Understanding the Role of a Person Associated With a Nationally Recognized Statistical Rating Organization
Definition & Meaning
The term "person associated with a nationally recognized statistical rating organization" refers to individuals who have a specific relationship with such organizations. This includes:
- Partners, officers, directors, or branch managers of the organization.
- Individuals who control, are controlled by, or share common control with the organization.
- Employees of the organization.
These roles are significant as they may influence the organization's operations and the integrity of its ratings.
Legal Use & context
This term is commonly used in securities law and financial regulations, particularly in contexts involving credit ratings and investment assessments. Understanding who qualifies as a person associated with these organizations is crucial for compliance with regulations, as it can impact disclosures, conflicts of interest, and the credibility of ratings.
Users may encounter this term when dealing with legal forms related to financial disclosures, regulatory compliance, or when assessing the credibility of financial institutions.
Real-world examples
Here are a couple of examples of abatement:
Example 1: A director of a nationally recognized statistical rating organization is involved in decision-making processes that affect the ratings of various financial products. This director is considered a person associated with the organization.
Example 2: An employee who works in the ratings department of the organization is responsible for analyzing data and producing ratings. This employee also qualifies as a person associated with the organization.
Relevant laws & statutes
Key legislation related to this term includes:
- 15 USCS § 78c - This statute defines various terms used in securities law, including the definition of a person associated with a nationally recognized statistical rating organization.