Credit rating agencies are to come under close EU scrutiny as the commission announces the creation of a legally binding central register and surveillance system.
The move is a direct result of the financial crisis.
Credit rating agencies have been slammed for giving investment-grade rating’s to insecure products.
Internal Market Commissioner Charlie McCreevy said :
“Credit rating agencies will no longer be able to use the defence that credit ratings are just opinions. They will be sanctionned and made liable.
Meanwhile, EU officials head for Washington for a global summit on reforms to the financial sector and will call for countries outside Europe to adopt a similar set of measures.
Credit rating agencies squeezed by EU legislation