On 24 June 2014, the European Securities and Markets Authority (ESMA) published its final report on draft regulatory technical standards (RTS) on the CRA III Regulation (Regulation 462/2013).
The draft RTS cover the following topics:
- Disclosure requirements on structured finance instruments (SFI). This draft RTS focuses on the information that the issuer, originator and sponsor of a SFI must publish. Where technically possible, the draft RTS include templates and adopts a phase-in approach for any further templates. The design and features of future standardised templates will be the result of discussions between ESMA, the European Commission, the ECB and stakeholders. ESMA will develop reporting obligations concerning private and bilateral SFI as soon as possible.
- The European Rating Platform (ERP). This draft RTS defines the content and presentation of rating information, including structure, format, method and timing of reporting that credit rating agencies (CRAs) should submit to ESMA for credit ratings that are not exclusively produced for and disclosed to investors for a fee. The ERP website will be set up and run by ESMA, and is scheduled to come into service by 1 January 2017.
- The periodic reporting on fees charged by CRAs. This RTS defines the content and format of periodic reporting of fees charged by CRAs for the purpose of ongoing supervision by ESMA. This will enable ESMA to verify whether pricing practices are discriminatory, ensure compliance with the principle of fair competition, and further mitigate conflicts of interest.