Featured Product

    ESMA Revises Guidelines for Reporting by Credit Rating Agencies

    February 05, 2019

    ESMA revised the guidelines on the information that credit rating agencies (CRAs) must report for supervisory purposes. These guidelines follow a public consultation in July 2018, post which a number of refinements have been introduced in areas such as cost and revenue reporting, “as soon as” notifications, and reporting calendars. ESMA will make all relevant reporting templates available sufficiently in advance of the implementation date to allow for a period of testing between ESMA and CRAs. The guidelines will become effective two months after their publication on ESMA’s website in all of the official languages.

    In March 2015, ESMA had published its first set of guidelines on the periodic information that CRAs should submit to ESMA for the ongoing supervision. Since the introduction of the guidelines in 2015, the supervisory processes of ESMA have evolved and the timing, frequency, and format of the information submitted in accordance with the 2015 guidelines is no longer capable of supporting these supervisory processes efficiently and effectively. Therefore, these revised guidelines amend some sections of the 2015 guidelines on the reporting of periodic information to ensure they continue to efficiently and effectively support the supervisory processes of ESMA. The main goal of the guidelines is to streamline the information that is reported on a periodic basis by CRAs to ESMA, ensuring that the information is fully aligned with ESMA’s supervisory processes. Additionally, a secondary goal of the guidelines is to increase the predictability of ESMA’s supervisory interactions with CRAs, with respect to the requests for information that ESMA submits to CRAs. The following are the main features of the revised guidelines:

    • Differentiated reporting calendars for entities, depending on required level of supervisory engagement
    • Individual reporting instructions (for each reporting item), which have been elaborated and expanded in areas where ESMA has identified a supervisory need
    • Standardizing reporting templates for specific reporting items

    After considering the feedback received during the consultation process, ESMA intends to maintain the proposed implementation date of July 31, 2019. However, ESMA made a number of changes throughout the guidelines to clarify or reduce the amount of information that should be provided under different reporting items and reporting templates. In addition, ESMA has rescheduled the submission deadlines of a number of items from July 31 to January, thus reducing the initial reporting burden of July 31. In addition, ESMA can clarify that given the Revenues and Costs Item has a reporting deadline that precedes the implementation date of the guidelines, the first submission date for this item under the revised guidelines will be May 31, 2020. 

     

    Related Links

    Keywords: Europe, EU, Banking, Insurance, Securities, CRA, Reporting, Guidelines, Proportionality, ESMA

    Featured Experts
    Related Articles
    News

    ECB Amends Guideline on Temporary Collateral Easing Measures

    ECB published Guideline 2021/975, which amends Guideline ECB/2014/31, on the additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral.

    June 17, 2021 WebPage Regulatory News
    News

    EIOPA Releases Report on Artificial Intelligence Governance Principles

    EIOPA published a report, from the Consultative Expert Group on Digital Ethics, that sets out artificial intelligence governance principles for an ethical and trustworthy artificial intelligence in the insurance sector in EU.

    June 17, 2021 WebPage Regulatory News
    News

    HKMA to Increase Focus on Suptech and Regtech Cloud Adoption

    HKMA published the seventh and final issue of the Regtech Watch series, which outlines the three-year roadmap of HKMA to integrate supervisory technology, or suptech, into its processes.

    June 17, 2021 WebPage Regulatory News
    News

    EC Consults on Improving Transparency in Secondary Markets for NPLs

    EC launched a targeted consultation to improve transparency and efficiency in the secondary markets for nonperforming loans (NPLs).

    June 16, 2021 WebPage Regulatory News
    News

    BIS and Nordic Central Banks Launch Innovation Hub in Stockholm

    BIS, Danmarks Nationalbank, Central Bank of Iceland, Norges Bank, and Sveriges Riksbank launched an Innovation Hub in Stockholm, making this the fifth BIS Innovation Hub Center to be opened in the past two years.

    June 16, 2021 WebPage Regulatory News
    News

    FDIC Tech Sprint Aims to Explore Technologies to Reach Unbanked

    FDITECH, the technology lab of FDIC, announced a tech sprint that is designed to explore new technologies and techniques that would help expand the capabilities of community banks to meet the needs of unbanked individuals and households.

    June 16, 2021 WebPage Regulatory News
    News

    EC Releases Sustainable Finance Taxonomy Compass

    EC released the EU Taxonomy Compass, which visually represents the contents of the EU Taxonomy starting with the EU Taxonomy Climate Delegated Act.

    June 16, 2021 WebPage Regulatory News
    News

    FDIC Proposes Amendments to Real Estate Lending Standards

    FDIC is seeking comments on a rule to amend the interagency guidelines for real estate lending policies—also known as the Real Estate Lending Standards.

    June 15, 2021 WebPage Regulatory News
    News

    EIOPA to Consider Liquidity Risk in Stress Test for 2021

    EIOPA published its annual report, which sets out the work done in 2020 and indicates the planned work areas for the coming months.

    June 15, 2021 WebPage Regulatory News
    News

    ESRB Paper Discusses Measurement of Impact of Bank Failure via Lending

    The ESRB paper that presents an analytical framework that assesses and quantifies the potential impact of a bank failure on the real economy through the lending function.

    June 15, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7116