Brussels, 30/09/2014 (Agence Europe) - On Tuesday 30 September, the European Commission adopted three regulatory technical standards needed to implement key provisions of the regulation on credit rating agencies. These standards, which were developed by the European Securities and Markets Authority (ESMA), govern the information which issuers, originators and sponsors must disclose on structured financial instruments, the information which ratings agencies must report to the ESMA for publication on the European Rating Platform and the reports they must submit to ESMA on the fees they charge.
The first of these technical standards aims to improve the ability of investors correctly to assess the risks related to these complex financial instruments, the Commission explains. The technical standard on the reports on fees invoiced by the ratings agencies will allow ESMA to verify that the agencies' pricing practices are not discriminatory, in order to promote fair competition and attenuate conflicts of interest. The Parliament and the Council now have one month to exercise their right of opposition, a period which may be extended twice by an extra month if they so request. Following this period, the technical standards will be published in the Official Journal of the EU and will enter into force on the 20th day after their publication. European Commission Vice-President Michel Barnier said that the standards mark “another step in improving transparency and restoring confidence in the financial system”. (EL)