Friday 10 February 2012
IMA: CREDIT RATING AGENCIES NEED TO BE LEFT TO FUNCTION INDEPENDENTLY
In its written submission to the Treasury Select Committee Inquiry into Credit Rating Agencies, the Investment Management Association (IMA) stresses the independent role of credit rating agencies (CRAs), concluding that they must be allowed to act free from political interference.
The very fact that CRAs are now regulated may be seen as some sort of seal of approval which is at odds with the European Commission’s current desire to reduce reliance on credit ratings by both regulators and financial institutions.
Guy Sears, Director of Wholesale at the IMA, said:
“Rating agencies have made responsible and sensible decisions. Their recent downgrading of European countries has reflected, not caused, underlying fiscal problems. However, the agencies may be seen to hold disproportionate sway over global markets, not least because they are embedded in regulations such as Solvency II and CRD and in institutional client mandates.
“Actions to reduce reliance on credit ratings agencies make sense, but the reality is they will remain an important part of the financial market infrastructure for years to come.”
The IMA’s written evidence to the Treasury Select Committee Inquiry into Credit Rating Agencies can be found here.
For further information please contact:
Mona Patel, Head of Communications, IMA, 020 7831 0898 or 07834 089332
Clare Murphy-McGreevey, Media Relations Manager, IMA, 020 7831 0898 or 07843 517618
Christina Bridge, Press Assistant, IMA, 020 7831 0898
About the Investment Management Association
The IMA is the trade body for the UK's £4 trillion asset management industry. The money its members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs. Our purpose is to support and promote a commercially successful and growing UK investment management industry as we seek to improve the financial outcomes for customers - savers and investors.