INTERNATIONAL: ESMA Recognises Canadian and South African Compliance with the Incoming Credit Ratings Agency Regulation

Thursday April 5 2018

On 4^th April 2018,  the European Securities and Markets Authority (ESMA) stating that the legal and supervisory frameworks of Canada and South Africa will continue to meet the requirements for endorsement under Credit Ratings Agency Regulation (CRAR) from June 2018.

In November 2017, ESMA published an updated methodological framework for the endorsement of credit ratings in its Guidelines on Endorsement. This new methodological framework incorporated the requirements introduced by CRA 3 that are due to enter into force on 1^st  June 2018.

Following an assessment based on this new methodological framework, ESMA found that the legal and supervisory frameworks of Canada and South Africa are compliant with the incoming CRAR Requirements.

As a result, there will be no disruption to EU registered credit rating agencies’ ability to endorse credit ratings from these jurisdictions following the entry into force of the new requirements.

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