July 19, 2018

ESMA issued a consultation paper for revised guidelines on the information that is to be periodically reported to ESMA by credit rating agencies (CRAs) for supervisory purposes. ESMA anticipates that these guidelines will introduce greater proportionality in the reporting requirements for CRAs and will facilitate greater predictability in the supervisory interactions between CRA and ESMA. Comments are invited on the consultation paper until September 26, 2018. ESMA is expected to publish the final report on the guidelines before the end of 2018.

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, ESMA is proposing a revision of the 2015 guidelines. The revised guidelines aim to achieve this by: 

  • Introducing a revised approach to determining a CRAs’ reporting obligations, that is based on ESMA’s internal risk assessment
  • Proposing greater differentiation in the reporting frequencies for CRAs, to ensure more proportionate reporting requirements for different entities
  • Providing more specific reporting instructions for a number of existing reporting requirements, to improve the consistency of the information currently provided
  • Introducing a number of new periodic reporting requirements to support ESMA’s supervisory activities, to reduce the need for ESMA to submit ad-hoc requests for information
  • Introducing standardized reporting templates for a number of new and existing reporting requirements, to ensure a streamlined approach to reporting for CRAs and a higher level of usability of the information received

 

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Comment Due Date: September 26, 2018

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

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