The European Securities and Markets Authority (ESMA) has registered AM Best as credit rating agency so it can continue to provide ratings after Brexit through its new Amsterdam-based subsidiary.
AM Best’s existing London-based subsidiary, AM Best Europe, is currently registered with ESMA in Paris, which allows it to provide rating services throughout the European Union (EU) on a cross-border basis.
However, the new subsidiary AM Best (EU) Rating Services will provide ratings to be used for regulatory purposes post-Brexit across the EU.
Amsterdam has been selected for the new office for being a well-established financial centre closely matching AM Best’s strategic priorities, as well as its proximity to major European locations where clients are based.
“We welcome this news that our application has been successful. ESMA’s registration of AM Best’s Amsterdam office enables us to prepare for any kind of Brexit outcome, to ensure continuity of our rating services for our clients,” said Roger Sellek, chief executive of AM Best’s Europe, Middle East, Africa and Asia Pacific operations.
The registration of the new office was made effective December 3.
Nick Charteris-Black, managing director, market development for AM Best Europe, Middle East and Africa, said: “The Amsterdam office reinforces AM Best’s ambitious growth agenda for continental Europe and demonstrates our commitment to providing continuity of rating services throughout the EU post-Brexit whilst developing our coverage in other international markets across the broader EMEA region from London.’’
AM Best plans for its London-based subsidiary to continue to act as its hub for the EMEA region and plans to be registered with the UK Financial Conduct Authority (FCA) which is assuming responsibility for the supervision of UK-based credit rating agencies after Brexit.
AM Best, Brexit, Amsterdam, Europe