Regulation 2009/1060 - Credit rating agencies
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Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies| Legal instrument | Regulation |
|---|---|
| Number legal act | Regulation 2009/1060 |
| Original proposal | COM(2008)704  |
| CELEX number123 | 32009R1060 |
| Document | 16-09-2009 |
|---|---|
| Publication in Official Journal | 17-11-2009; Special edition in Croatian: Chapter 06 Volume 004,OJ L 302, 17.11.2009 |
| Effect | 07-12-2009; Entry into force Date pub. + 20 See Art 41 07-12-2009; Application See Art 41 07-12-2010; Partial application See Art 41 07-06-2011; Partial application See Art 41 |
| End of validity | 31-12-9999 |
17.11.2009 |
EN |
Official Journal of the European Union |
L 302/1 |
REGULATION (EC) No 1060/2009 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 16 September 2009
on credit rating agencies
(Text with EEA relevance)
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular Article 95 thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Economic and Social Committee (1),
Having regard to the opinion of the European Central Bank (2),
Acting in accordance with the procedure laid down in Article 251 of the Treaty (3),
Whereas:
(1) |
Credit rating agencies play an important role in global securities and banking markets, as their credit ratings are used by investors, borrowers, issuers and governments as part of making informed investment and financing decisions. Credit institutions, investment firms, insurance undertakings, assurance undertakings, reinsurance undertakings, undertakings for collective investment in transferable securities (UCITS) and institutions for occupational retirement provision may use those credit ratings as the reference for the calculation of their capital requirements for solvency purposes or for calculating risks in their investment activity. Consequently, credit ratings have a significant impact on the operation of the markets and on the trust and confidence of investors and consumers. It is essential, therefore, that credit rating activities are conducted in accordance with the principles of integrity, transparency, responsibility and good governance in order to ensure that resulting credit ratings used in the Community are independent, objective and of adequate quality. |
(2) |
Currently, most credit rating agencies have their headquarters outside the Community. Most Member States do not regulate the activities of credit rating agencies or the conditions for the issuing of credit ratings. Despite their significant importance for the functioning of the financial markets, credit rating agencies are subject to Community law only in limited areas, notably under Directive 2003/6/EC of the European Parliament and of the Council of 28 January 2003 on insider dealing and market manipulation (4). Moreover, Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions (5) and Directive 2006/49/EC of the European Parliament and of the Council of 14 June 2006 on the capital adequacy of investment firms and credit institutions (6) refer to credit rating agencies. It is therefore important to lay down rules ensuring that all credit ratings issued by the credit rating agencies registered in the Community are of adequate quality and issued by credit rating agencies subject to stringent requirements. The Commission will continue to work with its international partners to ensure convergence of the rules applying to credit rating agencies. It should be possible to exempt certain central banks issuing credit ratings from this Regulation provided that they fulfil the relevant applicable conditions which ensure the independence and integrity of their credit rating activities and which are as stringent as the requirements provided for in this Regulation. |
(3) |
This Regulation should not create a general obligation for financial instruments or financial obligations to be rated under this Regulation. In particular, it should not require undertakings for collective investment in transferable securities (UCITS) as defined in Council Directive 85/611/EEC of 20 December 1985 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (7) or institutions for occupational retirement provision as defined in Directive... |
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- 1.Communication from the Commission on Credit Rating Agencies, OJ C 59, 11.3.2006, p. 2 (eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2006:059:0002:0006:EN:PDF).
- 2.Code of conduct fundamentals for CRAs (revised May 2008)www.iosco.org/library/pubdocs/pdf/IOSCOPD271.pdf.
- 3.The CESR is an independent advisory group to the European Commission composed of the national supervisors of EU securities markets; see Commission Decision of 6 June 2001, establishing the Committee of European Securities Regulators, 2001/527/EC (OJ L191, 13.7.2001, p. 43). The role of the CESR is to improve coordination among securities regulators, advise the European Commission and ensure more consistent and timely day-to-day implementation of Community legislation in the Member States.
