20 Amendments of Sirpa PIETIKÄINEN related to 2008/0217(COD)
Amendment 123 #
Proposal for a regulation
Recital 6 a (new)
Recital 6 a (new)
(6a) Rating agencies need to be able to assess credit risk on an international basis in order to maintain the comparability of ratings and to contribute to the quality of the credit ratings. It is therefore necessary to establish arrangements under which credit ratings prepared or issued in third countries may be used for regulatory purposes in the Community provided that they comply with requirements which meet the regulatory objectives set out in this Regulation. To achieve this, the Regulation introduces a regime allowing credit rating agencies established in the Community and registered in accordance with this Regulation to endorse credit ratings issued in third countries. When endorsing credit ratings issued in third countries, credit rating agencies shall ensure credit rating activities resulting in the issuance of credit ratings in third countries comply with requirements which meet the same regulatory objectives as those set out in Articles 5 to 9 of this Regulation.
Amendment 139 #
Proposal for a regulation
Recital 10
Recital 10
Amendment 153 #
Proposal for a regulation
Recital 13
Recital 13
(13) Long lasting relationships with the same rated entities or its related third parties could compromise independence of analysts and persons approving credit ratings. Therefore thoselead analysts and persons should be subject to a rotation mechanism.
Amendment 164 #
Proposal for a regulation
Recital 14
Recital 14
(14) Credit rating agencies should use rating methodologies that are rigorous, systematic, and continuous and, where possible, result in ratings that may be subject to validation based on historical experience. Credit rating agencies should ensure that methodologies, models and key rating assumptions used for determining credit ratings are properly maintained, up-to-date and subject to a comprehensive review on a periodic basis. In cases where the lack of reliable data or the complexity of the structure of a new type, in particular structured finance instruments, raises serious questions as to whether the credit rating agency can produce a credible credit rating, the credit rating agency should refrain from issuing a credit rating or withdraw an existing credit rating.
Amendment 169 #
Proposal for a regulation
Recital 15
Recital 15
(15) In order to ensure the quality of ratings, a credit rating agency should take measures to ensureappropriate measures so that the information it uses in assigning a rating is reliable. For this purpose, a credit rating agency may envisage, among other elements, reliance on independently audited financial statements and public disclosures; verification by reputable third party services; random sampling examination by the credit rating agency of the information received; or contractual provisions clearly stipulating liability for the rated entity or its related third parties, if the information provided under the contract is knowingly materially false or misleading or if the rated entity or its related third parties fail to conduct reasonable due diligence regarding the accuracy of the information as specified under the terms of the contract.
Amendment 228 #
Proposal for a regulation
Article 3 – paragraph 1 – point d a (new)
Article 3 – paragraph 1 – point d a (new)
(da) 'lead analyst' means a person with primary responsibility for communicating with the issuer and for the analytical functions that are necessary for elaborating a credit rating;
Amendment 249 #
Proposal for a regulation
Article 4 – paragraph 2 a (new)
Article 4 – paragraph 2 a (new)
A credit rating endorsed under paragraph 2b shall be considered to be a credit rating issued by a credit rating agency established in the Community and registered in accordance with this Regulation.
Amendment 255 #
Proposal for a regulation
Article 4 – paragraph 2 b (new)
Article 4 – paragraph 2 b (new)
A credit rating agency established in the Community and registered in accordance with this Regulation shall endorse credit ratings issued in third counties where: (a) credit rating activities related to the issuance of such credit ratings comply with policies and procedures which achieve regulatory objectives comparable to those set out in Articles 5 to 9; (b) those credit rating activities do not limit the ability of its competent authority to monitoring the compliance of the credit rating agency established in the third country with the policies and procedures referred to in point a; and (c) there is an appropriate cooperation arrangement between the home competent authority of the endorsing credit rating agency and the relevant competent authority of the third-country credit rating agency.
Amendment 268 #
Proposal for a regulation
Article 5 – paragraph 2 a (new)
Article 5 – paragraph 2 a (new)
2a. Where the credit rating agency is a member of a group of credit rating agencies, the agency shall be deemed to comply with Section A of Annex I if the group as a whole meets those requirements. In such cases, the references in Annex I to the administrative or supervisory board and senior management of the credit rating agency shall be construed as references to the administrative or supervisory board and senior management of the parent undertaking. For the purposes of compliance with paragraph 2 of Section B of Annex I, account shall be taken of the annual revenue of the group as a whole.
