Notice of Meeting of the Cultural Property Advisory Committee, 14581-14582 [2012-5909]
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Federal Register / Vol. 77, No. 48 / Monday, March 12, 2012 / Notices
III. Discussion
The Commission, when adopting Rule
17g–5(c)(1), noted that it intended to
monitor how the prohibition operates in
practice, particularly with respect to
asset-backed securities, and whether
exemptions may be appropriate.2 The
Commission has previously granted
three temporary exemptions from Rule
17g–5(c)(1), including one on June 28,
2008 to Realpoint, as Morningstar was
formerly known, in connection with its
initial registration as an NRSRO
(‘‘Realpoint Exemptive Order’’).3 The
Commission noted several factors in
granting that exemption, including the
fact that the revenue in question was
earned prior to the adoption of the rule,
the likelihood of smaller firms such as
Realpoint being more likely to be
affected by the rule, Realpoint’s
expectation that the percentage of total
revenue provided by the relevant client
would decrease, and the increased
competition in the asset-backed
securities class that could result from
Realpoint’s registration. In granting the
Realpoint Exemptive Order, the
Commission also noted that an
exemption would further the primary
purpose of the Credit Rating Agency
Reform Act of 2006 (‘‘Rating Agency
Act’’) as set forth in the Report of the
Senate Committee on Banking, Housing,
and Urban Affairs accompanying the
Rating Agency Act: To ‘‘improve ratings
quality for the protection of investors
and in the public interest by fostering
accountability, transparency, and
competition in the credit rating
industry’’.4 Previously, on February 11,
2008, the Commission, citing the same
factors it later set forth in the Realpoint
Exemptive Order, issued a similar order
granting LACE LLC (‘‘LACE’’) a
temporary exemption from the
requirements of Rule 17g–5(c)(1) in
connection with LACE’s registration as
an NRSRO (‘‘LACE Exemptive Order’’).5
Most recently, the Commission issued
an order granting Kroll Bond Rating
Agency, Inc. (‘‘Kroll’’), formerly known
as LACE, a temporary, limited and
conditional exemption from Rule 17g–
5(c)(1) allowing Kroll to enter the
market for rating structured finance
products (‘‘Kroll Exemptive Order’’).6 In
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2 Release
No. 34–55857 (June 5, 2007), 72 FR
33564, 33598 (June 18, 2007).
3 Release No. 34–58001 (June 23, 2008), 73 FR
36362 (June 26, 2008).
4 See Report of the Senate Committee on Banking,
Housing, and Urban Affairs to Accompany S. 3850,
Credit Rating Agency Reform Act of 2006, S. Report
No. 109–326, 109th Cong., 2d Sess. (Sept. 6, 2006).
5 Release No. 34–57301 (Feb. 11, 2008), 73 FR
8720 (Feb. 14, 2008).
6 Release No. 34–65339 (Sept. 14, 2011), 76 FR
58319 (Sept. 20, 2011).
VerDate Mar<15>2010
14:55 Mar 09, 2012
Jkt 226001
this order, the Commission noted that
an exemption is consistent with the
Commission’s goal of improving ratings
quality for the protection of investors
and in the public interest by fostering
accountability, transparency, and
competition in the credit rating
industry.
The Commission believes that a
temporary, limited and conditional
exemption allowing Morningstar to
expand in the market for rating
structured finance products on an
issuer-paid basis is consistent with the
Commission’s goal of improving ratings
quality for the protection of investors
and in the public interest by fostering
accountability, transparency, and
competition in the credit rating
industry. In order to maintain this
exemption, Morningstar will be required
to publicly disclose in Exhibit 6 to Form
NRSRO, as applicable, that the firm
received more than 10% of its net
revenue in fiscal years 2011 and 2012
from a client or clients that paid it to
rate asset-backed securities. This
disclosure is designed to alert users of
credit ratings to the existence of this
specific conflict and is consistent with
exemptive relief the Commission has
previously granted to Realpoint, LACE
and Kroll. In addition to Morningstar’s
existing obligations as an NRSRO to
maintain policies, procedures, and
internal controls, by the terms of this
order, Morningstar will also be required
to maintain policies, procedures, and
internal controls specifically designed
to address the conflict created by
exceeding the 10% threshold.
