Entire Section

  • Remuneration and reporting lines

    • Remuneration and reporting lines Guidance

      A Credit Rating Agency is required, pursuant to GEN Rule 5.3.31, to have remuneration structures and strategies which, amongst other things, are consistent with the business objectives and identified risk parameters within which the firm operates, and provide for effective alignment of risk outcomes and the roles and functions of the relevant Employees. The requirements set out in this section are designed to augment those remuneration requirements set out in GEN.

      [Added] DFSA RM97/2012 (Made 24th July 2012) [VER20/07-12]

    • COB 8.6.5

      A Credit Rating Agency must ensure that Employees involved in the provision of Credit Ratings have reporting lines and remuneration arrangements that are designed to eliminate, or effectively manage, actual and potential conflicts of interest.

      [Added] DFSA RM97/2012 (Made 24th July 2012) [VER20/07-12]

    • COB 8.6.6 COB 8.6.6

      A Credit Rating Agency must ensure that its Employees are not remunerated, or their performance evaluated, based on the amount of revenue generated or expected from the Credit Ratings in which the Employee was involved.

      [Added] DFSA RM97/2012 (Made 24th July 2012) [VER20/07-12]

      • COB 8.6.6 Guidance

        The Employees intended to be covered by this Rule are Rating Analysts and other Employees who are directly involved in producing or reviewing a Credit Rating, or who are able to influence the credit rating process (such as the senior management).

        [Added] DFSA RM97/2012 (Made 24th July 2012) [VER20/07-12]

    • COB 8.6.7

      A Credit Rating Agency must conduct formal and periodic reviews of its remuneration policies and practices relating to Employees who participate in, or who might otherwise have an effect on, the rating process to ensure that those policies and practices do not compromise the objectivity of the Credit Rating Activities.

      [Added] DFSA RM97/2012 (Made 24th July 2012) [VER20/07-12]