CESR task force presents plan for rating agencies review
CESR has set out its plan for meeting the European Commission’s request to look at credit rating agencies’ role
BRUSSELS – The Committee of European Securities Regulators (CESR) has released the timetable for its review into the role of credit rating agencies and the future of their self-regulation, at the request of the European Commission.
The Commission requested CESR look specifically at certain areas during its investigation. These include human resources allocation for rating and monitoring, regular monitoring and prompt rating, the transparency of rating methodologies, and potentially crucial conflicts of interest in the remuneration structures of the agencies.
In preparation of its January 2008 consultation paper, CESR is co-operating with the US Securities and Exchanges Commission (SEC) over the role of rating agencies in the rating of structured products, and with the Committee of European Banking Supervisors (CEBS) over their role within the Basel II framework.
The investigation also involves co-operation with the European Securities Markets Experts Group (ESME), the International Organization of Securities Commissions (IOSCO), and the Committee on the Global Financial System (CGFS), drawing together conclusions to advise the Commission on whether self-regulation or formalised EU regulation is necessary.
The task force has held four separate hearings with the rating agencies to gather information on their codes of conduct, views on the Commission’s request in relation to their handling of the subprime crisis, and how they intend to address shortcomings within their role in the market. Hearings will be held with other market participants when the paper has been drawn.
The final report is due in May 2008.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Risk, portfolio margin, regulation: regtech to the rescue
A white paper outlining the complexity of setting the course for risk, margin and regulation
Prop shops recoil from EU’s ‘ill-fitting’ capital regime
Large proprietary trading firms complain they are subject to hand-me-down rules originally designed for banks
Revealed: the three EU banks applying for IMA approval
BNP Paribas, Deutsche Bank and Intesa Sanpaolo ask ECB to use internal models for FRTB
FCA presses UK non-banks to put their affairs in order
Greater scrutiny of wind-down plans by regulator could alter capital and liquidity requirements
Industry calls for major rethink of Basel III rules
Isda AGM: Divergence on implementation suggests rules could be flawed, bankers say
Saudi Arabia poised to become clean netting jurisdiction
Isda AGM: Netting regulation awaiting final approvals from regulators
Japanese megabanks shun internal models as FRTB bites
Isda AGM: All in-scope banks opt for standardised approach to market risk; Nomura eyes IMA in 2025
CFTC chair backs easing of G-Sib surcharge in Basel endgame
Isda AGM: Fed’s proposed surcharge changes could hike client clearing cost by 80%
Most read
- Industry urges focus on initial margin instead of intraday VM
- For a growing number of banks, synthetics are the real deal
- Did Fed’s stress capital buffer blunt CCAR?