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US securities regulator sues Morningstar over alleged disclosure, internal controls violations

US securities regulator sues Morningstar over alleged disclosure, internal controls violations

FILE PHOTO: The U.S. Securities and Exchange Commission logo adorns an office door at the SEC headquarters in Washington, June 24, 2011. REUTERS/Jonathan Ernst

WASHINGTON: The U.S. Securities and Exchange Commission (SEC) on Tuesday sued Morningstar Credit Ratings for allegedly violating U.S. securities laws in rating commercial mortgage-backed securities, the regulator said in a statement.

Morningstar allegedly violated disclosure and internal controls requirements in 30 commercial mortgage-backed securities transactions from 2015 to 2016 when the agency allowed analysts to make undisclosed adjustments to key stresses in its modelling, the SEC said.

Counsel for Morningstar could not be reached immediately for comment.

Source: Reuters

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