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.

ANNEX XI USE OF ENDORSEMENT (Article 24)

Third-country credit rating agency

  1. (1)

    The following information for each relevant third-country credit rating agency:

    1. (a)

      its full name;

    2. (b)

      its legal status, including an excerpt from the relevant commercial or court register, or other form of evidence of the place of incorporation and scope of business activity or other details of company registration;

    3. (c)

      its country of establishment;

    4. (d)

      the address of its registered office;

    5. (e)

      evidence that the third-country credit rating agency is authorised or registered and is subject to supervision in the relevant jurisdiction;

    6. (f)

      the class of credit rating which the credit rating agency expects to endorse; and

    7. (g)

      the number of analysts it employs.

  2. (2)

    An organisational ownership chart of each credit rating agency, its subsidiaries, branches, parent undertaking and subsidiaries controlled by the parent undertaking involved in the process of issuing ratings for which endorsement is envisaged.

Assessment of the third-country regulatory regime

  1. (3)

    In relation to each relevant third-country jurisdiction, detailed information, structured analysis and reasoning for each requirement set out in Articles 6 to 12 of Regulation (EC) No 1060/2009, including any reference to the relevant sections of the third-country law/regulation.

    The obligation set out in the first subparagraph of this point shall not apply where the FCA is satisfied that the requirements of the third-country regime are as stringent as the requirements set out in Articles 6 to 12 of Regulation (EC) No 1060/2009.

Procedures to monitor conduct

  1. (4)

    A description of the measures put in place by the endorsing credit rating agency to monitor that the third-country credit rating agency is fulfilling such requirements and to monitor any potential concerns identified by the endorsing credit rating agency with respect to the fulfilment of such requirements.

Objective reasons

  1. (5)

    An indication of objective reasons for credit ratings to be issued in a third country.

Legislation in the third country

  1. (6)

    Evidence that public authorities are not entitled to interfere with the content of credit ratings and methodologies used by credit rating agencies incorporated in each relevant third-country jurisdiction.