CRA3: ESMA Proposes Wide-Ranging Disclosure Requirements on EU Originators, Sponsors and Issuers

March 17, 2014

The European Securities and Markets Authority (ESMA) published a consultation paper in February 2014, setting out (amongst other things1) the draft Regulatory Technical Standards (RTS) on disclosure requirements for structured finance instruments (SFIs), as required under Article 8b of the Credit Rating Agencies Regulation2 (the Regulation) as amended by the Credit Rating Agencies 3 Regulation3 (CRA3). The RTS will complement the existing regulatory framework for Credit Rating Agencies (CRAs) within the European Union (EU), as implemented under or pursuant to the Regulation.


The CRA3 disclosure requirements will apply to the originator, sponsor and issuer of an SFI if any one of them is established in the EU and is in addition to (where applicable) existing disclosure requirements under the Prospectus Directive4, Article 409 of the Capital Requirements Regulation5 (CRR), the reporting requirements for eligible collateral under the European Central Bank (ECB) and Bank of England funding schemes, and disclosure obligations under Rule 17g-56.

Read "CRA3: ESMA Proposes Wide-Ranging Disclosure Requirements on EU Originators, Sponsors and Issuers".

Footnotes

1 The consultation paper also sets out draft Regulatory Technical Standards covering (i) the European Rating Platform for reporting by CRAs and (ii) periodic reporting on fees charged by CRAs (each as required under Article 21.4(a) of the Regulation as amended by CRA3).
2 Regulation (EC) 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies.
3 Regulation (EU) 462/2013 of the European Parliament and of the Council of 21 May 2013, amending Regulation (EC) 1060/2009 on credit rating agencies.
4 Directive 2003/71/EC of the European Parliament and of the Council of 4 November 2003 on the prospectus to be published when securities are offered to the public or admitted to trading and amending Directive 2001/34/EC.
5 Regulation (EU) 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) 648/2012.
6 US Securities Exchange Act of 1934.