Featured Product

    ESMA Consults on Disclosure Requirements Applicable to Credit Ratings

    December 19, 2018

    ESMA published a consultation on the disclosure requirements applicable to credit ratings. The paper consults on Credit Rating Agency (CRA) guidelines aimed to improve the quality and consistency of disclosures of environmental, social, and governance (ESG) factors when considered as part of a credit rating action. ESMA will accept responses to the consultation by March 19, 2019 and it expects to publish the final report by July 30, 2019.

    The consultation paper proposes measures in the following areas:

    • Guidance to improve the quality and consistency of the information that is disclosed alongside the issuance of a credit rating in a publicly available press release
    • Guidance to improve the transparency of credit rating press releases concerning the extent to which sustainability factors have been considered as part of a credit rating
    • A cost-benefit analysis of the Guidelines in Annex I of the consultation paper

    The guidance is intended to improve the quality of disclosures by CRAs in a manner that provides the users of credit ratings with greater transparency on whether Environmental, Social, or Governance factors were considered a key underlying element of a credit rating issuance. Although this is not a subject that is addressed explicitly under the CRA Regulation, ESMA recognizes that, in context of the EC Action Plan for sustainable finance, it is desirable to provide some guidance to the industry to ensure that the quality of disclosures can support investors needs in light of the greater focus that is now being placed on sustainability factors in investment decisions. The guidelines are in line with the EC Action Plan on sustainable finance.

     

    Related Links

    Comment Due Date: March 19, 2019

    Keywords: Europe, EU, Banking, Insurance, Securities, CRA Regulation, CRA, Disclosures, ESG, Sustainable Finance, ESMA

    Related Articles
    News

    FED Revises Capital Planning and Stress Testing Requirements for Banks

    FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.

    January 19, 2021 WebPage Regulatory News
    News

    ECB Releases Results of Bank Lending Survey for Fourth Quarter of 2020

    ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.

    January 19, 2021 WebPage Regulatory News
    News

    ESAs Publish Reporting Templates for Financial Conglomerates

    ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.

    January 18, 2021 WebPage Regulatory News
    News

    EBA Publishes Report on Asset Encumbrance of Banks in EU

    EBA published the annual report on asset encumbrance of banks in EU.

    January 18, 2021 WebPage Regulatory News
    News

    MAS Revises Guidelines on Technology Risk Management

    MAS revised the guidelines that address technology and cyber risks of financial institutions, in an environment of growing use of cloud technologies, application programming interfaces, and rapid software development.

    January 18, 2021 WebPage Regulatory News
    News

    US Agencies Publish Updates for Call Reports, FFIEC 101, and FR Y-9C

    FED updated the reporting form and instructions for the FR Y-9C report on consolidated financial statements for holding companies.

    January 15, 2021 WebPage Regulatory News
    News

    EBA Proposes Guidelines for Establishing Intermediate Parent Entities

    EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.

    January 15, 2021 WebPage Regulatory News
    News

    EC Adopts Financial Reporting Changes Arising from Benchmark Reforms

    EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.

    January 14, 2021 WebPage Regulatory News
    News

    BIS Bulletin Examines Key Elements of Policy Response to Cyber Risk

    BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.

    January 14, 2021 WebPage Regulatory News
    News

    HMT Updates List of Post-Brexit Equivalence Decisions in UK

    HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.

    January 14, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6462