FCA and ESMA to endorse credit ratings in the event of a no-deal Brexit

Regulatory Updates | 18/03/19

The Financial Conduct Authority (FCA) has announced it has assessed the European regulatory and supervisory regime to be ‘as stringent as’ the UK regime for the purpose of allowing UK-registered credit rating agencies (CRAs) to endorse credit ratings from affiliated EU CRAs for regulatory use in the event of the UK withdrawing from the EU without a deal.

The European Securities and Markets Authority (ESMA) has similarly published a statement setting out the implications for credit rating agencies (CRAs) based in the United Kingdom and has clarified endorsement of credit ratings in the case of a no deal-Brexit.