Furthermore, the exemption would also
require that revenue from a single client
does not exceed 25% of Morningstar’s
total net revenue for either fiscal year
2011 or 2012.
Section 15E(p) of the Exchange Act, as
added by Section 932(a)(8) of the DoddFrank Wall Street Reform and Consumer
Protection Act, requires Commission
staff to conduct an examination of each
NRSRO at least annually. As part of this
annual examination regimen for
NRSROs, Commission staff will closely
review Morningstar’s activities with
respect to managing this conflict and
meeting the conditions set forth below
and will consider whether to
recommend that the Commission take
additional action, including
administrative or other action.
The Commission therefore finds that
a temporary, limited and conditional
exemption allowing Morningstar to
expand in the market for rating
structured finance products on an
issuer-paid basis is consistent with the
Commission’s goal, as established by the
Rating Agency Act, of improving ratings
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14581
quality by fostering accountability,
transparency, and competition in the
credit rating industry, and is necessary
and appropriate in the public interest
and is consistent with the protection of
investors, subject to Morningstar’s
making public disclosure of the conflict
created by exceeding the 10% threshold;
its maintenance of policies, procedures
and internal controls to address that
conflict; and that revenue from a single
client does not exceed 25% of
Morningstar’s total net revenue for
either the fiscal year ending December
31, 2011 or the fiscal year ending
December 31, 2012.
IV. Conclusion
Accordingly, pursuant to Section 36
of the Exchange Act,
It is hereby ordered that Morningstar
Credit Ratings, LLC, formerly known as
Realpoint LLC, is exempt from the
conflict of interest prohibition in
Exchange Act Rule 17g–5(c)(1) until
January 1, 2013, with respect to any
revenue derived from issuer-paid
ratings, provided that: (1) Morningstar
Credit Ratings, LLC publicly discloses
in Exhibit 6 to Form NRSRO, as
applicable, that the firm received more
than 10% of its total net revenue in
fiscal year 2011 or 2012 from a client or
clients; (2) in addition to fulfilling its
existing obligations as an NRSRO to
maintain policies, procedures, and
internal controls, Morningstar Credit
Ratings, LLC also maintains policies,
procedures, and internal controls
specifically designed to address the
conflict created by exceeding the 10%
threshold; and (3) revenue from a single
client does not exceed 25% of
Morningstar’s total net revenue for
either the fiscal year ending December
31, 2011 or the fiscal year ending
December 31, 2012.
By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012–5830 Filed 3–9–12; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF STATE
[Public Notice 7767; Guatemala Docket No.
DOS–2012–0011; Mali Docket No. DOS–
2012–0012]
Notice of Meeting of the Cultural
Property Advisory Committee
There will be a meeting of the
Cultural Property Advisory Committee
April 24–27, 2012, at the Department of
State, Annex 5, 2200 C Street NW.,
Washington, DC. Portions of this
E:\FR\FM\12MRN1.SGM
12MRN1
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14582
Federal Register / Vol. 77, No. 48 / Monday, March 12, 2012 / Notices
meeting will be closed to the public, as
discussed below.
During the closed portions of the
meeting, the Committee will review the
proposal to extend the Memorandum of
Understanding Between the Government
of the United States of America and the
Government of the Republic of
Guatemala Concerning the Imposition
of Import Restrictions on Archaeological
Objects and Materials from the PreColumbian Cultures of Guatemala
(MOU) [Docket No. DOS–2012–0011]
and the Agreement Between the
Government of the United States of
America and the Government of the
Republic of Mali Concerning the
Imposition of Import Restrictions on
Archaeological Material from the
Paleolithic Era (Stone Age) to
Approximately the Mid-Eighteenth
Century [Docket No. DOS–2012–0012].
Additionally, the Government of
Guatemala has asked that the MOU be
amended to include ethnological
ecclesiastical material representing the
Colonial Period of its cultural heritage.
