30 Amendments of Ieke van den BURG related to 2008/0217(COD)
Amendment 25 #
Proposal for a regulation
Recital 13
Recital 13
(13) Long lasting relationships with the same rated entities or its related third parties could compromise the independence of analysts and persons approving credit ratingwho are in direct contact with issuers. Therefore those analysts and persons should be subject to a mandatory rotation mechanism.
Amendment 26 #
Proposal for a regulation
Recital 35
Recital 35
(35) The stricter and clearer legal framework within which credit rating agencies will operate should also facilitate recourse to civil actions in respect of credit rating agencies in appropriate cases, in accordance with the applicable regimes of liability of the Member States. In addition to internal independent ombudsman or complaint functions inside a credit rating agency, the CESR should establish an overall complaint procedure whereby complaints can be submitted by issuers, investors and other interested parties about the fulfilment of requirements and conditions linked to this Regulation. Member States should also encourage the setting-up of appropriate and effective systems for the out-of-court settlement of disputes between credit rating agencies and issuers, investors and other interested parties, so as to prevent an undesirable and inappropriate culture of recourse to litigation. The CESR should promote convergence and cooperation between Member States in respect of such procedures.
Amendment 27 #
Proposal for a regulation
Article 2 – paragraph 1
Article 2 – paragraph 1
Amendment 28 #
Proposal for a regulation
Article 3 – paragraph 1 – point k a (new)
Article 3 – paragraph 1 – point k a (new)
ka) "regulatory purposes" means purposes that result from Community law or from national law implementing Community law.
Amendment 29 #
Proposal for a regulation
Article 5 – paragraph 2 a (new)
Article 5 – paragraph 2 a (new)
Amendment 30 #
Proposal for a regulation
Article 6 – paragraph 4 – subparagraph 1
Article 6 – paragraph 4 – subparagraph 1
4. A credit rating agency shall ensure that analysts and persons approving credit ratingwho are in direct contact with issuers shall not be involved in providing the credit rating services to the same rated entity or its related third parties for a period exceeding four years. For that purpose it shall establish a rotation mechanism with regard to those analysts and persons.
Amendment 31 #
Proposal for a regulation
Article 6 – paragraph 4 – subparagraph 2
Article 6 – paragraph 4 – subparagraph 2
The period after which the analysts and persons approving credit ratings may be involved in providing the credit rating services tomay be in direct contact again with the rated entity or related third parties referred to in the first subparagraph, in order to provide credit rating services, may not be shorter than two years.
Amendment 32 #
Proposal for a regulation
Article 6 – paragraph 5
Article 6 – paragraph 5
5. Paragraph 4 shall not apply to a credit rating agency which employs less than 50 employees and takes measures to ensure the objectivity of analysts in the relations with the rated entity or related third partiesthe number of entities rated by which or the turnover of which is below the threshold determined by the Commission in cooperation with the CESR and which takes measures to ensure the objectivity of analysts in the relations with the rated entity or related third parties. The Commission shall determine the threshold of rated entities or the turnover. That threshold, designed to amend non- essential elements of this Regulation by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 33(2).
Amendment 33 #
Proposal for a regulation
Article 31 – paragraph 2 a (new)
Article 31 – paragraph 2 a (new)
The CESR shall promote convergence in the rules applicable to infringements of the provisions of this Regulation.
Amendment 34 #
Proposal for a regulation
Article 31 a (new)
Article 31 a (new)
Article 31a Complaints The CESR shall ensure that procedures are set up which allow issuers, investors and other interested parties to submit complaints about the fulfilment of the requirements and conditions laid down in this Regulation. All complaints shall be dealt with diligently and in confidence.
Amendment 35 #
Proposal for a regulation
Article 31 b (new)
Article 31 b (new)
Article 31b Out-of-court redress 1. Member States shall encourage the setting-up of appropriate and effective complaints and redress procedures for the out-of-court settlement of disputes between credit rating agencies and issuers, investors and, where appropriate, other interested parties concerning the fulfilment or non-fulfilment of the requirements and conditions laid down in this Regulation. 2. Member States shall encourage these bodies to cooperate in the resolution of cross-border disputes. 3. The CESR shall promote convergence in the complaints and redress procedures.
Amendment 154 #
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 ratingthat are in direct contact with issuers. Therefore those analysts and persons should be subject to a mandatory rotation mechanism.
Amendment 208 #
Proposal for a regulation
Recital 35
Recital 35
(35) The stricter and clearer legal frameworkIn addition to an internal independent ombudsman or internal complaint procedures within which credit rating agencies will operate should also facilitate recourse to civil actions in respect of credit rating agencies in appropriate cases, in accordance with the applicable regimes of liability of the Member Stat, the CESR should establish an umbrella complaint procedure under which it is possibly to lodge a complaint by issuers, investors and other interested parties, in relation to the fulfilment of requirements and conditions under this Regulation. Members States should also encourage the setting up of appropriate and effective out-of-court settlement procedures for disputes between credit rating agencies, issuers, investors and other interested parties, in order to discourage an overly litigious culture. The CESR should promote convergence and cooperation between Member States in relation to such procedures.
Amendment 223 #
Proposal for a regulation
Article 2 – paragraph 1
Article 2 – paragraph 1
1. This Regulation shall applyies to credit ratings that are intended for use for regulatory purposes or otherwise by credit institutions as defined in Directive 2006/48/EC, investments firms as defined in Directive 2004/39/EC of the European Parliament and of the Council, insurance undertakings subject to Council Directive 73/239/EEC, assurance undertakings as defined in Directive 2002/83/EC of the European Parliament and of the Council, reinsurance undertakings as defined in Directive 2005/68/EC of the European Parliament and the Council, undertakings for collective investment in transferable securities (UCITS) as defined in Directive [2009/XX/EC] or institutions for occupational retirement provision as defined in Directive 2003/41/EC of the European Parliament and of the Council and are disclosed publicly or distributed by subscription.
