ESMA updates Q&A on implementation of CRA Regulation
The European Securities and Markets Authority (ESMA) has today updated its Questions and Answers (Q&As) on the Credit Rating Agencies Regulation (CRAR).
The Credit Rating Agencies Regulation (CRAR) requires a CRA to immediately notify errors in its rating methodologies or in their application to ESMA and all affected rated entities. This Q&A clarifies ESMA’s view as to what constitutes an error within the meaning of Article 8(7) of CRAR.
The purpose of this Q&A is to provide a high level of transparency to entities directly supervised by ESMA regarding ESMA’s supervisory approach.
ESMA will periodically review these Q&As and update them where required.