18 Amendments of John PURVIS related to 2008/0217(COD)
Amendment 147 #
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 ratingsin particular of lead analysts in any such relationship. Therefore thoselead analysts and persons should be subject to a rotation mechanism. while ensuring successors of an equivalent professional quality and expertise are available as replacements.
Amendment 190 #
Proposal for a regulation
Recital 25 a (new)
Recital 25 a (new)
(25a) In the context of its Communication of 29 October 2008 entitled 'From financial crisis to recovery: A European framework for action', the Commission set up the De Larosière Group, a group of experts with a mandate to consider the organisation of European financial institutions to ensure prudential soundness, the orderly functioning of markets and stronger European cooperation on financial stability oversight, early warning mechanisms and crisis management, including the management of cross-border and cross- sectoral risks. The group will also look at cooperation between the European Union and other major jurisdictions to help safeguard financial stability and ensure consistency and efficient operation at the global level. To ensure consistency and coherence in all relevant financial sector regulation, the Commission will, within one year of the adoption of the conclusions of the De Larosière Group and taking into account those conclusions, put forward appropriate legislative proposals regarding the provisions of this Directive related to supervisory cooperation arrangements.
Amendment 195 #
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 control of credit ratings used 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. The emergence of new actors on the credit rating agency market should also be encouraged.
Amendment 206 #
Proposal for a regulation
Recital 33
Recital 33
(33) Member States should lay down rules on sanctions applicable to infringements of the provisions of this Regulation and ensure that they are implemented. The sanctions should be effective, proportionate and dissuasive. but also consistent with ensuring an orderly market. The Commission, with the advice of the CESR, should establish guidelines relating to such sanctions.
Amendment 207 #
Proposal for a regulation
Recital 35
Recital 35
Amendment 214 #
Proposal for a regulation
Recital 37
Recital 37
(37) In particular the Commission should be empowered to adopt measures to define ancillary services, to adopt guidelines for sanctions and to amend Annex I and II of the Regulation which lay down the specific criteria for assessing the compliance of a credit rating agency with its duties in terms of internal organisation, operational arrangements, rules on employees, presentation of credit ratings and disclosure. Since those measures are of general scope and are designed to amend non-essential elements of this Regulation, they must be adopted in accordance with the regulatory procedure with scrutiny provided for in Article 5a of Decision 1999/468/EC.
Amendment 222 #
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 229 #
Proposal for a regulation
Article 3 – paragraph 1 – point d a (new)
Article 3 – paragraph 1 – point d a (new)
(da) 'lead analyst' means a person with primary responsibility for communicating with the issuer with respect to a particular credit rating or generally to the ratings of instruments emanating from that issuer and, where relevant, preparing recommendations about them to the rating committee;
Amendment 238 #
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
Credit institutions, investments firms, insurance, assurance and reinsurance undertakings, undertakings for collective investment in transferable securities (UCITS) and institutions for occupational retirement provision referred to in Article 2 may only use for regulatory purposes credit ratings which are issued by credit rating agencies established in the Community and registered in accordance with this Regulation, save in the case of credit ratings issued by third-country rating agencies which are recognised by a Member State competent authority in accordance with Annex VI, Part 2 of Directive 2006/48/EC.
Amendment 248 #
Proposal for a regulation
Article 4 – paragraph 2 a (new)
Article 4 – paragraph 2 a (new)
The ratings of entities or products located in a third country issued by credit rating agencies that are established in a third country may be used within the Community on condition that those ratings are confirmed by a credit rating agency established in the Community and registered in accordance with this Regulation.
Amendment 250 #
Proposal for a regulation
Article 4 – paragraph 2 b (new)
Article 4 – paragraph 2 b (new)
By ...*, the Commission will introduce legislation whereby equivalence of regulatory, governance and operational standards in third countries can replace the need for endorsement of ratings by domiciled credit rating agencies established in the EU. * OJ please insert date: 3 years after entry into force of this Regulation.
Amendment 270 #
Proposal for a regulation
Article 6 – paragraph 4 – subparagraph 1
Article 6 – paragraph 4 – subparagraph 1
4. A credit rating agency shall ensure that analysts and persons approvthe lead analyst making credit ratings shall not be involved in providing the credit rating services to the same rated entity or its related third parties for a period exceeding fourive years. For that purpose it shall establish a rotation mechanism with regard to thosee lead analysts and persons.
Amendment 283 #
Proposal for a regulation
Article 6 – paragraph 4 – subparagraph 2
Article 6 – paragraph 4 – subparagraph 2
The period after which the lead analysts and persons approv making credit ratings may be involved in providing the credit rating services to the rated entity or related third parties referred to in the first subparagraph may not beshall be no shorter than two years.
Amendment 286 #
Proposal for a regulation
Article 6 – paragraph 6
Article 6 – paragraph 6
6. Compensation and performance evaluation of lead analysts and persons approvmaking the credit ratings shall not be contingent on the amount of revenue that the credit rating agency derives from the rated entities or related third parties to which the lead analyst or persons approvs making the credit ratings provide services.
Amendment 316 #
Proposal for a regulation
Article 9 – paragraph 2
Article 9 – paragraph 2
2. Credit rating agencies shall make available in a central repository established by CESR information on their historical performance data and information about past credit rating activities. The repository shall be open to the public. On the basis of the information contained in the repository, the CESR shall monitor the past performances of credit ratings on the basis of statistical results.
Amendment 343 #
Proposal for a regulation
Article 17 – paragraph 4 a (new)
Article 17 – paragraph 4 a (new)
4a. In the event of withdrawal of registration the competent authorities shall provide for a transition for ratings previously made by the deregistered agency whereby those ratings stand for 12 months with appropriate qualification attached thereto by the competent authorities.
Amendment 363 #
Proposal for a regulation
Article 23
Article 23
Competent authorities of Member States shall, in relation to all of the activities referred to in this Chapter, cooperate with the re it is necessary for the purposes of this Regulation, includinglevant competent authorities responsible for the use of credit ratings for regulatory purposes, and with the corresponding authorities in third countries, wherever it is necessary for the purposes of this Regulation. In all cases, the objective of such cooperation shall be to reach consistent decisions about registration, withdrawal, variation, and oversight in relation to the entire worldwide operation of each credit rating agency or group of credit rating agencies. Competent authorities of Member States shall cooperate in cases where the conduct under investigation does not constitute an infringement of any regulation in force in the Member State concerned.
Amendment 439 #
Proposal for a regulation
Annex I – Section B – point 7
Annex I – Section B – point 7