Credit Rating Agency Reform Act of 2006

The Credit Rating Agency Reform Act of 2006 aims to improve ratings quality for investor protection by fostering accountability, transparency, and competition in the credit rating agency industry. The Act requires registration of nationally recognized statistical rating organizations (NRSROs) with the Securities and Exchange Commission (SEC). NRSROs must maintain adequate financial and managerial resources, prevent misuse of nonpublic information, manage conflicts of interest, and provide regular statements to investors. The SEC is granted authority to enforce regulations related to NRSROs and may censure or revoke registration if necessary for investor protection.