S&P in dutch with the EU

JUN 02, 2010
European Union regulators on Thursday said they have charged U.S. credit ratings agency Standard & Poor's with monopoly abuse, alleging that the company unfairly demands payment for securities information numbers in databases. S&P, a division of New York-based information-services company McGraw-Hill Cos., is the only issuer of international securities identification numbers for U.S. securities. The European Commission says it believes S&P abuses its monopoly position as issuer by requiring payment from European financial groups and data service providers when they use the numbers in databases. "This behavior amounts to unfair pricing," the EU said in a statement. "(The numbers) are indispensable for a number of operations that financial institutions carry out — for instance, reporting to authorities or clearing and settlement — and cannot be substituted." It said other issuers do not charge any fees or only charge for the costs of distributing the numbers, not how often they are used. Regulators said S&P does not incur any distribution costs for the numbers to financial service providers because clients get them directly from Thomson Reuters Corp. or Bloomberg. S&P has eight weeks to reply to the EU charges and can seek an oral hearing to defend its case before the EU executive takes a final decision that can lead to fines of up to 10 percent of yearly global turnover for each year the company broke the law. Businesses can also settle antitrust cases by making a binding commitment to avoid behavior that could cause competition problems. EU regulators said they started investigating the company in January. They are also probing possible monopoly abuse by financial information service Thomson Reuters for preventing customers from applying their own codes to financial market datafeeds.

Latest News

Advisor moves: Atlas tops $1B as Wells Fargo, UBS add bank veterans
Advisor moves: Atlas tops $1B as Wells Fargo, UBS add bank veterans

Wells Fargo adds two bank-channel recruits, UBS lands a JPMorgan Chase veteran, and a multi-family office lifts Atlas past $1B

Advisor mom’s son used her password to log into clients’ accounts, sell deal with conflicts, according to Washington state
Advisor mom’s son used her password to log into clients’ accounts, sell deal with conflicts, according to Washington state

“The state comes down on you in years when you make 40% returns for clients,” said Bill Swayne, the advisor and son of Candace Swayne.

Osaic in talks with Anthropic as AI reshapes advisor workforce
Osaic in talks with Anthropic as AI reshapes advisor workforce

The Independent broker-dealer giant has had “active conversations” with the Claude maker, which is days away from its expected IPO

The retirement milestone advisors aren't tracking
The retirement milestone advisors aren't tracking

For Gen X clients entering life after work, answering the financial question isn't enough to solve the entire retirement equation.

Wealthtech firms target stock pay, pensions and heirs for advisors
Wealthtech firms target stock pay, pensions and heirs for advisors

Tools from Grantd, Income Lab and Healthspan Wealth aim to keep RIAs involved in clients’ biggest money decisions

SPONSORED Best Practices for Engaging Women Around Alternatives

Growing wealth, evolving priorities, and untapped opportunities are reshaping how women approach long-term investing.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.