Article 1, Point (11) · Regulation (EU) No 462/2013

Contents

(11)the following Articles are inserted:‘Article 8aSovereign ratings1.Sovereign ratings shall be issued in a manner which ensures that the individual specificity of a particular Member State has been analysed. A statement announcing revision of a given group of countries shall be prohibited if it is not accompanied by individual country reports. Such reports shall be made publicly available.2.Public communications other than credit ratings, rating outlooks, or accompanying press releases or reports as referred to in point 5 of Part I of Section D of Annex I, which relate to potential changes in sovereign ratings shall not be based on information within the sphere of the rated entity that has been disclosed without the consent of the rated entity, unless it is available from generally accessible sources or unless there are no legitimate reasons for the rated entity not to give its consent to the disclosure of the information.3.A credit rating agency shall, taking into consideration the second subparagraph of Article 8(5), publish on its website and submit to ESMA on an annual basis, in accordance with point 3 of Part III of Section D of Annex I, a calendar at the end of December for the following 12 months, setting a maximum of three dates for the publication of unsolicited sovereign ratings and related rating outlooks and setting the dates for the publication of solicited sovereign ratings and related rating outlooks. Such dates shall be set on a Friday.4.Deviation of the publication of sovereign ratings or related rating outlooks from the calendar shall only be possible where necessary for the credit rating agency to comply with its obligations under Article 8(2), Article 10(1) and Article 11(1) and shall be accompanied by a detailed explanation of the reasons for the deviation from the announced calendar.Article 8bInformation on structured finance instruments1.The issuer, the originator and the sponsor of a structured finance instrument established in the Union shall, on the website set up by ESMA pursuant to paragraph 4, jointly publish information on the credit quality and performance of the underlying assets of the structured finance instrument, the structure of the securitisation transaction, the cash flows and any collateral supporting a securitisation exposure as well as any information that is necessary to conduct comprehensive and well-informed stress tests on the cash flows and collateral values supporting the underlying exposures.2.The obligation under paragraph 1 to publish information shall not extend to where such publication would breach national or Union law governing the protection of confidentiality of information sources or the processing of personal data.3.ESMA shall develop draft regulatory technical standards to specify:

(a)the information that the persons referred to in paragraph 1 must publish in order to comply with the obligation resulting from paragraph 1 in accordance with paragraph 2;

(a)they do not belong to the same group of credit rating agencies;

(b)the frequency with which the information referred to in point (a) is to be updated;

(b)they are not a shareholder or a member of any of the other credit rating agencies;

(c)the presentation of the information referred to in point (a) by means of a standardised disclosure template.

(c)they do not have the right or the power to exercise voting rights in any of the other credit rating agencies;

(d)they do not have the right or the power to appoint or remove members of the administrative or supervisory board of any of the other credit rating agencies;

(e)none of the members of their administrative or supervisory boards are a member of the administrative or supervisory boards of any of the other credit rating agencies;

(f)they do not exercise, or have the power to exercise, control or a dominant influence over any of the other credit rating agencies.

ESMA shall submit those draft regulatory technical standards to the Commission by 21 June 2014.Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with the procedure laid down in Articles 10 to 14 of Regulation (EU) No 1095/2010.4.ESMA shall set up a website for the publication of the information on structured finance instruments as referred to in paragraph 1.Article 8cDouble credit rating of structured finance instruments1.Where an issuer or a related third party intends to solicit a credit rating of a structured finance instrument, it shall appoint at least two credit rating agencies to provide credit ratings independently of each other.2.The issuer or a related third party as referred to in paragraph 1 shall ensure that the appointed credit rating agencies comply with the following conditions:Article 8dUse of multiple credit rating agencies1.Where an issuer or a related third party intends to appoint at least two credit rating agencies for the credit rating of the same issuance or entity, the issuer or a related third party shall consider appointing at least one credit rating agency with no more than 10 % of the total market share, which can be evaluated by the issuer or a related third party as capable of rating the relevant issuance or entity, provided that, based on ESMA’s list referred to in paragraph 2, there is a credit rating agency available for rating the specific issuance or entity. Where the issuer or a related third party does not appoint at least one credit rating agency with no more than 10 % of the total market share, this shall be documented.2.With a view to facilitating the evaluation by the issuer or a related third party under paragraph 1, ESMA shall annually publish on its website a list of registered credit rating agencies, indicating their total market share and the types of credit ratings issued, which can be used by the issuer as a starting point for its evaluation.3.For the purposes of this Article, total market share shall be measured with reference to annual turnover generated from credit rating activities and ancillary services, at group level.’;

Defined terms · 22

Show every defined term

alternative investment fund manager
means an AIFM as defined in Article 4(1)(b) of Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers;
central counterparty
means a CCP as defined in point (1) of Article 2 of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories which is authorised in accordance with Article 14 of that Regulation;
credit institution
means a credit institution as defined in point (1) of Article 4 of Directive 2006/48/EC;
credit score
means a measure of creditworthiness derived from summarising and expressing data based only on a pre-established statistical system or model, without any additional substantial rating-specific analytical input from a rating analyst;
institution for occupational retirement provision
means an institution for occupational retirement provision as defined in Article 6(a) of Directive 2003/41/EC;
insurance undertaking
means an insurance undertaking as defined in point (1) of Article 13 of Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II);
investment company
means an investment company authorised in accordance with Directive 2009/65/EC;
investment firm
means an investment firm as defined in point (1) of Article 4(1) of Directive 2004/39/EC;
issuer
means an issuer as defined in Article 2(1)(h) of Directive 2003/71/EC;
management company
means a management company as defined in Article 2(1)(b) of Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS);
originator
means an originator as defined in point (41) of Article 4 of Directive 2006/48/EC;
prospectus
means a prospectus published under Directive 2003/71/EC and Regulation (EC) No 809/2004;
rating outlook
means an opinion regarding the likely direction of a credit rating over the short term, the medium term or both;
re-securitisation
means re-securitisation as defined in point (40a) of Article 4 of Directive 2006/48/EC.’;
regulated market
means a regulated market as defined in point (14) of Article 4(1) of Directive 2004/39/EC and established in the Union;
regulatory purposes
means the use of credit ratings for the specific purpose of complying with Union law, or with Union law as implemented by the national legislation of the Member States;’;
reinsurance undertaking
means a reinsurance undertaking as defined in point (4) of Article 13 of Directive 2009/138/EC;
sectoral competent authorities
means the national competent authorities designated under the relevant sectoral legislation for the supervision of credit institutions, investment firms, insurance undertakings, reinsurance undertakings, institutions for occupational retirement provision, management companies, investment companies, alternative investment fund managers, central counterparties and prospectuses.’;
sectoral legislation
means the legislative acts of the Union referred to in points (pa) to (pj);
shareholder
includes beneficial owners, as defined in point (6) of Article 3 of Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing.
sovereign rating
means:
sponsor
means a sponsor as defined in point (42) of Article 4 of Directive 2006/48/EC;

Regulation (EU) No 462/2013

Defined terms · 22

Key facts

History · 1 version

Connections