Credit Rating Services Act, 2012

12. Outsourcing and other services

13. Disclosures Records 14.

15. Annual report 16.

17. Accounting and auditing requirements Independent compliance unit 5 10 15 20 25 GOVERNMENT GAZETTE, 14 JANUARY 2013 MULAYO WA ZWA TSHUMELO DZA U KALA ZWIKOLODO, 2012 Nom. 36071 3 Nom 24 ya 2012 HALUTSHEDZONYANGAREDZI: T ˆ Maipfi o talelwaho nga mutalo u sa khauwi a sumbedza zwe zwa dzheniswa (English text signed by the President) (Assented to 9 January 2013) MULAYO U ita mbetshelo ya u n˙ walisa mazhendedzi a u kala zwikolodo; u ita mbetshelo ya u langula mishumo yeneyo ya mazhendedzi a u kala zwikolodoto; u ita mbetshelo etshedza zwikalo zwa zwikolodo na milayo kha ya dzinyimele kana milayo ya u n ˆ tshiimiswa na kushumele kwa mazhendedzi a u kala zwikolodo na u u ita mbetshelo kha zwi tumanaho na zwenezwo. ˆ U KHWAT ˆ zwi tevhelaho:— HISEDZWE nga Phalamennde ya Riphabu liki ya Afrika Tshipembe sa ˆ KUDZUDZANYELE KWA KHETHEKANYO NDIMA YA 1 HALUTSHEDZO, NDIVHO NA KUSHUMISELE T ˆ 1. 2. 3. 4. halutshedzo na ku T ˆ Zwipikwa zwa Mulayo Kushumisele kwa Mulayo U shumiswa ha zwikalo zwa zwikolodo talutshedzele ˆ NDIMA YA 2 U N˙ WALISWA 5. 6. Khumbelo ya u n˙ waliswa U imiswa lwa tshifhinganyana na u fheliswa ha u n˙ waliswa NDIMA YA 3 MISHUMO YA ZHENDEDZI L ˆ A U KALA ZWIKOLODO L ˆ O N˙ WALISAHO Mishumo U tholwa ha vhalunguli Ngona, mimodele na khumbulelo dza ndeme dza u kala zwikolodo Zwikalo zwa zwikolodo 7. 8. 9. 10.

11. Mulayo wa vhud ˆ

12. U ita uri mushumo u shun˙ we nga in˙ we khamphani na dzin˙ we tshumelo

15. Muvhigo wa n˙ waha

16. Yuniti yo imaho nga yo the ya u vhona uri mulayo u khou tevhedzwa ˆ 17. ea dza akhaunthingi na ifari T ˆ hod ˆ tholo ˆ 5 10 15 20 25 4 No. 36071 Act No. 24 of 2012 GOVERNMENT GAZETTE, 14 JANUARY 2013 CREDIT RATING SERVICES ACT, 2012 4 CHAPTER 4 ENDORSEMENT OF EXTERNAL CREDIT RATINGS 18. Requirements for endorsement of external credit ratings CHAPTER 5 LIABILITY AND INDEPENDENCE OF REGISTERED CREDIT RATING AGENCY 19. 20. Liability of registered credit rating agency Independence CHAPTER 6 ADMINISTRATION OF ACT Registrar and deputy registrar of credit rating agencies Powers and functions of registrar Rules Inspections and on-site visits 21.

7. A registered credit rating agency must— (a) comply with this Act; (b) provide the registrar with any information required in terms of this Act; (c) within 14 days of becoming aware of any change, inform the registrar if any information submitted in respect of its application under section 5 has changed; (d) be organised in a way that ensures that its business interest does not impair the independence and integrity of its credit ratings or the accuracy of its credit rating services; (e) have sound administrative and accounting procedures, internal control mechanisms, effective procedures for risk assessment, and effective control and safeguarding arrangements for information-processing systems; establish appropriate and effective organisational and administrative arrange- ments to— (i) prevent, identify, eliminate, manage or disclose any conflicts of interest (f) of the registered credit rating agency, its analysts and employees; and (ii) protect confidential information made available to it by issuers, including prohibiting its analysts and employees from using such information to enter into transactions; (g) employ appropriate systems, resources and procedures to ensure continuity (h) (i) (j) and regularity in the performance of its credit rating services; regularly monitor and evaluate the adequacy and effectiveness of its systems, internal control mechanisms and arrangements and take appropriate measures to address any deficiencies; ensure that at all times it has the necessary knowledge and experience to issue credit ratings and perform its credit rating services; and establish a unit within its organisation whose function is to communicate with investors, potential investors and the public about any questions, concerns or complaints that it may receive. Appointment of directors 8. (1) A registered credit rating agency must, within 14 days after the appointment of a director, inform the registrar of the appointment and furnish the registrar with such information on the appointment as the registrar may require. 