Civil Liability of Rating Agencies: An Insipid Sprout from Brussels

Matthias Lehmann

University of Bonn

June 20, 2014

LSE Legal Studies Working Paper No. 15/2014

Recently, a private cause of action against rating agencies has been introduced into EU law. This paper analyses the need and justification for such liability. Features of the new cause of action are compared to those existing in other major economies; in particular, those of the U.S. and Australia. The paper criticizes the fact that the EU leaves open to Member States to define the essential terms of rating agency liability and, thereby, fails to secure a uniform regime. The problems of the new rule are compounded further by difficulties in determining the applicable national law that fills in its gaps. Finally, it remains unclear whether the scope of the liability also covers U.S. rating agencies. It is concluded that the new regime is merely a cover-up to mask continuing differences between EU Member States concerning the appropriateness of rating agencies’ civil liability.

Number of Pages in PDF File: 27

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Date posted: July 16, 2014  

Suggested Citation

Lehmann, Matthias, Civil Liability of Rating Agencies: An Insipid Sprout from Brussels (June 20, 2014). LSE Legal Studies Working Paper No. 15/2014. Available at SSRN: https://ssrn.com/abstract=2456953 or http://dx.doi.org/10.2139/ssrn.2456953

Contact Information

Matthias Lehmann (Contact Author)
University of Bonn ( email )
Institute of Private International Law
Adenauerallee 24-42
Bonn, 53225
+49228737100 (Phone)
+49228739180 (Fax)
HOME PAGE: http://www.jura.uni-bonn.de/index.php?id=7208
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