On the 10 February 2014, the International Organisation of Securities Commissions (IOSCO) published a consultation report on Code of Conduct Fundamentals for Credit Rating Agencies which proposes significant revisions and updates to the current IOSCO Code of Conduct for Credit Rating Agencies (IOSCO CRA Code).

The IOSCO CRA Code is intended to operate a set of robust, practical measures as a guide to and a framework for CRA's, with respect to protecting the integrity of the rating process, ensuring that issuers and users of credit ratings, including investors, are fairly treated, in safeguarding confidential material information provided to them by issuers. ISOCA proposes to revise the current code to take into account the fact that CRA's are now supervised by regional and national authorities. The goal is to create an updated IOSCO CRA code that works in harmony with the CRA registration and oversight programmes that many IOSCO members have implemented in recent years, and that continues to operate as the international standard for CRA self- governance. The proposed provisions are designed to strengthen the Code by:

  • enhancing provisions regarding protecting the integrity of the credit rating process, managing conflicts of interest, providing transparency and safeguarding non-public information;
  • adding measures regarding governance, training and risk-management; and
  • seeking to improve the clarity of the IOSCO CRA code.