Study On Legal Responsibility Of The Securities Credit Rating Agency

Rating discretion can not only affect the issuer’s financing costs but also affect business activity in a certain extent. But for a long time, the rating reports are considered to represent the rating agencies own views on investment risk, even by the rating agency mislead investors, also need not bear the corresponding legal responsibility. After Enron and the financial crisis, credit rating agency as a financial market gatekeeper was questioned. Securities credit rating agency stay away from the judicial regulation, mainly rely on the government supervision and market self-discipline constraints,lack of unified legal liability system. Strengthen the legal responsibility of the securities credit rating agency is the necessary condition to ensure the security of financial system.American court investigate each case, including the relationship between specific factors, rating purposes between the parties.Then judge the securities credit rating agencies should be invoked to protect the first amendment of the constitution.Comparison of European Union in the financial crisis and the introduction of new regulation act, the securities credit rating agencies will undoubtedly become the highlight of civil liability clause. When the securities credit rating agencies for gross negligence or intentional violation of the regulations and affected the investors to make a buying decision, investors have the right to make a private litigation.Although credit rating industry temporarily at the primary stage, people worry about the legal environment of credit rating should constraint industry development severely. But we learn about the securities credit agency from American and European Union’s legislative experience. Legal responsibility should be built at the same time to cultivate the market. On the construction of administrative responsibility, determine the administrative regulatory body, illegal behavior refinement of credit rating agency which related to illegal acts shall be specified. On the construction of criminal responsibility, the securities credit rating agencies provide false documents. It should be judged by the clear interpretation. Especially it focuses on the construction of civil responsibility of the securities credit rating agency in China. Scientific legal liability provisions of the securities credit rating agencies. Distinct the securities credit rating agency legal types and expand the scope of the Securities laws.