Rating agencies face continued regulatory pressure in Esma proposals for internal control functions

Watchdog launches consultation

The European Securities and Markets Authority (Esma) has launched a consultation on internal controls at credit rating agencies active in the European single market, particularly as they relate to meeting requirements contained in the EU's CRA Regulation.

The consultation asks for views on the proposals put forward such as the criteria for internal controls, their framework and functions. Esma says this is required to show adequate control systems exist, to ensure "the accuracy and integrity of the credit rating process". Fitch hit with record ESMA fine for conflict of interest breach The authority says need for guidance on internal controls was identified in its supervisory work done in 2017 and 2018. Steven Maijoor, Esma chair, said: "The accuracy and integrity of credit ratings is fundamental to ensuring that users have reliab...