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CESR urges European Commission to transfer CRA licensing powers to ESMA

Wednesday 12 May 2010 - by Nicola York

The Committee of European Securities Regulators chairman Eddy Wymeersch has appealed to the European Commission to stop delaying on transferring the powers for regulating credit rating agencies to the future European Securities and Markets Authority because it is putting CESR in a “difficult position”.

Speaking to Global Financial Strategy, Wymeersch says he is getting increasingly frustrated by the Commission’s delays and it is “quite worrisome”.

Under the new supervisory package, the powers for regulating CRAs will fall under ESMA’s remit though it will be a national task to register and license the agencies.

CESR, as the predecessor to ESMA, is currently putting in place the registration procedures and documentation but Wymeersch says there is a limited amount they can do before the Commission puts forward concrete measures to transfer these powers to ESMA.

Wymeersch says: “It is a national task to register and to license the rating agencies. It has to be done by the 27 European states, you can imagine how chaotic all this is going to be.


“And because it is so chaotic, it was the sign at the European Council to have this power transferred to the future ESMA, the future CESR but this is not happening and we are now seven or eight months from the final date which is 1 Jan 2011 and we are still getting nowhere.”


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