IOSCO : Sound Practices at large intermediaries: Alternatives to the use of credit ratings to assess creditworthiness

The International Organisation of Securities Commissions (IOSCO) has proposed 13 sound practices for large market intermediary firms to consider in the implementation of their internal credit assessment policies and procedures.

In a notice obtained from IOSCO’s website, the global regulator said it believes that identifying sound practices regarding the suitable alternatives to credit ratings for assessing credit risk should reduce the potential overreliance of large intermediaries on credit rating agencies (CRAs).

The report entitled: ‘Sound Practices at Large Intermediaries: Alternatives to the Use of Credit Ratings to Assess Creditworthiness’, said the reduction would help increase investor protection, while contributing to market integrity and financial stability.

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About AIWMI

The Association of International Wealth Management of India (AIWMI) is a not-for-profit organization and a globally recognized membership association for finance professionals. AIWMI primarily focuses on the broad and strategic role of developing a more robust and forward-looking training infrastructure for the financial services sector and to promote more active industry involvement and collaboration in training and continuing education. AIWMI is offering advanced international certification programs along with a wide variety of high-quality executive education programs. AIWMI programs combine state-of-the-art knowledge and skills with practical experience and insights into the functioning of the financial sector. All AIWMI courses and educational events have an intense and pragmatic curriculum. Participants are exposed to the latest developments within the financial services sector. AIWMI plays a key role in guiding the development of the financial services sector. AIWMI works with key industry participants’ viz. the Government, the Regulators, the Industries/Associations, the Corporate, the Media and the General Public to achieve its objectives. Besides enhancing technical competence and professionalism in the industry, AIWMI organizes events and facilitates discussions to promote best practices in leadership and talent development in the financial sector with an aim to become Asia’s premier center of excellence for financial education.

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