Presenting the Commission Communications on the current financial turmoil and Sovereign Wealth Funds in Brussels, Commissioner McCreevy stated that credit rating agencies must ensure better management of conflicts of interests, a more transparent rating process, stronger rating methodologies and enhanced governance and accountability.
“They are certainly not the only ones to blame for the present situation”, he said, “but if they don't shape up we will be left with nothing left – other than regulatory action”. The Communication also addresses adverse incentive structures, as there are “wildly excessive remuneration schemes, and the originate-to-distribute model”.
“In many cases industry-led initiatives are preferred”, he said. “But these initiatives must be serious, comprehensive and persuasive.”
With regard to Sovereign Wealth Funds he states that the Commission “does not see any need to alter the current legal system in regard to inward investment into the EU.”
However, “we agree that it is not unreasonable that investors closely linked with national authorities or governments should follow some common principles on transparency and governance”, he said.
Full speech
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