Study On The Legal Regulations For Credit Rating Agencies’ Conflicts Of Interests

The modern market economy is the credit economy. Credit is thekey to personal or economy development. Indeed it is the basis for acountry’s economic development.As Chinese finance is increasingly open, Credit rating agencieshave played a crucial role in China’s financial system. Especially aftersubprime mortgage crisis in2008and the Europe debt crisis in2010,The influence of the credit rating agencies the right to speak out ofcontrol situation, making people aware should strengthen the regulationof "gatekeeper" responsibilities, In particular to avoid the ratingagencies in the "conflict of interest". The credit rating in China startedlate, there are still many problems in conflict of interest regulation Forthis reason our financial "Twelfth Five-Year Plan" clearly explained theestablishment of financial macro-prudential policy framework. Themain feature of this framework is to systemically important financialinstitutions regulation, including the regulation of credit rating agencies.In view of the causes of conflicts of interest are multifold, so regulationshould proceed from multiple angles such as market context, regulatoryphilosophy, the legal system,credit rating agencies development.Regulation construction should not be "closed", to compare learningregulatory approach from different countries and regions. The first part, describing the background and significance of thisarticle and proposing framework for writing and research methods.The second part, the related regulatory issues about credit ratingagency conflicts of interest is defined. This section defines the majorcredit rating agencies on the concept, the credit rating agency conflictsof interest, and discusses the necessity of a credit rating agencyconflicts of interest regulation.The third part, the present situation and problems of China’s creditrating agency conflicts of interest regulation. This part investigates thepresent conditions of the credit rating agency conflicts of interestregulation in china, to tease out what problems of conflicts of interest atcredit rating agencies regulate aspects.The fourth part, Through a comparative analysis on the part offoreign legal regulation, to sum up the general path as well as nationaland regional organizations in conflict of interest of credit ratingagencies the legal regulation in the establishment of legal regulationmethod reference factors, so as our country improve the credit ratingagencies conflict of interest laws and regulations.The fifth part, there are some suggestions for Improve credit ratingagencies, legal regulation of conflicts of interest. This part in order toputs forward the general path of interest conflict resolution, combinedwith the problems of our country’s credit rating agencies, as well as our country in building their credit rating market reality needs, on the basisof the perfection of put forward the corresponding countermeasures.