Regulators have established supervisory colleges to improve cross-border oversight of the major internationally-active credit rating agencies (CRAs).

The International Organization of Securities Commissions (IOSCO) announced the creation of supervisory colleges for the major rating agencies — Standard & Poor’s, Moody’s and Fitch — which aim to ensure a better understanding of the risks faced by the CRAs, the risks they pose, and how regulators are addressing these risks.

The colleges for S&P and Moody’s are chaired by the U.S. Securities and Exchange Commission (SEC) and the college for Fitch is chaired by the European Securities and Markets Authority (ESMA). They held their inaugural meetings earlier this month in New York.

IOSCO notes that their creation establishes a mechanism for sharing information among regulators regarding: the CRAs’ compliance with local or regional laws and regulations; their implementation and adherence to IOSCO’s code of conduct for CRAs; the establishment and operation of rating models and methodologies, internal controls, and, their procedures to manage conflicts of interest and material non-public information.