EU to strip five countries of some market access rights

The European Commission will deem that Canada, Brazil, Singapore, Argentina and Australia don’t regulate credit ratings agencies with the same rigour as the EU, the Financial Times reported, 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This will be the first time that the access rights have been withdrawn, though temporary permissions for Switzerland were allowed to lapse earlier.
About 40 equivalence provisions are scattered throughout different EU financial regulations and are intended to make sure that trading platforms, brokers and other companies based in non-EU financial centres can serve European clients, so long as they are subject to strong regulation and supervision. The provisions are used by more than 30 countries.

 

Via Financial Times

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