Credit rating agencies in the EU will soon be operating according to an amended legislative package (a directive and a regulation) which aims to reduce investors' over-reliance on credit rating agencies, mitigate conflicts of interest and increase transparency and competition in the sector. The new rules make it possible to hold a rating agency liable in cases of negligence or intent, when damage to an investor or issuer has been caused.

The Council of the EU issued a press release (dated 5 December 2012) announcing that the Permanent Representatives Committee (COREPER) had approved compromise texts (agreed with the EU Parliament on 27 November 2012) on:

  • The proposed CRA III Regulation.
  • The proposed Directive amending the UCITS IV Directive (2009/65/EC) and the Alternative Investment Fund Managers Directive (2011/61/EU) (AIFMD).

COREPER approval allows for adoption of the legislation at first reading. The agreed texts are to be submitted to the EU Council and EU Parliament for approval and adoption, which is expected in the first quarter of 2013.

The EU Parliament is due to consider the proposals on 14/15 January 2013.