Monetary Authority of Singapore Annual Report 2011/2012
Our Work

Regulatory Framework for Credit Rating Agencies

Following the global financial crisis, a strong consensus has emerged within the G20 on the need to supplement industry codes and the internal controls of credit rating agencies (CRAs) with CRA regulation by national regulators. In line with global developments, MAS implemented a new CRA regulatory framework on 17 January 2012, where the provision of credit rating services in Singapore will be regulated under the Securities and Futures Act (SFA). CRAs will consequently have to be licensed under the Capital Markets Services licensing regime under the SFA and be subject to licensing obligations. In addition, CRAs will have to comply with a new Code of Conduct, which aims to promote the quality and integrity of the rating process, strengthen CRA analytical independence, strengthen investor protection and enhance protection of non-public information. MAS has also signed a Memorandum of Understanding (MoU) with the European Securities and Markets Authority on the supervision of cross border CRAs, paving the way for the enhanced sharing of supervisory information between the two authorities for more effective supervision of CRAs operating in Singapore and within the European Union.