Parliament adopted the own initiative report from Mr Katiforis on the role and methods of rating agencies. The operations of these agencies, notably Standard & Poor's and Moody's, have largely been unregulated up to now.
The rapporteurs original proposal to set up a European Union Ratings Authority to regulate the sector was not supported by the committee.
Parliament is calling on the Commission to take all necessary steps, including in particular a cost-benefit analysis of the effects on European capital markets, to assess the establishment of a competent European Registration Scheme under the auspices of the Committee of European Securities Regulators (CESR) for the registration of rating agencies in Europe, conducted on the basis of well-specified, publicly advertised criteria involving credibility with market participants, objectivity, independence, expertise of staff, adequate funding, the existence of proper procedures for identifying and dealing with conflicts of interest and transparency of operations.
In so doing, Parliament calls upon the Commission to maintain close contact with other securities market regulators and the International Organization of Securities Commissions to ensure that any developments in this area are globally consistent. MEPs call on the Commission to report to Parliament on relevant developments by 31 July 2005.
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