20 Amendments of Antolín SÁNCHEZ PRESEDO related to 2008/0217(COD)
Amendment 93 #
Proposal for a regulation
Recital 1
Recital 1
(1) Credit rating agencies play an important role in global securities and banking markets, as their ratings are used by investors, borrowers, issuers and governments to make informed investment and financing decisions. Credit institutions, investments firms, insurance undertakings, assurance undertakings, reinsurance undertakings, undertakings for collective investment in transferable securities (UCITS) and institutions for occupational retirement provision, may use those ratings as the reference for the calculation of their capital requirements for solvency purposes or for calculating risks in their investment activity. Consequently, credit ratings have a significant impact on the operation of the markets and on the trust and confidence of investors and consumers. It is essential, therefore, that credit ratings used in agencies observe the principles of integrity, transparency, responsibility, good governance, and institutional cooperation in order to ensure that credit ratings used in, or affecting, the Community are independent, objective and of the highest quality.
Amendment 110 #
Proposal for a regulation
Recital 5
Recital 5
(5) Credit rating agencies are considered to have failed to reflect early enough in their credit ratings the worsening market conditions. This failure can be best corrected by measures related to conflicts of interest, the quality of the credit ratings, the transparency of the credit rating agencies, their internal governance and surveillance of the activities of the credit rating agencies. The users of credit ratings should not relybe able to rely to a reasonable extent, though not blindly, on credit ratings. They should take utmost care to perform their own analysis and conduct due diligence regarding their reliance on such credit ratingat all times.
Amendment 118 #
Proposal for a regulation
Recital 6
Recital 6
(6) It is necessary to lay down a common framework of rules regarding the quality of credit ratings to be used by financial institutions regulated by harmonised rules in the CommunityCommunity rules which have been harmonised or have implications for the internal market. Otherwise, there would be a risk that Member States would take diverging measures at national level. This would have a direct negative impact on and create obstacles to the good functioning of the internal market, since the credit rating agencies issuing credit ratings for the use of financial institutions in the Community, would be subject to different rules in different Member States. Moreover, diverging quality requirements on credit ratings could lead to unequal treatment and different levels of investor and consumer protection.
Amendment 155 #
Proposal for a regulation
Recital 13
Recital 13
(13) Long -lasting relationships with the same rated entities or its related third parties could compromise the independence of analysts and persons approving credit ratings. Therefore those analysts and person, persons, and credit rating agencies should be subject to a rotation mechanism.
Amendment 165 #
Proposal for a regulation
Recital 14
Recital 14
(14) Credit rating agencies should use rating methodologies that are rigorous, systematic, and continuous and result in well-founded and solidly substantiated ratings that may be subject to validation based on historical experience. Credit rating agencies should ensure that methodologies, models and key rating assumptions used for determining credit ratings are properly maintained, up- to- date and subject to a comprehensive review on a periodic basis. In cases where the lack of reliable data or the complexity of the structure of a new type, in particular structured finance instruments, raises serious questions as to whether the credit rating agency can produce a credible credit rating, the credit rating agency should refrain from issuing a credit rating or withdraw an existing credit rating.
Amendment 199 #
Proposal for a regulation
Recital 28
Recital 28
(28) It is appropriate to create a mechanism to ensure the effective enforcement of the provisions of this Regulation. The competent authorities of the Member States should have at their disposal the necessary means to ensure that ratings for use within the Community are issued in compliance with this Regulation. Since the analytical independence of a credit rating agency in the process of issuing its credit ratings should be preserved, the competent authorities should not interfere in relation to the substance of credit ratings and the methodologies by which a credit rating agency determines credit ratings. Credit ratings should be well founded and solidly substantiated, avoid rating compromises, and be comparable to those issued internationally by similar bodies.
Amendment 211 #
Proposal for a regulation
Recital 35
Recital 35
(35) The stricter and clearer legal framework within which credit rating agencies will operate should also facilitate recourse to civil actions in respect of credit rating agencies in appropriate cases, in accordance with the applicable regimes of liability of the Member States. Credit rating agencies should be subject to judicial review in accordance with the principles, rules, and safeguards appropriate to the rule of law.
