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Parliament and the Council delegations have reached an agreement on the new legislation on Credit Rating Agencies.
The compromise reached provides for a greater role for CESR, which will be in charge of registering CRAs' and would provide a single point of entry for the submission of applications. CESR should receive applications for registration and
National authorities will take the decision on CRAs registration and compliance with the rules and on the possibility of withdrawing an agency's registration should the rules be breached.
Moreover, a college of supervisors, representing the 27 Member States authorities, will also be established, to provide a platform for an exchange of supervisory
Non-European ratings will have to be endorsed by an EU agency, established according to this new regulation. This agency will be responsible for determining and monitoring on an ongoing basis whether rating activities of non-EU CRAs comply with the requirements.
CRA would have to disclose to the public the methodologies used to adopt their ratings. On structured productes, they should either use different rating categories when rating structured finance instruments or provide additional
Finally, if the legislation is adopted, a CRA would have to publish annually a transparency report including
The Regulation will be directly applicable in the whole EU 20 days following its publication in the Official Journal. Member States will have six months to take the necessary measures to implement the new provisions. As an exception, the provisions on the use of ratings from non EU agencies, this transition period will last 18 months. Three years later, the Commission will evaluate the effectiveness of the regulation, including the reliance on credit ratings in the EU.