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

    EC Rule on Contractual Recognition of Write Down and Conversion Powers

    The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.

    September 17, 2021 WebPage Regulatory News
    News

    APRA Issues Further Guidance on Application of Securitization Standard

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.

    September 16, 2021 WebPage Regulatory News
    News

    SRB Provides Update on Approach to Prior Permissions Regime

    The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.

    September 16, 2021 WebPage Regulatory News
    News

    APRA Publishes FAQs on Capital Treatment of Overseas Subsidiaries

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.

    September 15, 2021 WebPage Regulatory News
    News

    EBA Finalizes Guidance to Assess Breaches of Large Exposure Limits

    The European Banking Authority (EBA) published the final report on the guidelines specifying the criteria to assess the exceptional cases when institutions exceed the large exposure limits and the time and measures needed for institutions to return to compliance.

    September 15, 2021 WebPage Regulatory News
    News

    PRA Finalizes Changes to Consolidated Prudential Rules Under CRD5/CRR2

    The Prudential Regulation Authority (PRA) issued the policy statement PS20/21, which contains final rules for the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies.

    September 15, 2021 WebPage Regulatory News
    News

    EBA Revises Guidelines on Stress Tests of Deposit Guarantee Schemes

    The European Banking Authority (EBA) revised the guidelines on stress tests to be conducted by the national deposit guarantee schemes under the Deposit Guarantee Schemes Directive (DGSD).

    September 15, 2021 WebPage Regulatory News
    News

    Nordea Bank and EIB Sign Agreement to Fund Green Projects in Nordics

    The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.

    September 15, 2021 WebPage Regulatory News
    News

    HKMA Endorses Industry Guidance to Support LIBOR Transition

    The Hong Kong Monetary Authority (HKMA) issued a circular, for all authorized institutions, to confirm its support of an information note that sets out various options available in the loan market for replacing USD LIBOR with the Secured Overnight Financing Rate (SOFR).

    September 14, 2021 WebPage Regulatory News
    News

    OCC Issues Booklet on Supervision of Problem Banks

    The Office of the Comptroller of the Currency (OCC) issued a new "Problem Bank Supervision" booklet of the Comptroller's Handbook. The booklet covers information on timely identification and rehabilitation of problem banks and their advanced supervision, enforcement, and resolution when conditions warrant.

    September 13, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7481