Securities Law & Instruments

OSC STAFF NOTICE 11-761

IOSCO CONSULTS ON CHANGES TO
CODE OF CONDUCT FOR
CREDIT RATING AGENCIES


On March 26, 2008, the Technical Committee of the International Organization of Securities Commissions (IOSCO) published for consultation its report on The Role of Credit Rating Agencies in Structured Finance Markets, which includes proposed changes to the IOSCO Code of Conduct Fundamentals for Credit Rating Agencies (Code of Conduct).

The report discusses the role of credit rating agencies (CRAs) in the recent credit crisis and proposes ways to strengthen processes and procedures at CRAs. In particular, the report proposes expanding upon the Code of Conduct provisions relating to (a) the quality and integrity of the rating process, (b) CRA independence and avoidance of conflicts of interest, (c) CRA responsibilities to the investing public and issuers, and (d) disclosure of the CRA’s code of conduct and communication with market participants. After the consultation period, the comments will be reviewed and a final report will be prepared.

The report can be downloaded from IOSCO’s website at http://www.iosco.org/library/pubdocs/pdf/IOSCOPD263.pdf.

The comment period for the report will remain open until April 25, 2008. Please submit comments by e-mail to k.allen@iosco.org. Please include in the subject line of the e-mail “Comments on the IOSCO Technical Committee Consultation Report on Credit Rating Agencies”.

Please do not submit comments to the Ontario Securities Commission.

Questions may be referred to:

Ilana Singer
Senior Advisor, International Affairs
Office of Domestic and International Affairs
Ontario Securities Commission
(416) 593-2388
isinger@osc.gov.on.ca

March 28, 2008