56 Amendments of Ivo STREJČEK related to 2008/0217(COD)
Amendment 94 #
Proposal for a regulation
Recital 1
Recital 1
(1) Credit rating agencies play an important role in global securities and banking markets, as their credit 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 credit 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 trust and confidence of investors and consumers. It is essential, therefore, that credit rating activities carried out in the Community meet high standards of integrity and that credit ratings used in the Community are independent, objective and of the highest quality.
Amendment 98 #
Proposal for a regulation
Recital 2
Recital 2
(2) Currently, most credit rating agencies have their headquarters outside the Community. Most Member States do not regulate the activities of credit rating agencies or the conditions for the issuance of credit ratings. Despite their significant importance for the functioning of the financial markets, credit rating agencies are only to a limited extent subject to Community legislation, notably Directive 2003/6/EC of the European Parliament and of the Council of 28 January 2003 on insider dealing and market manipulation. Moreover, Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions and Directive 2006/49/EC of the European Parliament and of the Council of 14 June 2006 on the capital adequacy of investment firms and credit institutions refer to credit rating agencies. It is therefore important to lay down rules ensuring that allcredit ratings used by financial institutions for regulatory purposes governed by Community legislation are of highadequate quality and issued by credit rating agencies subject to stringent requirements. The Commission will continue to work with its international partners to ensure convergence of the rules applying to credit rating agencies.
Amendment 101 #
Proposal for a regulation
Recital 2a (new)
Recital 2a (new)
(2a) The provisions of this Regulation should not create a general obligation for financial instruments or financial obligations to be rated under this Regulation. In particular, it should not require undertakings for collective investment in transferable securities (UCITS) as defined in Directive 2009/.../EC of the European Parliament and of the Council* or institutions for occupational retirement provision as defined in Directive 2003/41/EC of the European Parliament and of the Council to invest, when complying with these directives, only in financial instruments which are rated under this Regulation * OJ please insert number of the Directive.
Amendment 103 #
Proposal for a regulation
Recital 2 b (new)
Recital 2 b (new)
(2b) The provisions of this Regulation should not create a general obligation for financial institutions or investors to invest only in securities which are subject to public offer under Directive 2003/71/EC of the European Parliament and of the Council of 4 November 2003 on the prospectus to be published when securities are offered to the public or admitted to trading1 and Commission Regulation (EC) No 809/2004 of 29 April 2004 implementing Directive 2003/71/EC as regards information contained in prospectuses as well as the format, incorporation by reference and publication of such prospectuses and dissemination of advertisements2or that are admitted to trading and which are rated under this Regulation; nor should it oblige the issuers or offerors to obtain ratings for securities which are subject to public offer under Directive 2003/71/EC and Regulation (EC) No 809/2004 or that are admitted to trading. 1 OJ L 345, 31.12.2003, p. 64. 2 OJ L 149, 30.4.2004, p. 1.
Amendment 105 #
Proposal for a regulation
Recital 2 c (new)
Recital 2 c (new)
(2c) Credit rating agencies should issue credit ratings and perform credit rating activities as well as other ancillary activities on a professional basis. The performance of ancillary activities should not compromise the independence or integrity of their credit rating activities.
Amendment 107 #
Proposal for a regulation
Recital 2 d (new)
Recital 2 d (new)
(2d) This Regulation should apply to credit ratings that are intended for use for regulatory purposes under Community law as implemented by the national legislation of the Member States.
Amendment 116 #
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 byfor regulatory purposes by respective financial institutions and persons regulated by harmonised rules in the Community. 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 different levels of investor and consumer protection.
Amendment 122 #
Proposal for a regulation
Recital 6 a (new)
Recital 6 a (new)
(6a) It is desirable that credit ratings issued in third countries may be used for regulatory purposes in the Community provided that they comply with requirements which are as strict as provided for in this Regulation. This Regulation introduces an endorsement regime allowing credit rating agencies established in the Community and registered in accordance with this Regulation to endorse credit ratings issued in third countries. When endorsing credit ratings issued in third countries, credit rating agencies should determine and monitor, on an ongoing basis, whether credit rating activities resulting in the issuance of credit ratings in third countries comply with requirements which are as stringent as the requirements set out in Articles 5 to 10 of this Regulation.
