Nick Xenophon (SA, Independent) Share this | Hansard source

My question is to the Minister for Superannuation and Corporate Law, Senator Sherry. The role played by credit rating agencies has been roundly criticised for giving favourable, undeserved and reckless ratings to the US subprime residential mortgage backed securities and other so-called structured financial services which ultimately led to the global financial crisis, which has done untold damage to markets and to individuals around the world. Professor John Quiggin from the University of Queensland has recently stated:

… much of the blame for the survival of these agencies must rest with governments, which have enshrined agency ratings in official investment guidelines, effectively outsourcing the crucial public role of prudential regulation.

I note that on 22 May last year the government announced a review of the regulatory regime of credit rating agencies in Australia. Can the minister advise what progress has been made in this review and the time frame for any proposed reforms?