Amendments

Regulation (EC) No 1060/2009 is hereby amended as follows:

in Article 3(1), the following points are added:

“competent authorities” means the authorities designated by each Member State in accordance with Article 22;

“sectoral legislation” means the legal acts of the Union referred to in the first subparagraph of Article 4(1);

“sectoral competent authorities” means the national competent authorities designated under the relevant sectoral legislation for the supervision of credit institutions, investment firms, insurance undertakings, assurance undertakings, reinsurance undertakings, undertakings for collective investment in transferable securities (UCITS), institutions for occupational retirement provision and alternative investment funds.’;

Article 4 is amended as follows:

in paragraph 1, the first subparagraph is replaced by the following:

‘1. Credit institutions as defined in Directive 2006/48/EC, investment firms as defined in Directive 2004/39/EC, insurance undertakings subject to the First Council Directive 73/239/EEC of 24 July 1973 on the coordination of laws, regulations and administrative provisions relating to the taking-up and pursuit of the business of direct insurance other than life assurance ( *1 ) , assurance undertakings as defined in Directive 2002/83/EC of the European Parliament and of the Council of 5 November 2002 concerning life assurance ( *2 ) , reinsurance undertakings as defined in Directive 2005/68/EC of the European Parliament and of the Council of 16 November 2005 on reinsurance ( *3 ) , UCITS as defined in Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) ( *4 ) , institutions for occupational retirement provision as defined in Directive 2003/41/EC and alternative investment funds may use credit ratings for regulatory purposes only if they are issued by credit rating agencies established in the Union and registered in accordance with this Regulation.

( *1 ) OJ L 228, 16.8.1973, p. 3 ."

( *2 ) OJ L 345, 19.12.2002, p. 1 ."

( *3 ) OJ L 323, 9.12.2005, p. 1 ."

( *4 ) OJ L 302, 17.11.2009, p. 32 .’;"

paragraph 3 is amended as follows:

points (b), (c) and (d) are replaced by the following:

the credit rating agency has verified and is able to demonstrate on an ongoing basis to the European Supervisory Authority (European Securities and Markets Authority) established by Regulation (EU) No 1095/2010 of the European Parliament and of the Council ( *5 ) (ESMA), that the conduct of credit rating activities by the third-country credit rating agency resulting in the issuing of the credit rating to be endorsed fulfils requirements which are at least as stringent as the requirements set out in Articles 6 to 12;

the ability of ESMA to assess and monitor the compliance of the credit rating agency established in the third country with the requirements referred to in point (b) is not limited;

the credit rating agency makes available on request to ESMA all the information necessary to enable ESMA to supervise on an ongoing basis the compliance with the requirements of this Regulation;

( *5 ) OJ L 331, 15.12.2010, p. 84 .’;"

point (h) is replaced by the following:

there is an appropriate cooperation arrangement between ESMA and the relevant supervisory authority of the credit rating agency established in a third country. ESMA shall ensure that such a cooperation arrangement shall specify at least:

the mechanism for the exchange of information between ESMA and the relevant supervisory authority of the credit rating agency established in a third country; and

the procedures concerning the coordination of supervisory activities in order to enable ESMA to monitor credit rating activities resulting in the issuing of the endorsed credit rating on an ongoing basis.’;

Article 5 is amended as follows:

paragraph 2 is replaced by the following:

‘2. The credit rating agency referred to in paragraph 1 may apply for certification. The application shall be submitted to ESMA in accordance with the relevant provisions of Article 15.’;

in paragraph 3, the first subparagraph is replaced by the following:

‘3. ESMA shall examine and decide on the application for certification in accordance with the procedure set out in Article 16. The certification decision shall be based on the criteria set out in points (a) to (d) of paragraph 1 of this Article.’;

paragraph 4 is replaced by the following:

‘4. The credit rating agency referred to in paragraph 1 may also apply to be exempted:

on a case-by-case basis from complying with some or all of the requirements set out in Section A of Annex I and Article 7(4) if the credit rating agency is able to demonstrate that the requirements are not proportionate in view of the nature, scale and complexity of its business and the nature and range of its issuing of credit ratings;

from the requirement of physical presence in the Union where such a requirement would be too burdensome and disproportionate in view of the nature, scale and complexity of its business and the nature and range of its issuing of credit ratings.

An application for an exemption under point (a) or (b) of the first subparagraph shall be submitted by the credit rating agency together with the application for certification. When assessing such an application, ESMA shall take into consideration the size of the credit rating agency referred to in paragraph 1, having regard to the nature, scale and complexity of its business and the nature and range of its issuing of credit ratings, as well as the impact of the credit ratings issued by the credit rating agency on the financial stability and integrity of the financial markets of one or more Member States. On the basis of those considerations, ESMA may grant such exemption to the credit rating agency referred to in paragraph 1.’;

paragraph 5 is deleted;

in paragraph 6, the third subparagraph is replaced by the following:

‘In order to take account of developments on financial markets, the Commission shall adopt, by means of delegated acts in accordance with Article 38a, and subject to the conditions of Articles 38b and 38c, measures to specify further or amend the criteria set out in points (a), (b) and (c) of the second subparagraph of this paragraph.’;

paragraphs 7 and 8 are replaced by the following:

‘7. ESMA shall establish cooperation agreements with the relevant supervisory authorities of third countries whose legal and supervisory frameworks have been considered equivalent to this Regulation in accordance with paragraph 6. Such arrangements shall specify at least:

the mechanism for the exchange of information between ESMA and the relevant supervisory authorities of the third countries concerned; and

the procedures concerning the coordination of supervisory activities.

8. Articles 20 and 24 shall apply mutatis mutandis to certified credit rating agencies and to credit ratings issued by them.’;

in Article 6, paragraph 3 is amended as follows:

in the first subparagraph, the introductory part is replaced by the following:

‘3. At the request of a credit rating agency, ESMA may exempt a credit rating agency from complying with the requirements of points 2, 5 and 6 of Section A of Annex I and Article 7(4) if the credit rating agency is able to demonstrate that those requirements are not proportionate in view of the nature, scale and complexity of its business and the nature and range of issue of credit ratings and that:’;

the second subparagraph is replaced by the following:

‘In the case of a group of credit rating agencies, ESMA shall ensure that at least one of the credit rating agencies in the group is not exempted from complying with the requirements of points 2, 5 and 6 of Section A of Annex I and Article 7(4).’;

Article 9 is replaced by the following:

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 ANNEX I ANNEX II ‘ANNEX III ‘ANNEX IV