Credit Rating Services Act, 2012 (Act No. 24 of 2012)

Chapter 3 : Duties of Registered Credit Rating Agency

7. Duties

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A registered credit agency must—

(a)comply with this Act;
(b)provide the registrar with any information required in terms of this Act;
(c)within 14 days of becoming aware of any change, inform the registrar if any information submitted in respect of its application under section 5 has changed;
(d)be organised in a way that ensures that its business interest does not impair the independence and integrity of its credits ratings or the accuracy of its credit rating services;
(e)have sound administrative and accounting procedures, internal control mechanisms, effective procedures for risk assessment, and effective control and safeguarding arrangements for information-processing systems;
(f)establish appropriate and effective organisational and administrative arrangements to—
(i)prevent, identify, eliminate, manage or disclose any conflicts of interest of the registered credit rating agency, its analysts and employees; and
(ii)protect confidential information made available to it by issuers, including prohibiting its analysts and employees from using such information to enter into transactions;
(g)employ appropriate systems, resources and procedures to ensure continuity and regularity in the performance of its credit rating services;
(h)regularly monitor and evaluate the adequacy and effectiveness of its systems, internal control mechanisms and arrangements and take appropriate measures to address any deficiencies;
(i)ensure that at all times it has the necessary knowledge and experience to issue credit ratings and perform its credit rating services; and
(j)establish a unit within its organisation whose function is to communicate with investors, potential investors and the public about any questions, concerns or complaints that it may receive.