Demonstration of compliance
- Maintain evidence of credit rating methodology compliance for ESMA
Retained EU Law
2012
United Kingdom
Commission Delegated Regulation (EU) No 447/2012 of 21 March 2012 supplementing Regulation (EC) No 1060/2009 of the European Parliament and of the Council on credit rating agencies by laying down regulatory technical standards for the assessment of compliance of credit rating methodologies (Text with EEA relevance)
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What's here
5 compliance obligations
What this Act requires
Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.
Assessing that a credit rating methodology is rigorous
- Use rigorous, documented credit rating methodologies
Assessing that a credit rating methodology is systematic
- Apply credit rating methodologies systematically and update promptly after reviews
Assessing that a credit rating methodology is continuous
- Design credit rating methodologies to be continuous and adaptable
Assessing that a credit rating methodology is subject to validation based on historical experience including back testing
- Validate credit rating methodologies using historical evidence and back-testing
Browse 4 other sections — procedural / definitional / commencement
Subject matter
Assessment of compliance by ESMA
Exemption
Entry into force
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