Credit Rating Agency Regulation: Has the “Rule 17g-5 Program” Worked?

As the formal regulation of the Credit Rating Industry only began in 2005/6, the aftermath of the Financial Crisis was identified as fertile ground for the effective and widespread regulation of an industry that is wedded to a number of important financial interactions. In that post-Crisis era, the sweeping regulations that were aimed at the financial sector included the Credit Rating Industry in its scope and, as such, aimed to establish a number of key principles within the sector. Whilst there were a number of aims, this article focuses upon the aim of increasing the level of competition within the Industry, and to that end focuses upon one Rule in particular. However, the question remains as to how effective this push to increase competition has been, and also as to how effective the regulation can be in light of the particular dynamics that essentially define the Credit Rating Industry.