Regulatory Alerts2026-02-26
Added · Updated
Investment Advisor Rating Scale and Framework
PACRA issues this framework to establish a standardized scale and modifiers for assessing the management quality, customer service, and investment processes of investment advisors. The document defines a five-tier rating scale from AM1 to AM5, supplemented by outlook indicators and watch statuses that signal potential intermediate-term rating adjustments. It mandates ongoing surveillance with comprehensive reviews at least every six months, while outlining clear procedures for suspending, withdrawing, or harmonizing ratings based on methodological revisions or issuer events.
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