The European Parliament has called for an investigation into the role of credit rating agencies in Europe with a view to regulating the industry and establishing a new European rating agency registration scheme.

Proposals approved in Europe on Tuesday ask the European Commission to assess the need for new legislation by July next year (2005), and urge the commission and the Committee of European Securities Regulators (CESR) to keep a close watch on developments in the US where the Securities and Exchange Commission (SEC) is also looking at the role of rating agencies.