On June 29, 2015, ESMA issued a public notice to EU credit rating agency DBRS Ratings Limited for failing to comply with corporate governance, compliance and record-keeping requirements under the EU Credit Rating Agencies Regulation. ESMA found DBRS to have governance arrangements whereby the board of directors and a body called the Executive Group worked alongside one another. There was however no delegation by the directors to the Executive Group and the two bodies did not report to each other. ESMA also found that DBRS failed to have adequate policies or maintain decision-making procedures and organizational structures which clearly specified responsibilities and reporting lines. DBRS was fined €30,000 for acting negligently in record-keeping failings.
The public notice is available at: http://www.esma.europa.eu/content/Public-Notice-ESMA-fines-DBRS-Ratings-Limited.