Treasury Committee opens rating agencies inquiry

The Treasury Committee is seeking written submissions for an inquiry into credit rating agencies, which will investigate whether the “big three” have become too powerful.

The inquiry will also investigate whether rating agencies influence the political process and what the appropriate limits to political influence are.

MPs are seeking submissions by February 2, and will be looking at issues such as accountability.

The committee will look at whether methodology is “sound and transparent”, among other things.

The parliamentarians have asked whether rating agencies have the right incentives “to do their job properly”, whether there are conflicts of interest and whether there is enough competition.

The inquiry will also investigate what effect rating changes have on investors and how they operate within regulatory frameworks.

It also asks: “Are the proposals put forward by the European Commission with respect to ratings agencies based on the right objectives?”

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