Amendment 126 #
Proposal for a regulation
Recital 6 b (new)
Recital 6 b (new)
(6b) This Regulation should also require that third-country credit rating agencies fulfil criteria which are general prerequisites for the integrity of credit rating activities conducted by the third- country credit rating agency, such as the prevention of interference in the content of credit ratings by competent authorities, an adequate conflict of interests policy, rotation of analysts and regular and ad- hoc disclosure.
Amendment 129 #
Proposal for a regulation
Recital 6 c (new)
Recital 6 c (new)
(6c) An important prerequisite for a sound endorsement regime is also the existence of sound cooperation arrangements between the competent authorities of home Member States and the relevant competent authorities of third-country credit rating agencies.
Amendment 131 #
Proposal for a regulation
Recital 6 d (new)
Recital 6 d (new)
(6d) The credit rating agency that endorsed credit ratings issued in a third country should be fully and unconditionally responsible for the endorsed credit ratings and the fulfilment of the endorsement conditions established in this Regulation.
Amendment 133 #
Proposal for a regulation
Recital 7
Recital 7
(7) In order to avoid potential conflicts of interest credit rating agencies should limit theirfocus in their professional activity to the issuing of credit ratings. A credit rating agency should not be allowed to carry out consultancy or advisory services. In particular credit rating agencyies should not make proposals or recommendations regarding the design of a structured finance instrument. However, credit rating agencies should be able to provide ancillary services where this does not create potential conflicts of interest with the issuance of credit ratings.
Amendment 136 #
Proposal for a regulation
Recital 8
Recital 8
(8) Credit rating agencies should establish appropriate internal policies and procedures in relation to employees and other persons involved in the credit rating process in order to preventidentify, eliminate or manage and disclose conflicts of interest and ensure at all times the quality, integrity and thoroughness of the credit rating and review process. An internal control system and a compliance function should, in particular, feature among such policies and procedures.
Amendment 142 #
Proposal for a regulation
Recital 10
Recital 10
(10) In order to ensure the independence of the credit rating process from the business interest of the credit rating agency as a company, the credit rating agencies should ensure that the administrative or supervisory board shall include at least three non-executive members, who should bat least one third but no fewer than two of the members of the administrative or supervisory board are independent along the lines of point 13 in Section III of Commission Recommendation 2005/162/EC on the role of non-executive or supervisory directors of listed companies and on the committees of the (supervisory) board. Moreover, it is necessary that the majority of members of the administrative or supervisory boardsenior management, including all independent members, have sufficient expertise in financial services.
Amendment 145 #
Proposal for a regulation
Recital 12 a (new)
Recital 12 a (new)
(12a) In order to take account of the specificities of credit rating agencies employing fewer than 50 employees, the competent authorities should be able to exempt such credit rating agencies from some of the obligations laid down in this Regulation as regards the role of the independent members of the board, conflicts of interest, and the rotation mechanism, in so far as those agencies are able to demonstrate that they comply with a number of conditions. The competent authorities should also examine, inter alia, whether the size of the credit rating agency is not determined in such a way so as to avoid compliance with this Regulation by a credit rating agency or by a group of credit rating agencies. The application of the exemption by Member States should be applied in such a way so as to avoid the risk of fragmentation of the internal market and so as to guarantee the uniform application of Community law.
Amendment 149 #
Proposal for a regulation
Recital 13
Recital 13
(13) Long lasting relationships with the same rated entities or its related third parties could compromise independence of analysts and persons approving credit ratings. Therefore those analysts and persons should be subject to an appropriate rotation mechanism which should provide for gradual change in analytical teams and credit rating committees.
Amendment 157 #
Proposal for a regulation
Recital 13 a (new)
Recital 13 a (new)
Amendment 159 #
Proposal for a regulation
Recital 13 b (new)
Recital 13 b (new)
(13b) The risks relating to the credit rating agency's activities, processes and systems should include the risks associated with the outsourcing of critical or important operational functions. Such risks should include those associated with the credit rating agency's relationship with the service provider, and the potential risks posed where the outsourced functions of several credit rating agencies or other regulated entities are concentrated among a limited number of service providers.
