Global securities regulators are seeking input on the measures that credit rating agencies are using to manage conflicts of interest, and to ensure the integrity of their ratings.
The technical committee of the International Organization of Securities Commissions has published a new consultation report that examines the internal controls and procedures that credit rating agencies use to promote the integrity of the credit rating process and address conflicts of interest. It says that feedback on the report will help IOSCO in its analysis of these mechanisms.
The report is based on an IOSCO review of CRAs to examine these controls, which came in the wake of the 2008 financial crisis. The crisis, and the role played by CRAs, gave rise to concerns about the quality of credit ratings and credit rating methodologies, the timeliness of adjustments to credit ratings, and the integrity of the credit rating process.
Comments are due by July 9.