Thursday, May 10, 2012
The Dubai Financial Services Authority has launched a consultation on new rules which would allow credit rating agencies to establish operations from the Dubai International Financial Centre tax-free zone.
The consultation proposes changes to various documentation including the DFSA Rulebook to add new rules concerning the operation of a credit rating agency from the Dubai International Financial Centre, adding the category among other approved financial services activities.
Companies wishing to operate as a credit rating agency, or base some of their credit rating operations from the DIFC, must apply for a License to Operate a Credit Rating Agency. The rules provide however that entities recognised as Credit Rating Agencies must not provide certain types of consultancy and advisory services, to maintain impartiality.
A Credit Rating Agency, under DFSA rules, will not be required to meet stringent capital requirements placed on some other entities, but would be required to maintain 'adequate financial resources to manage its affairs prudently and soundly', among other conditions.
The DFSA has invited responses to the consultation before June 12, 2012.