Comments by EFFAS on rating procedure France

14 November 2011

EFFAS claims that rating agencies normally should give guidance for investors, but this faulty action led to misleading market interpretations and ultimately served to confuse market participants.

"Although the rating agency has made excuses for its mistake, it remains unbelievable. It is not up to us to judge the nature, causes or responsibilities; the intended inquiries by AMF and the EU Commission will clearly reveal this. If it was a mistake, then it is certain that professional procedures and processes of good governance and compliance did not work properly."

"However, we have to state that, in such difficult times, especially when market participants are prone to react even to minor comments, actions should be guided by the utmost care and professionalism. We are very concerned that a rating agency behaved in such a way. Such mistakes must not happen, whatever the circumstances. EFFAS as a professional body strives to ensure that its members, all investment professionals, shall observe the highest standards of honesty, integrity, fairness and education and perform their duties with all due care and diligence. They shall always deal fairly with all clients and prospective clients. And - very importantly in this context - our members as investment professionals shall not make any statements that could be misleading as to the services offered to clients and prospective clients, and any other important facts relevant to professional activities."

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