Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

Article 3 Assessment of compliance by the FCA

  1. (1)

    In addition to examining the compliance of credit rating agencies with the provision of Article 8(3) of Regulation (EC) No 1060/2009 in relation to an application for registration according to Article 15 of that Regulation, the FCA shall examine compliance by each credit rating agency with Article 8(3) of Regulation (EC) No 1060/2009 on an ongoing basis as the FCA considers appropriate.

  2. (2)

    When examining the compliance of credit rating agencies with the provision of Article 8(3) of Regulation (EC) No 1060/2009 the FCA shall use all information relevant to assess the process of developing, approving, using and reviewing credit rating methodologies.

  3. (3)

    In determining the appropriate level of assessment, the FCA shall consider whether a credit rating methodology has a demonstrable history of consistency and accuracy in predicting credit worthiness and may have regard to methods of validation such as appropriate default or transition studies designed to test that specific methodology.