House Chair, many commentators were concerned that this industry would be subject to disproportionate regulation, given the small size of the industry and because government is not happy with the series of downgrades we have seen recently, but that is not the case.
This legislation is in line with what is happening elsewhere in the world, and specifically in the European Union. It is important for South Africa to remain the leader on the continent of Africa and to keep up with its regulatory framework. It is also in line with the G20 requirements.
However, at the introduction of the Bill, some concerns were valid and the committee dealt with them quite effectively. It was a little bit unfair towards the committee to be confronted with an industry whose modus operandi was not fully understood at the beginning. The legislation is now definitely in better shape after committee deliberations.
It is no secret that the Finance Minister is not a fan of credit rating agencies, or rather, let me say, their ratings or findings, and because of this the proposed legislation was perceived to be a reaction from the Treasury to contain their operations in South Africa, and we saw that a little bit when it was introduced. I want to say, I don't think that was the case, and that is not what the legislation was all about.
Sovereign rating downgrades are a serious matter, and so is a downgrade of any other investment house, and to allow the industry to perform this function without a proper framework would be unfair and out of sync with what is happening elsewhere in the world.
After the worldwide economic crisis, everything is different; credit rating agencies could not escape this fact. This new framework recognises the important role played by them, and their job must be done professionally and without fear. Cope shall support the legislation.