MAS consults on Regulating Credit Rating Agencies

30 Mar 2011

The Monetary Authority of Singapore (“MAS”) has issued a consultation paper (“Consultation Paper”) on its proposal to regulate credit rating agencies (“CRAs”). MAS proposes to require CRAs to be licensed under the capital markets services (“CMS”) licensing regime under the Securities and Futures Act (“SFA”).

The move to require licensing of CRAs stems from the recent issue, by the International Organization of Securities Commission (“IOSCO”), of new principles recommending the regulation and supervision of CRAs. Since then, many countries worldwide have begun implementing regulatory regimes on CRAs, including the European Union, the United States, Australia, Japan, Canada and Hong Kong.

The closing date for submission of feedback for the consultation is on 22 April 2011.

To read the update, please click here.