The EU Regulation of the European Parliament and Council on Credit Rating Agencies came into force on 7 December 2009 (the Regulation). As a result, credit rating agencies (CRAs) operating in the EU will need to apply for registration between 7 June 2010 and 7 September 2010 for their ratings to be used for regulatory purposes in the European Community.
The Committee of European Securities Regulators (CESR) has now published two consultation papers regarding the registration of CRAs.
The first consultation paper is entitled Guidance on Common Standards for Assessment of Compliance of Credit Rating Methodologies with the Requirements set out in Article 8(3). The consultation seeks comments on the conclusions CESR has so far drawn for setting guidelines on common standards for assessing compliance of credit rating methodologies with the requirements set out in Article 8.3 of the Regulation. Article 21.3(b) of the Regulation requires CESR to issue finalised guidelines by 7 September 2010.
The second consultation paper is entitled Guidance on the Enforcement Practices and Activities to be Conducted under Article 21.3(a) of the Regulation. According to Article 21.3(a) of the Regulation, CESR shall issue guidelines by 7 September 2010 on the enforcement practices and activities to be conducted by competent authorities under the Regulation. The purpose of the consultation paper is to seek comments on the conclusions CESR has so far drawn for setting guidelines on enforcement practices applicable as part of ongoing supervision as well as on the interaction expected between CRAs and competent authorities.
The deadline for comments on both consultation papers is 18 June 2010.