This authority will be endowed with its own supervisory powers, but also investigatory powers, and it will be able to punish failure to apply this Regulation.
"The path towards the better supervision of credit rating agencies at European level is now open. These agencies, which have been regulated by the European Union since 2009, will now be supervised by the European Securities and Markets Authority (ESMA)," said Jean-Paul Gauzès MEP, EP Rapporteur on the proposal for a Regulation amending Regulation (EC) No 1060/2009 on credit rating agencies, after his Report was adopted by a large majority (26 in favour, 4 against, 5 abstentions) by the Economic and Monetary Affairs Committee of the European Parliament on Monday.
"The economic and financial crisis has highlighted the role of credit rating agencies and the need to increase both their supervision and the transparency of their rating criteria. By supporting my Report, Members of the Economic and Monetary Affairs Committee have sent a strong signal to complement the already-existing Regulation and to strengthen the prerogatives of the European Securities and Markets Authority."
"Formal negotiations will start on Wednesday, 24 November with the Belgian Presidency of the European Union to find an agreement between Council and Parliament," Jean-Paul Gauzès underlined. "Our objective is to enable the European Securities and Markets Authority to exercise its powers as soon as it is operational, at the beginning of 2011," Jean-Paul Gauzès concluded.
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