The EU Council has adopted a regulation introducing a legal framework for credit rating agencies. This provides that UCITS may use credit ratings for regulatory purposes only if they are issued by regulated credit rating agencies. The regulation does, however, provide a mechanism for the endorsement of a rating issued in a third country and for such an endorsed credit rating to be considered as a credit rating issued by a regulated credit rating agency.

Under the draft Regulation, CESR will discharge co-ordination and advisory functions alongside its traditional role of promoting convergence through Level 3 guidelines and recommendations. CESR has, therefore, launched a consultation on a central repository for credit rating agencies. The purpose of the consultation is to seek feedback on CESR's ideas for setting common standards for presentation of historical and performance information and for the design of the potential output from the central repository. The consultation closes on 7 August 2009.