Regulation (EC) No 1060/2009 of the European Parliament and of the CouncilShow full title

Section E U.K. Disclosures

I. General disclosures U.K.

A credit rating agency shall generally disclose the fact that it is registered in accordance with this Regulation and the following information: U.K.

1. any actual and potential conflicts of interest referred to in point 1 of Section B; U.K.

2. a list of its ancillary services; U.K.

[F1 3. the policy of the credit rating agency concerning the publication of credit ratings and other related communications including rating outlooks;] U.K.

Textual Amendments

F1 Substituted by Regulation (EU) No 462/2013 of the European Parliament and of the Council of 21 May 2013 amending Regulation (EC) No 1060/2009 on credit rating agencies (Text with EEA relevance).

4. the general nature of its compensation arrangements; U.K.

5. the methodologies, and descriptions of models and key rating assumptions such as mathematical or correlation assumptions used in its credit rating activities as well as their material changes; U.K.

6. any material modification to its systems, resources or procedures; and U.K.

7. where relevant, its code of conduct. U.K.

II. Periodic disclosures U.K.

A credit rating agency shall periodically disclose the following information: U.K.

1. every six months, data about the historical default rates of its rating categories, distinguishing between the main geographical areas of the issuers and whether the default rates of these categories have changed over time; U.K.

[F2 2. annually, the following information: U.K.

(a)

[F1 list of fees charged to each client for individual credit ratings and any ancillary services;

(aa)

its pricing policy, including the fees structure and pricing criteria in relation to credit ratings for different asset classes;]

(b)

a list of those clients of the credit rating agency whose contribution to the growth rate in the generation of revenue of the credit rating agency in the previous financial year exceeded the growth rate in the total revenues of the credit rating agency in that year by a factor of more than 1,5 times. Any such client shall be included on the list only where, in that year, it accounted for more than 0,25 % of the worldwide total revenues of the credit rating agency at global level; and

(c)

a list of credit ratings issued during the year, indicating the proportion of unsolicited credit ratings among them.]

For the purposes of this point, ‘client’ means an entity, its subsidiaries, and associated entities in which the entity has holdings of more than 20 %, as well as any other entities in respect of which it has negotiated the structuring of a debt issue on behalf of a client and where a fee was paid, directly or indirectly, to the credit rating agency for the rating of that debt issue.

Textual Amendments

F2 Substituted by Regulation (EU) No 513/2011 of the European Parliament and of the Council of 11 May 2011 amending Regulation (EC) No 1060/2009 on credit rating agencies (Text with EEA relevance).

III. Transparency report U.K.

A credit rating agency shall make available annually the following information: U.K.

1. detailed information on legal structure and ownership of the credit rating agency, including information on holdings within the meaning of Articles 9 and 10 of Directive 2004/109/EC of the European Parliament and of the Council of 15 December 2004 on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on [F3 United Kingdom regulated markets]; U.K.

Textual Amendments

F3 Words in Annex 1 s. E Pt. 3 para. 1 substituted by virtue of (31.12.2020) by The Credit Rating Agencies (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/266), regs. 1(3), 97(d) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

2. a description of the internal control mechanisms ensuring quality of its credit rating activities; U.K.

[F1 3. statistics on the allocation of its staff to new credit ratings, credit rating reviews, methodology or model appraisal and senior management, and on the allocation of staff to rating activities with regard to the different asset classes (corporate — structured finance — sovereign);] U.K.

4. a description of its record-keeping policy; U.K.

5. the outcome of the annual internal review of its independent compliance function; U.K.

6. a description of its management and rating analyst rotation policy; U.K.

[F1 7. financial information on the revenue of the credit rating agency, including total turnover, divided into fees from credit rating and ancillary services with a comprehensive description of each, including the revenues generated from ancillary services provided to clients of credit rating services and the allocation of fees to credit ratings of different asset classes. Information on total turnover shall also include a geographical allocation of that turnover to revenues generated in the Union and revenues worldwide;] U.K.

8. a governance statement within the meaning of [F4 the United Kingdom provisions which implemented Article 20(1) of Directive 2013/34/EU] on the annual accounts of certain types of companies(1). For the purposes of that statement, the information referred to in [F5 those provisions] shall be provided by the credit rating agency irrespective of whether it is subject to Directive 2004/25/EC of the European Parliament and of the Council of 21 April 2004 on takeover bids(2). U.K.

Textual Amendments

F4 Words in Annex 1 s. E Pt. 3 para. 8 substituted (31.12.2020) by The Credit Rating Agencies (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/266), regs. 1(3), 97(e)(i) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F5 Words in Annex 1 s. E Pt. 3 para. 8 substituted (31.12.2020) by The Credit Rating Agencies (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/266), regs. 1(3), 97(e)(ii) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

(1)

OJ L 222, 14.8.1978, p. 11.

(2)

OJ L 142, 30.4.2004, p. 12.