Global securities regulators published a pair of reports Friday regarding credit rating agencies (CRAs) — which aim to improve transparency of the CRAs’ operations, and proposes increased co-operation between regulators.

The International Organization of Securities Commissions (IOSCO) published its final report on controls to ensure the integrity of the rating process and manage conflicts of interest. The report provides an overview of the internal controls and conflicts of interest procedures adopted by various CRAs, and IOSCO says that it will inform its review of its code of conduct for CRAs.

IOSCO says that the report also aims to help increase public understanding of the internal workings of CRAs, and to enable CRAs to compare their internal controls and procedures with those of their peers.

“By shedding light on the processes and controls some CRAs utilize to ensure the integrity of the credit rating process and manage conflicts of interest, this report, in conjunction with disclosures that individual CRAs make about their controls and procedures, may help users of ratings draw their own conclusions about an individual CRA’s controls and procedures, and thereby help the users make informed decisions with respect to their reliance on credit ratings,” it says.

Additionally, IOSCO has published a consultation report that recommends establishing supervisory colleges for internationally active CRAs, and provides preliminary guidelines on how to establish and operate them. It notes that the dispersion of internationally active CRA affiliates worldwide poses a challenge to supervisors, as they may only have perspective on the activities in their jurisdiction.

“The creation of a CRA colleges could ultimately enhance the effectiveness of supervisors’ risk assessment and oversight of these internationally active CRAs by facilitating information exchange and, if appropriate, cooperation,” it says. The closing date for responses to the report is February 15, 2013.

“Both reports form part of IOSCO’s effort to improve the integrity of credit rating agencies, as part of the global effort to enhance investor protection and the fairness, efficiency and transparency of securities markets,” it says, noting that, despite the criticism they faced during the financial crisis, the rating agencies continue to play an important role in most modern capital markets.