ANNEX IV
ORGANISATIONAL STRUCTURE
(Article 11)
1. | A credit rating agency shall provide the following information regarding policies and procedures referred to in Article 11(1): a description of the roles and responsibilities of the employees; a description of the mechanisms to monitor the effectiveness of the policy or procedure; the number of employees and the ratio of temporary to permanent employees; information on the reporting lines and the frequency of reporting; and a description of the interaction between the relevant function and employees directly involved in the rating process and between that function and any other functions. |
2. | Where the arrangements referred to in point 1 of this Annex are carried out at group of undertakings level, a credit rating agency shall provide ESMA with a copy of relevant service level agreements that it has entered into, or proposes to enter into, with other group members, and the following information: a description of the relevant tasks carried out by each group undertaking, including undertakings located in third countries; a clear identification of the undertaking involved in performing the task, specifying its location; information on the reporting lines and frequency of reporting of each entity involved and on the way information is collected from each entity; and information on any dedicated resources located in the Union. In the case of human resources, a credit rating agency shall specify the time devoted to the function on the basis of full time equivalence. |
3. | With respect to the compliance function, a credit rating agency shall provide the following information: the policies and procedures on the reporting of information as described in point 5 of Section C of Annex I to Regulation (EC) No 1060/2009; a description on how it ensures the independence of the compliance function; the most recent report of the compliance officer; a work plan for the next three years. |
4. | With respect to the internal audit function carrying out the tasks described in point 10 of Section A of Annex I to Regulation (EC) No 1060/2009, a credit rating agency shall provide the following information: an explanation of how its internal audit methodology is developed and applied in accordance with the special features of its activities and their extent, complexity and risks; a work plan for the next three years. |