View more on these topics

Rating agencies set for tough transparency rules

The European Commission has called for tougher regulation of credit-rating agencies to boost market confidence and investor pro- tection.

The EC has proposed the new rules following accusations that rating agencies underestimated the risks of US sub-prime mortgages and complex structured credit products.

Under the new rules, rating agencies would have to provide an annual transparency report, disclose their rating models and methodologies and would be prohibited from providing advisory services.

The European Commission has also set out stricter rules for the boards of rating agencies and a new registration procedure which provides European regulators with greater supervision over their activities.

Shortcomings over the disclosure of potential conflicts of interest by rating agencies which earn consultancy fees from the bodies they are rating has put the industry under the spotlight in recent weeks.

CMS Cameron McKenna partner Paul Edmondson says: “There has been much finger-pointing at agencies’ involvement in the collapse of portfolios and financial institutions investing or trading in collateralised debt obligations but they have infrequently appeared in fallout litigation. Regulation will assist in defining their responsibility and expose them to regulatory processes and investigation.”


Pension Corp raises cash

Pension Corporation has got investment from JP Morgan and launched a second fund-raising round to raise 300m-400m.

Darling scorns rival HBOS bid

Chancellor Alistair Darling has shot down the dissenting Scottish bankers’ rival HBOS bid. He said: “There is no automatic right of access to the recapitalisation scheme. At a minimum, HM Treasury would expect a plan to meet an appropriate level of capitalisation and a sustainable business model and delivery plan.”

Revenue widening search for offshore tax evaders

HM Revenue & Customs is targeting 25 building societies and foreign banks with UK operations as part of a fresh crackdown on offshore tax evaders, Money Marketing understands.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm