The Credit Rating Agencies (Civil Liability) Regulations 2013

Investors U.K.

12.—(1) If the claimant is an investor. the court may consider the following factors, amongst others, to be indications that a limitation on liability is reasonable and proportionate—

(a) the limitation resulted from contractual negotiations between the investor and the credit rating agency;

(b) the price agreed between the investor and the credit rating agency reflects the extent of the limitation on liability;

(c) there is no relationship of proximity between the credit rating agency and the investor;

(d) the limitation relates to losses resulting from unexpected or unusual uses of the credit rating;

(e) the limitation relates to losses which the credit rating agency could not reasonably have foreseen when it assigned the credit rating;

(f) the limitation relates to losses which no credit rating agency could reasonably insure against on a prudent commercial basis;

(g) the limitation relates to losses which no credit rating agency would reasonably be expected to have the resources to meet.

(2) The absence of a factor or factors in paragraph (1) does not indicate that a limitation on liability is unreasonable or disproportionate.

(3) A limitation of liability is not likely to be reasonable and proportionate if the credit rating agency fails to take reasonable steps to bring the limitation to the attention of investors.

Commencement Information

I1 Reg. 12 in force at 25.7.2013, see reg. 1