European Economic and Social Committee recommends new powers to ESMA
08 December 2010
According to the EESC, the ESMA would have the authority to impose financial penalties, request temporary suspension of issue of new ratings, request that the infringement stop, or withdraw the registration on rating agencies that committed a breach of the regulation.
The European Economic and Social Committee issued an opinion recommending credit rating agencies new powers. Though ESMA will not be able to dispute a downgrade, they can challenge the methodology used. Notably, the report does not include language that would force rating agencies to share information with rivals.
Full opinion
