CONTACTS:
FOR IMMEDIATE RELEASE
LONDON - MARCH 20, 2019 08:26 AM (EDT)
AM Best confirms that it expects to be able to continue providing credit ratings that can be used for regulatory purposes in both the United Kingdom (U.K.) and European Union (EU) post-Brexit.
AM Best incorporated a new subsidiary in Amsterdam on May 2, 2018 and secured credit rating agency (CRA) registration with the European Securities and Markets Authority (ESMA) with effect from Dec. 3, 2018. The new operation, AM Best (EU) Rating Services B.V. (AMB-EU), is positioned to continue to provide ratings to be used for regulatory purposes post-Brexit across the EU member states.
AM Best expects that its existing London subsidiary (A.M. Best Europe – Rating Services Limited – AMBERS) will become registered with the Financial Conduct Authority (FCA) as at the date the U.K. leaves the EU, regardless of whether or not a withdrawal agreement has been agreed. This is facilitated by the Registration Conversion regime, part of the transitional processes put in place by the U.K. government in relation to CRAs and means that AMBERS can continue to provide ratings for U.K. regulatory purposes.
Both AMB-EU and AMBERS will also endorse ratings issued by other AM Best companies outside of Europe. In addition, further to the announcements by ESMA and the FCA on March 15, 2019 that they consider that the respective supervisory regimes meet the conditions for endorsement, AMB-EU will be able to endorse AMBERS ratings into the EU and AMBERS will be able to endorse AMB-EU ratings into the U.K.
Nick Charteris-Black, managing director, market development for Europe, Middle East and Africa at AM Best said: “AM Best has taken all the necessary steps in conjunction with the EU and U.K.’s regulatory bodies to continue to provide continuity of rating services to clients and minimise uncertainty and disruption to users – whatever the outcome of the ongoing negotiations in relation to Brexit.”
AM Best is a global rating agency and information provider with a unique focus on the insurance industry.