Study On The Regulatory Legal System Of Credit Rating

Credit rating agencies are important participators in financial markets. Credit rating activities are conducive to saving transaction costs, promoting trade efficiency and reducing transaction risks. Credit rating activities are also important to investors, financing body and government regulators. On the other hand, while the credit rating agencies contribute to society in economic field, there follow many problems which require constant improvement through their innovation, market discipline and the government regulation. Regulatory authorities are attaching unprecedented importance to credit rating regulation because of the ravages of U.S. subprime mortgage crises and the global financial tsunami.At present, although credit rating regulation legal system has basis to some extent, there still exist a lot of problems. China should strengthen the argumentation of credit rating regulation and step up the establishment of a sound credit rating monitoring system, in order to achieve effective regulation of credit rating, protect the interests of investors and promote financial market stability. This article focuses on our current status of the credit rating legal system and the practice of regulation, through the research on the relevant legal norms and analysis on our current status of credit rating, on the basis of Comparing and learning foreign supervisory experience. Through discussing credit rating legal system from market access control, business conduct regulation and rating agencies legal liability perfection, furthermore, the author put forward some recommendations on building our credit rating supervisory and regulatory system and the credit rating legislation.This paper's main body is composed of five chapters. The concrete contents are as follows: The first chapter mainly introduces the general theory of credit rating regulation. First, this chapter defines the basic concepts of credit rating, analyses the function of credit rating and give a brief development profile of credit rating at home and abroad. On this basis, this chapter analyses the need of credit rating regulation and introduces the general situation of the development of credit rating regulation.The second chapter puts forward the proposal to the credit rating regulation perfection from the selection of credit rating regulation mode and legislation. In the aspects of credit rating regulation mode, this chapter recommends select the government-led regulation model through comprehensive legislation. In the aspects of regulation legislation, this chapter recommends formulate a basic legal norms on credit rating regulation and discusses from legislation rank selection and the main content of legislation.The third chapter explores the credit rating market access regulation. At first, this chapter summarizes the experiences of foreign credit rating market access supervision, on this basis, combined with the analysis on status quo of the credit rating market access regulation in our country; this chapter puts forward the proposal to market access regulation perfection in our country.In the fourth chapter, the author focuses on the regulation of credit rating agencies business practices. At the very beginning, this chapter straightens out status quo of foreign credit rating agencies business practices and analyzes the key issues on credit rating agency business practices regulation. On the basis of learning the experience in credit rating agency business practices regulation, this chapter puts forward the proposal to credit rating agency business practices regulation perfection in our country from three aspects of the conflict of interest prevention, corporate governance and information disclosure.The fifth chapter is about the credit rating agencies legal liability system. To begin with, This chapter comments on the status quo of the United States credit rating agencies legal liability system and development trend. Combined with the status quo in our country, this chapter puts forward the proposal to the credit rating agencies legal liability system from market access regulation perfection in our country both in terms of civil liability and administrative accountability.