June 02, 2008 (LBO) – A new code of conduct for rating agencies has been published by a grouping of securities regulators after the sub-prime credit collapse, which is also applicable in Sri Lanka, an official said. The International Organization of Securities Commissions (IOSCO) of which the Securities and Exchange Commission of Sri Lanka (SEC) is a member has published an amended code of conduct for rating agencies.
“This is a code adopted internationally,” says Malik Cader from the SEC. “It filters down to us, and it is a voluntary code.”
The changes to the code came after a public consultation involving regulators, credit rating agencies, and other market participants, an IOSCO statement said.
“IOSCO’s Code of Conduct aims to improve investor protection, improve the fairness, efficiency and transparency of securities markets and to reduce systemic risk,” Michel Prada, Chairman of IOSCO’s technical committee said in the statement.
“We have engaged in a frank and constructive dialogue with the CRA industry, issuers and investors and have taken a broad range of views into account in finalizing the changes to our code.”
“IOSCO’s members expect credit rating agencies to give full effec