The International Organization of Securities Commissions (IOSCO) has published a Consultation Report on the code of conduct fundamentals for credit rating agencies (CRAs).
The IOSCO code of conduct fundamentals for CRAs (the Code) is intended to offer a set of robust, practical measures that act as a guide to, and a framework for, CRAs with respect to protecting the integrity of the rating process. The Code was first published in 2004 when few jurisdictions had laws governing the activities of CRAs. However, in recent years IOSCO members have implemented registration and oversight programmes for CRAs. In light of this development, IOSCO is proposing significant revisions to the Code.
Specifically, IOSCO wants to:
- enhance provisions relating to protecting the integrity of the credit rating process, managing conflicts of interest, providing transparency, and safeguarding non-public information;
- add measures concerning governance, training and risk management; and
- improve the clarity of the Code, by adding key terms and revising existing definitions.
The deadline for comments on the Consultation Report is 28 March 2014.
View IOSCO Consultation Report – Code of conduct fundamentals for credit rating agencies, 10 February 2014