Canadian securities regulators seek comments relating to designated rating organizations

TORONTO, July 6, 2017 /CNW Telbec/ - The Canadian Securities Administrators (CSA) today 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.

"The IOSCO Code offers a robust framework to protect the integrity of the credit rating process, ensure investors and issuers are treated fairly, and safeguard confidential information that rated issuers provide to credit rating organizations," said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. "We believe it is important that Canadian rules reflect the high standards of the IOSCO Code."

CSA staff are also proposing to amend National Instrument 44-101 Short Form Prospectus Distributions and National Instrument 44-102 Shelf Distributions to recognize the credit ratings of Kroll Bond Rating Agency, Inc. (Kroll), but only for the purposes of the alternative eligibility criteria for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, respectively. The proposed amendments also address other matters.

Kroll would only be designated as a DRO if the proposed rule amendments are enacted as final rule amendments and come into effect following any necessary Ministerial approvals. At this time, CSA staff do not anticipate proposing that Kroll be designated as a DRO for purposes of other credit rating provisions in securities rules and policies.

Stakeholders are invited to submit their comments in writing by October 4, 2017.

The notice and request for comment can be found on CSA members' websites.

The CSA, the council of the securities regulators of Canada's provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.

 

For more information:

Kristen Rose

Hilary McMeekin

Ontario Securities Commission

Alberta Securities Commission

416-593-2336

403-592-8186



Alison Walker

Sylvain Théberge

British Columbia Securities Commission

Autorité des marchés financiers

604-899-6713

514-940-2176 



Jason (Jay) Booth

Andrew Nicholson

Manitoba Securities Commission

Financial and Consumer Services

204-945-1660

Commission, New Brunswick


506-658-3021



David Harrison

Janice Callbeck          

Nova Scotia Securities Commission

Office of the Superintendent of Securities    

902-424-8586

P.E.I.


902-368-6288 



John O'Brien

Rhonda Horte

Office of the Superintendent of Securities

Office of the Yukon Superintendent of

Newfoundland and Labrador

Securities        

709-729-4909

867-667-5466



Jeff Mason

Tom Hall

Nunavut Securities Office

Office of the Superintendent of Securities

867-975-6591

Northwest Territories


867-767-9305



Shannon McMillan


Financial and Consumer Affairs


Authority of Saskatchewan


306-798-4160


 

SOURCE Autorité des marchés financiers

For further information: Kristen Rose, Ontario Securities Commission, 416-593-2336; Hilary McMeekin, Alberta Securities Commission, 403-592-8186; Alison Walker, British Columbia Securities Commission, 604-899-6713; Sylvain Théberge, Autorité des marchés financiers, 514-940-2176; Jason (Jay) Booth, Manitoba Securities Commission, 204-945-1660; Andrew Nicholson, Financial and Consumer Services, Commission, New Brunswick, 506-658-3021; David Harrison, Nova Scotia Securities Commission, 902-424-8586; Janice Callbeck, Office of the Superintendent of Securities, P.E.I., 902-368-6288; John O'Brien, Office of the Superintendent of Securities, Newfoundland and Labrador, 709-729-4909; Rhonda Horte, Office of the Yukon Superintendent of Securities, 867-667-5466; Jeff Mason, Nunavut Securities Office, 867-975-6591; Tom Hall, Office of the Superintendent of Securities, Northwest Territories, 867-767-9305; Shannon McMillan, Financial and Consumer Affairs, Authority of Saskatchewan, 306-798-4160

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