ESMA sanctions DBRS

first_img Premature retraction of government supports poses risks The penalties reflect a failure to comply with corporate governance, compliance and record-keeping requirements under European rules, the ESMA states. This is the first time a rating agency has been fined under those rules. The ESMA reports that its investigation found that DBRS did not meet certain requirements regarding: adequate record-keeping; internal procedures and control mechanisms; and a permanent and effective compliance function. The ESMA determined that the breaches warranted enforcement action, and that the decision also took into account the steps taken by the firm to remedy the infringement, the regulator notes. The sole responsibility for supervising credit rating agencies in Europe was given to the ESMA in July 2011, as policymakers moved to address concerns revealed by the financial crisis. It has the power to take enforcement action where it discovers a breach of those rules, ranging from the issuance of public notices to the imposition of fines and withdrawal of registration. Share this article and your comments with peers on social media Facebook LinkedIn Twitter ESMA sanctions Moody’s for conflict violations European securities regulators have sanctioned Canadian credit rating agency DBRS Ratings Ltd. over alleged shortcomings in its internal controls. The European Securities and Markets Authority (ESMA) issued a public notice on Monday censuring Toronto-based DBRS and imposing a €30,000 ($41,358) fine. ESG ratings need regulation: ESMA Related news Keywords Credit ratingsCompanies DBRS last_img

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