Amendment 161 #
Proposal for a regulation
Recital 13 c (new)
Recital 13 c (new)
(13c) Competent authorities should not be required to authorise or otherwise approve any outsourcing arrangements or their terms. Competent authorities should not make the registration subject to a general prohibition on the outsourcing of one or more credit rating activity or critical or important functions. Credit rating agencies should be permitted to outsource such activities if the outsourcing arrangements established by the credit rating agency comply with certain conditions. If such outsourcing arrangements are to be put in place after the credit rating agency has been registered in accordance with the provisions of this Regulation, those arrangements should be notified to the relevant competent authority.
Amendment 177 #
Proposal for a regulation
Recital 21
Recital 21
(21) In order to ensure a high level of investor and consumer confidence in the internal market, credit rating agencies which issue credit ratings intended for use for regulatory purposes by financial institutions in the Community should be subject to registrationcredit institutions, investments firms, insurance, assurance and reinsurance undertakings, undertakings for collective investment in transferable securities (UCITS) and institutions for occupational retirement in the Community should be subject to registration. Such registration is the principal prerequisite for credit rating agencies to issue credit ratings intended to be used for regulatory purposes in the Community. It is therefore necessary to lay down the harmonised conditions and the procedure for the granting, suspension and withdrawal of that registration.
Amendment 180 #
Proposal for a regulation
Recital 22
Recital 22
(22) A credit rating agency registered by the competent authority of the relevant Member State should be allowed to issue credit ratings throughout the Community. It is therefore necessary to establish a single registration procedure for each credit rating agency, which is valid throughout the Community. effective throughout the Community. The registration of a credit rating agency should become effective throughout the Community once the registration decision issued by the competent authority of the home Member State has taken effect under relevant national law.
Amendment 182 #
Proposal for a regulation
Recital 23
Recital 23
(23) Some credit rating agencies are composed of several legal entities, which together form a group of credit rating agencies. When registering each of the credit rating agencies being part of such a group, the competent authorities of the Member States concerned should coordinate the assessment of the applications submitted by credit rating agencies belonging to the same group. as well as the decision concerning the granting of registration. It should be possible, however, to refuse registration of a credit rating agency within a group where such a credit rating agency does not meet the requirements for registration under this Regulation even though the other members of the group do so. As the college of competent authorities has no power to issue legally binding decisions, the competent authorities of home Member States of the members of the group of credit rating agencies should each issue an individual decision in respect of the credit rating agency established on the territory of the Member State concerned.
Amendment 184 #
Proposal for a regulation
Recital 24 a (new)
Recital 24 a (new)
Amendment 186 #
Proposal for a regulation
Recital 24 b (new)
Recital 24 b (new)
(24b) In order to enhance practical coordination of activities of the college, the members of the college should select a facilitator from their own number. The facilitator should chair the meetings of the college, establish written coordination arrangements for the college and coordinate the actions of the college. During the registration process the facilitator should assess the need to extend the period for examination of an application, coordinate examination of an application and liaise with the CESR.
Amendment 194 #
Proposal for a regulation
Recital 27
Recital 27
(27) In order to maintain a high level of investor and consumer confidence and enable an on-going controlsupervision of credit ratings used for regulatory purposes by financial institutions in the Community, credit rating agencies whose headquarters are located outside the Community should be required to set up a subsidiary in the Community in order to allow for an efficient supervision of their activities in the Community and the effective use of the endorsement regime.
Amendment 197 #
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 necessary means to ensure that ratings for use within the Community are issued in compliance with this Regulation. Since the analyticalThe use of those supervisory measures should be always coordinated within the college. Since the 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.
Amendment 201 #
Proposal for a regulation
Recital 28 a (new)
Recital 28 a (new)
(28a) It is desirable to ensure that the decision-making process under this Regulation is based on the close cooperation between Member States' competent authorities and that the adoption of the registration decisions should therefore be taken on the basis of an agreement. This is a necessary prerequisite for the efficient process of registration and performance of supervision. The decision-making process should be effective, expeditious and consensual.
