Six credit rating firms to pay $49M for off-channel comms violations
By 
Aaron Nicodemus2024-09-05T14:32:00
Six credit rating agencies will pay $49 million in fines to the Securities and Exchange Commission (SEC) for allowing their employees to communicate on company business using nonapproved communication channels like Whats App and WeChat.
The six firms are credit ratings agencies, representing a new category of firms entering into settlements with the SEC for off-channel communication violations that, until now, has mostly targeted broker-dealers and investment advisers.
According to an SEC press release, issued Tuesday, the latest firms to settle include Moody’s Investors Service, Inc. to pay $20 million; S&P Global Ratings to pay $20 million; Fitch Ratings, Inc. to pay $8 million; HR Ratings de México, S.A. de C.V. to pay $250,000; A.M. Best Rating Services, Inc. to pay $1 million; and Demotech, Inc. to pay $100,000.
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