- 5.The European Securities Markets Experts Group (ESME) is an advisory body to the Commission, composed of securities markets practitioners and experts set up by the Commission in April 2006 and governed by Commission Decision 2006/288/EC of 30 March 2006 setting up a European Securities Markets Expert Group to provide legal and economic advice on the application of the EU securities Directives (OJ L 106, 19.4.2006, p. 14).
- 6.Code of conduct fundamentals for CRAs (revised May 2008)www.iosco.org/library/pubdocs/pdf/IOSCOPD271.pdf.
- 7.Report of the FSF on Enhancing Market and Institutional Resilience , 7 April 2008 www.fsforum.org/publications/r_0804.pdf.
- 8.CGFS Papers No 32: Ratings in structured finance: What went wrong and what can be done to address short comings? July 2008, www.bis.org/publ/cgfs32.pdf?noframes=1.
- 9.For example, Standards and
- 10.The US Credit Rating Agency Reform Act of 2006 entered into force on 27 June 2007 establishing a legal framework for the registration of NRSRO (Nationally Recognized Statistical Rating Organizations).
- 11.Commission Directive 2003/125/EC of 22 December 2003 implementing Directive 2003/6/EC of the European Parliament and the Council as regards the fair presentation of investment recommendations and the disclosure of conflicts of interest (OJ L 339 24.12.2003, p. 73).
- 12.Directive 2003/6/EC of the European Parliament and of the Council of 28 January 2003 on insider dealing and market manipulation (OJ L 96, 12.4.2003, p. 16).
- 13.Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions (recast) (OJ L 177, 30.6.2006. p. 1).
- 14.Guidelines on the recognition of External Credit Assessment Institutions of 20 January 2006 (GL07), www.c-ebs.org/formupload/41
- 16.A total number of 82 replies were received. The answers were published at:
- 17.The extent to which the measure fulfils the objectives referred to in section 1.1.
- 18.The extent to which the framework for operation of credit rating agencies is governed by the same requirements in all Member States.
- 19.The extent to which the respective policy option facilitates the operation of CRAs across the Member States. Flexibility also affects the costs incurred by credit rating agencies.
- 20.Code of conduct fundamentals for CRAs (revised May 2008)www.iosco.org/library/pubdocs/pdf/IOSCOPD271.pdf.
- 21.The CESR is an independent advisory group to the European Commission composed of the national supervisors of EU securities markets; see Commission Decision of 6 June 2001, establishing the Committee of European Securities Regulators, 2001/527/EC (OJ L191, 13.7.2001, p. 43). The role of the CESR is to improve coordination among securities regulators, advise the European Commission and ensure more consistent and timely day-to-day implementation of Community legislation in the Member States.
- 22.See Article 6(5).
- 23.Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission (OJ L 184, 17.7.1999, p. 23) as amended by Council Decision 2006/512/EC of 17 July 2006 (OJ L 200, 22.7.2006, p. 11).
- 24.OJ C , , p. .
- 25.OJ C , , p. .
- 26.OJ L 96, 12.4.2003, p. 16.
- 27.OJ L 177, 30.6.2006, p. 201.
- 28.OJ C 59, 11.3.2006, p. 2.
- 29.OJ L 52, 25.2.2005, p. 51.
- 30.OJ L 281, 23.11.1995, p. 31.
- 31.OJ L184, 17.7.1999, p. 23.
- 32.OJ L 145, 30.4.2004, p.1.
- 33.OJ L 228, 16.8.1973, p. 3.
- 34.OJ L 345, 19.12.2002, p. 1.
- 35.OJ L 323, 9.12.2005, p. 1.
- 36.OJ L 235, 23.9.2003, p. 10.
- 37.OJ L 193, 18.7.1983, p. 1.
- 38.OJ L 235, 23.9.2003, p. 10.
- 39.OJ L 193, 18.7.1983, p. 1.
- 40.Communication from the Commission on Credit Rating Agencies, OJ C 59, 11.3.2006, p. 2 (eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2006:059:0002:0006:EN:PDF).
