ECA publishes Report on ESMA’s supervision of credit rating agencies
The European Securities and Markets Authority (ESMA) welcomes the European Court of Auditors’ (ECA) Report on ESMA’s role as the single supervisor of credit rating agencies (CRAs) in the European Union (EU).
ESMA took over the supervision of CRAs in July 2011, under the CRA Regulation. The Report, which covers the period from the start of ESMA’s supervisory role to September 2015, finds overall that ESMA has laid down good foundations for supervising CRAs in the EU in a short period of time but there is still room for improvement.
The external evaluation will assist ESMA in improving its supervision of CRAs, and in several areas the Report has recommended enhancements that ESMA will take into consideration in reviewing and developing its practices and procedures. In particular, ESMA will improve its record-keeping of analyses and decision-making processes regarding risk identification, on-going supervision, investigations and registration of CRAs.
ESMA’s detailed response to the findings and recommendations can be found on pages 53 to 69 of the report. More information on ESMA’s role is available on its website.