Industry roundtable scrutinises ratings agencies
Financial services industry representatives have met to discuss how they can improve the quality of ratings handed out by credit ratings agencies.
Superannuation Minister Senator Nick Sherry last week convened a roundtable discussion made up of industry members that either rely on or initiate ratings to dissect their opinions on the system.
“One of the causes of the global financial crisis was the breakdown in the credit rating process, which often included an unquestioned over-reliance on ratings by users,” he said.
“It is completely unacceptable to have such a systemically important set of entities such as ratings agencies operating in Australia but sitting entirely outside our regulatory system.”
From July 1 all ratings agencies must be licensed and will have to issue an annual compliance report.
The work of the roundtables will contribute to the Prime Minister’s international policy response on credit ratings agencies at the G20 meeting in April.
Superannuation Minister Senator Nick Sherry last week convened a roundtable discussion made up of industry members that either rely on or initiate ratings to dissect their opinions on the system.
“One of the causes of the global financial crisis was the breakdown in the credit rating process, which often included an unquestioned over-reliance on ratings by users,” he said.
“It is completely unacceptable to have such a systemically important set of entities such as ratings agencies operating in Australia but sitting entirely outside our regulatory system.”
From July 1 all ratings agencies must be licensed and will have to issue an annual compliance report.
The work of the roundtables will contribute to the Prime Minister’s international policy response on credit ratings agencies at the G20 meeting in April.