13 Amendments of Ashley FOX related to 2010/2302(INI)
Amendment 12 #
Motion for a resolution
Recital D
Recital D
D. whereas CRAs rate three different sectors, the public sector, companies and structured finance instruments, and whereas CRAs played a significant role in the build-up to the financial crisis through the assignment of faulty ratings to structured finance instruments, which had to be downgraded on average three to four notcheerrors of judgment in rating certain asset classes of structured finance instruments, which resulted in greater than expected downgrades of those assets during the crisis,
Amendment 49 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Points to shortcomings in the standardised approach in the Basel II regulatory framework allowing regulatory capital requirements for financial institutions to be set on the basis of external credit ratings; supports increased useand considers it important to establish a capital framework that ensures robust internal risk assessment, better oversight of such risk assessment, and improved access to credit-relevant information; encourages the improvement of the internal-ratings- based (IRB) approach, to provide demonstrably reliable measures of risk so that their use may safely be extended provided that the size and sophistication of the financial institution allow for an adequate risk assessment; considers, at the same time, that smaller and less sophisticated players should be able to use external ratings, if no internal credit risk assessment is viable, provided that they fulfil appropriate due diligence requirements;
Amendment 55 #
Motion for a resolution
Paragraph 3 a (new)
Paragraph 3 a (new)
3 a. Suggests that alternative measures of credit risk should be considered carefully as part of the evidence base that examines the impact and any unintended consequences of such changes;
Amendment 81 #
Motion for a resolution
Paragraph 9
Paragraph 9
Amendment 89 #
Motion for a resolution
Paragraph 10
Paragraph 10
Amendment 97 #
Motion for a resolution
Paragraph 11
Paragraph 11
Amendment 104 #
Motion for a resolution
Paragraph 12
Paragraph 12
Amendment 127 #
Motion for a resolution
Paragraph 17 a (new)
Paragraph 17 a (new)
17 a. Notes the progress made on transparency and disclosure by CRA1 and CRA2; encourages the Commission to carry out an impact assessment of these regulations following the completion of the CRA registration process to highlight future areas where further disclosure for users may be beneficial;
Amendment 135 #
Motion for a resolution
Paragraph 18
Paragraph 18
18. Is of the opinion that the Commission should consider the use of two obligatory ratings for structured finance instruments if an external credit rating is used for regulatory purposes, which might involve taking the more conservative of a bank's internal rating (produced by a validated model) and the prevailing external rating;
Amendment 136 #
Motion for a resolution
Paragraph 19
Paragraph 19
Amendment 171 #
Motion for a resolution
Paragraph 22
Paragraph 22
22. Supports the existence of various payment models in the industry as long as inherent conflicts of interest are addressed by regulatory means and intervention keeps markets open and does not impose a model unwarranted on basis of evidence or market demand; asks the credit rating industry to come forward with proposals for alternative viable payment models that involve both issuers and users;
Amendment 178 #
Motion for a resolution
Paragraph 23
Paragraph 23
23. Considers that if credit ratings fulfil a regulatory purpose they should not be classified as mere opinions, and that CRAs should be heldRecognises that ESMA will now be responsible for holding CRAs to accountable for their credit ratings; recommends therefore that CRAs‘ exposure to civil liability in the event of gross negligence be increased and that provisions to that effect be anchored in Member States’ civil lawcompliance with the regulation; calls on the Commission to ensure that ESMA has the resources to fulfil its responsibilities for CRA supervision;
Amendment 184 #
Motion for a resolution
Paragraph 24
Paragraph 24
24. Points out that the ultimate responsibility for an investment decisions lies with the financial market participant, i.e. the asset manager, financial institution or sophisticated investor; notes that accountability will also be further supported by the central repository (CEREP) established by CRA1, which publishes data in a standardised form on the performance of ratings issued by CRAs registered within the EU. This will allow investors to make their own assessment about certain CRAs, thereby exerting more reputational pressure;