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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
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
Notices
Financial Markets Tribunal
Archive

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  • Policies and procedures

    • COB 8.5.1

      A Credit Rating AgencyG must have adequate, clear and well documented policies, procedures and controls to:

      (a) promote high standards of care, independence and objectivity in decision making by its EmployeesG ;
      (b) ensure that its Credit RatingsG are not influenced by any considerations other than those which are relevant in accordance with its published methodologies and models as applicable to the particular Rating SubjectG ; and
      (c) identify, and eliminate or manage, as appropriate, including through disclosure, any conflicts of interest that may influence its Credit RatingsG , including those conflicts of interest which may influence its EmployeesG who are involved in producing or reviewing Credit RatingsG .
      [Added] DFSA RM97/2012 (Made 24th July 2012) [VER20/07-12]

      • COB 8.5.1 Guidance

        1. A Credit Rating AgencyG should neither take, nor forbear or refrain from taking, any Rating ActionG based on its potential effect (economic, political or otherwise) on the Credit Rating AgencyG , its Rating SubjectsG , investors or any other market participants (for example, the existence or non-existence of business relationship between the Credit Rating AgencyG or a member of its GroupG and the Rating SubjectG ).
        2. The determination of a Credit RatingG should be influenced only by factors relevant to the credit assessment in accordance with its published methodologies and models as applicable to the particular Rating SubjectG .
        3. A Credit Rating AgencyG should, at a minimum, set out clearly when conflicts of interest arise and, in relation to what type of business or commercial dealings or transactions, and between whom, such conflicts of interest can arise.
        4. Where the Rating SubjectG (such as a government) has, or is simultaneously pursuing, any oversight function relating to the Credit Rating AgencyG , the Credit Rating AgencyG should avoid assigning EmployeesG involved in the Credit RatingG of the Rating SubjectG for also discharging any function relating to the Credit Rating Agency'sG oversight.
        [Added] DFSA RM97/2012 (Made 24th July 2012) [VER20/07-12]