Amendment 232 #
Proposal for a regulation
Article 3 – paragraph 1 – point e a (new)
Article 3 – paragraph 1 – point e a (new)
(ea) 'regulatory purposes' means the use of credit ratings for the purposes that result from Community law or national law implementing Community law.
Amendment 254 #
Proposal for a regulation
Article 4 – paragraph 2 b (new)
Article 4 – paragraph 2 b (new)
Credit rating agencies registered in accordance with this Regulation shall endorse a credit rating issued in third countries where credit rating activities resulting in the issuance of such a credit rating comply with the following conditions: (a) the credit rating agency has verified and is able to demonstrate to the college that the conduct of credit rating activities by the third-country credit rating agency resulting in the issuance of the credit rating to be endorsed fulfils requirements which are at least as stringent as those laid down in this Regulation; (b) the credit rating agency makes available to its competent authorities, on request, all information necessary to enable the competent authorities to supervise, on an ongoing basis, compliance with this Regulation; (c) credit rating activities resulting in the issuance of the credit rating to be endorsed are undertaken by the endorsing credit rating agency or by credit rating agencies belonging to the same group.
Amendment 267 #
Proposal for a regulation
Article 5 – paragraph 2 a (new)
Article 5 – paragraph 2 a (new)
Amendment 276 #
Proposal for a regulation
Article 6 – paragraph 4 – subparagraph 1
Article 6 – paragraph 4 – subparagraph 1
4. A credit rating agency shall ensure that analysts and persons approving credit ratingthat are in direct contact with issuers shall not be involved in providing the credit rating services to the same rated entity or its related third parties for a period exceeding four years. For that purpose it shall establish a rotation mechanism with regard to those analysts and persons.
Amendment 282 #
Proposal for a regulation
Article 6 – paragraph 4 – subparagraph 2
Article 6 – paragraph 4 – subparagraph 2
The period after which the analysts and persons approving credit ratings may be involved in providing themay be in direct contact again to provide for credit rating services towith the rated entity or related third parties referred to in the first subparagraph may not beshall be no shorter than two years.
Amendment 285 #
Proposal for a regulation
Article 6 – paragraph 5
Article 6 – paragraph 5
5. Paragraph 4 shall not apply to a credit rating agency of which employs less than 50 employees and takes measures to ensure the objectivity of analysts in the relations with the rated entity or related third partiesthe number of rated entities or the turnover of a credit rating agency is below the threshold determined by the Commission, in cooperation with the CESR and which takes measures to ensure the objectivity of analysts in the relations with the rated entity or related third parties. The Commission shall determine the thresholds referred to in the first subparagraph. That measure, designed to amend non-essential elements of this Regulation by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 33(2).
Amendment 288 #
Proposal for a regulation
Article 7 – paragraph 1
Article 7 – paragraph 1
1. A credit rating agency shall disclose to the public the methodologies, models and key rating assumptions it uses in the rating processits credit rating activities as defined in Section E of Annex I.
Amendment 300 #
Proposal for a regulation
Article 7 – paragraph 5 a (new)
Article 7 – paragraph 5 a (new)
5a. A credit rating agency shall, on the request of a competent authority, explain ex post their methodologies, models and key rating assumptions. Such an explanation shall not prejudice the content of the rating and the independence of the credit rating agency.
Amendment 311 #
Proposal for a regulation
Article 8 – paragraph 5 – subparagraph 2
Article 8 – paragraph 5 – subparagraph 2
Unsolicited credit ratings shall be identified with a different credit rating category. ies and symbols in such a way that investors are able to identify the differences.
Amendment 380 #
Proposal for a regulation
Article 27 – paragraph 2
Article 27 – paragraph 2
2. In case of disagreement between competent authorities of Member States on an assessment or action under this Regulation, competent authorities shall refer the matter to CESR for mediation. The competent authorities shall take into account the opinion of CESRcommit themselves to following up the advice of CESR and shall make every reasonable effort to reach acceptable and coherent decisions.
Amendment 382 #
Proposal for a regulation
Article 27 – paragraph 2 a (new)
Article 27 – paragraph 2 a (new)
2a. All decisions shall be set out in a document, provided by the competent authority of the home Member State, containing the fully reasoned decision, shall take into account the views and reservations that the competent authorities expressed during the whole decision-making process, and shall be provided to the other competent authorities involved and to the credit rating agency. The CESR may decide to disclose its advice.
Amendment 383 #
Proposal for a regulation
Article 27 – paragraph 2 b (new)
Article 27 – paragraph 2 b (new)
2b. The joint decision shall be recognised as final and shall be applied by the competent authorities in the Member State concerned. The CESR shall determine procedures for the convergence of supervisory practices with regard to the joint decision process.
Amendment 384 #
Proposal for a regulation
Article 27 – paragraph 2 c (new)
Article 27 – paragraph 2 c (new)
2c. As soon as mediation and appeal procedures that will have the legal basis to give more binding rules are established at Community level, they will be applied to the decision-making process.
Amendment 392 #
Article 31 – paragraph 2 a (new)
The CESR shall promote convergence in the rules applicable to infringements of the provisions of this Regulation.
Amendment 393 #
Article 31 a (new)
Article 31a Complaints The CESR shall ensure that procedures are set up which allow issuers, investors and other interested parties to register complaints about the fulfillment of the requirements and conditions laid down in this Regulation. All complaints shall be dealt with care and confidentiality.
Amendment 394 #
Article 31 b (new)