Forbes : How the Credit Rating Agency Game Is Changing

Last month was a quiet watershed in debt capital market history, reversing the decades-old, untrammeled legal privilege of rating agencies to express their credit views.

Superficially, the cases were very different—one in Hong Kong involving emerging market corporate research, another in the state of California involving a highly structured money market type investment—but both featured substandard credit information and spillover volatility into related, non-credit markets. The essence of the California case was whether ratings are automatically protected by the American Constitution, even if negligently produced. In a nutshell, the California courts said “no.” The essence of the Hong Kong case was whether its securities regulator, the SFC, had jurisdiction over credit research published by the agencies it licenses. In a nutshell, the Hong Kong Tribunal said “yes.”

Read full Forbes Article

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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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