Credit ratings agencies overhauled
13/11/2009
The Australian Securities & Investments Commission yesterday announced a widely flagged package of reforms that will require ratings agencies such as Standard & Poor's and Moody's to manage conflicts of interest, hold an Australian financial services licence from January 1, as well as have adequate resources for the scale and complexity of their businesses.
The Prime Minister Kevin Rudd has previously criticised the ratings agencies. "Dependent as they were on the banks for their revenue, the agencies were hopelessly conflicted by the lure of big profits in return for easy ratings," Mr Rudd said.
Source:The Australian
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