Tuesday May 14 2013
News Source: Global Exchanges
Focus: Credit Rating
Type: General
Country: European Union
Link: http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/137078.pdf
The European Council has adopted a directive and a regulation amending the EU`s rules on credit rating agencies (CRAs) (69/12 and 70/12).
Adoption of the legislation follows agreement reached with the European Parliament at first reading on 27 November 2012, and subsequent approval by the Permanent Representatives Committee on 5 December 2012.
The directive and regulation amend existing legislation on CRAs in order to reduce investors` over-reliance on external credit ratings, mitigate the risk of conflicts of interest in credit rating activities and increase transparency and competition in the sector.
Specifically, the directive amends current directives on the activities and supervision of institutions for occupational retirement provision, on undertakings of collective investment in transferable securities (UCITS) and on alternative investment funds managers (AIFM) in order to reduce the institutions` reliance on external credit ratings when assessing the creditworthiness of their assets.
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