Web Desk March 30, 2021

The European Union’s markets watchdog said on Tuesday it has fined credit ratings firm Moody’s 3.7 million euros ($4.35 million) for breaching rules including the failure to disclose conflicts of interests, APA reports citing Reuters.


All the breaches resulted from negligence on the part of the company, the European Securities and Markets Authority (ESMA) said, adding that the fine was for five Moody’s entities based in France, Germany, Italy, Spain and Britain.


ESMA said Moody’s had inadequate internal policies and procedures to manage shareholder conflicts of interest. The breaches took place between 2013 and 2017, it said.


“ESMA found that MIS (Moody’s Investors Service) had no intent to infringe the EU regulation and there was no impact on the quality of any ratings,” a Moody’s spokesperson said in an e-mailed statement to Reuters.


Moody’s, one of the three largest credit ratings agencies alongside S&P Global and Fitch, added that the regulator had recognised the steps it has taken to prevent similar infringements in the future.


ESMA said the breaches were of a rule that prevents agencies from issuing ratings on companies in which they own 10% or more of its shares, or where they have a board position.


The regulator fined Fitch 5.1 million euros a couple of years ago for similar breaches.


Source: Azeri-Press News Agency

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