In a report drafted by Jean Paul Gauzes (EPP-ED, FR) the committee adopted amendments aimed at enhance the transparency, independence and good governance of credit rating agencies (CRAs), thus improving the quality and reliability of credit ratings and consumer trust.
Credit rating agencies failed to detect the worsening of the financial market conditions and to adapt their ratings in time, which is why it is necessary to regulate all ratings used by EU financial institutions, says the committee.
The Economic Affairs Committee amended the Commission proposal to make the Committee of European Securities Regulators (CESR) the only registration and supervisory body over European rating agencies. CESR, and not national authorities as originally proposed, would be in charge registering CRAs, checking their compliance with the rules and ultimately withdrawing an agency’s registration should the rules be breached.
CESR would inform Member State authorities once all registration steps are accomplished. Finally, the European body would also be in charge of monitoring CRAs’ past performance and publishing statistical data on the reliability of ratings issued. (BBJ, Napi)