A credit rating agency shall formulate organization bylaws to define the internal organization, number of personnel and titles, and report the same to the FSC for recordation; the same procedure shall apply to any amendments thereto.
The internal control system of a credit rating agency and its yearly internal audit plans shall be established and carried out in accordance with the Regulations Governing the Establishment of Internal Control Systems by Service Enterprises in Securities and Futures Markets, and in addition shall include the following items:
Any credit rating agency already established and registered prior to the time the 31 December 2015 amendments to these Regulations take effect shall amend its internal control system in accordance with the provisions of the preceding paragraph, and submit the amended version to the FSC for recordation, within six months from the date on which the amendments take effect.
- Management of the credit rating process, including the operation of the rating committee, the appropriateness of credit rating models and methodologies and their review procedures, retention of credit rating records, measures to maintain confidentiality of non-public information, and complaint handling mechanism.
- The compliance system for maintaining the independence of credit ratings and its implementation.
- Controls for information disclosure to be made in accordance with Article 15.
A credit rating agency shall evaluate the appropriateness when adopting or amending the credit rating methodologies, models, and key assumptions, and shall periodically review them. When the nature of the asset risk represented by the rated entity or the rated instrument, or the applicable credit rating methodologies, models and key rating assumptions change, a new assessment of the appropriateness of the credit rating results shall immediately be undertaken, and any necessary measures shall be taken.
A credit rating agency conducting credit rating shall establish a credit rating committee, which shall be responsible for the final decision of the credit rating results. The provisions of Article 6, paragraph 1 and Article 16, paragraph 1 shall apply mutatis mutandis to the qualifications of the members of the credit rating committee.