- 41.The CESR is an independent advisory group to the European Commission composed of the national supervisors of EU securities markets; see Commission Decision of 6 June 2001, establishing the Committee of European Securities Regulators, 2001/527/EC (OJ L191, 13.7.2001, p. 43). The role of the CESR is to improve coordination among securities regulators, advise the European Commission and ensure more consistent and timely day-to-day implementation of Community legislation in the Member States.
- 42.OJ L 339, 24.12.2003, p. 73.
- 43.The CESR is an independent advisory group to the European Commission composed of the national supervisors of EU securities markets; see Commission Decision of 6 June 2001, establishing the Committee of European Securities Regulators, 2001/527/EC (OJ L191, 13.7.2001, p. 43). The role of the CESR is to improve coordination among securities regulators, advise the European Commission and ensure more consistent and timely day-to-day implementation of Community legislation in the Member States.
- 44.The European Securities Markets Experts Group (ESME) is an advisory body to the Commission, composed of securities markets practitioners and experts set up by the Commission in April 2006 and governed by Commission Decision 2006/288/EC of 30 March 2006 setting up a European Securities Markets Expert Group to provide legal and economic advice on the application of the EU securities Directives (OJ L 106, 19.4.2006, p. 14).
- 45.Code of conduct fundamentals for CRAs (revised May 2008)www.iosco.org/library/pubdocs/pdf/IOSCOPD271.pdf.
- 46.OJ L 3, 7.1.2004, p. 28.
- 47.OJ L 3, 7.1.2004, p. 30.
- 48.Communication from the Commission on Credit Rating Agencies, OJ C 59, 11.3.2006, p. 2 (eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2006:059:0002:0006:EN:PDF).
- 49.The CESR is an independent advisory group to the European Commission composed of the national supervisors of EU securities markets; see Commission Decision of 6 June 2001, establishing the Committee of European Securities Regulators, 2001/527/EC (OJ L191, 13.7.2001, p. 43). The role of the CESR is to improve coordination among securities regulators, advise the European Commission and ensure more consistent and timely day-to-day implementation of Community legislation in the Member States.
- 50.The CESR is an independent advisory group to the European Commission composed of the national supervisors of EU securities markets; see Commission Decision of 6 June 2001, establishing the Committee of European Securities Regulators, 2001/527/EC (OJ L191, 13.7.2001, p. 43). The role of the CESR is to improve coordination among securities regulators, advise the European Commission and ensure more consistent and timely day-to-day implementation of Community legislation in the Member States.
- 51.Code of conduct fundamentals for CRAs (revised May 2008)www.iosco.org/library/pubdocs/pdf/IOSCOPD271.pdf.
- 52.OJ L 191, 13.7.2001, p.45.
- 53.Communication from the Commission on Credit Rating Agencies, OJ C 59, 11.3.2006, p. 2 (eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2006:059:0002:0006:EN:PDF).
- 55.For example, Standards and
- 56.OJ L 241, 2.9.2006, p. 26.
- 57.OJ L 162, 30.4.2004, p. 70.
- 58.OJ L 390, 31.12.2004, p. 38
- 59.Communication from the Commission on Credit Rating Agencies, OJ C 59, 11.3.2006, p. 2 (eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2006:059:0002:0006:EN:PDF).
- 60.OJ L 222, 14.8.1978, p. 11.
- 61.OJ L 142, 30.4.2004, p. 12.
- 62.Communication from the Commission on Credit Rating Agencies, OJ C 59, 11.3.2006, p. 2 (eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2006:059:0002:0006:EN:PDF).
- 63.Code of conduct fundamentals for CRAs (revised May 2008)www.iosco.org/library/pubdocs/pdf/IOSCOPD271.pdf.
- 64.The CESR is an independent advisory group to the European Commission composed of the national supervisors of EU securities markets; see Commission Decision of 6 June 2001, establishing the Committee of European Securities Regulators, 2001/527/EC (OJ L191, 13.7.2001, p. 43). The role of the CESR is to improve coordination among securities regulators, advise the European Commission and ensure more consistent and timely day-to-day implementation of Community legislation in the Member States.
