CARE Ratings
2.8. CRAF shall disclose the general nature of its compensation arrangements with rated entities. a) Where CRAF receives from a rated entity compensation unrelated to its ratings service, such as compensation for consulting services, CRAF shall disclose the proportion such non-rating fees constitute against the fees CRAF receives from the entity for rating services. b) CRAF shall make disclosure where it receives 10 percent or more of its annual revenue from a single issuer, originator, arranger, client or subscriber (including any affiliates of that issuer, originator, arranger, client or subscriber). c) CRAF shall encourage structured finance issuers and originators of structured finance products to publicly disclose all relevant information regarding these products so that investors and other CRAs can conduct their own analyses independently of the CRA contracted by the issuers and/or originators to provide a rating. CRAF shall make disclosure in their rating announcements whether the issuer of a structured finance product has informed it that it is publicly disclosing all relevant information about the product being rated or if the information remains non-public. 2.9. CRAF and its employees shall not engage in any securities or derivatives trading presenting conflicts of interest with CRAF's rating activities. 2.10. In instances where rated entities (e.g., governments) have, or are simultaneously pursuing, oversight functions related to CRAF, CRAF may, to the extent possible, deploy different employees to conduct its rating actions than those employees involved in its oversight issues. 2.11. Reporting lines for Analyst and their compensation arrangements shall be structured to eliminate or effectively manage actual and potential conflicts of interest. a) An analyst will not be compensated or evaluated on the basis of the amount of revenue that CRAF derives from issuers that the analyst rates or with which the analyst regularly interacts. b) CRAF shall conduct formal and periodic reviews of compensation policies and practices for Analysts and other employees who participate in or who might otherwise have an effect on the rating process to ensure that these policies and practices do not compromise the objectivity of the its rating process. 2.12. CRAF analysts shall not be involved in deciding the commercial terms of the rating assignment. This is decided by the business development group /Senior Management. 2.14. CRAF's analysts and anyone involved in the rating process (or their dependent spouse, partner or minor children/family member) shall not buy or sell or engage in any transaction in any security or derivative based on a security issued, guaranteed, or otherwise supported by any entity within such analyst's area of primary analytical responsibility, other than holdings in diversified collective investment schemes except as permitted under CRAF's internal securities trading policy. 2.15. CRAF employees are prohibited from soliciting money, gifts or favors from anyone with whom CRAF does business and are prohibited from accepting gifts offered in the form of cash or any gifts exceeding a minimal monetary value. 2.16. Any CRAF analyst who becomes involved in any personal relationship that creates the potential for any real or apparent conflict of interest (including, for example, any personal relationship with an employee of a rated entity or agent of such entity within his or her area of analytic responsibility), shall be required to disclose such relationship to the appropriate manager or officer of CRAF. 2.17. CRAF shall review the past work of analysts that leave the employ of the CRAF and join an issuer the CRAF analyst has been involved in rating, or a financial firm with which the CRAF analyst has had significant dealings as part of his or her duties at the CRAF.
About CARE Ratings
Founded
1993Estimated Revenue
$1M-$10MEmployees
251-1KCategory
Industry
Financial ServicesLocation
City
EbeneState
Plaines WilhemsCountry
MauritiusCARE Ratings
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