The Committee supports the Commission proposal to improve the regulation of rating agencies in order to further eradicate major shortcomings in transparency, independence, conflict of interest, and the quality of procedures used in making ratings. The dependence on these ratings should also be reduced, according to the Committee. Insider trading and market abuse damage confidence in the integrity of the markets, which is an essential prerequisite for a functional capital market. The EESC welcomes the fact that the Commission, with a new proposal, is responding to changing market conditions and is seeking to update the framework created by the market abuse directive.
