UK: the Credit Rating Agencies Regulations 2010

The Credit Rating Agencies Regulations 2010 were laid before Parliament today and come into force on 7 June 2010: see here (pdf). An explanatory memorandum is available here (pdf) and this explains:

The Regulations contain provisions that ensure that the EC Regulation [No 1060/2009 of the European Parliament and of the Council on credit rating agencies] is effective in the United Kingdom. The Regulations designate the Financial Services Authority (“the Authority”) as the UK competent authority for the purposes of the EC Regulation, in accordance with Article 22(1) of the EC Regulation. They confer investigatory powers on the Authority in accordance with Article 23 of the EC Regulation, and create national penalties in accordance with Article 36 ...

The EC Regulation introduces a harmonised approach to the regulation of credit rating activities in the European Union. The Regulation: [a] establishes a registration system for credit rating agencies; [b] requires registered agencies to comply with various provisions relating to independence, conflicts of interest, employees and analysts, methodologies and models, outsourcing, and disclosure and presentation of information; and [c] requires specified financial institutions to use credit ratings for regulatory purposes only if they have been issued or endorsed by a registered credit rating agency, or issued by an overseas agency that has been certified in accordance with the Regulation".