On June 8, 2015, the International Organization of Securities Commissions published its final report titled Good Practices on Reducing Reliance on CRAs in Asset Management, which lists a set of eight good practices intended to help asset managers avoid over-reliance on external credit ratings in the industry. To address concerns, IOSCO recommends that the Financial Stability Board consider potential ways to reduce possible investor overreliance on external ratings which are driven by regulatory requirements, such as those in the Basel framework or the Solvency regime applicable to insurers. The report highlights the importance of asset managers having the appropriate expertise and processes in place to evaluate and manage the credit risk associated with their investments.

The IOSCO Final Report is available at: http://www.iosco.org/library/pubdocs/pdf/IOSCOPD488.pdf