Amendment 274 #
Proposal for a regulation
Article 6 – paragraph 4 – subparagraph 1
Article 6 – paragraph 4 – subparagraph 1
4. A credit rating agency shall ensure that lead analysts and persons approving credit ratings shall not be involved in providing the credit rating services to the same rated entity, or its related third partiesto other entities under common ownership, for a period exceeding four years. For that purpose it shall establish a rotation mechanism with regard to those analysts and persons.
Amendment 280 #
Proposal for a regulation
Article 6 – paragraph 4 – subparagraph 2
Article 6 – paragraph 4 – subparagraph 2
The period after which those analysts and persons approving credit ratings may be involved in providing the credit rating services to the rated entity or related third parties referred to in the first subparagraph may not bemay again act as lead analyst to such entities shall be no shorter than two years.
Amendment 290 #
Proposal for a regulation
Article 7 – paragraph 2
Article 7 – paragraph 2
2. A cCredit rating agencyies shall adopt, implement and enforce written procedures to ensure that the credit ratings ithey produces and disseminates are based on an thorough analysis of all information available to itknown to the credit rating agency that is of relevancet to its analysis according to its rating methodologies. ItThey shall adopt all necessaryappropriate measures so that the information ithey uses in assigning a credit rating is of sufficient quality and from reliable sources.
Amendment 412 #
Proposal for a regulation
Annex I – Section A – point 2 –paragraph 2
Annex I – Section A – point 2 –paragraph 2
The senior management, as defined in Article 2(9) of Commission Directive 2006/73/EC of a credit rating agency of a credit rating agency who exercise responsibility for directing its business shall be of good repute and sufficiently skilled and experienced, and shall ensure the sound and prudent management of the credit rating agency.
Amendment 414 #
Proposal for a regulation
Annex I – Section A – point 2 – paragraph 3
Annex I – Section A – point 2 – paragraph 3
Amendment 418 #
Proposal for a regulation
Annex I – Section A – point 2 – paragraph 4
Annex I – Section A – point 2 – paragraph 4
Amendment 421 #
Proposal for a regulation
Annex I – Section A – point 2 – paragraph 5
Annex I – Section A – point 2 – paragraph 5
Amendment 429 #
Proposal for a regulation
Annex I – Section B – point 3 – introductory part
Annex I – Section B – point 3 – introductory part
3. A credit rating agency shall not issue a credit rating or shall withdraw, in the case of an existing credit rating, immediately announce that the credit rating was potentially compromised in the following cases:
Amendment 432 #
Proposal for a regulation
Annex I – Section B – point 3 – point a
Annex I – Section B – point 3 – point a
(a) the credit rating agency, an analyst that participated in determining a credit rating, or person approving the credit ratings, directly or indirectly owns financial instruments of the rated entity or any related third party or has any other direct or indirect ownership interest in that entity or party other than holdings in diversified collective investment schemes or managed funds including pension funds and life insurance;
Amendment 442 #
Proposal for a regulation
Annex I – Section D – part I – point 3 – paragraph 1
Annex I – Section D – part I – point 3 – paragraph 1
3. A credit rating agency shall ensure that any credit rating states clearly and prominently any attributes and limitations of theeach credit rating. In particular, a credit rating agency shall prominently state in any credit rating whether it considers satisfactory the quality of information available on the rated entity and to what extent it has verified information provided to it by the rated entity or its related third partyadopt appropriate measures so that the information it uses in assigning a rating is of sufficient quality to support a credible rating. If a credit rating involves a type of entity or financial instrument for which historical data is limited, the credit rating agency shall make clear, in a prominent place, the limitations of the credit rating.
Amendment 445 #
Proposal for a regulation
Annex I – Section D – part I – point 3 – paragraph 2
Annex I – Section D – part I – point 3 – paragraph 2
In case where the lack of reliable data or the complexity of the structure of a new type of instrument or the quality of information available is not satisfactory or raises serious questions as to whether a credit rating agency can provide a credible credit rating, the credit rating agency shall refrain from issuing a credit rating or withdraw an existing rating.