Featured Product

    FCA to be the UK Regulator of Credit Rating Agencies

    January 07, 2019

    FCA announced that it will become the UK regulator of the credit rating agencies (CRAs). Any legal person wishing to issue credit ratings in the UK for regulatory purposes on or after exit of the UK from EU will need to be registered or certified with FCA. In the event there is no ratified withdrawal agreement, FCA will assume responsibility for registering and supervising CRAs in the UK when the UK leaves the EU on March 29, 2019 (exit day).

    The European Union (Withdrawal) Act 2018 (EUWA) will repeal the European Communities Act 1972, preserve existing UK laws that implement EU obligations, and convert existing EU law at the point of exit into the UK law. The EUWA allows for amendments to this retained EU legislation to ensure that it continues to operate effectively once the UK leaves EU. It is not intended to make policy changes, other than where appropriate to reflect the UK’s new position outside the EU. To support a smooth transition to the new regime for CRAs in the UK and to minimize disruption to the users of credit ratings, FCA announcement mentioned that the draft Credit Rating Agencies (Amendments etc.) (EU Exit) Regulations 2018 (CRAR SI) prescribes several transitional processes for existing CRAs. The draft CRAR SI introduces both a conversion and temporary registration regime available to CRAs wishing to issue ratings in the UK on or after exit day:

    • Registration Conversion regime. This will allow CRAs incorporated in the UK and registered with ESMA under the CRA Regulation to notify FCA before exit day to convert their existing ESMA registration into a registration with FCA.
    • Certification Conversion regime. CRAs certified with ESMA will be able to notify FCA before exit day to extend their certification to the UK.
    • Temporary registration regime. This will offer temporary registration to CRAs that submit an advance application for registration with FCA before exit day, provided they are a UK incorporated entity and are part of the same group as a CRA with an existing ESMA registration.

    For firms not making use of the above transitional processes, applications to register as a new CRA will be assessed in accordance with the usual procedures in the CRA Regulation, as brought into UK law under the EUWA. If the UK enters an implementation period after Brexit, EU law would remain applicable in the UK from March 29, 2019 until the end of December 2020, in accordance with the withdrawal agreement, and the CRAR SI will not have effect for the duration of the implementation period.

     

    Related Links

    Keywords: Europe, UK, Banking, Insurance, Securities, CRA, CRA Regulation, Brexit, CRA Regulation, FCA

    Related Articles
    News

    BoE Seeks Information Before Migrating Statistical Reporting to BEEDS

    The Bank of England (BoE) published the Statistical Notice 2021/09 requiring additional information from firms and software vendors to assist in the onboarding and testing phases for migrating statistical reporting to the BEEDS portal.

    October 25, 2021 WebPage Regulatory News
    News

    FCA Publishes Final Rules on Investment Firms Prudential Regime

    The Financial Conduct Authority (FCA) published the final rules on the Investment Firms Prudential Regime (IFPR) to streamline and simplify the prudential requirements for solo-regulated UK firms authorized under the Markets in Financial Instruments Directive (MiFID).

    October 25, 2021 WebPage Regulatory News
    News

    CFRF Publishes Guides to Manage Financial Risks from Climate Change

    The working groups of the Climate Financial Risk Forum (CFRF) published a second round of guides (or Session 2 guides), written by the industry for the industry, to help financial firms manage climate-related financial risks.

    October 21, 2021 WebPage Regulatory News
    News

    PRA Finalizes Policy for Non-Performing Exposure Securitizations

    The Prudential Regulation Authority (PRA) published the final Policy Statement PS24/21 that contains the new Non-Performing Exposures Securitization Part of the PRA Rulebook and an updated Supervisory Statement SS10/18 on the general requirements and capital framework with respect to securitizations.

    October 21, 2021 WebPage Regulatory News
    News

    EBA Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    EU to Explore Potential of Establishing a Joint Cyber Unit

    The European Council adopted conclusions inviting the European Union (EU) and the member states to further develop the cybersecurity crisis management framework.

    October 19, 2021 WebPage Regulatory News
    News

    EC Sets Out Work Program for 2022

    The European Commission (EC) adopted the work program for 2022.

    October 19, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7598