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Credit ratings firms were widely criticised for failing to adequately monitor the risks that came with complex financial instruments blamed for the 2008-2009 crisis.</p>
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The Monetary Authority of Singapore (MAS), which released details of its proposals as well as a code of conduct for scrutiny, said it wanted to license credit ratings agencies so that they can be "subject to licensing obligations".</p>
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After the financial crisis, "a view has emerged among regulators that there is a need to further supervise (credit ratings agencies) to enhance the quality of ratings, safeguard the integrity of the rating process and promote (their) independence and the avoidance of conflicts of interest," it said.</p>
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It noted that Europe, the United States, Australia, Japan, Canada and Kong Kong have begun to regulate credit ratings agencies.</p>
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"In line with global developments and to conform with international standards and practices, MAS is proposing to regulate activities conducted by credit rating agencies," the central bank said in a statement.</p>
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"This is to ensure that Singapore remains an attractive location for CRAs (credit rating agencies) to operate in."</p>
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The industry is dominated by three major players, Moody's, Standard &amp; Poor's and Fitch, whose credit risk evaluations can sink or boost the entities that they grade, including financial instruments, companies and governments.</p>
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They had come under fire for not spotting the dangers inherent in the financial instruments -- supported by risky US home mortgages -- that were sold to investors around the world.</p>
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Many of the affected investors were retirees who had used all their life savings to buy financial products linked to collapsed US bank Lehman Brothers and other institutions hammered by the financial crisis.</p>
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