The Guidelines clarify certain aspects of the scope of the Credit Rating Agencies (CRA) Regulation for registered CRAs, market participants operating on the perimeter of this sector and national securities markets regulators. The European Securities and Markets Authority (ESMA) on the basis of the experience acquired so far through the registration process and the supervision of the perimeter of the CRA Regulation, sees merit in clarifying the interpretation of the scope of the Regulation with respect to the following items:
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obligation for CRAs to register with ESMA;
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credit rating activities and exemptions from registration;
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establishment of branches outside the Union by registered credit rating agencies;
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specific disclosure recommendations for best practice; and
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enforcement of the scope of the CRA Regulation.
Steven Maijoor, ESMA Chair, said: “These Guidelines are aimed at clarifying, for market participants and the wider public, those activities which fall under ESMA’s CRA supervision and require its authorisation, as recent experience has shown us that unauthorised entities continue to operate at the perimeter of this new regime. I would remind market participants that issuing credit ratings in the EU is a regulated activity and carrying out this activity without being registered is a breach of the CRA Regulation and is subject to sanctions. These Guidelines will contribute to a consistent approach in the application of the CRA Regulation, ensure a level-playing field for all market participants and protect investors.”
Next steps
The deadline for reporting requirement dates will be two months after the publication of the Guidelines in all the EU official languages.
Press release
Guidelines - Final Report
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