IOSCO publishes CRA code: IOSCO has issued Final Code of Conduct Fundamentals for Credit Rating Agencies (CRAs). The Final Code includes revisions and updates to the current IOSCO Code of Conduct for CRAs (the Code). The revisions are designed:

  • to strengthen the Code with increased provisions protecting the integrity of the credit rating process, managing conflicts of interest, providing transparency, and safeguarding non-public information;
  • to strengthen the Code by adding measures regarding governance, training, and risk management; and
  • to improve the clarity of the Code by adding definitions of key terms and revising existing definitions, updating terminology, restructuring existing provisions to better group them thematically, and eliminating extraneous text.

The Code should work alongside CRA registration and oversight requirements, and continue operating as the international standard for CRA self-governance. The revisions result, in part, from the experience of IOSCO members in supervising CRAs. They are also informed by the work of the IOSCO Committee on CRAs, including the survey on key risk controls established by CRAs to promote the integrity of the credit rating process and the procedures established to manage conflicts of interest. (Source: IOSCO Issues Final Code of Conduct Fundamentals for Credit Rating Agencies)