The U.S. Securities and Exchange Commission (SEC) on Aug. 12 rejected Egan-Jones Ratings Co.'s application to re-register as a nationally recognized statistical rating organization (NRSRO) covering asset-backed securities and government debt. Regulators said the filing contained material inaccuracies and raised questions about management qualifications. It is not the first time the small agency has faced such a setback: its credentials were revoked in 2013 over similar false statements, and founder Sean Egan remains subject to a related ban. Egan-Jones keeps its NRSRO designation for corporate debt and other asset classes, but government securities and the ABS market stay closed to it. NRSRO status is the statutory basis institutional investors rely on when making decisions, and the U.S. rating market has long been dominated by S&P, Moody's and Fitch. (CryptoBriefing)
SEC rejects Egan-Jones NRSRO re-registration
The U.S. Securities and Exchange Commission on Aug. 12 turned down Egan-Jones Ratings Co.'s application to re-register as a nationally recognized statistical rating organization, or NRSRO, covering asset-backed securities and government debt. The agency said the filing contained material inaccuracies and raised management qualification concerns.
A repeat of the 2013 crackdown
This is not the first time Egan-Jones has been tripped up over its paperwork. Its credentials were revoked in 2013 after similar false statements in its materials, and founder Sean Egan remains under a related ban to this day.
Corporate debt still covered
Egan-Jones retains NRSRO status for corporate debt and other asset classes. Government securities and the ABS market, however, remain closed to the firm. NRSRO designation is the legal basis institutional investors rely on for their decisions, and the U.S. rating market has long been dominated by S&P, Moody's and Fitch. (CryptoBriefing)
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