EU fines Moody's 3.7mn euros over conflicts of interest
- The biggest fine -- 2.7 million euros -- was imposed on Moody's UK.
PARIS: Europe's markets watchdog announced on Tuesday a 3.7 million euro ($4.3 million) fine against five European entities of Moody's credit ratings agency over breaches of conflict of interest rules.
The violations involved the US-based agency's operations in Britain, France, Germany, Italy and Spain, according to the European Securities and Markets Authority.
The biggest fine -- 2.7 million euros -- was imposed on Moody's UK.
The violations include delivering new ratings in violation of a ban on issuing them on outfits in which a credit rating agency shareholder exceeds a 10 percent ownership threshold and/or is a board member.
The other breaches include failing to disclose conflicts of interest and inadequate internal policies and procedures to manage shareholder conflicts of interest, the regulator said.
"All the breaches were found to have resulted from negligence on the part of Moody's," the watchdog said in a statement.
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