- 66.The European Securities Markets Experts Group (ESME) is an advisory body to the Commission, composed of securities markets practitioners and experts set up by the Commission in April 2006 and governed by Commission Decision 2006/288/EC of 30 March 2006 setting up a European Securities Markets Expert Group to provide legal and economic advice on the application of the EU securities Directives (OJ L 106, 19.4.2006, p. 14).
- 67.Code of conduct fundamentals for CRAs (revised May 2008)www.iosco.org/library/pubdocs/pdf/IOSCOPD271.pdf.
- 68.Report of the FSF on Enhancing Market and Institutional Resilience , 7 April 2008 www.fsforum.org/publications/r_0804.pdf.
- 69.CGFS Papers No 32: Ratings in structured finance: What went wrong and what can be done to address short comings? July 2008, www.bis.org/publ/cgfs32.pdf?noframes=1.
- 70.For example, Standards and
- 71.The US Credit Rating Agency Reform Act of 2006 entered into force on 27 June 2007 establishing a legal framework for the registration of NRSRO (Nationally Recognized Statistical Rating Organizations).
- 72.Commission Directive 2003/125/EC of 22 December 2003 implementing Directive 2003/6/EC of the European Parliament and the Council as regards the fair presentation of investment recommendations and the disclosure of conflicts of interest (OJ L 339 24.12.2003, p. 73).
- 73.Directive 2003/6/EC of the European Parliament and of the Council of 28 January 2003 on insider dealing and market manipulation (OJ L 96, 12.4.2003, p. 16).
- 74.Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions (recast) (OJ L 177, 30.6.2006. p.
1).
- 75.Guidelines on the recognition of External Credit Assessment Institutions of 20 January 2006 (GL07), www.c-ebs.org/formupload/41
- 77.A total number of 82 replies were received. The answers were published at:
- 78.The extent to which the measure fulfils the objectives referred to in section 1.1.
- 79.The extent to which the framework for operation of credit rating agencies is governed by the same requirements in all Member States.
- 80.The extent to which the respective policy option facilitates the operation of CRAs across the Member States. Flexibility also affects the costs incurred by credit rating agencies.
- 81.Code of conduct fundamentals for CRAs (revised May 2008)www.iosco.org/library/pubdocs/pdf/IOSCOPD271.pdf.
- 82.The CESR is an independent advisory group to the European Commission composed of the national supervisors of EU securities markets; see Commission Decision of 6 June 2001, establishing the Committee of European Securities Regulators, 2001/527/EC (OJ L191, 13.7.2001, p. 43). The role of the CESR is to improve coordination among securities regulators, advise the European Commission and ensure more consistent and timely day-to-day implementation of Community legislation in the Member States.
- 83.See Article 6(5).
- 84.Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission (OJ L 184, 17.7.1999, p. 23) as amended by Council Decision 2006/512/EC of 17 July 2006 (OJ L 200, 22.7.2006, p. 11).
- 85.OJ C , , p. .
- 86.OJ C , , p. .
- 87.OJ L 96, 12.4.2003, p. 16.
- 88.OJ L 177, 30.6.2006, p. 201.
- 89.OJ C 59, 11.3.2006, p. 2.
- 90.OJ L 52, 25.2.2005, p. 51.
- 91.OJ L 281, 23.11.1995, p. 31.
- 92.OJ L184, 17.7.1999, p. 23.
- 93.OJ L 145, 30.4.2004, p.1.
- 94.OJ L 228, 16.8.1973, p. 3.
- 95.OJ L 345, 19.12.2002, p. 1.
- 96.OJ L 323, 9.12.2005, p. 1.
- 97.OJ L 235, 23.9.2003, p. 10.
- 98.OJ L 193, 18.7.1983, p. 1.
- 99.OJ L 235, 23.9.2003, p. 10.
- 100.OJ L 193, 18.7.1983, p. 1.
- 101.Communication from the Commission on Credit Rating Agencies, OJ C 59, 11.3.2006, p. 2 (eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2006:059:0002:0006:EN:PDF).
