Canadian securities regulators seek comments relating to designated rating organizations
Jul 06, 2017
On July 6, 2017, the Canadian Securities Administrators (CSA) published for comment proposed rule amendments and policy changes related to designated rating organizations (DROs) and credit ratings of DROs.
CSA staff are proposing to amend National Instrument 25-101 Designated Rating Organizations (NI 25-101) to reflect new European Union (EU) requirements for credit rating organizations, to ensure the EU continues to recognize the Canadian regime as “equivalent” for regulatory purposes after these new requirements go into effect on June 1, 2018. The proposed amendments would allow credit ratings of a Canadian office of a DRO to continue to be used for regulatory purposes in the EU.
To ensure that NI 25-101 continues to reflect the International Organization of Securities Commissions (IOSCO) Code of Conduct Fundamentals for Credit Rating Agencies (the Code), the proposed amendments also reflect new provisions in the March 2015 version of the Code..
Stakeholders are invited to submit their comments in writing by October 4, 2017.
For further details refer to the press release and the proposed changes.