An open session to receive oral public
comment on these two proposals will be
held on Tuesday, April 24, 2012, 2:30
p.m. EDT.
Also during the closed portions of the
meeting, the Committee will continue
its review of a new cultural property
request from the Government of the
Republic of Bulgaria seeking import
restrictions on archaeological and
ethnological material. Please see the
link to the Public Summary of this
request at https://exchanges.state.gov/
heritage/whatsnew.html.
The Committee’s responsibilities are
carried out in accordance with
provisions of the Convention on
Cultural Property Implementation Act
(19 U.S.C. 2601 et seq.). The text of the
Act and the subject MOU and
Agreement, as well as related
information, may be found at https://
exchanges.state.gov/heritage/
culprop.html.
If you wish to attend the open session
on April 24, 2012, you should notify the
Cultural Heritage Center of the
Department of State at (202) 632–6301
no later than 5 p.m. (EDT) April 3, 2012,
to arrange for admission. Seating is
limited. When calling, please specify if
you have special accommodation needs.
The open session will be held at 2200
C St. NW., Washington, DC 20037.
Please plan to arrive 15 minutes before
the beginning of the open session.
If you wish to make an oral
presentation at the open session, you
must request to be scheduled and must
submit a written text of your oral
comments, ensuring that it is received
no later than April 3, 2012, 11:59 p.m.
VerDate Mar<15>2010
14:55 Mar 09, 2012
Jkt 226001
(EDT), via the eRulemaking Portal (see
below), to allow time for distribution to
Committee members prior to the
meeting. Oral comments will be limited
to allow time for questions from
members of the Committee. All oral and
written comments must relate
specifically to the determinations under
Section 303(a)(1) (19 U.S.C. 2602) of the
Convention on Cultural Property
Implementation Act, pursuant to which
the Committee must make findings. This
statute can be found at the Web site
noted above.
If you do not wish to make oral
comment, but still wish to make your
views known, you may send written
comments for the Committee to
consider. Again, your comments must
relate specifically to the determinations
under Section 303(a)(1) (19 U.S.C. 2602)
of the Convention on Cultural Property
Implementation Act, pursuant to which
the Committee must make findings.
Submit all written materials
electronically through the eRulemaking
Portal (see below), ensuring that they
are received no later than April 3, 2012,
11:59 p.m. (EDT). Our adoption of this
procedure facilitates public
participation, implements Section 206
of the E–Government Act of 2002,
Public Law 107–347, 116 Stat. 2915, and
supports the Department of State’s
‘‘Greening Diplomacy’’ initiative which
aims to reduce the State Department’s
environmental footprint and reduce
costs.
Confidential written comments: If you
wish to submit information that is
privileged or confidential in your
comments, pursuant to 19 U.S.C.
2605(i)(1), do so via regular mail,
commercial delivery, or hand delivery.
Only comments reasonably asserted to
be confidential will be accepted via
those methods.
As a general reminder comments
submitted by fax or by email are not
accepted. In the past, twenty copies of
texts over five pages in length were
requested. Please note that this is no
longer necessary; all comments, other
than confidential comments, should
now be submitted via the eRulemaking
Portal only. Please submit comments
only one time.
• Electronic Delivery. To submit
comments electronically, go to the
Federal eRulemaking Portal (https://
www.regulations.gov), enter the Docket
No. DOS–2012–0011 for Guatemala or
Docket No. DOS–2012–0012 for Mali,
and follow the prompts to submit a
comment. For further information, see
https://exchanges.state.gov/heritage/
whatsnew.html.
• Comments submitted in confidence
only: Regular Mail or Commercial
PO 00000
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Fmt 4703
Sfmt 9990
Delivery. Cultural Heritage Center (ECA/
P/C), SA–5, Fifth Floor, Department of
State, Washington, DC 20522–0505.
Hand Delivery. Cultural Heritage Center
(ECA/P/C), Department of State, 2200 C
Street NW., Washington, DC 20522–
0505.
Are Comments Private? No.
