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AFN AUT-NOTES Part 9: Credit Rating Agency form notes

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Each note below relates to a question or statement in the Credit Rating Agency application form. E.g. CR1 provides information to help you to complete question CR1 in the Credit Rating Agency application form.

General Information notes

CR1. Provide the full name of the firm applying to be licensed as a Credit Rating Agency.
CR2. Provide details of any trading name(s) which you propose to use for the purpose of, or in connection with, any business carried out in or from the DIFC, if these are different from your legal name.
CR3. Provide information about the legal nature of your firm. Please refer to GEN Rule 7.2.2.
CR4. Specify whether the applicant applying to be licensed is incorporated inside or outside the DIFC (i.e. a branch).
CR5. To be completed only where the applicant is incorporated outside of the DIFC (i.e. a branch).
CR6. Provide the name of the supervisory contact from the relevant regulator including postal address, telephone number, fax number and e-mail address.
CR7. Provide details for the applicant's office in the DIFC including address, telephone, fax, email and website.
CR8. Provide the applicant's financial year end.
CR9. State the name of your auditor, their address, the relevant contact person, telephone number and fax number. For Domestic Firms the auditor must be an auditor registered with the DFSA in accordance with GEN Chapter 8.
CR10. The contact person named should be the person who is responsible for the application during the authorisation process and who will liaise with the DFSA. This person must be a representative of the applicant.
CR11. You may have a professional adviser assisting with the application process.
CR12. Please tick "yes" to question if the DFSA should copy correspondence in relation to this application to the adviser.
CR13. If you wish any of the DFSA Rules waived or modified you must submit the Form SUP 2

Controllers

CR14. Please refer to GEN Rule 11.8.3 for the definition of Controller.

Corporate Governance

CR15. The DFSA will review the proposed corporate governance structure to ensure that it is appropriate given the size, scope and nature of the applicant's proposed operations. Consideration should be given to the requirements in Chapter 5 of the General (GEN) Module and the guidance in Section 2-2 of the Regulatory Policy and Process (RPP) Sourcebook.

Nature of applicant's business and intended activities in the DIFC

CR16. The DFSA will review the proposed activities to ensure that they are within the scope of Operating a Credit Rating Agency as defined in GEN 2.27. Should the applicant intend to carry out any ancillary services consideration should be given COB 8.5.2.

Compliance

CR17/ CR21 The DFSA will review the proposed compliance framework and the arrangements described for ensuring compliance with the relevant COB requirements. Consideration should be given to the requirements in GEN 5.3.7 to 5.3.12 and Chapter 8 of the Conduct of Business (COB) Module.

Documentation

CR22. Organogram of group structure identifying all Controllers, ultimate beneficial owners, other shareholders and Close Links. Include a clear breakdown of percentage shareholding sizes, jurisdiction in which the entity/individual is based, identification of any other regulated entities and each entity's principal activity. Where shares are held by a trust, you must also provide details of all trustees, settlors and beneficiaries.
CR23. Organogram of legal entity including reporting lines to demonstrate separation of functions and independence of risk management/compliance/internal audit. The employee organogram should identify the senior management / head functions with significant influence and any reporting lines to the Governing Body. Please ensure that the Compliance Officer has access to both the Senior Executive Officer and board of Directors.
CR24. Provide a copy of the applicant's most recent audited accounts. Where the applicant is yet to be established, provide a copy of its parent's most recent audited accounts.
CR25. All Credit Rating Agencies must nominate a suitable individual to carry out the mandatory licensed function of Senior Executive Officer.
CR26. All Credit Rating Agencies must nominate a suitable individual to carry out the mandatory licensed function of Compliance Officer. If the nominated Compliance Officer is not resident in the UAE, the applicant must also submit an SUP2 form applying for a waiver of GEN 7.5.2. In such cases, the applicant must demonstrate that it has sufficient resources and appropriate compliance oversight arrangements for the DIFC operation.
CR27. An SUP2 form is only required where the applicant wishes to apply to have any of the DFSA Rules waived or modified.

Fees

For comprehensive details of fees, please refer to the Fees module of the DFSA Rulebook.

Applicant Firm Fit & Proper Questionnaire and declaration

CR28/ CR34 These questions are self-explanatory and are focused on the fitness and propriety of the firm. If you answer yes to any question please supply all relevant information - openness and honesty are essential. Should we need to examine your application more closely because of any disclosures you make, this will not necessarily count against you. However, deliberately withholding information or providing false or misleading information, will adversely impact the success of your application. If in doubt, disclose.

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