Friday, December 12, 2008

ESF, EFAMA and the IMA Guidelines on Over-Reliance on Credit Ratings

Joint ESF, EFAMA and IMA Securitisation Asset Management Guidelines:

The ESF, EFAMA and the IMA jointly published today the “Asset Management Industry Guidelines to Address Over-Reliance upon Ratings”, providing guidance for asset managers on the responsible use of ratings for securitisation, structured finance and structured credit products. Download the Guidelines and the related press release.

The Guidelines show the industry’s strong commitment to apply the lessons learned from the recent financial turmoil. They have been produced as a response to the call of the Financial Stability Forum (FSF) on investors to address their over-reliance on ratings and to review investor standards of due diligence and credit analysis when investing in structured credit products. The Guidelines represent Initiative Ten of the "Ten Industry Initiatives to Increase Transparency in the Securitisation Market", the industry-led initiative coordinated by the ESF and first announced in July 2008.

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