Defendant Name: Morningstar Credit Ratings, LLC

Defendant Type: Subsidiary of Public Company
Public Company Parent: Morningstar, Inc.
SIC Code: 6282
CUSIP: 61770010

Initial Case Details

Legal Case Name In the Matter of Morningstar Credit Ratings, LLC
First Document Date 15-May-2020
Initial Filing Format Administrative Action
File Number 3-19802
Allegation Type Other

Violations Alleged

Other
• Rule 17g-5(c)(8)(i) Exchange Act

Resolutions

First Resolution Date 15-May-2020
Headline Total Penalty and Disgorgement $3,500,000

Related Documents:

34-88880 15-May-2020 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 15E(d) and 21C of the Securities and Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On May 15, 2020, the SEC instituted settled cease-and-desist proceedings against Morningstar Credit Ratings, LLC ("MCR"). The SEC stated: "MCR violated Exchange Act Rule 17g-5(c)(8)(i), a conflict of interest rule, by issuing or maintaining credit ratings where MCR employees who participated in determining or monitoring the credit ratings also participated in the sales or marketing of a product or service of MCR."
2020-112 15-May-2020 Press Release--Administrative Proceeding
SEC Orders Credit Rating Agency to Pay $3.5 Million for Conflicts of Interest Violations
The SEC stated that: "[It] New York-based credit rating agency Morningstar Credit Ratings LLC for violating a conflict of interest rule designed to separate credit ratings and analysis from sales and marketing efforts. Morningstar has agreed to pay $3.5 million to settle the charges."