20 25 30 35 40 45 GOVERNMENT GAZETTE, 14 JANUARY 2013 MULAYO WA ZWA TSHUMELO DZA U KALA ZWIKOLODO, 2012 Nom. 36071 19 Nom 24 ya 2012 19 (c) Arali zhendedzi lo n˙ walisaho li malugana na uho u lo ita aphi ˆ ˆ ˆ imiswa na u fheliswa u n˙ waliswa ha ivhadzo yo tra u fanela u sa and lo, redzhis ˆ ˆ ˆ bulwaho kha pharagirafu ya (a) u swikela aphi li i tshi tshimbidzwa ya fhela. ˆ la u kala zwikolodo ˆ adza nd ˆ (5) (a) Zwikalo zwa zwikolodo zwo bviswaho nga zhendedzi lo ho imiswa kana u fheliswa zwi nga ya phand u n˙ waliswa ha ˆ ˆ ndivho dza kulangulele lwa— line la u kala zwikolodo ˆ ˆ a na u shumiswa u itela (i) mad ˆ ivhadzo yo bulwaho kha uvha a 14 nga murahu ha u and ˆ khethekanyo ya nga fhasi ya (4)(a), arali zwikalo zwa u kala tshikolodo ha lo zhendedzi, zwo bviswa-vho na nga man˙ we mazhendedzi o n˙ walisaho nga lene ˆ ˆ fhasi ha uno Mulayo; kana adzwa ha nd ˆ ivhadzo yo bulwaho kha (ii) min˙ wedzi miraru nga murahu ha u and ˆ khethekanyo ya nga fhasi ya (4)(a), arali hu si na zwikalo zwa zwikolodo zwa etshedzwa nga man˙ we mazhendedzi a u kala zwikolodo lene ˆ o n˙ walisaho nga fhasi ha uno Mulayo. lo zhendedzi zwo n ˆ ˆ adzwa ha nd ˆ (b) Redzhis tra a nga engedza tshifhinga tsho ambiwaho kha pharagirafu ya (a) (ii), u ˆ itela u thivhela u khakhisea ha maraga hune ha nga itea kana u vhona uri hu vhe na vhudziki ha zwa masheleni. NDIMA YA 3 MISHUMO YA ZHENDEDZI L ˆ A U KALA ZWIKOLODO L ˆ O N˙ WALISAHO Mishumo

7. Zhendedzi la u kala zwikolodo ˆ lo n˙ walisaho ˆ li fanela u— ˆ fha redzhis (a) anana na uno Mulayo; (b) (c) hu saathu u fhela mad ˆ ivhadze redzhis tra nd ˆ ˆ ivhiso i d ˆ khethekanyo ya 5 yo shanduka; tra arali nd ˆ ˆ tod ˆ ˆ waho zwi tshi ya nga uno Mulayo; uvha a 14 o d ˆ ivha nga ha tshanduko in˙ we na in˙ we, a ivhiso yo iswaho na khumbelo nga fhasi ha (d) vha o dzudzanyeaho nga nd ˆ li vhaisi ˆ thonifho/tshirunzi tsha u kala zwikolodo kana vhungoho ha vhud ˆ ˆ tshumelo dza u kala zwikolodo; ila ine ya vhona uri dzangalelo la bindu a ˆ iimisi na (e) vha na nd ˆ ivho ya maitele a vhulanguli na u kona u vhalela, nd ˆ ila dza ndangulo ya nga ngomu, maitele a shumaho a u lavhelesa khombo, na ndango i shumaho na nzudzanyo dza tsireledzo kha sisi ivhiso; thoma nzudzanyo dzo teaho, dzi shumaho dza vhulanguli na tshiimiswa— (i) u thivhela, sumbedza, fhelisa, dzangalelo kha zhendedzi vhasengulusi na vhashumi; na ano ya langula na u bvukula khud ˆ lo n˙ walisaho, ˆ la u kala zwikolodo ˆ teme dza u shuma nd ˆ ˆ (ii) u tsireledza mafhungo a tshidzumbe ane a d ˆ a kha zhendedzi a tshi bva isi vhao, hu tshi katelwa vhasengulusi na vhashumi uri vha sa kha vhad ˆ shumise eneo mafhungo kha shumisa sisi teaho kha u shuma tshumelo dza u kala zwikolodo; teme dzo teaho, zwiko na maitele a u vhona u sa khauwa na zwo ˆ thrantsekisheni; ˆ (f) (g) (i) i ha sisi tola u linganela na u shuma zwavhud ˆ ˆ teme dza ˆ ila dza ndango ya nga ngomu na nzudzanyo na u dzhia (h) anzela u lavhelesa na u lone zhendedzi, nd ˆ ˆ maga o teaho a u tandulula vhu tudze; tudze ˆ ˆ eaho na tshenzhemo zwa u the hu na nd vhona uri tshifhinga tsho ˆ ˆ etshedza zwikalo zwa zwikolodo na u shuma tshumelo dza u kala zwikolodo; n ˆ na; thoma yuniti kha zhendedzi e ine mushumo wayo heyi yuniti ha vha u davhidzana na vhabindudzi, na vhane vha nga vha vhabindudzi na tshitshavha nga ha mbudziso dzin˙ we na dzin˙ we, thaidzo kana mbilaelo dzine dza nga tanganedzwa. ˆ lone ˆ ivho i tod ˆ ˆ lin ˆ ˆ (j) U tholwa ha vhalunguli 8. (1) Zhendedzi lo n˙ walisaho la u kala zwikolodo ˆ ˆ uvha a 14 nga murahu ha u tholwa ha mulanguli, li fanela uri, hu saathu u fhela ˆ tra nga ha u ivhadze redzhis li d ˆ ˆ ˆ tra a tshi zwi ivhiso ya u tholwa sa musi redzhis ˆ li fhe redzhis ˆ tra nd ˆ ˆ mad ˆ tholwa uho nahone tod ˆ ˆ a. 5 10 15 20 25 30 35 40 45 50 55 20 No. 36071 Act No. 24 of 2012 GOVERNMENT GAZETTE, 14 JANUARY 2013 CREDIT RATING SERVICES ACT, 2012 20 (2) The provisions of subsection (1) may not be construed as rendering the appointment of a director of a registered credit rating agency subject to the approval of the registrar. (3) If the registrar is of the opinion that a director does not meet the prescribed fit and proper requirements contemplated in section 5(1)(d), the registrar may instruct a registered credit rating agency to remove that director from the board of the registered credit rating agency, and if so instructed, the registered credit rating agency must remove the director. (4) The registrar must, before instructing a registered credit rating