ESAs Joint Board of Appeal dismisses appeal brought by Scope Ratings GmbH in respect of breach of CRA Regulation
Yesterday, on 11 January 2020, the Joint Board of Appeal (JBoA) of the European Supervisory Authorities (ESAs) published its unanimous decision, adopted on 28 December 2020, to dismiss the appeal brought by the credit rating company Scope Ratings GmbH against the European Securities and Markets Authority ESMA) in respect of the interpretation of the applicable legal provisions of the Credit Rating Agencies Regulation (the CRA Regulation).
The case revolves around the appellant’s 2015 covered bond methodology, its application in the context of unsolicited ratings issued by the Appellant in 2015, and the Appellant’s subsequent amendment of this methodology in 2016. The appeal was brought against the Decision of the ESMA Board of Supervisors of 28 May 2020, which found that the appellant infringed several provisions of the CRA Regulation, and imposed on it both a fine and a supervisory measure (in the form of a public notice) pursuant to that Regulation.
In the decision made public yesterday, the JBoA unanimously decided to dismiss the appeal, finding that ESMA did not err in law in its interpretation of the applicable legal provisions of the CRA Regulation.
The Decision is available here.