ESMA proposes changes to supervisory fees

The European Securities and Markets Authority (ESMA) has released technical advice to the European Commission on the supervisory fees charged to credit rating agencies (CRAs).

Its final report is based on feedback from a public consultation and proposes changes to the calculation and collection of supervisory fees in the Delegated Regulation.

The first of the changes is a fixed registration fee of €40,000. Its second change is an annual supervisory fee of 0.5% of turnover to CRAs with annual revenues of between €4m to €15m. The regulator has not proposed changes to fee structures for companies with annual revenues above €15m.

ESMA claims these changes will help it meet its regulatory obligation to charge fees that cover its costs whilst remaining proportionate to revenues of the firms.

Additionally, the regulator has recommended several changes to streamline the fee collection process and align ESMA’s approach to supervisory mandates. This includes a requirement for supervisory fees to be paid in a single instalment in the first quarter of the financial year. It hopes this will provide it with sufficient funds to support its supervision.

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