BETA

Activities of Jürgen KLUTE related to 2010/0160(COD)

Plenary speeches (1)

Credit rating agencies (debate)
2016/11/22
Dossiers: 2010/0160(COD)

Amendments (20)

Amendment 49 #
Proposal for a regulation – amending act
Recital 5
(5) In order to reinforce competition between credit rating agencies, to help avoiding possible conflicts of interest under the issuer-pays model, which are particularly virulent regarding the rating of structured finance instruments, and to enhance transparency and the quality of ratings for structured finance instruments, registered or certified credit rating agencies should have the right to access a list of structured finance instruments that are being rated by their competitors. The information for this rating should be provided by the issuer or a related third party for the purpose of the issuance of unsolicited competing ratings on structured finance instruments. The issuance of such unsolicited ratings should promote the use of more than one rating per structured finance instrument. Access to the websites should only be granted if a credit rating agency is able to ensure the confidentiality of the requested information. Furthermore, in addition to private credit rating agencies, a public European agency should be set up to increase transparency in the financial markets. For this purpose ESMA should draft appropriate proposals jointly with the Commission.
2010/10/15
Committee: ECON
Amendment 52 #
Proposal for a regulation – amending act
Recital 21 a (new)
(21a) As the development of the debt crisis in some Member States in the euro area has shown, private credit rating agencies are not in a position to assess public bonds in a meaningful way. Moreover, the panic-stricken down-rating of particular government bonds resulted in upheavals in States’ budgets. For these reasons, and because private undertakings cannot be allowed to assess democratically constituted States, their economies and budgets which have been examined by democratically legitimate official bodies, credit rating agencies should not be permitted to assess public bonds.
2010/10/15
Committee: ECON
Amendment 53 #
Proposal for a regulation – amending act
Article 1 – point 1 – point a a (new)
Regulation (EC) No 1060/2009
Article 4 – paragraph 1 – subparagraph 2
(aa) In Article 4(1), the second subparagraph is replaced by the following: Where a prospectus published under Directive 2003/71/EC and Regulation (EC) No 809/2004 contains a reference to a credit rating or credit ratings, the issuer, offeror, or person asking for admission to trading on a regulated market shall ensure that the prospectus also includes clear and prominent information stating whether or not such credit ratings are issued by a credit rating agency established in the Union and registered under this Regulation. If more than one rating in accordance with this regulation exists for a product or undertaking, a rating for which is referred to in prospectuses, consultations or other advertising, all the ratings available shall be quoted on an equal basis and in the same degree of detail. No distinction shall be made between solicited and unsolicited ratings, and it shall not be indicated whether ratings were solicited or unsolicited.”
2010/10/15
Committee: ECON
Amendment 65 #
Proposal for a regulation – amending act
Article 1 – point 4
Regulation (EC) No 1060/2009
Article 8a – paragraph 2 – introductory part
2. Where other credit rating agencies registered or certified according to this Regulation request access to the information referred to in paragraph 1, they shall be granted access as quickly as possible provided that they meet all of the following conditions:
2010/10/15
Committee: ECON
Amendment 67 #
Proposal for a regulation – amending act
Article 1 – point 4
Regulation (EC) No 1060/2009
Article 8a – paragraph 2 – point b
(b) they provide ratings on a yearly basis for at least 10% of the structured finance instruments for which they request access to information referred to in paragraph 1.deleted
2010/10/15
Committee: ECON
Amendment 69 #
Proposal for a regulation – amending act
Article 1 – point 4
Regulation (EC) No 1060/2009
Article 8a – paragraph 2 a (new)
2a. The issuer of the security concerned shall ensure that the unsolicited agency receives the same information with reference to the rating as the solicited agency. This notably also applies to information which does not relate solely to the security in question but which can assist in its assessment – particularly if the solicited agency has already received such information from previous assignments from the issuer.
2010/10/15
Committee: ECON
Amendment 70 #
Proposal for a regulation – amending act
Article 1 – point 4
Regulation (EC) No 1060/2009
Article 8a – paragraph 2 b (new)
2b. Each credit rating agency shall issue at least 5% per annum of its ratings for structured financial market products unsolicited.
2010/10/15
Committee: ECON
Amendment 79 #
Proposal for a regulation – amending act
Article 1 – point 5 a (new)
Regulation (EC) No 1060/2009
Article 10 – paragraph 4
(5a) Article 10(4) is replaced by the following: "4. A credit rating agency shall disclose its policies and procedures regarding [...] credit ratings.”
2010/10/15
Committee: ECON
Amendment 80 #
Proposal for a regulation – amending act
