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EU to Strip Five Countries of Some Market Access Rights, FT Says
The European Commission will deem that Canada, Brazil, Singapore, Argentina and Australia don’t regulate credit ratings agencies with the same rigor as the EU, the Financial Times reports citing a document. The decision would withdraw some market access rights of the country, removing a status that makes it possible for European banks to rely on the ratings.
This will be the first time that the access rights have been withdrawn, though temporary permissions for Switzerland were allowed to lapse earlier.
Credit ratings agencies can also a different pathway, endorsement, to allow individual agencies to get access by setting up units in the EU that vouch for ratings produced elsewhere
Head of European compliance at DBRS told the FT that the EC decision to repeal equivalence for Canada will have no impact on the agency’s business.
BULLSHIT it won't but they would say that now.
https://www.bnnbloomberg.ca/eu-to-strip-five-countries-of-some-market-access-rights-ft-says-1.1293578
July 19, There’s No Such Thing as Free Access, EU to Warn U.K. on Banks
The U.K. should expect a “rigorous” assessment of its regulations before financial firms will be allowed to do business in the European Union after Brexit, according to a draft document to be presented by officials in Brussels later this month.
The European Commission, the EU’s executive arm, is set to lay out its most recent approach to the so-called equivalence system, which allows foreign financial firms to do business in the bloc if regulations in their home country are deemed tough enough. Officials have made it clear that this system is all that’s on offer for the City of London after the U.K.’s departure.
“The determination of the equivalence of a third-country regime results from a rigorous case-by-case assessment,” according to the document. Without mentioning the U.K. by name, it said that “high-impact” countries with tighter links to the EU’s financial system “present a more significant set of risks which the commission will need to address.”
Sam Woods, the top banking regulator at the Bank of England, has said that a “British style” of oversight with less detailed legislation and more flexibility granted to regulators could improve the system. But that approach could be at odds with keeping firms’ access to the EU if Brussels finds that the U.K. has drifted too far from the bloc’s regulations after Brexit.
https://www.bloomberg.com/news/articles/2019-07-18/there-s-no-such-thing-as-free-access-eu-to-warn-u-k-on-banks