Guidelines on Internal Control for Credit Rating Agencies (CRAs)
On 30 September 2020, ESMA published its final report on its Guidelines on Internal Control for CRAs.
The purpose of these Guidelines is to communicate what ESMA considers to be the characteristics and components of an effective internal control structure within a CRA. The guidelines are structured according to two main parts, establishing:
- ESMA’s views on the components and characteristics that should be present in a CRA to demonstrate a strong framework for internal controls; and
- ESMA’s views on the components and characteristics that a CRA should evidence to demonstrate the effectiveness of internal control functions within such a framework.
The Guidelines will be translated into all official languages as well as published on ESMA’s website and will apply from 1 July 2021.