Thus, credit rating agencies (CRAs) will have to be subject to a regulatory oversight regime. Further, there is a need for modifications to a rating agency’s practices and procedures for managing conflicts of interest and for assuring the transparency and quality of the rating process, particularly on the process underlying ratings of complex securitised instruments and derivatives.
Given the global scope of some credit rating agencies, the oversight framework should be consistent across jurisdictions with appropriate sharing of information between national authorities responsible for the oversight of credit rating agencies.