Credit Rating Services Act, 2012 (Act No. 24 of 2012)Chapter 2 : Registration6. Suspension and cancellation of registration |
| (1) | The registrar may, after consultation, where applicable, with any local regulatory authority that relies on, refers to or uses credit ratings in its supervision and regulatory activities, at any time, suspend or cancel the registration of a registered credit rating agency if the registrar is satisfied, on the basis of available facts and information, that the registered credit rating agency— |
| (a) | expressly renounces the registration or has provided no credit rating services for the preceding six months; |
| (b) | has obtained the registration by providing false information or by any other irregular means; |
| (c) | no longer meets the conditions under which it was registered; |
| (d) | has failed to comply with any condition imposed under this Act; |
| (e) | has failed to comply with any directive issued under this Act; or |
| (f) | has been liquidated. |
(2)
| (a) | If the registrar suspends or cancels the registration of a registered credit rating agency under subsection (1), the registrar may do so subject to any conditions that the registrar may determine, which conditions may not be inconsistent with this Act. |
| (b) | The registrar may revoke any suspension under subsection (1) if the registrar is satisfied that the registered credit rating agency has complied with all the conditions to which the suspension was made subject. |
| (3) | Subject to the provisions of the Promotion of Administrative Justice Act, the registrar must, before the suspension or cancellation of a registration— |
| (a) | notify the registered credit rating agency in writing of the registrar's intention to suspend or cancel the registration and the reasons therefor; |
| (b) | give the registered credit rating agency 30 days' written notice, calculated from the date on which the notice was given, to make representations on why its registration should not be suspended or cancelled; and |
| (c) | consider any representations received. |
(4)
| (a) | The registrar must notify the registered credit rating agency of its decision and publish a notice of any suspension or cancellation of registration, the reasons therefor and any conditions attached thereto on the FSB official website and any other appropriate media. |
| (b) | The suspension or cancellation of the registration of a registered credit rating agency takes effect on a date specified in the notice contemplated in paragraph (a). |
| (c) | If a registered credit rating agency has appealed against a suspension or cancellation of registration, the registrar must not publish the notice contemplated in paragraph (a) until the appeal process has been finalised. |
(5)
| (a) | Credit ratings issued by a credit rating agency whose registration has been suspended or cancelled, may continue to be used for regulatory purposes for— |
| (i) | 14 days after the publication of the notice contemplated to in subsection (4)(a), if credit ratings of such credit rating agency were also issued by other credit rating agencies registered under this Act; or |
| (ii) | three months after the publication of the notice contemplated in subsection (4)(a), if no credit ratings of such credit rating agency were issued by other credit rating agencies registered under this Act. |
| (b) | The registrar may extend the period referred to in paragraph (a)(ii), in order to mitigate any potential market disruption or to ensure financial stability. |