EU devises new rules for rating agencies

The European Parliament on Thursday approved a batch of rules aimed at enhancing the transparency and performance of credit rating agencies, under fire for their role in the crisis.

Under the rules, largely based on the standards set in the International Organisation of Securities Commissions code, rating agencies that would like their assessments to be used in the European Union will have to apply to the Committee of European Securities Regulators for registration.

The regulation also states