ESMA's statement outlines the work it has undertaken in relation to the CRA Regulation and provides an update on the state of play on a number of initiatives, these include:
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European Ratings Platform;
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Fees;
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Transparency on structured finance instruments;
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Reducing over-reliance on credit ratings;
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Competition issues;
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Sanctions; and
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the endorsement regime.
ESMA issued a Consultation Paper on the revision of its Guidelines on the Endorsement regime for credit ratings in the EU. Endorsement is a regime that allows credit ratings issued by a third-country CRA, and endorsed by an EU CRA, to be used for regulatory purposes in the EU. Given that a substantial proportion of the credit ratings in the EU are introduced through the endorsement regime, the revision of our guidelines by June 2018 is necessary to ensure that these ratings continue to meet the high standards envisaged in the CRA Regulation and expected by ESMA.
We are committed to the active monitoring of the Regulation’s effectiveness in order to ensure that it continues to deliver a high level of protection for investors and users of ratings, financial stability and the smooth functioning of the single market.
In carrying out this role, we will draw on our supervisory experience and use all available policy tools including, should it be necessary, proposing the revision of existing technical standards.
Full statement
© ESMA
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