agency to remove a director from its board, give notice to the registered credit rating agency concerned, and, unless it is impracticable to do so, also notify the director concerned. (5) The registrar must consider any representations received from the registered credit rating agency or director, as the case may be, regarding the instructions to remove such director. (6) The registered credit rating agency must ensure that the director concerned does not in any way, directly or indirectly, take part in the management of the registered credit rating agency, pending the final outcome of any action under section 33. Methodologies, models and key rating assumptions

9. A registered credit rating agency must— (a) adopt, implement and enforce adequate measures to ensure that the credit ratings it issues, are based on a thorough analysis of all the information that is available to it and that is relevant to its analysis according to its rating methodologies; (b) use rating methodologies that are rigorous, systematic, continuous and subject (c) to validation based on historical experience, including back-testing; regularly review its methodologies, models and key rating assumptions such as mathematical or correlation assumptions, any significant changes or modifications to them and the appropriateness of those methodologies, models and key rating assumptions if they are used or are intended to be used for the assessment of new financial instruments; and (d) establish internal arrangements to monitor the impact of changes in macro-economic or financial market conditions on credit ratings. 5 10 15 20 25 30 Credit ratings 10. (1) A registered credit rating agency must— (a) publish any credit rating or any decision to discontinue a credit rating 35 impartially and timeously; (b) when publishing a credit rating— (i) state clearly and prominently any attributes and limitations of the credit rating; and (ii) provide an explanation of the key elements underlying the credit rating, so that an investor, a potential investor or a member of the public, as the case may be, is able to understand how a rating was arrived at; and (c) monitor credit ratings and regularly review its credit ratings. (2) A registered credit rating agency must, when issuing a credit rating for a structured finance instrument, ensure that the rating categories that are attributed to structured finance instruments are clearly differentiated, using an additional symbol which distinguishes them from rating categories used for any other entities, securities, financial instruments or issuers. (3) A registered credit rating agency must disclose its policies and procedures regarding unsolicited credit ratings. 40 45 50 GOVERNMENT GAZETTE, 14 JANUARY 2013 MULAYO WA ZWA TSHUMELO DZA U KALA ZWIKOLODO, 2012 Nom. 36071 21 Nom 24 ya 2012 21 kandekanywa sa musi u n ˆ zwikolodo (2) Mbetshelo dza khethekanyo ya nga fhasi ya (1) dzi nga vha dzi songo la u kala ˆ etshedza u tholwa ha mulanguli wa zhendedzi tra. lo n˙ walisaho zwi tshi fanela u tendelwa nga redzhis ˆ ˆ (3) Arali redzhis randelwaho na thod ˆ ˆ la u kala zwikolodo laela zhendedzi ˆ zhendedzi zhendedzi ea dzo thod ˆ ˆ tra a nga ˆ li bvise mulanguli kha bodo ya ˆ lo n˙ walisaho, nahone arali zwo laelwa ngauralo, ˆ tra a na muhumbulo wa uri mulanguli ha fushi ˆ ea dzo sumbedzwaho kha khethekanyo ya 5(1)(d), redzhis lo n˙ walisaho uri ˆ la u kala zwikolodo ˆ la u kala zwikolodo ˆ li fanela u bvisa mulanguli onoyo. ˆ lo tra u fanela uri, phand (4) Redzhis ˆ ˆ ˆ la u kala ivhadze zhendedzi lo, a d li bvise mulanguli kha bodo ya n˙ walisaho uri ˆ ˆ ˆ ˆ zwikolodo ani ha musi zwi sa konadzei u li kwameaho, nahone, nga nnd ˆ ˆ pfalo, a dovhe a vhudze mulanguli a kwameaho. la u kala zwikolodo ˆ a ha u laela zhendedzi lo n˙ walisaho ˆ lo n˙ walisaho ˆ (5) Redzhis tha zwine zwa khou ambiwa nga zhendedzi tra u fanela u dzhiela n ˆ ˆ kala zwikolodo na ndaela dza honoho u bviswa ha mulanguli. la u ˆ lo n˙ walisaho kana mulanguli, sa hune zwithu zwa vha ngaho, malugana ˆ (6) Zhendedzi la u kala zwikolodo ˆ lo n˙ walisaho ˆ kwameaho ha vhuyi a shuma na luthihi nga nd ˆ livhaho kha u langa la u kala zwikolodo ˆ mvelelo dza nyito in˙ we na in˙ we ya fhasi ha khethekanyo ya 33. lone zhendedzi ˆ li fanela u vhona uri mulanguli a ˆ ila in˙ we na in˙ we, yo livhaho kana i songo lo n˙ walisaho, musi ho lindelwa ˆ Ngona, mimodele na khumbulelo dza ndeme dza u kala zwikolodo