Amendment 212 #
Proposal for a regulation
Recital 35 a (new)
Recital 35 a (new)
(35a) Credit rating agencies should work with public institutions in the EU in the performance of their tasks, and their senior managers should appear before the appropriate committee of the European Parliament whenever invited to do so.
Amendment 215 #
Proposal for a regulation
Article 1 - Title
Article 1 - Title
Amendment 216 #
Proposal for a regulation
Article 1
Article 1
Rating agencies shall operate in keeping with the principles of integrity, transparency, responsibility, good governance and institutional cooperation. This Regulation introduces a common approach to ensuring the high quality of credit ratings to be used in, or having an impact in the Community, thereby contributing to the smooth functioning of the internal market while achieving a high level of consumer and investor protection. It lays down conditions for the issuance of credit ratings and rules on the organisation and conduct of credit rating agencies to ensure in practice their independence and avoidance of conflicts of interest.
Amendment 227 #
Proposal for a regulation
Article 3 – paragraph 1 – point b a (new)
Article 3 – paragraph 1 – point b a (new)
Amendment 234 #
Proposal for a regulation
Article 3 – paragraph 1 – point k a (new)
Article 3 – paragraph 1 – point k a (new)
(ka) ‘private credit ratings’: ratings which are not going to be made public because they are issued on the order of an economic operator for a private use previously established .
Amendment 264 #
Proposal for a regulation
Article 5 – paragraph 2
Article 5 – paragraph 2
2. In order to ensure compliance with paragraph 1, the credit rating agency shall comply withnot be able to adopt credit ratings at the request of their clients for more than eight successive years with two years’ grace and the requirements set out in Sections A and B of Annex I.
Amendment 303 #
Proposal for a regulation
Article 8 – paragraph 1 – subparagraph 1
Article 8 – paragraph 1 – subparagraph 1
1. A credit rating agency shall disclose any credit rating, as well as any decisions to discontinue a credit rating on a non- selective basis and in a timely manner. The information disclosed shall include the grounds and reasons for disclosing it.
Amendment 306 #
Proposal for a regulation
Article 8 – paragraph 2
Article 8 – paragraph 2
2. Credit ratings should reflect homogeneous criteria within the internal market, avoid regulatory arbitration and be comparable with those issued internationally by related entities; they shall be presented in accordance with the requirements set out in Section D of Annex I.
Amendment 310 #
Proposal for a regulation
Article 8 – paragraph 5 – subparagraph 1
Article 8 – paragraph 5 – subparagraph 1
5. When a credit rating agency issues an unsolicited credit rating it shall state in the credit rating that the rated entity or related third party did not participate in the credit rating process and that the credit rating agency did not have access to the accounts and other relevant internal documents of the rated entity or its related third party. The rated entity or related third party shall be entitled to require that any reservations they may have be explicitly recorded in the rating and that any such observations be made available in the information disclosed by the rating agency.
Amendment 324 #
Proposal for a regulation
Article 12 – paragraph 1 a (new)
Article 12 – paragraph 1 a (new)
1a. Rating agencies which ask to be registered shall indicate their related entities in third countries. The request for registration shall mean assuming responsibility for the ratings established by their related entities which have an impact in the Community.
Amendment 388 #
Proposal for a regulation
Title 3 – Chapter 3 a (new)
Title 3 – Chapter 3 a (new)
CHAPTER III A INSTITUTIONAL COOPERATION
Amendment 389 #
Proposal for a regulation
Article 28 c (new)
Article 28 c (new)
Article 28 c Rating agencies shall cooperate with the public institutions of the European Union in discharging their duties and their management shall appear before the relevant European Parliament committee if invited to do so.
Amendment 453 #
Proposal for a regulation
Annex II – point 10 a (new)
Annex II – point 10 a (new)
10bis. List of related organisations.