Securities regulators are proposing amendments to a slew of rules to help implement the new regulatory framework for credit rating agencies.
The Canadian Securities Administrators (CSA) is proposing amendments to a number of significant rules, including those that establish the fundamental prospectus, registration, and continuous disclosure requirements.
The basic reason for all of the amendments is to replace existing language in the regulations about the use of credit ratings with references to “designated rating organizations”, which is a concept that has been introduced by the new oversight rules for rating agencies.
That new framework came into effect on April 20, and imposes requirements on rating agencies that want to have their credit ratings eligible for use in securities legislation by requiring them to apply to become a “designated rating organization” (DRO). Now, amendments to numerous regulations are necessary to implement the new DRO regime.
Comments on the proposed amendments are due by October 24.