9. Zhendedzi (a) u la u kala zwikolodo ˆ lo n˙ walisaho ˆ li fanela— ˆ tanganedza, u thoma u shumisa na u kombetshedza maga o linganaho a u ˆ vhona uri zwikalo zwa zwikolodo zwine zwa bviswa zwo sendeka kha tsenguluso ya vhuronwane ya nd lo nahone ivhiso yo ˆ ˆ ine ya vha yo teaho kha tsenguluso zwi tshi ya nga ngona dza kukalele kwa zhendedzi; the ine ya vha hone kha ˆ (b) u shumisa ngona dza u kala dzine dza vha dza vhuronwane, dza sisi tematiki, ˆ dzi sa fheli nahone dziteaho u vhonwa arali dzi dza vhukuma zwo sendekaho kha tshenzhemo ya d ivhazwakale, hu tshi katelwa na ndingo ya khumela- ˆ murahu; (c) u d ˆ i dzula li tshi ˆ tola ngona dza ˆ lo, mimodele kana khumbulelo ya u kala sa i ˆ ngaho ya mbalo kana khumbulelo dza vhushaka, tshanduko dzin˙ we na dzin˙ we dza ndeme kana khwinifhadzo khadzo na u tea ha dzenedzo ngona, mimodele kana khumbulelo dza u kala arali dzi tshi shumiswa kana dzo humbulelwa u nga shumiswa kha thuvho ya tshishumiswa tsha masheleni; na ˆ tha ˆ (d) u thoma nzudzanyo dza nga ngomu dza u lavhelesa thuwedzo ya ˆ avhuwaho kana nyimele ya maraga wa thu ˆ tshanduko kha zwa ikonomi yo masheleni kha zwikalo zwa zwikolodo. tand ˆ ˆ Zwikalo zwa zwikolodo 10. (1) Zhendedzi la u kala zwikolodo ˆ lo n˙ walisaho ˆ li fanela u— ˆ adza u kala zwikolodo hun˙ we na hun˙ we kana tsheo in˙ we na in˙ we ya u sa (a) and ˆ (b) uri musi tsha ya phand ˆ li tshi and ˆ ˆ the; a na u kala zwikolodo nahone tshifhinga tsho ˆ adza u kalwa ha zwikolodo li— ˆ (i) bule zwi vhe khagala nahone hu d ˆ phungudzelo dza tshikalo tsha tshikolodo; na ivhee zwo itisaho na zwo d ˆ isaho 5 10 15 20 25 30 35 40 45 (ii) u fha thalutshedzo ya zwin˙ we na zwin˙ we zwa ndemesa kha u kalwa ha ˆ zwikolodo, u itela uri mubindudzi, na ane a nga vha mubindudzi kana murad o wa tshitshavha, sa zwine zwa nga vha, a kone u pfesesa uri u ˆ kalwa ho swikelwa hani; na (c) u lavhelesa zwikalo zwa zwikolodo na u dzulela u zwikolodo. tola zwikalo zwa ˆ 50 (2) Zhendedzi lo n˙ walisaho ˆ li fanela uri, musi ˆ la u kala zwikolodo ˆ li tshi khou ˆ n li fanela u vhona uri etshedza u kalwa ha zwikolodo kha tshishumiswa tsha masheleni, ˆ ˆ khethekanyo dzi kwamanaho na zwishumiswa zwa masheleni zwi a fhambanyisea hu tshi khou shumiswa tshiga tsho engedzwaho tshine tsha zwi fhambanyisa na khethekanyo dza u kala dzi shumiswaho kha zwin˙ we zwiimiswa, mikovhe, etshedzi. zwishumiswa zwa masheleni kana vhan ˆ fanela u sumbedza lo malugana na u kalwa ha zwikolodo he ha sa humbelwe. mbekanyamaitele na maitele a ˆ la u kala zwikolodo ˆ lo n˙ walisaho ˆ (3) Zhendedzi li ˆ 55 22 No. 36071 Act No. 24 of 2012 GOVERNMENT GAZETTE, 14 JANUARY 2013 CREDIT RATING SERVICES ACT, 2012 22 (4) A registered credit rating agency must refrain from issuing a credit rating if the lack of reliable data, the complexity of a new type of financial instrument or the quality of information available may result in a non-credible credit rating. Code of conduct 11. (1) A registered credit rating agency must adopt, publish and adhere to a code of 5 conduct that— (a) adopts the principles contained in a relevant international code of conduct prescribed by the registrar; and (b) describes how the code of conduct will be enforced. (2) A registered credit rating agency must publish any changes to its code of conduct. (3) A registered credit rating agency must publish on an annual basis any material deviations of its code of conduct from that of the code of conduct prescribed by the registrar in subsection (1) (a) and the reasons therefor. Outsourcing and other services 12. (1) A registered credit rating agency may not, without the prior written approval of the registrar, outsource any of its operational functions, save for outsourcing to an entity in the same group as the registered credit rating agency. (2) A registered credit rating agency may provide services ancillary to its credit rating services, as prescribed by the registrar. Disclosures 13. (1) A registered credit rating agency must disclose to the public and its subscribers— (a) the practices, procedures, processes, methodologies, models and key rating assumptions it uses in its credit ratings and credit rating services and any material modification thereto; its code of conduct; the general nature of its compensation arrangements; and its policy on publishing credit ratings and other related