| The EU has adopted a law that takes effect this year that will require credit rating agencies to be authorised to operate in the 27-nation bloc and be directly supervised. The new EU rules aim to improve how ratings are arrived at and deal with conflicts of interest, as agencies are paid by the companies they rate.
For example, an agency should not be allowed to carry out advisory services such as making proposals or recommendations about the design of a structured finance instrument for a company whose debt it also rates. Agencies are, however, allowed under the new EU law to provide ancillary services if this does not create potential conflicts of interest with issuing a rating. The rules affect the big three in particular -- Standard and Poor's, Moody's and Fitch. Investors use ratings to decide which shares or bonds to buy. Ratings also play a key role in how much capital banks set aside to cover risks. (C ) Reuters | 
German fines for ratings agencies