The Financial Conduct Authority (FCA), as an independent, public authority, is responsible for the supervision of financial markets in the United Kingdom. The official certification of Creditreform Rating AG now allows institutional investors in the UK to use the ratings from Creditreform Rating for regulatory purposes.
With the certification by the FCA, Creditreform Rating has taken the next step towards its goal of establishing a European alternative for ratings in the international capital market. With access to the UK financial market, British investors will now be able to use their ratings post-Brexit. Ratings intended for regulatory purposes in the United Kingdom must be assigned or confirmed by a registered or certified credit rating agency (CRA).
The FCA was established in 2013 as an independent regulatory body for financial services in the United Kingdom. Alongside the Prudential Regulation Authority (PRA) and the Bank of England, the FCA regulates and supervises the British financial market, including resident banks, insurance companies, investment firms, securities firms, and other financial service providers. Its main tasks include protecting the integrity of the financial system, ensuring consumer protection, and strengthening trust in the financial markets.
"Certification by the Financial Conduct Authority opens up access to the British market for us, and we look forward to offering our assessments and analysis in the UK as well. Our ratings are intended to serve as an indicator of the risk and creditworthiness of issuers and their financial products, and above all, to create more transparency in the financial market", says Dr. Michael Munsch, Board Member of Creditreform Rating AG.
This is already the second significant recognition of Creditreform Rating by a central financial supervisory authority this year. In March, the company was included in the portfolio of recognised rating agencies by the ‘Deposit guarantee scheme of German banks’ (Entschädigungseinrichtung deutscher Banken (EdB)).