CSA Propose Amendments for Designated Rating Organizations

Proposed rule amendments and policy changes related to designated rating organizations (DROs) and the credit ratings of DROs were published for comment by the Canadian Securities Administrators on July 6, 2017. The amendments to National Instrument 25-101 Designated Rating Organizations are being proposed in an effort to ensure that the European Union continues to recognize the Canadian DRO regime as “equivalent” to new EU requirements for credit rating organizations coming into force on June 1, 2018. In addition, the proposed amendments include revisions to NI 25-101 that reflect new provisions in the March 2015 International Organization of Securities Commissions (IOSCO) Code of Conduct Fundamentals for Credit Rating Agencies.

Concurrently, the CSA are proposing amendments to National Instrument 44-101 Short Form Prospectus Distributions and National Instrument 44-101 Shelf Distributions to recognize the credit ratings of Kroll Bond Rating Agency, Inc. for limited purposes.

The comment period is open until October 4, 2017. For further information, please see CSA Notice and Request for Comment Relating to Designated Rating Organizations (July 6, 2017). 

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