The Credit Rating Agencies Regulations 2010

Statutory Instruments

2010 No. 906

Financial Services And Markets

The Credit Rating Agencies Regulations 2010

Made

22nd March 2010

Laid before Parliament

23rd March 2010

Coming into force

7th June 2010

The Treasury are a government department designated for the purposes of section 2(2) of the European Communities Act 1972M1 in relation to—

(a) credit ratings and credit rating agenciesM2 ;

(b) credit and financial institutions and the taking of deposits or other repayable funds from the publicM3 ; and

(c) measures relating to investment firms and to the provision of investment servicesM4 .

The Treasury, in exercise of the powers conferred by section 2(2) of the European Communities Act 1972 and section 349(1)(b) of the Financial Services and Markets Act 2000 M5 , make the following Regulations:

Modifications etc. (not altering text)

C1 Regulations: power to modify conferred (11.7.2023) by Financial Services and Markets Act 2023 (c. 29), ss. 3, 86(3), Sch. 1 Pt. 2; S.I. 2023/779, reg. 2(d)

Marginal Citations

M1 1972 c.68; section 2(2) was amended by section 27(1)(a) of the Legislative and Regulatory Reform Act 2006 (c.51) and by the Schedule to the European Union (Amendment) Act 2008 (c.7).

M2 S.I. 2009/3214.

M3 S.I. 2001/3495.

M4 S.I. 1993/2661.

M5 2000 c. 8.

PART 1 U.K. General

Citation and commencement U.K.

1.  These Regulations may be cited as the Credit Rating Agencies Regulations 2010 and shall come into force on 7th June 2010.

Interpretation U.K.

2.—(1) In these Regulations—

“the Act” means the Financial Services and Markets Act 2000;

F1 ...

“the EC Regulation” means Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies M6 [F2 , as amended 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 ];

F3 ...

[F4 “the FCA” means the Financial Conduct Authority.]

“overseas competent authority” means an authority designated by a Member State other than the United Kingdom in accordance with Article 22(1) of the EC Regulation (competent authorities);

“protected item” has the same meaning as in section 413 of the Act (protected items).

(2) Expressions used in these Regulations which are listed in Article 3 of the EC Regulation (definitions) have the meaning given in that Article.

Textual Amendments

F1 Words in reg. 2(1) omitted (1.4.2013) by virtue of The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 188(a)(i)

F2 Words in reg. 2(1) inserted (1.7.2011) by The Credit Rating Agencies (Amendment) Regulations 2011 (S.I. 2011/1435), regs. 1, 4(a)(i)

F3 Words in reg. 2(1) omitted (31.12.2020) by virtue of The Credit Rating Agencies (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/266), regs. 1(3), 50(2) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F4 Words in reg. 2(1) inserted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 188(a)(ii)

Marginal Citations

M6 OJ L 302, 17.11.2009, p. 1.

PART 2 U.K. [F5 The Financial Conduct Authority]

Textual Amendments

F5 Words in Pt. 2 heading substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 188(b)

Designation of competent authority U.K.

3.   [F6 The FCA] is the competent authority for the purposes of the EC Regulation.

Textual Amendments

F6 Words in reg. 3 substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 188(c)

Fees U.K.

F7 4.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F7 Reg. 4 omitted (1.7.2011) by virtue of The Credit Rating Agencies (Amendment) Regulations 2011 (S.I. 2011/1435), regs. 1, 4(b) (with reg. 5)

Disclosure of confidential information U.K.

5.  Section 348(1) of the Act (restrictions on disclosure of confidential information by [F8 FCA, PRA etc]) does not prevent the [F9 FCA] from disclosing confidential information where the disclosure is permitted by the EC Regulation.

Textual Amendments

F8 Words in reg. 5 substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 188(d)(i)

F9 Word in reg. 5 substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 188(d)(ii)

Guidance U.K.

6.—(1) The [F10 FCA] may give guidance consisting of such information and advice as it considers appropriate with respect to any matter relating to the functions of the [F10 FCA] under the EC Regulation.

(2) The [F10 FCA] may—

(a) publish its guidance;

(b) offer copies of its published guidance for sale at a reasonable price;

(c) if it gives guidance in response to a request made by any person, make a reasonable charge for that guidance.

Textual Amendments

F10 Word in reg. 6 substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 188(e)

Miscellaneous U.K.

7.  The functions of the [F11 FCA] under the EC Regulation are to be treated for the purposes of [F12 Part 1 (general) and paragraphs 16 (status) and 33 (exemption from liability in damages) of Schedule 1ZA] to the Act as functions conferred on the [F11 FCA] under the Act.

