Regulation 28V - Entities connected with a promoter or a rating agency not to be rated

Conflict of interest in ESG ratings: providers barred from rating promoters, associates, or entities with shared personnel.

ESG rating providers are prohibited from rating issuers or securities where material affiliations with the provider's promoter exist, including borrowers, subsidiaries or associates of the promoter, or where common Chairpersons, directors or employees are present; providers also may not rate their own promoters or issuers they or their associates have promoted. An exception allows rating when there is a common independent director only if that director did not participate in rating discussions and the provider discloses the non-participation and the existence of the common independent director in the rating announcement.