The ACT strongly supports the European Associations of Corporate Treasurers’ comments to the Commission services on the proposal for European Union regulation of credit rating agencies and shares the concern of the Chairman of Paris based EACT, Olivier Brissaud, who noted:
Our members are concerned that the proposed Directive would increase the cost of capital for EU-based companies. Rather than limited, principles-based regulation the draft is often more like attempted micro-management. It risks raising costs, freezing competition and stopping innovation in credit ratings services. Olivier Brissaud, EACT
The full text of the EACT press release is below.
Speaking in London, Richard Raeburn, Chief Executive of the Association of Corporate Treasurers said:
Whilst we support the EACT’s identification of the many potential problems with the Commission services’ initial proposals in this area, we have particular concern at the proposal for an EU-level regulator for rating agencies. The market and legal environment in the various Member States requires change over many years to prepare for such a move. Richard Raeburn, ACT
The full text of the EACT comments on Response to the Consultation by the Commission services on Credit Rating Agencies (CRAs), 31 July 2008 can be found at www.treasurers.org/creditratingagencies/eactresponse/0908
A summary of the comments can be found in the EACT release below.
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