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31 July 2008

IOSCO announces next steps on Credit Rating Agencies


IOSCO believes that, for the Code of Conduct to be effective, CRAs need to comply with the prescribed disclosures and regulators should take steps to determine the veracity of these disclosures.

IOSCO believes that, for the Code of Conduct to be effective, CRAs need to comply with the prescribed disclosures and regulators should take steps to determine the veracity of these disclosures.

 

The Task Force is currently exploring the means by which its members might work together to verify the proper and complete disclosure by CRAs of information required by the Code of Conduct, and adherence to the mechanisms it contains designed to protect against conflicts of interest. As part of this project, the Task Force will be considering a number of options for the effective monitoring of compliance with the Code of Conduct, including the potential for:

 

 

  • Detailed arrangements for exchanging information between national securities regulators;
  • Cooperative inspection programs for CRAs; or
  • A specialized IOSCO committee to confer on compliance with the Code of Conduct by CRAs.


The Task Force will submit its final recommendations to the Technical Committee at its next meeting in September 2008.

 

Press release



© IOSCO


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