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The European Securities and Markets Authority (ESMA) has not complied with the European Credit Rating Regulation by not granting the credit rating of the ESMA without negligence of the share of the big five banks. According to ESMA, this is the first time banks have started doing this since the start of the regulation in 2013.
In order to be able to establish credit ratings and accounts under this Regulation, you must have been notified and authorized to be a rating agency. The five banks are not registered as credit rating agencies and have not done so, says ESMA.
Fictitious estimates made
Banks will make unjustified credit ratings between clients between June 2011 and August 2016 and in the case of SEB until May 2018. Evaluations included fictitious valuations – unofficial values .
In its decision to impose a fine of 495,000 euros – just over 5.1 million Swedish kroner – the European Authority explains that the violations of the acquis were in force on six months, but at the same time notes that the banks have volunteered to ensure that the violations will not happen again in the future – after the authorities have become aware of them.
If the Banks Appeal the Decision,
Question of Interpretation
From the SEB, reference is made to a press release on Monday morning It clarifies that the question relates to a scale of credit that Nordic banks have used in their investment analysis of corporate bonds. The Bank notes that, according to the regulations in force, only credit rating agencies are authorized to carry out a credit rating for companies. However, SEB says that the regulations allow exemptions for recommendations and analysis of investments, which the bank considers to be committed.
SEB writes: "ESMA's decision implies that the agency interprets the scope of application closer than SEB. ESMA has therefore come to the conclusion that SEB has breached the CRAR (Credit Rating Regulation). "
The bank will pay the amount of the penalty, it is said, but also considers an appeal.
GP also asked Nordea and Handelsbanken.
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