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Montevideo, August 6th 2020 - 02:20 UTC

 

 

EU warns Argentina and Brazil on credit agencies ratings regulations

Monday, July 29th 2019 - 09:57 UTC
Full article 3 comments
Valdis Dombrovskis, EU commission vice-president told the FT that the decision on rating agencies set “some kind of a precedent for monitoring adherence”. Valdis Dombrovskis, EU commission vice-president told the FT that the decision on rating agencies set “some kind of a precedent for monitoring adherence”.

The European Commission will deem that Canada, Brazil, Singapore, Argentina and Australia don't regulate credit ratings agencies with the same rigor as the EU, the Financial Times reported on Sunday, citing a document. The decision would withdraw some market access rights of the country, removing a status that makes it possible for European banks to rely on the ratings.

This will be the first time that the access rights have been withdrawn, though temporary permissions for Switzerland were allowed to lapse earlier.

According to FT, about 40 equivalence provisions are scattered throughout different EU financial regulations and are intended to make sure that trading platforms, brokers and other companies based in non-EU financial centers can serve European clients, so long as they are subject to strong regulation and supervision. The provisions are used by more than 30 countries.

Valdis Dombrovskis, the EU commission vice-president in charge of financial regulation, told the FT that the decision on rating agencies set “some kind of a precedent for monitoring adherence”.

“We had extensive dialogue with those countries, so they knew there was an issue and they knew there may be consequences,” he said. “If they, during several years, chose not to update their legislation, then we had to take the decision to withdraw equivalence.”

Top Comments

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  • :o))

    REF: “the decision on rating agencies set “some kind of a precedent for monitoring adherence”

    Monitoring someone else's affairs is always complicated. Each one keeps poking their noses into the affairs of the others.

    Why can't each one mind their own businesses?

    In any case, Injustice+suffering+corruption is rampant even in the 1st world countries. Yet everyone fakes their serious concerns about the problems of The Others. That amounts to nothing other than well-orchestrated hypocritical diplomacy!

    Jul 29th, 2019 - 04:17 pm 0
  • Chicureo

    They just want their money returned...

    Jul 29th, 2019 - 08:54 pm 0
  • :o))

    @Chicureo

    REF: They just want their money returned...

    PLEASE, do have at least SOME mercy on The Beggars! They have NOTHING - absolutely nothing - to justify their wrong-doings!

    Jul 30th, 2019 - 03:25 pm 0
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