Conflict of interest rules: credit rating agencies may rate associate securities if independent director abstains and disclosure is made. The amendment allows a Credit Rating Agency to rate securities of an associate sharing a common independent director provided that the common independent director does not participate in rating discussions or meetings and the CRA discloses in the rating announcement the existence of the common independent director and that the director did not take part in the rating process; it also defines 'independent director' as one without material pecuniary relationships that might affect independent judgment.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Conflict of interest rules: credit rating agencies may rate associate securities if independent director abstains and disclosure is made.
The amendment allows a Credit Rating Agency to rate securities of an associate sharing a common independent director provided that the common independent director does not participate in rating discussions or meetings and the CRA discloses in the rating announcement the existence of the common independent director and that the director did not take part in the rating process; it also defines "independent director" as one without material pecuniary relationships that might affect independent judgment.
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