The State Duma adopted in the third reading a law that gives the Central Bank the right to impose a ban on assigning credit ratings if the regulator's instructions have been violated, and to require agencies to revise them if the methodology has been violated. Amendments to the bill were submitted to parliament last week by Anatoly Aksakov, head of the State Duma committee on the financial market. Changes are being made to the law on the activities of credit rating agencies.
According to the current legislation, if the rating agency has not eliminated the violations in the work as prescribed by the regulator, the Central Bank has the right to demand the replacement of persons included in the management and internal control bodies agency, as well as to exclude information about the rating agency from the register of the Central Bank.
The law adopted by the deputies expands the powers of the Central Bank and gives the regulator the right to impose a ban on the assignment of credit ratings until the violation identified during the work of the agency is eliminated. In addition, a rule is introduced that if a credit rating is assigned (revised, confirmed) in violation of the requirements for the methodology, the Bank of Russia has the right to require the credit rating agency to withdraw or revise the specified credit rating. Now the Central Bank has no such right.
The regulator submitted to the State Duma a draft regulation on the conduct by credit rating agencies of the quality of the methodology, as well as on the basis of what parameters the Central Bank will evaluate the methodology of the agencies.
According to the materials of the regulator, the decision to send an order to revoke or rating is accepted by the Supervisory Committee for the provision of professional services in the financial market of the Central Bank.
In addition, the adopted law introduces a number of technical amendments to the work of agencies. So, now in a credit rating agency with more than 20 employees, at least one third of the members of the board of directors must be independent. It is proposed to introduce this requirement for agencies with less than 20 employees.
Currently, the Central Bank has the right to compare the rating scale of credit rating agencies, including foreign credit rating agencies, and publish data on the results. It is proposed to oblige the Central Bank to publish a comparison of national rating scales of credit rating agencies and publish data. At the same time, the Central Bank retains the right, but not the obligation, to compare the assessment of international credit rating agencies and publish data on the results.
Four credit rating agencies were included in the register of the Central Bank as of November 25: Analytical Credit Rating Agency JSC (ACRA), Expert RA Rating Agency JSC, National Rating Agency LLC (NRA), National Credit Ratings LLC (NKR).