communication. (b) (c) (d) (2) A registered credit rating agency must, every 12 months, disclose to the public and its subscribers data about the historical default rates of its rating categories. (3) A registered credit rating agency must provide prominent links to the disclosures contemplated in subsections (1) and (2) on its website. (4) A registered credit rating agency must annually disclose to the registrar— (a) a list of its 20 largest clients by revenue, and the percentage of revenue that each of those 20 clients, individually or together with affiliates, contribute to the total annual revenue of the registered credit rating agency; and the name of any client who, individually or together with affiliates, contributes more than ten per cent to the total annual revenue of the registered credit rating agency. (b) Records

14. A registered credit rating agency must arrange for adequate records and, where appropriate, audit trails of its credit rating services, which must be kept for a minimum period of five years or such longer period as may be prescribed in any other applicable law. 10 15 20 25 30 35 40 GOVERNMENT GAZETTE, 14 JANUARY 2013 MULAYO WA ZWA TSHUMELO DZA U KALA ZWIKOLODO, 2012 Nom. 36071 23 Nom 24 ya 2012 23 (4) Zhendedzi la u kala zwikolodo ˆ isendedzela kule na u bvisa u kalwa ha zwikolodo kana u litsha u kala hu re hone arali hu tshi khou shaea data I thembeaho, vhukond ivhiso zwi nga i ha tshishumiswa tsha masheleni kana vhud ˆ ˆ bveledza tshikalo tsha zwikolodo tshi si tshone. lo n˙ walisaho ˆ li fanela u d ˆ ˆ i ha nd ˆ Mulayo wa vhud ˆ ifari 11. (1) Zhendedzi la u kala zwikolodo ˆ lo n˙ walisaho ˆ li fanela u ˆ tanganedza, and ˆ ˆ adza (a) na u tevhedza mulayo wa vhud ˆ ifari kha u— tanganedza milayo yo teaho i re kha mulayo wa vhud ˆ ˆ dzitshaka-tshaka yo randelwaho nga redzhis tra; na ˆ ifari u d o tevhedziswa hani; na talutshedza uri mulayo wa vhud ˆ ˆ ˆ la u kala zwikolodo li fanela u and lo n˙ walisaho (2) Zhendedzi ˆ ˆ ˆ ˆ ifari. na dzin˙ we dza mulayo wa vhud ˆ (b) (3) Zhendedzi la u kala zwikolodo ˆ malugana na u sa tevhedza Mulayo wa vhud ˆ khethekanyo ya nga fhasi ya (1) (a) na mbuno dza u pfalo. lo n˙ walisaho ˆ adza nga n˙ waha li fanela u and ˆ ˆ tra kha ifari wo randelawaho nga redzhis ˆ adza tshanduko dzin˙ we ifari wa mashango a U ita uri mushumo u shun˙ we nga in˙ we khamphani na dzin˙ we tshumelo 12. (1) Zhendedzi li nga, la wana ˆ ˆ tra, isi mushumo uri u shun˙ we nga in˙ we khamphani ˆ ani ha musi mushumo u tshi khou iswa kha tshiimiswa tshine tsha vha tsha la u kala zwikolodo ˆ lo n˙ walisaho a ˆ li songo ranga ˆ thendelo yo n˙ walwaho nga redzhis nga nnd ˆ tshigwada tshenetsho tsha lene ˆ (2) Zhendedzi la u kala zwikolodo ˆ tra. lo dza u kala zwikolodo, sa zwe zwa randelwa nga rezhis kha tshumelo dza ˆ ˆ lo n˙ walisaho. ˆ li nga n lo n˙ walisaho ˆ ˆ ˆ lo zhendedzi ˆ etshedza tshumelo-thusedzi Mvukululo 13. (1) Zhendedzi la u kala zwikolodo ˆ tama dza tshitshavha na khasi ˆ lo— ˆ lo n˙ walisaho ˆ li fanela u bvukululela ˆ (a) mishumo, maitele, kuitele, ngona, mimodele na mahumbulelwa a u kala ane zhendedzi la a shumisa kha zwikalo zwa zwikolodo na kha tshumelo dza u ˆ kala zwikolodo na kha u khwinisa tshishumiswa tshin˙ we na tshin˙ we henefho; (b) na mulayo wa ifari; lo wa vhud ˆ ˆ (c) vhuvha ha u tou angaredza kha nzudzanyo dza mbadelo; na (d) mbekanyamaitele ya lo kha u and ˆ ˆ vhudavhidzani. adza zwikalo zwa zwikolodo na vhun˙ we (2) Zhendedzi la u kala zwikolodo li fanela uri, kha min˙ wedzi ya rathi ˆ ˆ min˙ we na min˙ we, tama dza li bvukululele tshitshavha na khasi ivhazwakale lo nga ha d ˆ ˆ ˆ ˆ lo dza u kala. tiso malugana na u kundelwa u badela kha khethekanyo dza ya nda ˆ ˆ li fanela u sumbedza zwiimiswa zwa la u kala zwikolodo ˆ ˆ tumana nazwo kha zwe zwa bvukululwa zwo bulwaho kha khethekanyo ˆ (3) Zhendedzi la ˆ lo n˙ walisaho ˆ walisaho lo n ˆ ˆ ndeme zwine lo. dza nga fhasi dza (1) na (2) kha webusaithi ya ˆ lo n˙ walisaho ˆ la u kala zwikolodo ˆ li fanela uri nga n˙ waha ˆ li sumbedze ˆ (4) Zhendedzi tra— ˆ redzhis (a) mutevhe wa khasi tama khulwanesa dza 20 nga mbuelo, na phesenthe dza ˆ muthelo wa mbuelo wa khasi tama in˙ we na in˙ we ya dzenedzo dza 20, nga ˆ o, dze dza itwa dzo fhelela kha n˙ waha wa nthihi-nga- nthihi kana mirad ˆ muthelo wa mbuelo wa zhendedzi la u kala zwikolodo; na ˆ (b) khasi tama, vha ita the kana na dzin˙ we khasi tama in˙ we na in˙ we ine, i yo ˆ ˆ ˆ phesenthe dzi fhiraho dza 10 (10%) kha muthelo wo the wa mbuelo wa n˙ waha ˆ la u kala zwikolodo kha zhendedzi ˆ lo n˙ walisaho. ˆ Dzirekhodo

