A credit rating agency may not engage in any of the following activities:
- Acting as a guarantor of any kind, endorsing negotiable instruments, or providing property to others for the creation of a security interest.
- Engaging in credit rating services with affiliated entities, or any entities with which the credit rating agency has an investment relationship or with which it shares benefits.
- Engaging in credit rating services with entities or financial instruments for which the credit rating agency has previously provided consulting services, provided that this restriction shall not apply when more than 3 years have passed since the end of the consultation period.
- Issuing any credit rating report or information which lacks an analytical basis or reasonable grounds, and which would be likely to affect market order or harm the public interest.
- Holding or trading securities or other financial instruments that fall in any of the following circumstances:
- Securities or other financial instruments that are rated, or that are issued by a rated entity.
- Securities or other financial instruments that are primarily linked to those mentioned in the preceding item.
- Securities or other financial instruments issued by an affiliated entity of a rated entity, or the issuer, originator, arranger, or underwriter of a rated instrument, provided that this restriction does not apply if there is no conflict of interest on the credit rating process or result.
- Making any guarantee or commitment regarding the credit rating results.
- Using the business permission granted by the FSC as an advertisement or guarantee of the strength of its operations or the quality of the credit ratings that it issues.
- Any other acts in violation of securities laws or regulations or provisions of the FSC regarding mandatory or prohibited acts.