Minister reaffirms ratings house review
The Minister for Superannuation and Corporate Law, Senator Nick Sherry, has used a speech in Western Australia this week to restate the Government’s intention that its review of financial services credit rating agencies will also encompass research houses.
The minister’s statement has come at the same time as a number of international funds management executives have questioned the role played by ratings and research houses in the lead-up to the sub-prime meltdown and global liquidity crunch.
Speaking in Perth, Senator Sherry said the review of credit rating agencies had three broad objectives, one of which was examining the issues surrounding their role in the recent market volatility, particularly in relation to structured and securitised products.
As well, he said the inquiry would analyse whether the circumstances under which credit rating agencies were not required to hold a financial services licence were still justified.
Sherry said the inquiry would also look at the international experience, particularly the issues raised in recent international reports on credit rating agencies.
The minister did not indicate when the review would be complete, but said he expected it to be within a reasonable period.
AUTHOR
Mike Taylor
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