Featured Product

    ESMA Consults on Guide to Internal Controls for Credit Rating Agencies

    December 05, 2019

    ESMA launched a consultation on the guidelines on internal controls for credit rating agencies (CRAs). The guidelines set out the systems and controls that CRAs should have in place to meet the requirements of the CRA Regulation on internal controls. The consultation closes on March 16, 2020. ESMA will consider the responses it receives to this consultation paper in the first quarter of 2020 and expects to publish a final report by the third quarter of 2020.

    The CRA Regulation includes a number of requirements for the internal control system that a CRA must have in place to prevent or mitigate any possible conflicts of interest that may impact the independence of its credit rating activities. The proposed guidelines set out the views of ESMA on the components and characteristics that CRAs should have in place to demonstrate the presence of an effective framework for internal controls and effective internal control functions. The Internal Controls Framework focuses on the control environment, risk management, control activities, information and communications, and monitoring activities of a CRA. However, the Internal Controls Functions focus on specific roles, namely compliance, review, risk management, information security, and internal audit. These guidelines have been developed with a view to accommodate the proportionality that is provided for smaller CRAs under the CRA Regulation. The need for guidance on internal controls was identified during the supervisory work of ESMA in 2017 and 2018 and its development was highlighted as part of its 2019 Supervisory Work Program.


    Related Links

    Comment Due Date: March 16, 2020

    Keywords: Europe, EU, Banking, Insurance, Securities, CRAs, Internal Control Functions, Guideline, CRA Regulation, ESMA

    Related Articles

    UK Authorities Consult on Implementation of Basel 3.1 Standards

    The UK authorities have published consultations with respect to the Basel requirements for banks. The Prudential Regulation Authority (PRA) published the consultation paper CP16/22 on rules for the implementation of Basel 3.1 standards.

    November 30, 2022 WebPage Regulatory News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News

    FSB and NGFS Publish Initial Findings from Climate Scenario Analyses

    The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.

    November 15, 2022 WebPage Regulatory News

    FSB Issues Reports on NBFI and Liquidity in Government Bonds

    The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.

    November 14, 2022 WebPage Regulatory News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News

    EU Finalizes Rules Under Crowdfunding Service Providers Regulation

    The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.

    November 08, 2022 WebPage Regulatory News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8597