A.M. Best has confirmed that it expects to be able to continue providing credit ratings that can be used for regulatory purposes in both the UK and European Union (EU) after Brexit.
The rating agency incorporated a new subsidiary in Amsterdam last year and secured credit rating agency (CRA) registration with the European Securities and Markets Authority (ESMA) to ensure the continuity of its operations post-Brexit.
A.M. Best also expects that its existing London subsidiary will become registered with the Financial Conduct Authority (FCA) on the date the UK leaves the EU, regardless of whether or not a withdrawal agreement has been agreed.
This process should be facilitated by the Registration Conversion regime, which the UK government put in place to support CRAs in the transition, A.M. Best explained.
The new EU subsidiary, A.M. Best (EU) Rating Services B.V. (AMB-EU), the London subsidiary, A.M. Best Europe – Rating Services Limited (AMBERS), will both endorse ratings issued by other A.M. Best companies outside of Europe, the agency said.
Additionally, following ESMA and the FCA’s endorsement of their respective supervisory regimes on March 15, 2019, 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.
“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,” said Nick Charteris-Black, Managing Director, Market Development for Europe, Middle East and Africa at A.M. Best.