Amendment 203 #
Proposal for a regulation
Recital 28 b (new)
Recital 28 b (new)
(28b) Unless this Regulation provides for a specific procedure as regards the grant or withdrawal of registration or the adoption of supervisory measures, the Member State's national law should apply.
Amendment 217 #
Proposal for a regulation
Article 1
Article 1
This Regulation introduces a common regulatory approach to ensurhancing the high qualintegrity of credit ratings to be used activities resulting in credit ratings used for regulatory purposes in the Community, thereby contributing to the quality of credit ratings and 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 practicpromote their independence and avoidance of conflicts of interest.
Amendment 220 #
Proposal for a regulation
Article 2 – paragraph 1
Article 2 – paragraph 1
1. This Regulation shall applyies to credit ratings that are intended for use for regulatory purposes or otherwise by credit institutions as defined in Directive 2006/48/EC, investments firms as defined in Directive 2004/39/EC of the European Parliament and of the Council, insurance undertakings subject to Council Directive 73/239/EEC, assurance undertakings as defined in Directive 2002/83/EC of the European Parliament and of the Council, reinsurance undertakings as defined in Directive 2005/68/EC of the European Parliament and the Council, undertakings for collective investment in transferable securities (UCITS) as defined in Directive [2009/XX/EC] or institutions for occupational retirement provision as defined in Directive 2003/41/EC of the European Parliament and of the Council and are disclosed publicly or distributed by subscription.
Amendment 243 #
Proposal for a regulation
Article 4 – paragraph 2
Article 4 – paragraph 2
Amendment 253 #
Proposal for a regulation
Article 4 – paragraph 2 b (new)
Article 4 – paragraph 2 b (new)
Amendment 258 #
Proposal for a regulation
Article 4 – paragraph 2 c (new)
Article 4 – paragraph 2 c (new)
Credit rating agencies that endorse credit ratings issued in third countries in accordance with paragraph 2b shall remain fully responsible for such credit ratings and for the fulfilment of the conditions set out in paragraph 2b.
Amendment 260 #
Proposal for a regulation
Article 4 – paragraph 2 d (new)
Article 4 – paragraph 2 d (new)
A credit rating agency established in the Community and registered in accordance with this Regulation shall be deemed to have issued a credit rating when the credit rating has been published on the credit rating agency’s website or by other means or when it has been distributed by subscription and presented and disclosed in accordance with Article 8, clearly identifying that the credit rating is endorsed.
Amendment 263 #
Proposal for a regulation
Article 5 – paragraph 1
Article 5 – paragraph 1
1. A credit rating agency shall take all necessary steps to ensure that the issuance of a credit rating is not affected by any existing or potential conflict of interest or business relationship involving the credit rating agency issuing the credit rating, its managers, employeesrating analysts, employees as well as any other natural person whose services are placed at the disposal or under the control of the credit rating agency or any person directly or indirectly linked to it by control.
Amendment 266 #
Proposal for a regulation
Article 5 – paragraph 2 a (new)
Article 5 – paragraph 2 a (new)
2a. Upon request of a credit rating agency, the competent authority of the home Member State may exempt a credit rating agency from complying with the requirements of point 2 of Section A of Annex I and Article 6(4) if the credit rating agency is able to demonstrate that in view of the nature, scale and complexity of its business, and the nature and range of issuance of credit ratings, the requirements are not proportionate and that: a) the credit rating agency has less than 50 employees; b) it has implemented measures and procedures, in particular internal control system, reporting arrangements and rotation mechanism for analysts and persons approving credit ratings, which ensure the effective compliance with the regulatory objectives set out in this Regulation; and c) the size of the credit rating agency is not determined in such a way as to avoid the compliance with the requirements of this Regulation by a credit rating agency or by a group of credit rating agencies. In case of a group of credit rating agencies competent authorities shall ensure that at least one of the credit rating agencies in the group is not exempted from complying with the requirements of point 2 of Section A of Annex I and Article 6(4).
