- Compliance with local or regional laws and regulations
- Implementation of, and adherence to, the IOSCO Code of Conduct for CRA
- Establishment and operation of rating models
- Methodologies, internal controls, procedures to manage conflicts of interest
- Procedures for handling material non-public information
- With the goal of promoting better understanding of the risks faced or posed by international CRA and how relevant supervisors are addressing these risks
One lesson
learned, was that credit rating agencies face conflicts. The Supervisory
Colleges are a creative approach to avoiding similar missteps.
The colleges
for S&P and Moody’s will be chaired by the Securities and Exchange
Commission (SEC) and the college for Fitch will be chaired by the European
Securities Markets Authority (ESMA. The SEC
What’s your opinion about the need for supervision of credit rating agencies?
Is this an appropriate response?
What are the critical best
practices for the CRA?