ESMA CONSULTS ON SCOPE OF THE CRA REGULATION FOR PRIVATE CREDIT RATINGS
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, today launches a public consultation on a targeted revision to its Guidelines and Recommendations on the Scope of the CRA Regulation.
ESMA is seeking input from stakeholders on its proposals to revise paragraphs 14 and 15 of the existing ESMA Guidelines. The proposed revision is intended to provide greater clarity on the exemptions for private ratings under the CRA Regulation, and addresses the following key elements of private credit ratings:
- the interpretation of the terms “produced pursuant to an individual order” and “provided exclusively to the person who placed the order”;
- restrictions on sharing a private credit rating with a “limited number of third parties”; and
- how to monitor the distribution of private credit ratings by the ratings producer
The revised Guidelines will assist ESMA in its perimeter activities and will also define the activities of private credit rating providers that ESMA considers to fall outside (of) the scope of the CRA Regulation.
Next steps
The closing date for responses is 1 April 2022. ESMA will consider all responses to this consultation and expects to publish a final report by end of Q2 2022.
Further information:
Sarah Edwards
Communications Officer
Email: press@esma.europa.eu