The Council has adopted a Directive and Regulation amending the Credit Rating Agency (CRA) Regulation. The new package, which was agreed in principle at the end of 2012, aims to:

  • reduce investors' over-reliance on external credit ratings;
  • mitigate the risk of conflicts of interest in credit rating activities; and
  • increase transparency and competition in the sector.

The Directive amends, among other Directives, the UCITS Directive and the Alternative Investment Fund Managers Directive (AIFMD) to reduce reliance on credit ratings by fund managers. The Regulation requires issues of certain products to rotate their CRA at least every four years. (Source: Council Adopts CRA Amendments)