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  Versions
(1 version)
 
Aug 16 2012 onwards

COB 8.3.1 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.

Application to Groups and Branches

1. Where a Credit Rating AgencyG is a member of a GroupG , the Credit Rating AgencyG may rely on the policies, procedures and controls adopted at the group-wide level. Where this is the case, the Credit Rating AgencyG should ensure that the group-wide policies, procedures and controls are consistent with the requirements applicable to it and do not constrain its ability to comply with the applicable requirements in the DIFC.
2. In the case of BrancG h operations, the DFSA will only grant an authorisation to conduct the Financial ServiceG of Operating a Credit Rating AgencyG where it is satisfied with the adequacy of the home jurisdiction regulation of the relevant legal entity.
3. Considerations set out in Guidance No 1 and 2 are equally relevant to the other requirements applicable to CRAs which are set out in this chapter.

Periodic review

4. A Credit Rating AgencyG should ensure that there is a formal and rigorous periodic review (at least annually) of the effectiveness of its systems and controls, including the methodologies and models it uses, to ensure that they remain effective and adequate in light of factors such as changing market conditions and practices and matters that have a material impact on the users of Credit RatingsG .
5. Such a review should be carried out by individuals who are not involved in the day-today management or operations of the Credit Rating AgencyG . Taking into account the nature, scale and complexity of its business, a Credit Rating AgencyG may undertake such a review through a designated function at the group-wide level, or using external consultants. The DFSA expects the findings of such a review to be made available to the Governing BodyG and the senior management of the Credit Rating AgencyG , and that any inadequacies identified are promptly and effectively addressed.

Analysts

6. By definition, the EmployeesG of a Credit Rating AgencyG include Rating AnalystsG who are either employed by the Credit Rating AgencyG or appointed under a contract for services to perform analytical functions in relation to the preparation of Credit RatingsG . Such appointed Rating AnalystsG may, in the case of a Credit Rating AgencyG which is part of a GroupG , be employed by another entity within the GroupG . In that case, the Credit Rating AgencyG should ensure that such Rating AnalystsG comply with the applicable DFSA Rules when conducting Credit Rating ActivitiesG on its behalf.

Relevant Information

7. See Guidance under Rule 8.3.4.
[Added] DFSA RM97/2012 (Made 24th July 2012) [VER20/07-12]