SVO Initiatives (EX) Working Group
Executive (EX) Committee

The SVO Initiatives (EX) Working Group is charged with reviewing the potential expansion of the SVO credit assessment role.

1. The Working Group will conduct a comprehensive review of criteria to register the NAIC as a nationally recognized statistical rating organization or otherwise establish an NAIC-affiliated SRO and report findings to Executive Committee. The review will include an analysis of the SVO credit assessment capabilities and the feasibility of an expanded role for SVO in conjunction with its existing regulatory objectives. Part of the work will also include interaction with those parties necessary for registration. The Working Group will also address the issue of the benefit, as well as the risks, to the NAIC in seeking this status. This effort includes making a recommendation to Internal Administration (EX1) Subcommittee on the appropriate organizational structure within the NAIC framework for conducting this business.
2. Upon approval of EX1, the Working Group, assisted by NAIC staff (i.e., legal and SVO), will pursue and monitor the NRSRO registration process. .
3. The Working Group will develop a draft business plan, which at a minimum, would indicate which rating categories the NAIC (through the SVO) or an affiliate, as a nationally recognized statistical rating organization, would initially engage in; identify competitive advantages (intellectual, proprietary, human and other) that would assist the entity's business opportunities; identify sources and level of funding to ensure consistent professional performance and expertise sufficient to gain financial market and regulatory acceptance.