Article 39
Reports
4.
The Commission shall, after obtaining technical advice from ESMA, review the situation in the credit rating market for securitisation instruments, in particular the credit rating market for re-securitisations. Following that review, the Commission shall, by 1 July 2016, submit a report to the European Parliament and to the Council, accompanied by a legislative proposal if appropriate, assessing, in particular:
(a)
the availability of sufficient choice in order to comply with the requirements set out in Articles 6b and 8c;
(b)
whether it is appropriate to shorten or extend the maximum duration of the contractual relationship referred to in Article 6b(1) and the minimum period before the credit rating agency may re-enter into a contract with an issuer or a related third party for the issuing of credit ratings on re-securitisations referred to in Article 6b(3);
(c)
whether it is appropriate to amend the exemption referred to in the second subparagraph of Article 6b(2).
5.
The Commission shall, after obtaining technical advice from ESMA, review the situation in the credit rating market. Following that review, the Commission shall, by 1 January 2016, submit a report to the European Parliament and to the Council, accompanied by a legislative proposal if appropriate, assessing, in particular:
(a)
whether there is a need to extend the scope of the obligations referred to in Article 8b to include any other financial credit products;
(b)
whether the requirements referred to in Articles 6, 6a and 7 have sufficiently mitigated conflicts of interest;
(c)
whether the scope of the rotation mechanism referred to in Article 6b should be extended to other asset classes and whether it is appropriate to use differentiated lengths of periods across asset classes;
(d)
the appropriateness of existing and alternative remuneration models;
(e)
whether there is a need to implement other measures to foster competition in the credit rating market;
(f)
the appropriateness of additional initiatives to promote competition in the credit rating market against the background of the evolution of the structure of the sector;
(g)
whether there is a need to propose measures to address contractual over-reliance on credit ratings;
(h)
the market concentration levels, the risks arising from high concentration, and the impact on the overall stability of the financial sector.
6.
The Commission shall, at least annually, inform the European Parliament and the Council of any new equivalence decisions referred to in Article 5(6) that have been adopted during the reporting period.