- 102.The CESR is an independent advisory group to the European Commission composed of the national supervisors of EU securities markets; see Commission Decision of 6 June 2001, establishing the Committee of European Securities Regulators, 2001/527/EC (OJ L191, 13.7.2001, p. 43). The role of the CESR is to improve coordination among securities regulators, advise the European Commission and ensure more consistent and timely day-to-day implementation of Community legislation in the Member States.
- 103.OJ L 339, 24.12.2003, p. 73.
- 104.The CESR is an independent advisory group to the European Commission composed of the national supervisors of EU securities markets; see Commission Decision of 6 June 2001, establishing the Committee of European Securities Regulators, 2001/527/EC (OJ L191, 13.7.2001, p. 43). The role of the CESR is to improve coordination among securities regulators, advise the European Commission and ensure more consistent and timely day-to-day implementation of Community legislation in the Member States.
- 105.The European Securities Markets Experts Group (ESME) is an advisory body to the Commission, composed of securities markets practitioners and experts set up by the Commission in April 2006 and governed by Commission Decision 2006/288/EC of 30 March 2006 setting up a European Securities Markets Expert Group to provide legal and economic advice on the application of the EU securities Directives (OJ L 106, 19.4.2006, p. 14).
- 106.Code of conduct fundamentals for CRAs (revised May 2008)www.iosco.org/library/pubdocs/pdf/IOSCOPD271.pdf.
- 107.OJ L 3, 7.1.2004, p. 28.
- 108.OJ L 3, 7.1.2004, p. 30.
- 109.Communication from the Commission on Credit Rating Agencies, OJ C 59, 11.3.2006, p. 2 (eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2006:059:0002:0006:EN:PDF).
- 110.The CESR is an independent advisory group to the European Commission composed of the national supervisors of EU securities markets; see Commission Decision of 6 June 2001, establishing the Committee of European Securities Regulators, 2001/527/EC (OJ L191, 13.7.2001, p. 43). The role of the CESR is to improve coordination among securities regulators, advise the European Commission and ensure more consistent and timely day-to-day implementation of Community legislation in the Member States.
- 111.The CESR is an independent advisory group to the European Commission composed of the national supervisors of EU securities markets; see Commission Decision of 6 June 2001, establishing the Committee of European Securities Regulators, 2001/527/EC (OJ L191, 13.7.2001, p. 43). The role of the CESR is to improve coordination among securities regulators, advise the European Commission and ensure more consistent and timely day-to-day implementation of Community legislation in the Member States.
- 112.Code of conduct fundamentals for CRAs (revised May 2008)www.iosco.org/library/pubdocs/pdf/IOSCOPD271.pdf.
- 113.OJ L 191, 13.7.2001, p.45.
- 114.Communication from the Commission on Credit Rating Agencies, OJ C 59, 11.3.2006, p. 2 (eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2006:059:0002:0006:EN:PDF).
- 116.For example, Standards and
- 117.OJ L 241, 2.9.2006, p. 26.
- 118.OJ L 162, 30.4.2004, p. 70.
- 119.OJ L 390, 31.12.2004, p. 38
- 120.Communication from the Commission on Credit Rating Agencies, OJ C 59, 11.3.2006, p. 2 (eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2006:059:0002:0006:EN:PDF).
- 121.OJ L 222, 14.8.1978, p. 11.
- 122.OJ L 142, 30.4.2004, p.
- 123.Deze databank van de Europese Unie biedt de mogelijkheid de actuele werkzaamheden (workflow) van de Europese instellingen (Europees Parlement, Raad, ESC, Comité van de Regio's, Europese Centrale Bank, Hof van Justitie enz.) te volgen. EURlex volgt alle voorstellen (zoals wetgevende en begrotingsdossiers) en mededelingen van de Commissie, vanaf het moment dat ze aan de Raad of het Europees Parlement worden voorgelegd.
- 124.EUR-lex provides an overview of the proposal, amendments, citations and legality.