The Australian Securities and Investments Commission (ASIC) is set to tighten the rules governing the disclosure of credit ratings to better protect investors.

In a consultation paper released last week, ASIC proposes to withdraw a measure that allows issuers to cite credit ratings without gaining the consent of credit ratings agencies.

“We are reviewing this relief to strengthen credit rating agencies’ control over the use of their ratings and to make agencies more accountable to investors for ratings,” ASIC said.

Credit ratings agencies will also be required to hold an Australian financial services licence from January 1.

ASIC previously granted an exemption to Standard & Poor’s, Moody’s Investor Service and Fitch Ratings, on the basis they complied with an international code of conduct.

Those measures reflect tighter scrutiny of credit ratings agencies in the wake of the global financial crisis, which saw many A-rated securities fail. There is widespread concern that investors place too much emphasis on credit ratings.