Textual Amendments

F11 Words in reg. 7 substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 188(f)(i)

F12 Words in reg. 7 substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 188(f)(ii)

F13 PART 3 U.K. Applications for certification and registration

Textual Amendments

F13 Pts. 3-8 omitted (1.7.2011) by virtue of The Credit Rating Agencies (Amendment) Regulations 2011 (S.I. 2011/1435), regs. 1, 4(d)

Language for applications U.K.

F13 8.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Approval decisions U.K.

F13 9.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Refusal decisions U.K.

F13 10.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F13 PART 4 U.K. Investigatory Powers

Application of this Part U.K.

F13 11.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation of this Part U.K.

F13 12.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Information and documents U.K.

F13 13.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Reports by skilled persons U.K.

F13 14.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Investigations U.K.

F13 15.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Investigators: powers and evidence U.K.

F13 16.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Information and documents: supplemental provisions U.K.

F13 17.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Entry of premises under warrant U.K.

F13 18.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F13 PART 5 U.K. Supervisory measures

Appropriate measures U.K.

F13 19.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Injunctions U.K.

F13 20.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F13 PART 6 U.K. Penalties and offences

Financial penalties U.K.

F13 21.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Statements of policy U.K.

F13 22.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Publication of penalties U.K.

F13 23.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Offences relating to investigatory powers U.K.

F13 24.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Offence of misleading the Authority U.K.

F13 25.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Offences by bodies corporate etc U.K.

F13 26.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Proceedings for offences U.K.

F13 27.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Unincorporated associations U.K.

F13 28.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F13 PART 7 U.K. Appeals

Appeals U.K.

F13 29.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F13 PART 8 U.K. Notices

Application of Part 26 of the Act U.K.

F13 30.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 9 U.K. Capital Requirements Regulations 2006

Amendments to the Capital Requirements Regulations 2006 U.K.

F14 31.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F14 Reg. 31 revoked (1.1.2014) by The Capital Requirements Regulations 2013 (S.I. 2013/3115), reg. 1(2), Sch. 3

[F15 PART 10 U.K. ESMA: investigatory powers

Textual Amendments

F15 Pt. 10 inserted (1.7.2011) by The Credit Rating Agencies (Amendment) Regulations 2011 (S.I. 2011/1435), regs. 1, 4(e)

Records of telephone and data traffic: Article 23c(1)(e) of the EC Regulation U.K.

F16 32.   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F16 Regs. 32-34 omitted (31.12.2020) by virtue of The Credit Rating Agencies (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/266), regs. 1(3), 50(3) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

Inspections: Article 23d of the EC Regulation U.K.

F16 33.   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F16 Regs. 32-34 omitted (31.12.2020) by virtue of The Credit Rating Agencies (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/266), regs. 1(3), 50(3) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

Offences: Article 23d inspections U.K.

F16 34.   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

Textual Amendments

F16 Regs. 32-34 omitted (31.12.2020) by virtue of The Credit Rating Agencies (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/266), regs. 1(3), 50(3) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

Bob Blizzard

Dave Watts

Two of the Lords Commissioners of Her Majesty's Treasury

Explanatory Note

(This note is not part of the Regulations)

These Regulations implement Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies (“the EC Regulation”) (OJ L 302, 17.11.2209, p. 1).

The EC Regulation establishes a registration system for credit rating agencies, and requires registered agencies to comply with various provisions relating to independence, conflicts of interest, employees and analysts, methodologies and models, outsourcing, and disclosure and presentation of information. Specified financial institutions may only use credit ratings for regulatory purposes if they have been issued or endorsed by a registered credit rating agency, or issued by an overseas agency that has been certified in accordance with the EC Regulation.

Part 2 of the Regulations designates the Financial Services Authority (“the Authority”) as the competent authority in the United Kingdom for the purposes of the EC Regulation.

Part 3 makes provision relating to applications for certification and registration.

Part 4 makes provision for the investigatory powers of the Authority.

Part 5 provides powers for the Authority to take action where a credit rating agency breaches obligations arising from the EC Regulation.

Part 6 creates penalties and offences which may apply if a person breaches a requirement of the EC Regulation or these Regulations.

Part 7 makes provision for appeals and Part 8 provides for notices.

Part 9 amends the Capital Requirements Regulations 2006 (S.I. 2006/3221) to implement Article 2(3) of the EC Regulation in relation to external credit assessment institutions.

An Impact Assessment of the effect of these Regulations is available on HM Treasury's website (www.hm-treasury.gov.uk) and is annexed to the Explanatory Memorandum which is available alongside these Regulations on the OPSI website (www.opsi.gov.uk).