Formation of the Credit Rating Agency Regulation in Russia

Anton Selivanovsky ()
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Anton Selivanovsky: National Research University Higher School of Economics

HSE Working papers from National Research University Higher School of Economics

Abstract: This Working Paper is dedicated to the new system of legal regulation of credit rating agency (hereinafter “CRA”) activity in Russia. The main focus of the new rules is administrative regulation and rigid control of procedural issues by the Russian mega-regulator for financial markets. The author criticizes current legislation and argues that such rules will obstruct CRA activity and adversely affect protection of investors’ and creditors’ rights, and will ultimately lead to an increase in transaction costs. It is necessary to continue work on CRA regulation in order to develop effective mechanisms to ensure a balance of interests among parties to the credit rating contract, and ensure that investors and the regulator take into account not only legal, but also economic, managerial, organizational and a number of other issues. Regulation of CRA focused only on rigid control of procedural issues by the Bank of Russia will not lead to the desired result. CRA regulation should instead be "delicate and fine."

Keywords: credit rating agencies; securities market; conflict of interests; regulation of credit rating agencies; liability of rating agencies (search for similar items in EconPapers)
JEL-codes: Z (search for similar items in EconPapers)
Pages: 26 pages
Date: 2016
New Economics Papers: this item is included in nep-cis, nep-fmk, nep-law and nep-tra
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Published in WP BRP Series: Law / LAW, April 2016, pages 1-26

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Persistent link: https://EconPapers.repec.org/RePEc:hig:wpaper:65/law/2016

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