Credit ratings agencies and hedge funds face FSA scrutiny

Greater regulatory control will be exerted over the activities of credit ratings agencies and hedge f...

Greater regulatory control will be exerted over the activities of credit ratings agencies and hedge funds as the FSA acknowledges their contribution to the current global financial crisis. The Turner Review of Global Banking Regulation said there are concerns ratings for structured credit vehicles, such as mortgage-backed securities which lay at the heart of the credit crunch, were far less robust than for single securities. It also said there was doubt as to whether the governance of ratings agencies has adequately addressed issues relating to conflicts of interest and analytical indepen...