The US's often-criticised approach to credit rating agency (CRA) reform has been held up as an example for European regulators.
The Securities and Exchange Commission's encouragement of unsolicited ratings will be more effective than the European model which focuses on CRA responsibilities, according to London-based Clifford Chance partner Christopher Walsh who spoke at the American Securitisation Forum's (ASF) annual conference on January 23.
"A more competitive market is what the US is looking for, whereas the Europeans, somewhat characteristic to form one would argue, have gone for regulatory control," Walsh said.
CRAs have historically...