ESMA Publishes Supervisory Work Program for 2020
ESMA published the work program for supervision in 2020. The work program details the areas of focus for the supervision of credit rating agencies (CRAs), trade repositories, and the monitoring of third-country central clearing counterparties and central securities depositories. ESMA is also preparing for its new supervisory responsibilities under the Securities Financing Transactions Regulation, the Securitization Regulation, the Benchmarks Regulation, and the Markets in Financial Instruments Regulation (MiFIR).
With respect to CRAs, the supervisory focus for 2020 will cover the following activities:
- Proactively identify risks in outstanding credit ratings and take appropriate actions where necessary
- Ensure that CRAs employ robust and well-structured rating processes and understand impact of new technologies on those rating processes
- Monitor the development and review of methodologies to ensure that CRAs use methodologies that are robust, systematic, continuous, and subject to validation, including back-testing
- Address identified concerns on IT and information security in CRAs, including cyber-security and cloud outsourcing
- Ensure credit ratings are accessible and usable for investors
- Engage with CRAs to address identified concerns on the organisational aspects of their control environment that undermine the independence of control functions and enhance compliance’s monitoring activities.
ESMA is preparing its supervisory strategy to take up the supervision of the securitization repositories. The main steps being undertaken are the identification of the key regulatory requirements, the building of knowledge regarding the supervisory mandate, the setup of a data quality framework, and the establishment of internal processes and procedures. ESMA is conferred with additional direct supervisory tasks following the outcome of the review of the European System of Financial Supervision (the ESAs review). From January 01, 2022, ESMA will be the direct supervisor of European critical benchmarks (currently LIBOR, EURIBOR, and EONIA) as well as of the third-country administrators subject to the recognition regime under the Benchmarks Regulation. In addition, ESMA will continue to engage with supervised entities about their preparation for the end of the Brexit implementation period and ensure minimal disruption.
Related Links
Keywords: Europe, EU, Banking, Securities, Credit Rating Agencies, Cyber Risk, Cloud Computing, Securitization Regulation, Benchmark Regulation, Brexit, ESMA
Previous Article
EC on First 100 Days of President Ursula von der Leyen CommissionRelated Articles
EBA Publishes Final Regulatory Standards on STS Securitizations
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
ECB Further Reviews Costs and Benefits Associated with IReF
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
EBA Publishes Funding Plans Report, Receives EMAS Certification
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
IOSCO Welcomes Work on Sustainability-Related Corporate Reporting
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
BoE Allows One-Day Delay in Statistical Data Submissions by Banks
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
ACPR Amends Reporting Module Timelines Under EBA Framework 3.2
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
APRA to Modernize Prudential Architecture, Reduces Liquidity Facility
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.
