We have previously reported on the proposals made by the European Commission to regulate credit rating agencies. Our previous blog can be accessed by clicking here.

At the Australian Securities and Investments Commission (ASIC) Summer School conference, held in the week of 2 March 2009, Ben McCarthy, the managing director of Fitch Ratings Australia, said that rating agencies would support moves to create a global regulatory framework for the credit ratings sector.

McCarthy explained that "to a significant extent, the rating agencies are looking at the most onerous of any of the international regulations and implementing them worldwide". An internationally accepted standard would make it easier for S&P or Fitch to run their businesses in this way as currently they need to comply with all the regulations around the world at once.

Furthermore, the agencies would support a plan to create a single global regulatory agency for their sector. McCarthy stated that this would simplify the process of developing, communicating and enforcing a set of international standards. He anticipated that the principal drivers for this process would be the US, Europe and the International Organisation of Securities Commissions.