Contingency Fees Act, 1997
R 385.00
Credit Rating Services Act, 2012 (Act No. 24 of 2012)Board NoticesBoard Notice 228 of 2013Part II : Organisational Requirements3. Internal controls |
| (1) | A credit rating agency must establish, maintain, enforce and document policies and procedures to ensure compliance with its obligations under the Act and these Rules. |
| (2) | A credit rating agency must design its internal control mechanisms to secure compliance with the policies and procedures at all levels of the agency. |
| (3) | A credit rating agency must implement and maintain decision-making procedures and organisational structures which clearly and in a documented manner specify reporting lines and allocate functions and responsibilities. |
| (4) | A credit rating agency must establish a rigorous and formal review function responsible for periodically reviewing its methodologies, models and key rating assumptions, as contemplated in section 9(c) of the Act. Such assumptions include mathematical or correlation assumptions, and any significant changes or modifications thereto as well as the appropriateness of those methodologies, models and key rating assumptions where they are used or intended to be used for the assessment of new securities and financial instruments. |
| (5) | The review function must be independent of the business divisions which are responsible for credit rating services and must report directly to the board. |
