The International Organization of Securities Commission’s Task Force on Credit Rating Agencies is trying to come up with ways for regulators to verify compliance with its code of conduct for credit rating agencies.

The code focuses on transparency and disclosure of credit rating agencies’ methodologies, conflicts of interest, use of information, performance and duties to issuers and the public. IOSCO said it believes that for the code to be effective agencies need to comply with the prescribed disclosures and regulators should take steps to determine the veracity of these disclosures.

The task force explained that it is currently exploring the means by which its members could work together to verify the disclosure required by the code, and adherence to the mechanisms it contains designed to protect against conflicts of interest.

It will be considering a number of options, including:

> detailed arrangements for exchanging information between securities regulators;

> cooperative inspection programs; and

> a specialized IOSCO committee to confer on compliance.

It will submit its final recommendations to the Technical Committee at its next meeting in September.