Amendment 301 #
Proposal for a regulation
Article 7 a (new)
Article 7 a (new)
Article 7a Outsourcing 1. A credit rating agency shall ensure, in compliance with Annex I, Section B, point 1, when relying on a third party for the performance of operational functions, that it takes reasonable steps to avoid undue additional operational risk. Outsourcing of critical or important operational functions shall not be undertaken in such a way so as materially to impair the quality of its internal control and the ability of the competent authority to monitor the credit rating agency's compliance with obligations under this Regulation. When outsourcing any of its critical or important functions or any credit rating activities the credit rating agency shall remain fully responsible for discharging all of its obligations under this Regulation. 2. A service provider of a critical or important operational function shall be an entity established in the Community. A credit rating activities and review function, as referred to in Annex I, Section A, point 8, shall be outsourced only to credit rating agencies registered under this Regulation. 3. Without prejudice to Article 4(2b), a credit rating agency shall not outsource in relation to an individual credit rating the entire set of credit rating activities as defined in Article 3.
Amendment 327 #
Proposal for a regulation
Article 13 – paragraph 1
Article 13 – paragraph 1
1. The credit rating agency shall submit an application for registration to CESRthe competent authority of the home Member State and the CESR simultaneously. The application shall contain information on the matters set out in Annex II.
Amendment 330 #
Proposal for a regulation
Article 13 – paragraph 2
Article 13 – paragraph 2
2. AIn the case of an application for registration may be submitted by a group of credit rating agencies. In that case, the members of the group shall mandate one of the members of the groupir number to submit the application to CESR on behalf of the group to the competent authorities of the home Member States and the CESR simultaneously. The mandated credit rating agency shall provide the information on the matters set out in Annex II for each member of the group.
Amendment 332 #
Proposal for a regulation
Article 13 – paragraph 3
Article 13 – paragraph 3
3. Within 10five working days of receipt of the application, the CESR shall transmit copies of the application to the competent authority of the home Member State and informies other than the competent authorities of the otherhome Member States of that transmission.
Amendment 334 #
Proposal for a regulation
Article 13 – paragraph 3 a (new)
Article 13 – paragraph 3 a (new)
3a. Within 25 working days of receipt of the application for registration, the competent authority of the home Member State and the members of the college shall assess whether the application is complete. In the event that the application is incomplete, the competent authority of the home Member State shall set a deadline by which the credit rating agency shall provide additional information to it and to the CESR and shall notify the members of the college and the CESR accordingly. After establishing that the application is complete the competent authority of the home Member State shall notify the credit rating agency, the members of the college and the CESR accordingly.
Amendment 336 #
Proposal for a regulation
Article 13 – paragraph 3 b (new)
Article 13 – paragraph 3 b (new)
3b. Within five working days of receipt of additional information under paragraph 3a, the CESR shall transmit the additional information to the competent authorities other than competent authorities of the home Member State.
Amendment 338 #
Proposal for a regulation
Article 14
Article 14
1. Within 10 days of receipt of the application for registration, the competent authority of the home Member State shall check whether the application is complete. In case the application is not complete, the competent authority of the home Member State shall set a deadline by which the credit rating agency shall provide additional information. 2. Upon receipt of a complete application, the competent authority of the home Member State shall transmit the application to the competent authorities of the other Member States and CESR. 3. In case an application for registration is submitted by a group of credit rating agencies the competent authorities of the home Member States concerned shall closely co-operate in the registration process. They shall select among themselves a facilitator taking into account the following criteria: (a) the place where the group of credit rating agencies carries out or is planning to carry out the most important part of its credit rating activity within the Community; (b) the place where the group of credit rating agencies generates or can be expected to generate the major part of the revenue of the group. 4. The facilitator shall coordinate the examination of the application submitted by the group of credit rating agencies and ensure that all information necessary to carry out the examination of the application is shared among the competent authorities. 5. In case of an application for registration by a credit rating agency the competent authority of the home Member State shall examine the application and prepare an opinion on whether to grant or refuse registration. In the case of an application submitted by a group of credit rating agencies, the competent authorities of the home Member States concerned shall jointly examine the application for registration and shall reach agreement on whether to grant or to refuse registration. The competent authority of the home Member State and the competent authorities that are members of the college referred to in Article 25 shall, within 60 working days of the notification as referred to in the second subparagraph of Article 13(3a): (a) jointly examine the application for registration; and (b) do everything reasonable within their power to reach an agreement on whether to grant or refuse registration of the credit rating agency based on the compliance of the credit rating agency with the conditions set out in this Regulation. 