Two of the most powerful European investment industry bodies, representing institutional investors holding over €20 trillion ($31 trillion) of assets, are backing moves by an advisory group to the European Commission to force through change in the ratings industry, although they have stopped short of demanding greater regulatory oversight for the sector.

In response to a Committee of European Securities Regulators’ consultation paper on the role of credit rating agencies in structured finance, the European Fund and Asset Management Association and the UK’s Investment Management Association broadly agreed with most of CESR’s assessment and proposals on improving transparency, monitoring and conflicts of interest.