The European Securities and Markets Authority has fined Modefinance S.r.l. a total of EUR 420,000 and issued a public notice after finding a breach of the Credit Rating Agencies Regulation. The action relates to Modefinance’s use of ESMA’s name in a way that suggested ESMA endorsement or approval of its credit ratings or rating-related activities. ESMA found that, between September 2018 and October 2021, Modefinance published statements on its websites referring to ESMA as having “certified” or “validated” a model used in its scoring and credit rating activities. ESMA assessed the breach as resulting from negligence and stated that it considered both aggravating and mitigating factors under the CRA Regulation when setting the fine.
European Securities and Markets Authority 2025-04-07
European Securities and Markets Authority fines Modefinance EUR 420,000 for implying ESMA endorsement of its credit rating activities
The European Securities and Markets Authority (ESMA) fined Modefinance S.r.l. EUR 420,000 for breaching the Credit Rating Agencies Regulation by implying ESMA endorsement of its credit ratings. Between September 2018 and October 2021, Modefinance inaccurately claimed ESMA had "certified" or "validated" its models. ESMA deemed the breach negligent, considering both aggravating and mitigating factors in determining the penalty.