We see ESMA’s consultation on the use of credit rating information and data as an opportunity to further develop the European Rating Platform as a single and free access point for all users of credit rating information.
We also call for
greater scrutiny over Credit Rating Agency (CRA) affiliates, insofar as their
licensing agreements and unfair “bundling” practices are concerned, concluding
that these entities should be scoped into the CRA Regulation. We also underline
the need for ESMA and NCAs to step-up their supervision and enforcement of
existing market data cost regulation (including instances where data feeds are
accessed via third-party data vendors/aggregators).
For
important users of credit rating information and data, such as asset managers,
this should be a prelude to a coherent regulation of financial market data
costs and comprehensive cost transparency rules for all data providers,
including affiliates of registered CRAs among others. Greater cost transparency
has become even more urgent because of the growing offer of ESG/sustainability
ratings or scores by these same entities.
In
line with the “good
practices” identified in December 2019 by ESMA, as a
follow-up to its earlier Thematic Report, EFAMA thus recommends the publication
of fee schedules at the start of a service agreement, as well as on an ongoing
basis, to justify any further price increases at cost and throughout the life
of the commercial relationship.
EFAMA
© EFAMA - European Fund and Asset Management Association
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