within the SEC must conduct an annual examination of nationally recognized statistical rating organizations (NRSROs) in eight specified review areas and produce an annual report on its findings. The bill would authorize the OCR to include the results from any or all of the eight examinations that it deems appropriate in its annual reviews.
Using information from the SEC, CBO estimates that implementing H.R. 4586 would not significantly affect the costs for the SEC to produce its annual reviews of NRSROs. Because the SEC is authorized to collect fees each year to offset its annual appropriation, CBO expects that the net effect on discretionary spending over the 2022-2027 period would be negligible, assuming appropriation actions consistent with that authority.
