Credit rating agencies will be banned from helping to design financial products they also grade as part of a tougher industry code of conduct tackling issues, such as conflicts of interest, raised by the U.S. subprime mortgage crisis.
The credit rating agencies, or CRAs, include Standard & Poor's, Moody's and Fitch.
"Credit rating agencies should prohibit credit rating analysts from making proposals or recommendations regarding the design of structured finance products that the CRA rates," the International Organization of Securities Commissions said in a statement.
The organization drew up a code of conduct in 2003 for the ratings industry to apply and, at a meeting in Paris this week, it was strengthened in response to lessons learned from the global credit squeeze.
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