The Committee of European Banking Supervisors (CEBS) has today published its advice to the European Commission on the non-eligibility of entities only producing credit scores for ECAI recognition.
CEBS published a consultation paper (CP43) on its draft advice on 13 October 2010 with a view to proposing an amendment to Directive 2006/48/EC. This amendment includes a specific requirement that an ECAI has to be registered in accordance with the Regulation as a precondition for being recognised as an eligible ECAI for capital requirement purposes. This implies that entities which cannot register under the Regulation (notably entities only producing credit scores) will not be eligible to apply for ECAI recognition, the only possible exception being Central Banks.
The comments received following the consultation period (which ended on 13 November 2010) do not put into question CEBS’s intention to provide this advice to the European Commission and are taken into account in the advice published today, as further detailed in the feedback document. CEBS will also recommend that a transitional period for de-recognition of credit scoring entities is included.