14. Zhendedzi la u kala zwikolodo ˆ li fanela u dzudzanya dzirekhodo dzo lo n˙ walisaho ˆ ˆ tholo dza tshumelo dza u kala zwikolodo tala ha linganelaho nahone, hune zwa tea, vhu ˆ ˆ dzi fanela u vhewa lwa tshifhinga tshi tanu kana tshenetsho tukusa tsha min˙ waha mi ˆ ˆ tshifhinga tshilapfu tshine tsha nga vha tsho randelwa kha mulayo mun˙ we na mun˙ we wo teaho. 5 10 15 20 25 30 35 40 45 50 24 No. 36071 Act No. 24 of 2012 GOVERNMENT GAZETTE, 14 JANUARY 2013 CREDIT RATING SERVICES ACT, 2012 Annual report 24 15. (1) A registered credit rating agency must annually publish a report to the public, which report must include at least the following: (a) detailed information on its legal structure and ownership; (b) a description of its internal control mechanisms that ensure the quality of the 5 (c) (d) credit rating services; a description of its record-keeping policy; the outcome of the annual internal review undertaken by its independent compliance unit; (e) financial information on its revenue sources, divided into fees from credit 10 rating services, ancillary services and other services; and any other prescribed information. (f) (2) The annual report contemplated in subsection (1) must be— (a) submitted to the registrar together with the audited financial statements of the registered credit rating agency; and 15 (b) published within a period prescribed by the registrar or such later date as the registrar may allow on application by a registered credit rating agency and must remain available on the website of the registered credit rating agency for at least five years. Independent compliance unit 16. (1) A registered credit rating agency or the group to which the registered credit rating agency belongs, must establish and maintain a permanent, independent and effective compliance unit approved by the registrar in accordance with the criteria and guidelines prescribed by the registrar. (2) A registered credit rating agency must— (a) ensure that the compliance unit has the necessary authority, resources, expertise and access to all relevant information; and (b) appoint a compliance officer who is responsible for the compliance unit and for any compliance reporting, and inform the registrar of such appointment and the details of that person. (3) A compliance officer must— (a) monitor and report to the registrar on the compliance of the registered credit rating agency and its employees in respect of the obligations of the registered credit rating agency under this Act and any codes, policies, procedures or systems required to be established under this Act; (b) advise and assist the registered credit rating agency in complying with its (c) (d) (e) (f) obligations under this Act; report directly to the board of the registered credit rating agency; review compliance with policies and procedures to manage conflicts of interest and assess the risk of non-compliance for the integrity of the credit rating process; review compliance with internal controls with regard to the procedures and methodologies for determining credit ratings, including quantitative and qualitative models used in the rating process; and in consultation with the board of the registered credit rating agency, resolve, avoid or mitigate any conflicts of interest that may arise. (4) A compliance officer may not— (a) perform credit ratings; (b) participate in the development of rating methodologies or models; (c) perform marketing or sales functions; or 20 25 30 35 40 45 50 GOVERNMENT GAZETTE, 14 JANUARY 2013 MULAYO WA ZWA TSHUMELO DZA U KALA ZWIKOLODO, 2012 Nom. 36071 25 Nom 24 ya 2012 25 Muvhigo wa n˙ waha 15. (1) Zhendedzi tshitshavha, une muvhigo wonoyo u fanela u katela zwi tevhelaho: la u kala zwikolodo ˆ lo n˙ walisaho ˆ li fanela u and ˆ ˆ adzela muvhigo (a) zwidodombedzwa nga ha zwa mulayo na vhun ˆ (b) e; (c) (d) mvelelo dza i; thalutshedzo nga ha kuitele kwa ndango ya nga ngomu ine ya vhona uri hu vhe ˆ na tshumelo dza u kala zwikolodo dzavhud ˆ thalutshedzo nga ha mbekanyamaitele ya u vhulunga rekhodo; ˆ tholo ya n˙ waha ya nga ngomu i itwaho nga yuniti yayo yo ˆ iimisaho ya u vhona uri mulayo u tevhedzwe; ivhiso ya zwa masheleni malugana na zwiko zwa mbuyelo ya zhendedzi, zwi