Regulatory Alerts2019-10-17
Added · Updated
Amendments to the Credit Rating Companies Regulation, 2016
The Securities and Exchange Commission of Pakistan amends the Credit Rating Companies Regulation, 2016 to update references from the Companies Ordinance, 1984 to the Companies Act, 2017 across multiple regulations and forms. The amendments remove non-refundable processing and renewal fee requirements from application procedures while establishing a new license application fee of 100,000 PKR in Schedule I. Key operational changes include allowing credit rating companies to outsource compliance and internal audit functions to Chartered Accountants, mandating semi-annual reviews of risk management systems, and permitting the public dissemination of private ratings under specific open bidding or client-initiated scenarios. Additionally, the rules clarify the selection of independent directors, adjust ownership thresholds for director disqualifications, and relax experience requirements for fresh graduates hired as rating analysts.