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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Rulebook Modules
Conduct of Business Module (COB) [VER33/07-19]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Financial Markets Tribunal

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(1 version)
Aug 16 2012 onwards

COB 8.1.1 Guidance

Whole Section PDF

The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

To view past versions of this module in PDF format, please visit the Archive.

1. The Financial ServiceG of Operating a Credit Rating AgencyG is defined in GEN Rule 2.27.1. This chapter contains the specific conduct requirements that apply to PersonsG carrying on the Financial ServiceG of Operating a Credit Rating AgencyG .

Code of conduct/ethics

2. The outcome intended by some of the specific conduct requirements in this chapter can be achieved by adopting a code of conduct/ethics. Whilst not proposing to prescribe that a Credit Rating AgencyG must have a code of conduct/ethics, a Credit Rating AgencyG should consider, particularly where noted in relation to specific Rules, adopting such a code as a means of achieving the outcome intended by the relevant requirements. However, where a Credit Rating AgencyG does not adopt such a code, the onus is on the Credit Rating AgencyG to demonstrate how it achieves compliance with the relevant requirements through other means.

Persons responsible for obtaining a Credit Rating

3. Not all Rating SubjectsG are bodies corporate. For example, Credit RatingsG can be provided in respect of a credit commitment given by a PersonG , or a debt or debt-like Investment. In such instances, where a Rule in this chapter requires the Rating SubjectG to carry out some activity, such a reference is to be read, pursuant to COB Rule 8.1.1(2), as a reference to the PersonG who is responsible for obtaining the Credit RatingG . Such a PersonG would generally be the originator, arranger or sponsor of the relevant financial product which is being rated. The Credit Rating AgencyG should clearly identify the PersonG responsible for a Rating SubjectG before proceeding with its Credit Rating ActivitiesG relating to that Rating SubjectG .
4. However, there is no restriction against more than one PersonG being identified as PersonsG responsible for obtaining a Credit RatingG relating to a Rating SubjectG . In such cases, a Credit Rating AgencyG should clearly identify those PersonsG as responsible PersonsG relating to the relevant Rating SubjectG .
[Added] DFSA RM97/2012 (Made 24th July 2012) [VER20/07-12]