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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