Economy

Hong Kong to regulate credit rating agencies

(Xinhua)
Updated: 2011-04-22 07:40

HONG KONG - Hong Kong will start to license and regulate credit rating agencies (CRAs) and their rating analysts from June 1, said the Securities and Futures Commission (SFC), the city's securities watchdog, on Thursday.

In anticipation of the upcoming regulation, both CRAs and their rating analysts providing credit rating services should start to submit applications, the SFC said in a statement.

To assist the industry to make the transition, the SFC has issued a circular highlighting certain licensing requirements, including the timetable for the license submission, and competence requirements for rating analyst applicants.

"We believe that the licensing and regulation of credit rating agencies in Hong Kong is in the public interest and will bring Hong Kong's regulatory regime in line with international developments in this area," said Martin Wheatley, the SFC's chief executive officer.

The SFC has conducted a public consultation at the second half of 2010 for the creation of the regulatory regime for CRAs.