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Session details

34th International Financial Law Conference

17 May - 19 May 2017

Swissotel Tallinn

Session information

Liability of rating agencies
Swissotel Tallinn

Committee(s)

Banking Law Committee (Lead)
Financial Services Section (Lead)
Financial and Banking Law Conferences Subcommittee (Lead)
Legal Practice Division (Lead)
Securities Law Committee (Lead)
European Regional Forum

Description

Following the global financial crisis an important question which has arisen is the appropriate degree of liability a CRA should incur if it has issued a negligent or misleading rating. Can a CRA be liable for a negligent or misleading rating either under the law that exists in the various jurisdictions or as a result of statutory or regulatory intervention. To whom should liability extend – the issuer and/or investors? What is the extent and the limits of liability under the common law or the existing law of the various jurisdictions. What are the extent and the effectiveness of the recent changes under Dodd Frank in the US and under the CRA3 Regulations in Europe? To what extent can a CRA be liable by the application in other jurisdictions of the principles established in Australia under the 2014 decision in ABN v Bathurst?