2. The facilitator may extend the period of examination by 30 working days, in particular, if the credit rating agency: a) intends to endorse credit rating as referred to in Article 4(2b), b) intends to outsource its activities, or c) requests exemption from the compliance in accordance with Article 5(2a), 3. The facilitator shall coordinate the examination of the application submitted by the credit rating agency and ensure that all information necessary to carry out the examination of the application is shared among the members of the college. 4. The competent authority of the home Member State shall prepare a fully reasoned draft decision following the agreement referred to in paragraph 1 (b) and submit it to the facilitator. In the absence of agreement among the members of the college, the competent authority of the home Member State shall prepare a fully reasoned draft refusal decision based on the written views of the members of the college which consider that a registration should not be granted and shall submit it to the facilitator. The members of the college who consider that registration should be granted shall prepare and submit a detailed explanation of the nature and grounds of their views to the facilitator. 5. Within 60 working days of the notification referred to in the second subparagraph of Article 13 (3a) or within 90 working days in the event that paragraph 2 of this article applies, the facilitator shall communicate to the CESR the fully reasoned draft registration or refusal decision, accompanied by the explanation referred to in the second subparagraph of paragraph 4 of this article. 6. Within 20 working days of receipt of the communication referred to in paragraph 5, the CESR shall express its opinion on the compliance of the credit rating agency with the requirements for the registration to the members of the college. After receipt of the opinion of the CESR, the members of the college shall re-examine the draft decision. 7. The competent authority of the home Member State shall adopt a fully reasoned registration or refusal decision within 15 working days of receipt of the opinion of the CESR. In the event that the competent authority of the home Member State departs from the opinion of the CESR it shall give full reasons in its decision. In the event that the CESR submits no opinion, the competent authority of the home Member State shall adopt its decision within 30 working days of the communication of the draft decision to the CESR under paragraph 5. In the event that the members of the college are unable to agree, the competent authority of the home Member State shall adopt a fully reasoned refusal decision which shall identify the dissenting competent authorities and set out their views.
Amendment 340 #
Proposal for a regulation
Article 14 a (new)
Article 14 a (new)
Amendment 365 #
Article 25 – paragraph 1
1. In case of a groupWithin 10 working days of credit rating agencies referred to inceipt of an application for registration under Article 14(3)3, the competent authoritiesy of the home Member States concerned shall consult each other before taking measures in accordance wi, or, in the case of a group of credit rating agencies, the competent authority of the home Member State of the credit rating agency mandated under Article 13(2), shall establish a college of competent authorities in order to facilitate the exercise of the this Regulationasks referred to in Articles 4, 5, 14, 14a, 17, 21, 22 and 24.
Amendment 367 #
Proposal for a regulation
Article 25 – paragraph 2
Article 25 – paragraph 2
2. The facilitator referred to in Article 14(3) shall plan and coordinate the actionscollege shall be composed of the competent authorities of the home Member States concand competent authorities refernred to in paragraph 3.
Amendment 369 #
Proposal for a regulation
Article 25 – paragraph 3
Article 25 – paragraph 3
3. The facilitator A competent authority other thand the competent authoritiesy of the home Member States concerned shall establish coordination arrangements regard may at any time decide to become a member of the college, provided that: (a) a branch which is a part of the credit rating agency or of one of the undertakings ing the following matters: a) the information to be exchanged between competent authorities; b) cases in which competent authorities have to consult each other; c) cases in which competent authorities delegate supervisory tasks in accordance with Article 24group of credit rating agencies is established within its jurisdiction; or (b) the use for regulatory purposes of credit ratings issued by the credit rating agency or the group of credit rating agencies concerned is widespread or has or is likely to have a significant impact within its jurisdiction.
Amendment 371 #
Proposal for a regulation
Article 25 – paragraph 3 a (new)
Article 25 – paragraph 3 a (new)
3a. Competent authorities in whose jurisdictions the credit ratings issued by the credit rating agency or by the group of credit rating agencies concerned are used, other than the members of the college as referred to in paragraph 3, may participate in a meeting or in an activity of the college.
