The Research On The Legal Issues Of Supervision To Credit Rating Agency

With the rapid development of economy, the financial market becomes more complex and the question of asymmetric information is more and more serious. The credit rating agency regarded as a gatekeeper of the financial market plays a more important role. The credit rating agency is a professional agency that reveals the borrower’s credit risk by the simple symbols and resolves the question of asymmetric information after collecting and analyzing information. However, the financial crisis in 2007 made the credit rating agency placed in an eye of the storm because the reliability was questioned and the accumulated credit almost vanished. The credit rating agency frequently reports scandals such as false rating and inappropriate rating, which not only harms the interest of investor, but also disorders the financial market. In order to prevent the issue from recurring, it is necessary to supervise the credit rating agency with law. Under the circumstance, to clarify the questions and strength the law supervision will promote the development of industry. As a result, the credit rating agency will perform a more important role and become a real gatekeeper of the financial market.In our country, for one thing, the rating market that started late is still in its infancy; for another thing, the less experienced supervisor leads to disorder of supervision. The supervision includes the government regulation and self — regulation, lacking the effective law supervision. The relative legal system is not yet completed, and the legal level is low that the highest legal is the regulation. In terms of the supervisor, the amount is too much and the credit rating industry presents the situation of separate regulation according to the line of business. The credit rating agency is short of access permission mechanism. That is to say, there is no strict access permission mechanism. The question that the credit rating agency takes the responsibility when doing the harm by inappropriate rating isn’t defined. The supervision to the credit rating agency is a long process with continuous reform according the change of market. The foreign experience and lesson is worth learning. The U.S, the origin of credit rating, experienced a transformation from leading self—regulation to multiple acts after the financial crisis. We can learn from its perfect supervision system to establish ours. The reform measures that EU、Japan and IOSCO took in the crisis is worth learning, too. In order to perfect the supervision, the paper gives advices from aspects of presentation, subject and system of supervision on the foundation of analysis on development situation of credit rating agency. The paper discusses some aspects in detail that definition of the supervisor, legislative perfection and standardized management.