The International Organization of Securities Commissions (IOSCO) published for public consultation a Consultation Report on the Code of Conduct Fundamentals for Credit Rating Agencies (CRAs). These are designed to be a set of measures that should be included in some form or fashion in the codes of conduct of individual CRAs. These measures are not intended to be rigid or formulistic and will be able to maintain a degree of flexibility to deal with the different legal and market circumstances in which they operate.
However, in developing their own codes of conduct, CRAs should keep in mind that securities regulators may decide to incorporate the CRA Code of Conduct Fundamentals into their own regulatory oversight of CRAs.
The CRA Code Fundamentals are broken into three sections and draw upon the organization and substance of the Principles themselves:
The Quality and Integrity of the Rating Process;
CRA Independence and the Avoidance of Conflicts of Interest; and,
CRA Responsibilities to the Investing Public and Issuers.
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