The International Organisation of Securities Commissions (IOSCO) has proposed a series of amendments to the Code of Conduct Fundamentals for Credit Rating Agencies (the "IOSCO Code"), a voluntary Code first published in 2004 for rating agencies to adhere to in terms of best practice, that was intended to protect the integrity of the ratings process. IOSCO has been planning to review and update the IOSCO Code for some time, to ensure it remains relevant in light of the introduction of the EU Regulation on CRAs (as amended) and related US and other rules applying to CRAs. Among the amendments to the IOSCO Code intended to strengthen its provisions are measures requiring rating agencies to establish, maintain, document and enforce policies, procedures and controls to ensure compliance with the IOSCO Code, for disseminating credit rating actions and reports, and for preventing violations of applicable laws and regulations governing confidential information. Other proposed revisions would also extend the conflict of interest provisions, and new provisions require rating agencies' disclosures to be complete, fair, accurate, timely and understandable. A revised version of the IOSCO Code, taking into account feedback on the proposed amendments, is to be published later in 2014.
IOSCO Consultation Report