The Commission adopted a Communication setting out its approach to credit rating agencies (CRAs). In line with advice received from the Committee of European Securities Regulators (CESR) in March 2005, the Commission will not present new legislative proposals in the area of CRAs. It is confident that the existing financial services Directives applicable to CRAs – combined with self-regulation by the CRAs on the basis of the newly adopted International Organisation of Securities Commissions (IOSCO) Code – will provide an answer to all the major issues of concern raised by the European Parliament.
The Commission may have to take legislative action if it becomes clear that compliance with EU rules or the IOSCO Code of Conduct is unsatisfactory and damaging EU capital markets.
The Commission will also consider introducing legislative proposals if new circumstances arise. Finally, the Commission intends to monitor the global development of the rating business. If there are significant changes in the way credit rating agencies are regulated in other parts of the world, it may be necessary for the Commission to re-evaluate its approach.
Press release
Commission Communication
Annex on the IOSCO Code of Conduct Fundamentals for Credit Rating Agencies
© European Commission
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article