kovhiwaho zwa vha kha masheleni u bva kha tshumelo dza u kala zwikolodo, tshumelo dza nga fhasi na dzin˙ we tshumelo; na nd ˆ ivhiso in˙ we na in˙ we yo randelwaho. (2) Muvhigo wa n˙ waha wo ambiwaho kha khethekanyo ya nga fhasi ya (1) i fanela d ˆ (e) nd ˆ (f) u— (a) iswa kha redzhis ta tra khathihi na zwi ˆ ˆ zhendedzi la u kala zwikolodo ˆ tamennde zwa ˆ lo n˙ walisaho; na u ˆ tholo ya masheleni a ˆ (b) and ˆ tra kana adza hu saathu fhela tshifhinga tsho randelwaho nga redzhis ˆ tshenetsho tshifhinga tsha u lenga tshine redzhis tra a nga tshi tenda ho tou itwa ˆ lo n˙ walisaho nahone muvhigo khumbelo nga zhendedzi ˆ wonoyo u fanela u dzula u hone kha webusaithi ya zhendedzi la u kala ˆ zwikolodo la u kala zwikolodo ˆ lo n˙ walisaho lwa min˙ waha mi ˆ tanu. ˆ the ya u vhona uri mulayo u khou tevhedzwa Yuniti yo imaho nga yo ˆ lo n˙ walisaho kana tshigwada tshine zhendedzi la u kala zwikolodo ˆ ˆ lo n˙ walisaho li fanela u thoma na u tikedza lwa la wela khatsho, ˆ ˆ ˆ the ya u ita uri mulayo u tevhedzwe, zwi vhe zwo the, yuniti yo imaho nga yo ˆ ˆ ila na tsumbamaitele zwo randelwaho tra zwi tshi ya nga nd ˆ ˆ 16. (1) Zhendedzi la u kala zwikolodo ˆ tsho tendelwa-vho na nga redzhis tra. nga redzhis ˆ (2) Zhendedzi la u kala zwikolodo ˆ lo n˙ walisaho ˆ li fanela u— ˆ (b) ivhesesi na u kona u swikelela nd ˆ (a) vhona uri yuniti ya u vhona uri mulayo u khou tevhedzwa i na maand alanga ˆ the yo ivhiso yo ˆ o teaho, zwiko, vhud ˆ fanelaho; na u, thola muofisiri wa u tevhedzisa mulayo ane a vha na vhud ifhinduleli ha yuniti ˆ na u vhigwa hun˙ we na hun˙ we hu yelanaho na zwa u tevhedza mulayo na u vhudza redzhis tra nga ha u tholwa uho hu tshi katelwa na zwidodombedzwa ˆ zwa muthu onoyo. (3) Muofisiri wa u vhona uri mulayo u khou tevhedzwa u fanela u— (a) tra nga ha u tevhedza mulayo nga zhendedzi lavhelesa na u vhiga kha redzhis ˆ lo n˙ walisaho na nga vhashumi zwi tshi yelana na mbofho la u kala zwikolodo ˆ ˆ lo n˙ walisaho nga fhasi ha uno Mulayo na ya zhendedzi ˆ mulayo mun˙ we na mun˙ we, mbekanyamaitele, maitele na sisi teme dzi ˆ tod ˆ ˆ waho u thon˙ wa nga fhasi ha uno Mulayo; la u kala zwikolodo ˆ (b) eletshedza na u thusa zhendedzi la u kala zwikolodo ˆ tevhedza mbofho dza uno Mulayo; (c) vhiga thwii kha bodo ya zhendedzi (d) la u kala zwikolodo ˆ lo n˙ walisaho kha u ˆ lo n˙ walisaho; ˆ ano ya madzangalelo na u tola u tevhedza mulayo na milayo na mbekanyamaitele na maitele a u langula ˆ thuvha mulingo wa u sa tevhedza mulayo tha khud ˆ ˆ ˆ zwi tshi itelwa u fhulufhedzea ha kuitele kwa u kala zwikolodo; tola u tevhedza mulayo na ndango dza nga ngomu zwi tshi yelana na maitele ˆ na ngona dza u dzhia tsheo kha zwikalo zwa zwikolodo, hu tshi katelwa lithethivi na khwanthithethivi i shumiswaho, kha kuitele mimodole ya khwa ˆ kwa u kala; na kwamana na bodo ya zhendedzi tandulula, u thivhela kana u fhungudza khud ˆ hone. lo n˙ walisaho, u ˆ ano ya dzangalelo ine ya vha la u kala zwikolodo ˆ (e) (f) (4) Muofisiri wa u vhona uri mulayo u khou tevhedzwa ha nga— shumi zwa u kala zwikolodo; (a) (b) dzheneleli kha zwa mvelaphand ˆ (c) shumi mishumo ya zwa maraga kana thengiso; kana a ya ngona na mimodele ya u kala zwikolodo; 5 10 15 20 25 30 35 40 45 50 55 26 No. 36071 Act No. 24 of 2012 GOVERNMENT GAZETTE, 14 JANUARY 2013 CREDIT RATING SERVICES ACT, 2012 26 (d) participate in establishing compensation levels, other than for employees working for the compliance officer. (5) The compensation of a compliance officer by the registered credit rating agency may not be linked to the business performance of the registered credit rating agency, and shall be structured in a manner that ensures independence of judgment. (6) (a) A compliance officer must annually prepare a compliance report on the compliance of the registered credit rating agency with this Act and any codes, policies, procedures or systems required to be established under this Act. (b) The compliance officer must submit the compliance report to the registrar, 5 together with the audited financial statements of the registered credit rating agency. 