Comments submitted in electronic form
will be posted on the site https://
www.regulations.gov. Because the
comments cannot be edited to remove
any identifying or contact information,
the Department of State cautions against
including any information in an
electronic submission that one does not
want publicly disclosed (including trade
secrets and commercial or financial
information that is privileged or
confidential pursuant to 19 U.S.C.
2605(i)(1)). The Department of State
requests that any party soliciting or
aggregating comments received from
other persons for submission to the
Department of State inform those
persons that the Department of State
will not edit their comments to remove
any identifying or contact information,
and that they therefore should not
include any information in their
comments that they do not want
publicly disclosed.
On Closed Meetings: As noted above,
portions of the meeting will be closed
pursuant to 5 U.S.C. 552b(c)(9)(B) and
19 U.S.C. 2605(h), the latter of which
stipulates that ‘‘The provisions of the
Federal Advisory Committee Act shall
apply to the Cultural Property Advisory
Committee except that the requirements
of subsections (a) and (b) of section 10
and 11 of such Act (relating to open
meetings, public notice, public
participation, and public availability of
documents) shall not apply to the
Committee, whenever and to the extent
it is determined by the President or his
designee that the disclosure of matters
involved in the Committee’s
proceedings would compromise the
government’s negotiation objectives or
bargaining positions on the negotiations
of any agreement authorized by this
title.’’ The President’s designee has
made such a determination.
Dated: February 29, 2012.
Ann Stock,
Assistant Secretary, Bureau of Educational
and Cultural Affairs, Department of State.
[FR Doc. 2012–5909 Filed 3–9–12; 8:45 am]
BILLING CODE 4710–05–P
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Agencies
[Federal Register Volume 77, Number 48 (Monday, March 12, 2012)]
[Notices]
[Pages 14581-14582]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-5909]
=======================================================================
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DEPARTMENT OF STATE
[Public Notice 7767; Guatemala Docket No. DOS-2012-0011; Mali Docket
No. DOS-2012-0012]
Notice of Meeting of the Cultural Property Advisory Committee
There will be a meeting of the Cultural Property Advisory Committee
April 24-27, 2012, at the Department of State, Annex 5, 2200 C Street
NW., Washington, DC. Portions of this
[[Page 14582]]
meeting will be closed to the public, as discussed below.
During the closed portions of the meeting, the Committee will
review the proposal to extend the Memorandum of Understanding Between
the Government of the United States of America and the Government of
the Republic of Guatemala Concerning the Imposition of Import
Restrictions on Archaeological Objects and Materials from the Pre-
Columbian Cultures of Guatemala (MOU) [Docket No. DOS-2012-0011] and
the Agreement Between the Government of the United States of America
and the Government of the Republic of Mali Concerning the Imposition of
Import Restrictions on Archaeological Material from the Paleolithic Era
(Stone Age) to Approximately the Mid-Eighteenth Century [Docket No.
DOS-2012-0012]. Additionally, the Government of Guatemala has asked
that the MOU be amended to include ethnological ecclesiastical material
representing the Colonial Period of its cultural heritage.
An open session to receive oral public comment on these two
proposals will be held on Tuesday, April 24, 2012, 2:30 p.m. EDT.
Also during the closed portions of the meeting, the Committee will
continue its review of a new cultural property request from the
Government of the Republic of Bulgaria seeking import restrictions on
archaeological and ethnological material. Please see the link to the
Public Summary of this request at https://exchanges.state.gov/heritage/whatsnew.html.
The Committee's responsibilities are carried out in accordance with
provisions of the Convention on Cultural Property Implementation Act
(19 U.S.C. 2601 et seq.). The text of the Act and the subject MOU and
Agreement, as well as related information, may be found at https://exchanges.state.gov/heritage/culprop.html.
If you wish to attend the open session on April 24, 2012, you
should notify the Cultural Heritage Center of the Department of State
at (202) 632-6301 no later than 5 p.m. (EDT) April 3, 2012, to arrange
for admission. Seating is limited. When calling, please specify if you
have special accommodation needs. The open session will be held at 2200
C St. NW., Washington, DC 20037. Please plan to arrive 15 minutes
before the beginning of the open session.
