Gb08_engl Umschlag:GB 2005 - DVFA

20
featu The role of rating agencies_
Equities_
u
Overview of the new rules
1. Independence and prevention or at least appropriate handling of conflicts of interest
in the rating process
� Disclosure of conflicts of interest that could threaten the independence of the rating
agency or its employees involved in the rating process
� Limitation of activities to rating and ancillary services; no advisory services
� Implementation of internal policies to prevent conflicts of interest and ensure integrity
and thoroughness
� Rotation arrangements for employees
2. Improvement of methodological and rating quality
� Sound analysis of credit risk of a borrower or issuer
� Disclosure of methodologies, models and key assumptions
� Allocation of a sufficient number of employees with appropriate knowledge and experience
to credit rating activities
� Establishment of internal control mechanisms to monitor the quality of ratings, and
continuous monitoring and updating of rating methods
� Disclosure of modifications to rating methods, as well as information on which ratings
could be affected by them and calculation of the new ratings
3. Increased transparency through disclosure requirements
� Specific disclosure requirements for unsolicited ratings
� Publication of a transparency report
4. Introduction of a registration requirement and creation of a regulatory framework
for credit rating agencies