Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

20 October 2011

フィナンシャル・タイムズ紙:信用格付け機関を取り締まるEU(欧州連合)


Default: Change to:


Sweeping changes to regulation of credit ratings are to be proposed by Brussels. Under one of the most contentious proposals, European regulators would be given powers to suspend credit ratings of countries undergoing bailouts.


Among the changes, Brussels is also seeking to force issuers of financial products in Europe to change regularly the ratings agency they are using, in a bid to open up competition and avoid conflicts of interest. “The credit ratings agency engaged should not be in place for more than three years or for more than a year if it rates more than 10 consecutive rated debt instruments of the issuer”, according to the draft. Before being able to work for the same company or bank again, agencies would be compelled to sit out a four-year “cooling-off” period, a rule that would rob the big three credit rating agencies of some of their more stable revenues and business relationships.

On top of restructuring the business practices of the industry, the reforms propose giving wide-ranging powers to ESMA, the European markets regulator, to approve ratings methods and ban sovereign ratings in “exceptional situations”.

ESMA would be able to suspend ratings of countries in bailout programmes so that adverse ratings are not issued at “inappropriate moments”.

Full article (FT subscription required)



© Financial Times


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment