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
Comment Due Date: September 26, 2018
Keywords: Europe, EU, Banking, Securities, CRA, Reporting, Guidelines, Proportionality, ESMA
BoE published a statistical notice (Notice 2020/9) explaining the approach for treatment of payment holidays on the profit and loss return or Form PL.
BoE updated the known issues document for the statistical reporting Forms AS and FV.
FED announced individual capital requirements for 34 large banks and these requirements go into effect on October 01, 2020.
SRB published a set of documents to give operational guidance to banks on implementation of the bail-in tool.
BIS published an update on the G20 TechSprint Initiative, which was launched in April 2020 and aims to highlight the potential for technologies to resolve regulatory compliance (regtech) and supervisory (suptech) challenges.
OSFI published a letter that provides an update on the milestones for the implementation of the IFRS 17 standard on insurance contracts.
EBA updated the report on the implementation of selected COVID-19 policies.
The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.
BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.
BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.