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The Research Of The Civil Liability Of Credit Rating Institutions

Posted on:2015-05-10Degree:MasterType:Thesis
Country:ChinaCandidate:N ChengFull Text:PDF
GTID:2296330467966285Subject:Economic Law
Abstract/Summary:PDF Full Text Request
After the financial crisis, how to regulate credit rating institutions became a hot issue aroundthe world. As the administrative means failed to regulate the rating agencies during the crisis,civil liability as a supplementary method was put forward by academia. In May2013, theSupreme Court of Australia found Standard&Poor’s liable for the loss of13local councilsbecause of negligence. This case was regarded as a "milestone" and threw lights on assumingrating agencies’ civil liability. Through analyzing the Bathurst Regional Council case and thecurrent development of the credit rating industry in China, this dissertation tends to givesuggestions for the improvement of the legal system related to the civil liability of creditagencies in China. This dissertation will be divided into four parts, each as follows:The first part is about the proposition of civil liability of credit rating institutions. Thedysfunction of the market as well as the administrative power are the background for theproposition of civil liability. As the market lost its proper function in adjusting the creditrating relationship and the administrative power has further distorted it, the civil liability rulesis an effective supplement to regulate credit rating activities.The second part is about the development of relevant rules regulating credit rating agencies inthe U.S. and Europe. The comparison between the the rules established before and after thefinancial crisis clearly showed that as a substitute of administrative methods, civil liability gotmore and more attention in practice.The third part is the analysis of the so called "milestone" case: Bathurst Regional Council case.In this part, the main issues of the case and the main process of the litigation would bediscussed. Through the discussion, the author would come to a conclusion that holding creditrating agency liable for its civil liability is feasible. The experience generated in this casewould be discussed to figure out how judges could make proper legal decision in the future.The fourth part is about the provisions governing civil liability of credit rating agencies in China now and the suggestions for improving them. In this part, the development of creditrating industry would be illustrated to show the current status of legal provisions. Regardingthe defects of current regulations, the credit rating industry should establish its specificindustrial standard; the legislator should revise the current laws; investor’s right related toevidence should be protected; the liability of credit rating agencies should be properlyrestraint.
Keywords/Search Tags:Credit Rating Agencies, credit rating, the tort liability, administrativemethods
PDF Full Text Request
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