The European Securities and Markets Authority (ESMA) has published a questions and answers paper (Q&A) on the implementation of the CRA III Regulation. The paper is designed to provide clarity on the Regulation’s requirements and practical application. In light of this, the Q&A covers the following topics:
- the timing of publication of sovereign ratings;
- deviations from the sovereign ratings calendar;
- investments in credit ratings agencies; and
- disclosure and presentation of unsolicited credit ratings.
ESMA intends to continually edit and update the Q&A as and when new questions arise. It will periodically review the Q&A to identify if, in a certain area, there is a need to convert some of the material into guidelines and recommendations.