Securities regulators in Ontario, Quebec, and British Columbia have signed an agreement with European regulators to facilitate the oversight of credit rating agencies.
The European Security Markets Authority announced earlier this week that it has concluded that the proposed new regulatory regime for CRAs in Canada, and several other countries, is comparable to new rules in Europe — which clears the way for ratings issued in Canada to continue to be used by European firms for regulatory purposes.
Canadian regime for credit rating agencies in line with European rules, ESMA says
In Friday’s OSC Bulletin, it was reported that the Ontario Securities Commission, the Autorité des marchés financiers, and the B.S. Securities Commission, have entered into a memorandum of understanding with the ESMA to facilitate co-operation between the authorities for the supervision of rating agencies that operate in both the European Union and Canada.
The agreement, which sets out a framework for consultation, cooperation and information-sharing related to the day-to-day supervision and oversight of credit rating agencies that operate in multiple jurisdictions, aims to recognize the importance of ongoing supervisory and enforcement-related cooperation in this area.
In Ontario, the agreement was submitted to the Finance minister for approval on March 13. The minister has 60 days to approve or reject it, but the OSC indicates that it requested an expedited decision by April 20, which is when the new regulatory regime for CRAs is due to take effect.