If you wish to make an oral presentation at the open session, you
must request to be scheduled and must submit a written text of your
oral comments, ensuring that it is received no later than April 3,
2012, 11:59 p.m. (EDT), via the eRulemaking Portal (see below), to
allow time for distribution to Committee members prior to the meeting.
Oral comments will be limited to allow time for questions from members
of the Committee. All oral and written comments must relate
specifically to the determinations under Section 303(a)(1) (19 U.S.C.
2602) of the Convention on Cultural Property Implementation Act,
pursuant to which the Committee must make findings. This statute can be
found at the Web site noted above.
If you do not wish to make oral comment, but still wish to make
your views known, you may send written comments for the Committee to
consider. Again, your comments must relate specifically to the
determinations under Section 303(a)(1) (19 U.S.C. 2602) of the
Convention on Cultural Property Implementation Act, pursuant to which
the Committee must make findings. Submit all written materials
electronically through the eRulemaking Portal (see below), ensuring
that they are received no later than April 3, 2012, 11:59 p.m. (EDT).
Our adoption of this procedure facilitates public participation,
implements Section 206 of the E-Government Act of 2002, Public Law 107-
347, 116 Stat. 2915, and supports the Department of State's ``Greening
Diplomacy'' initiative which aims to reduce the State Department's
environmental footprint and reduce costs.
Confidential written comments: If you wish to submit information
that is privileged or confidential in your comments, pursuant to 19
U.S.C. 2605(i)(1), do so via regular mail, commercial delivery, or hand
delivery. Only comments reasonably asserted to be confidential will be
accepted via those methods.
As a general reminder comments submitted by fax or by email are not
accepted. In the past, twenty copies of texts over five pages in length
were requested. Please note that this is no longer necessary; all
comments, other than confidential comments, should now be submitted via
the eRulemaking Portal only. Please submit comments only one time.
Electronic Delivery. To submit comments electronically, go
to the Federal eRulemaking Portal (https://www.regulations.gov), enter
the Docket No. DOS-2012-0011 for Guatemala or Docket No. DOS-2012-0012
for Mali, and follow the prompts to submit a comment. For further
information, see https://exchanges.state.gov/heritage/whatsnew.html.
Comments submitted in confidence only: Regular Mail or
Commercial Delivery. Cultural Heritage Center (ECA/P/C), SA-5, Fifth
Floor, Department of State, Washington, DC 20522-0505. Hand Delivery.
Cultural Heritage Center (ECA/P/C), Department of State, 2200 C Street
NW., Washington, DC 20522-0505.
Are Comments Private? No. Comments submitted in electronic form
will be posted on the site https://www.regulations.gov. Because the
comments cannot be edited to remove any identifying or contact
information, the Department of State cautions against including any
information in an electronic submission that one does not want publicly
disclosed (including trade secrets and commercial or financial
information that is privileged or confidential pursuant to 19 U.S.C.
2605(i)(1)). The Department of State requests that any party soliciting
or aggregating comments received from other persons for submission to
the Department of State inform those persons that the Department of
State will not edit their comments to remove any identifying or contact
information, and that they therefore should not include any information
in their comments that they do not want publicly disclosed.
On Closed Meetings: As noted above, portions of the meeting will be
closed pursuant to 5 U.S.C. 552b(c)(9)(B) and 19 U.S.C. 2605(h), the
latter of which stipulates that ``The provisions of the Federal
Advisory Committee Act shall apply to the Cultural Property Advisory
Committee except that the requirements of subsections (a) and (b) of
section 10 and 11 of such Act (relating to open meetings, public
notice, public participation, and public availability of documents)
shall not apply to the Committee, whenever and to the extent it is
determined by the President or his designee that the disclosure of
matters involved in the Committee's proceedings would compromise the
government's negotiation objectives or bargaining positions on the
negotiations of any agreement authorized by this title.'' The
President's designee has made such a determination.
Dated: February 29, 2012.
Ann Stock,
Assistant Secretary, Bureau of Educational and Cultural Affairs,
Department of State.
[FR Doc. 2012-5909 Filed 3-9-12; 8:45 am]
BILLING CODE 4710-05-P