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On Tuesday 11 September 2007, Mr Eddy Wymeersch, Chair of CESR, Ms Ingrid Bonde, Chair of CESR’s Task Force on Rating Agencies, and Fabrice Demarigny, Secretary General of CESR, met Commissioner Charlie McCreevy and his staff in Brussels.
CESR presented the work underway to monitor the compliance by credit rating agencies with the ‘IOSCO Code of Conduct Fundamentals For Credit Rating Agencies’ and updated the Commission on progress made on the in-depth study of rating of structured finance products. This study follows findings by CESR during its first review of the application of the Code by rating agencies under its voluntary framework. This was published on 4 January 2007. In addition, CESR received a letter from the European Commission on 7 May 2007, asking for further analysis to be undertaken in relation to structured finance.
CESR launched a Call for Evidence in the form of a questionnaire on 22 June 2007. The ‘Call for Evidence’ closed 10 September and the responses to the questionnaire are available on CESR’s website (under the section consultations/past consultations and responses). At the meeting on 11 September, Commissioner McCreevy expressed the wish to understand several aspects of the rating of structured finance products. These points are set out further in a letter that was given to CESR at the meeting, as an additional request to review the role of credit rating agencies. The letter is published as an annex to this statement.
CESR welcomes this added incentive to pursue its work on rating agencies. CESR has indicated it will submit its report on the application of the IOSCO Code by rating agencies by 30 April 2008.
Following further consideration of the points raised in the letter, the timetable will be reviewed.
Should further changes be considered necessary, CESR will communicate this through its website.
