CHAPTER II

CESR shall provide advice to the competent authorities in the cases provided for in this Regulation. The competent authorities shall consider that advice before taking any final decision under this Regulation. By 7 June 2010, CESR shall issue guidance on: the registration process and coordination arrangements between competent authorities and with CESR, including on the information set out in Annex II, and language regime for applications submitted to CESR; the operational functioning of the colleges, including on the modalities for determining the membership to the colleges, the application of the criteria for the selection of the facilitator referred to in Article 29(5)(a) to (d), the written arrangements for the operation of colleges and the coordination arrangements between colleges; the application of the endorsement regime under Article 4(3) by competent authorities; and common standards on the presentation of the information, including structure, format, method and period of reporting, that credit rating agencies shall disclose in accordance with Article 11(2) and point 1 of Part II of Section E of Annex I. By 7 September 2010, CESR shall issue guidance on: enforcement practices and activities to be conducted by competent authorities under this Regulation; common standards for assessment of compliance of credit rating methodologies with the requirements set out in Article 8(3); types of measures referred to in Article 24(1)(d) to ensure that credit rating agencies continue to comply with legal requirements; and information that the credit rating agency must provide for the application for certification and for the assessment of its systemic importance to the financial stability or integrity of financial markets referred to in Article 5. CESR shall publish, annually and for the first time by 7 December 2010, a report on the application of this Regulation. That report shall contain, in particular, an assessment of the implementation of Annex I by the credit rating agencies registered under this Regulation. CESR shall cooperate with the Committee of European Banking Supervisors established by Commission Decision 2009/78/EC OJ L 25, 29.1.2009, p. 23. and the Committee of European Insurance and Occupational Pensions Supervisors established by Commission Decision 2009/79/EC OJ L 25, 29.1.2009, p. 28. and shall consult those Committees before publishing guidance referred to in paragraphs 2 and 3. By 7 June 2010, each Member State shall designate a competent authority for the purpose of this Regulation. Competent authorities shall be adequately staffed, with regard to capacity and expertise, in order to be able to apply this Regulation. In carrying out their duties under this Regulation, neither the competent authorities nor any other public authorities of a Member State shall interfere with the content of credit ratings or methodologies. In order to carry out their duties under this Regulation, the competent authorities shall, in conformity with national law, have all the supervisory and investigatory powers that are necessary for the exercise of their functions. They shall exercise their powers: directly; in collaboration with other authorities; or by application to the competent judicial authorities. In order to carry out their duties under this Regulation, the competent authorities shall, in conformity with national law, have the power in their supervisory capacity to: access any document in any form and to receive or take a copy thereof; demand information from any person and if necessary to summon and question a person with a view to obtaining information; carry out on-site inspections with or without announcement; and require records of telephone and data traffic. The competent authorities may use the powers referred to in the first subparagraph only in relation to credit rating agencies, persons involved in credit rating activities, rated entities and related third parties, third parties to whom the credit rating agencies have outsourced certain functions or activities, and persons otherwise related or connected to credit rating agencies or credit rating activities. Where the competent authority of the home Member State has established that a registered credit rating agency breaches the obligations arising from this Regulation, it may take the following measures: withdraw the registration of that credit rating agency in accordance with Article 20; temporarily prohibit that credit rating agency from issuing credit ratings with effect throughout the Community; suspend the use, for regulatory purposes, of the credit ratings issued by that credit rating agency with effect throughout the Community; take appropriate measures to ensure that credit rating agencies continue to comply with legal requirements; issue public notices; refer matters for criminal prosecution to its relevant national authorities. Credit ratings may continue to be used for regulatory purposes following the adoption of measures in points (a) and (c) of paragraph 1 during a period not exceeding: ten working days if there are credit ratings of the same financial instrument or entity issued by other credit rating agencies registered under this Regulation; or three months if there are no credit ratings of the same financial instrument or entity issued by other credit rating agencies registered under this Regulation. A competent authority may extend the period referred to in point (b) of the first subparagraph by three months in exceptional circumstances relating to the potential for market disruption or financial instability. Before taking any measures referred to in paragraph 1, the competent authority of the home Member State shall notify the facilitator and shall consult the members of the relevant college. The members of the college shall do everything reasonable within their power to reach an agreement on the necessity to take any measures referred to in paragraph 1. In the absence of agreement between the members of the college, the competent authority of the home Member State shall, at the request of any member of the college or on its own initiative, request advice from CESR. CESR shall provide its advice within 10 working days of receipt of such request. In the absence of agreement between the members of the college on whether to take any measures referred to in paragraph 1 within 15 working days after the matter was notified to the facilitator as referred to in the first subparagraph, the competent authority of the home Member State may adopt a decision. Any deviation of that decision from the opinions expressed by the other members of the college and, where appropriate, the advice provided by CESR shall be fully reasoned. The competent authority of the home Member State shall notify its decision, without undue delay, to the facilitator and CESR. This paragraph shall apply without prejudice to Article 20. Where the competent authority of a Member State has established that a registered credit rating agency whose ratings are used within its territory breaches the obligations arising from this Regulation, it may take the following measures: adopt the supervisory measures referred to in Article 24(1)(e) and (f); adopt measures referred to in Article 24(1)(d) within its jurisdiction and, where so doing, duly consider the measures already taken or envisaged by the competent authority of the home Member State; impose the suspension of the use of credit ratings of that credit rating agency for regulatory purposes by institutions referred to in Article 4(1) whose registered office is located within its jurisdiction, subject to the transitional period referred to in Article 24(2); request the relevant college to examine whether the measures referred to in points (b), (c) or (d) of Article 24(1) are needed. Before the adoption of measures referred to in points (a), (b) or (c) of paragraph 1, the competent authority shall notify the facilitator and consult the members of the relevant college. The members of the college shall do everything reasonable within their power to reach an agreement on the necessity to take any measures referred to in points (a) and (b) of paragraph 1. In the event of disagreement, the facilitator shall, at the request of any of the members of the college or on its own initiative, request advice from CESR. CESR shall provide its advice within 10 working days of receipt of such request. In the absence of an agreement between the members of the relevant college within 15 working days of the matter being notified to the facilitator in accordance with paragraph 2, the competent authority of the Member State concerned may adopt a decision. Any deviation of its decision from the opinions expressed by the other members of the college and, where appropriate, the advice provided by CESR shall be fully reasoned. The competent authority of the Member State concerned shall notify its decision, without undue delay, to the facilitator and CESR. This Article shall apply without prejudice to Article 20.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-27 · Text as adopted (Official Journal); later amendments are not incorporated in this text.