Article 1 – point 5 b (new)
Regulation (EC) No 1060/2009
Article 10 – paragraph 5 –subparagraph 1
5. When a credit rating agency issues an unsolicited credit rating, it shall state prominently in the credit rating whether or not the rated entity or related third party participated in the credit rating process and whether the credit rating agency had access to the accounts and other relevant internal documents of the rated entity or a related third party.deleted
2010/10/15
Committee: ECON
Amendment 81 #
Proposal for a regulation – amending act
Article 1 – point 5 c (new)
Regulation (EC) No 1060/2009
Article 10 – paragraph 5 – subparagraph 2
5c. In Article 10(5), the second subparagraph is replaced by the following: “Unsolicited credit ratings shall be identified as such for the internal use of the credit rating agency and for purposes of supervision by ESMA and other competent authorities.”
2010/10/15
Committee: ECON
Amendment 83 #
Proposal for a regulation – amending act
Article 1 – point 11 a (new)
Regulation (EC) No 1060/2009
Article 22 a (new)
(11a) The following article is inserted: "Article 22a Ongoing revision of ratings 1. During the day-to-day operation of credit rating agencies, ESMA shall, without notice and on the basis of random samples, review ratings submitted. For this purpose it shall request the credit rating agency concerned to forward all the information used to establish a rating and a detailed report on the method of rating to ESMA. The credit rating agency shall forward the information requested to ESMA within three working days of the request. 2. The review shall serve to establish whether the ratings have been performed in accordance with objectively valid criteria, in a responsible manner and in accordance with the provisions of this regulation. 3. If when reviewing ratings ESMA observes irregularities it may, depending on the seriousness of the irregularity, (a) call upon the agency to explain the context, (b) ask the agency for further information, (c) review further ratings issued by the agency, (d) take more extensive measures, for example a thorough review of the agency.”
2010/10/15
Committee: ECON
Amendment 89 #
Proposal for a regulation – amending act
Article 1 – point 14
Regulation (EC) No 1060/2009
Article 24 – paragraph 1 – point d
(d) require the credit rating agency to bring the infringement to an endeleted
2010/10/15
Committee: ECON
Amendment 90 #
Proposal for a regulation – amending act
Article 1 – point 14
Regulation (EC) No 1060/2009
Article 24 – paragraph 1 – point f
(f) issue public notices.deleted
2010/10/15
Committee: ECON
Amendment 91 #
Proposal for a regulation – amending act
Article 1 – point 14
Regulation (EC) No 1060/2009
Article 24 – paragraph 1 a (new)
1a. Where a credit rating agency fails to comply with one of the requirements listed in Annex III or another requirement of this regulation, information about the breach shall be published. In addition, the credit rating agency shall be called upon to bring the infringement to an end immediately. ESMA may waive the publication requirement and omit the call to bring the infringement to an end if this is necessary in the interests of an investigation, with reference both to investigations within ESMA and to cooperation with the relevant national authorities.
2010/10/15
Committee: ECON
Amendment 92 #
Proposal for a regulation – amending act
Article 1 – point 14
Regulation (EC) No 1060/2009
Article 24 – paragraph 2 –subparagraph 2
In addition, ESMA mayshall refer matters for criminal prosecution to the relevant national authorities.
2010/10/15
Committee: ECON
Amendment 135 #
Proposal for a regulation – amending act
Annex I – point 2 a (new)
Regulation (EC) No 1060/2009
Annex I – Section E – title II – point 2 – point b a (new)
(2a) In Section E, the following point is inserted in point 2 of title II: "(ba) a list of ratings issued during the year, indicating the proportion of unsolicited ratings among them.”
2010/10/15
Committee: ECON
Amendment 138 #
Proposal for a regulation – amending act
Annex II
Regulation (EC) No 1060/2009
Annex III – title I – point w
(w) The CRA infringes Article 8a(2)(b) where it fails to provide, on a yearly basis, ratings for at least 10% of the structured finance instruments for which it has requested access to the information on the website provided by the issuer or related third party.deleted
2010/10/15
Committee: ECON
Amendment 139 #
Proposal for a regulation – amending act
Annex II
Regulation (EC) No 1060/2009
Annex III – title I – point w a (new)
(wa) The CRA infringes Article 8a(2b) by not issuing at least 5% per annum of its ratings for structured financial market products unsolicited.
2010/10/15
Committee: ECON
Amendment 144 #
Proposal for a regulation – amending act
Annex II
Regulation (EC) No 1060/2009
Annex III – title III – point m
(m) The CRA infringes Article 10(4) by not disclosing its policies and procedures regarding unsolicited credit ratings.
2010/10/15
Committee: ECON
Amendment 145 #
Proposal for a regulation – amending act
Annex II
Regulation (EC) No 1060/2009
Annex III – title III – point n
(n) The CRA infringes Article 10(5) by not providing the information as required by this Article or by not identifying an unsolicited credit rating.
2010/10/15
Committee: ECON