MAS implements new CRA regulatory framework

Existing Credit Rating Agencies will be given a transition period of 6 months to apply for the required licence.

The Monetary Authority of Singapore said that under the new CRA regulatory framework, the provision of credit rating services will be regulated under the Securities and Futures Act. CRAs will consequently have to be licensed under the Capital Markets Services licensing regime under the SFA and be subject to licensing obligations.

According to the MAS announcement, CRAs will be required to comply with existing Regulations, Guidelines and Notices under the SFA that apply to all CMS licensees. In addition, CRAs will also have to comply with a new Code of Conduct for CRAs that MAS will introduce in conjunction with the establishing of a regulatory regime for CRAs.

MAS will also require CMS licensees providing credit rating services to appoint and register under the Representative Notification Framework any individual who acts as their representative in providing credit rating services.