Europe to regulate ratings agencies
The European Union has reached a deal to introduce compulsory registration and direct supervision of credit ratings agencies.
A European Commission spokesman in Brussels says the measure will affect agencies such as Standard and Poor’s, Moody’s and Fitch, which have been criticised for their role in the global financial crisis after failing to warn investors of imminent company collapses.
The European Parliament will vote on the measure in committee this month and if it goes ahead could spark other countries critical of the system to regulate ratings agencies.
A European Commission spokesman in Brussels says the measure will affect agencies such as Standard and Poor’s, Moody’s and Fitch, which have been criticised for their role in the global financial crisis after failing to warn investors of imminent company collapses.
The European Parliament will vote on the measure in committee this month and if it goes ahead could spark other countries critical of the system to regulate ratings agencies.