Europe: consultation on credit rating agencies

The European Commission has issued a consultation document as part of its work developing proposals with regard to the regulation of credit rating agencies. According to the Commission: 

The policy response currently being developed ... is likely to involve a legislative framework for credit rating agencies comprising both a set of legal obligations to be complied with by CRAs as well as independent external oversight. Addressees of the rules proposed by the Commission will be all existing (and prospective) credit rating agencies with business operations having significant market impact in Europe. The proposed directive / regulation will aim to achieve the following
objectives:

• Appropriate management of conflicts of interest.
  
• Improvements in quality of output.
  
• Increased transparency of CRAs' activities.
  
• Establishment of a supervisory and enforcement regime on the territory of the EU."
  

The consultation period ends on 5 September 2008. Further information is available here.