Amendment 373 #
Proposal for a regulation
Article 25 – paragraph 3 b (new)
Article 25 – paragraph 3 b (new)
3b. Within 15 working days of the establishment of the college, the members of the college shall select a facilitator. In the absence of an agreement, the members shall consult the CESR. For this purpose, at least the following criteria shall be taken into account: (a) the relationship between the competent authority and the credit rating agency or the group of credit rating agencies; (b) the extent to which credit ratings will be used for regulatory purposes in a particular territory or territories; (c) the place in the Community where the credit rating agency or group of credit rating agencies carries out or is planning to carry out the most important part of credit rating activities; and (d) administrative convenience, burden optimisation, and an appropriate distribution of the workload. Members of the college shall review the selection of the facilitator at least every five years to ensure the selected facilitator remains the most appropriate following the criteria referred to in the first subparagraph.
Amendment 375 #
Proposal for a regulation
Article 25 – paragraph 3 c (new)
Article 25 – paragraph 3 c (new)
3c.The facilitator shall chair the meetings of the college, shall coordinate the actions of the college and shall ensure efficient exchange of information among the members of the college.
Amendment 377 #
Proposal for a regulation
Article 25 – paragraph 3 d (new)
Article 25 – paragraph 3 d (new)
3d. In order to ensure close cooperation between competent authorities within the college, the facilitator shall, within 10 working days, establish written coordination arrangements within the framework of the college regarding the following matters: (a) the information that must be exchanged between competent authorities; (b) the decision-making process among the competent authorities, without prejudice to Articles 14, 14a, and 17; (c) cases in which competent authorities must consult each other; (d) cases in which competent authorities must apply the mediation mechanism referred to in Article 27; (e) cases in which competent authorities may delegate supervisory tasks in accordance with Article 26.
Amendment 379 #
Proposal for a regulation
Article 25 – paragraph 3 e (new)
Article 25 – paragraph 3 e (new)
3e. In the absence of an agreement concerning the written coordination arrangements under paragraph 3d, any member of the college may refer the matter to the CESR. The facilitator shall duly consider an opinion given by the CESR concerning the written coordination arrangements before agreeing the final text. The written arrangements shall be set out in a document containing the full reasons for any significant deviation from an opinion given by the CESR concerning the written coordination arrangements. The facilitator shall transmit this document to the members of the college and the CESR.
Amendment 397 #
Article 35 – paragraph 1
Credit rating agencies operating in the Community before [the date of entry into force of...* and which intend to apply for registration under this Regulation] shall adopt all necessary measures to comply with this Regulation andits provisions by ...*. Credit rating agencies shall submit an application for registration by [...* but no earlier than ...*. * OJ please insert date of entry into force of this Regulation. * OJ please insert date: 12 months after the entry into force of this Regulation. * OJ please insert date: 12 months after the entry into force of this Regulation. * OJ please insert date: six months after the entry into force of this Regulation].
Amendment 402 #
Article 35 – paragraph 2
The credit rating agencies referred to in the first subparagraph shall cease to issue credit ratings ifmay continue issuing credit ratings for the purposes of Article 2(1). Those credit ratings may be used for regulatory purposes by financial institutions as referred to in Article 4(1) unless registration is refused.
Amendment 407 #
Article 35 – paragraph 2 a (new)
In the event of a refusal of registration, credit ratings issued by such credit rating agency may continue to be used for regulatory purposes following the adoption of measures in paragraph 1(a) and (c) during a period not exceeding: (a) 10 working days where there are credit ratings of the same instrument or entity issued by other credit rating registered under this Regulation; (b) three months where there are no credit rating of the same instrument or entity issued by other credit rating agencies registered under this Regulation. Competent authorities may prolong this period by a further three months in exceptional circumstances related to a potential for market disruption or financial stability.
Amendment 409 #
Article 36 – paragraph 2
It shall apply from [insert exact date; sixits date of entry into force, with the exception of Article 4(1), which shall apply from 12 months after its entry into force and Article 4(2b)(f) to (h), which shall apply from 24 months after its entry into force].