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cesr on the commission's proposals on cras September 19, 2008

Posted by Bradley in : Uncategorized , trackback

CESR’s response to the Commissions proposals on how to deal with the regulation of CRAs tracks pretty well the responses of industry groups I have noted (here and here): In particular, CESR says that the consultation period was too short, and criticises the lack of co-ordination with US regulators and IOSCO:

Credit ratings are essentially an international matter, affecting investors all over the world. Hence, there is a strong need for an internationally harmonised set of requirements. The imposition of stricter requirements on a unilateral basis would seriously jeopardise the significance of the ratings, leading to European vs. International ratings. The efforts to harmonise that have been reached at a global level would also be undermined. Therefore the Committee recommends that before imposing different or additional requirements, efforts should be made to reach agreement with the authorities of other major users of credit ratings. Due process and consultation would then be part of the regulatory procedure.

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