10 (7) The compliance officer must submit any other reports to the registrar in the prescribed manner. (8) Despite anything to the contrary contained in any law, a compliance officer must report to and inform the registrar in writing of any irregularity or suspected irregularity in the conduct or the affairs of the registered credit rating agency or any breach of this Act. (9) If the appointment of a compliance officer is terminated, the compliance officer must— (a) (b) submit to the registrar a statement of what the compliance officer believes to be the reasons for that termination; and if the compliance officer would, but for that termination, have had reason to submit to the registrar a report contemplated in subsection (8), submit such a report to the registrar. (10) The registrar may direct a registered credit rating agency to terminate the appointment of a compliance officer, if the compliance officer fails to comply with any provision of this section in a material manner. Accounting and auditing requirements 17. (1) Except to the extent exempted by the registrar, a registered credit rating agency must annually prepare, in respect of the relevant financial year, financial statements reflecting— (a) (b) its financial position at its financial year-end; the results of operations, the receipt and payment of cash and cash equivalent balances; all changes in equity for the period then ended, and any additional components required in terms of International Financial Reporting Standards issued by the International Accounting Standards Board or a successor body; and (c) (d) a summary of significant accounting policies and explanatory notes on the matters referred to in paragraphs (a) to (c). (2) A registered credit rating agency must cause the statements contemplated in subsection (1) to be audited and reported on by an external auditor in accordance with auditing pronouncements as defined in section 1 of the Auditing Profession Act, 2005 (Act No. 26 of 2005). (3) The registered credit rating agency must submit its audited financial statements to the registrar within a period prescribed by the registrar or such later date as the registrar may allow on application by a registered credit rating agency. (4) The provisions of section 16(8), (9) and (10) apply, with the necessary changes, to the external auditor of a registered credit rating agency. 15 20 25 30 35 40 45 GOVERNMENT GAZETTE, 14 JANUARY 2013 MULAYO WA ZWA TSHUMELO DZA U KALA ZWIKOLODO, 2012 Nom. 36071 27 Nom 24 ya 2012 27 a ha vhashumi (d) u dzhenelela kha u thoma zwa nyed ˆ vha shumelaho muofisiri wa u vhona uri mulayo u khou tevhedzwa (5) U badelwa ha muofisiri wa u vhona uri mulayo u khou tevhedzwa nga zhendedzi la ˆ ila ine tumanywa na u shuma zwa bindu ˆ anelo dza mbadelo, nga nnd ˆ la u kala zwikolodo lo n˙ walisaho a hu nga vhi ho ˆ ˆ la u kala zwikolodo zhendedzi ˆ thulo yo d ya ita uri hu vhe na kha ˆ ˆ (6) (a) Muofisiri wa u vhona uri mulayo u khou tevhedzwa u fanela u dzudzanya la u kala zwikolodo ˆ li tshi khou tevhedza uno Mulayo, na min˙ we milayo, mbekanyamaitele, ˆ muvhigo wa n˙ waha malugana na u tevhedza mulayo nga zhendedzi lo n˙ walisaho ˆ teme dzi maitele kana sisi ˆ (b) Muofisiri wa u vhona uri mulayo u khou tevhedzwa u fanela u isa muvhigo kha la u kala zwikolodo ˆ tamennde zwa masheleni zwa zhendedzi ˆ waho uri dzi thon˙ we nga uno Mulayo. lo n˙ walisaho nahone zwi d ˆ ˆ o vha zwo itwa nga nd ˆ iimisaho. tod ˆ ˆ redzhis ta tra khathihi na zwi ˆ ˆ lo n˙ walisaho ˆ (7) Muofisiri wa u vhona uri mulayo u khou tevhedzwa u fanela u isa mivhigo min˙ we tra nga nd na min˙ we kha redzhis ˆ ˆ ila yo randelwaho. (8) Naho hu na zwo fhambanaho na uno mulayo kha mulayo ufhio na ufhio, muofisiri tra nga ˆ i kana tshine a la ˆ wa u vhona uri mulayo u khou tevhedzwa u fanela u vhiga na u vhudza redzhis u tou n˙ wala nga ha tshin˙ we na tshin˙ we tshi sa tshimbidzwi zwavhud ˆ humbulela uri a tshi khou tshimbidzwa zwavhud ˆ u kala zwikolodo i kana nga ha mafhungo a zhendedzi lo n˙ walisaho, kana u pfuka uno Mulayo. ˆ (9) Arali u tholwa ha muofisiri wa u vhona uri mulayo u khou tevhedzwa ha fheliswa, (a) muofisiri onoyo u fanela u— ta isa tshi tra tshine muofisiri wa u vhona uri mulayo u tamennde kha redzhis ˆ ˆ ˆ khou tevhedzwa a tenda uri ndi dzone mbuno dza honoho u fheliswa; nahone (b) arali muofisiri wa u vhona uri mulayo u khou tevhedzwa, a tshi itela honoho u fheliswa, o vha e na mbuno dza u isa muvhigo kha redzhis tra zwo ˆ sumbedzwaho kha khethekanyo ya nga fhasi ya (8), muofisiri wa u vhona uri tra. mulayo u khou tevhedzwa u fanela u isa wonoyo muvhigo kha redzhis ˆ lo n˙ walisaho uri ˆ li ˆ fhelise u tholwa ha muofisiri wa u ita uri mulayo u tevhedzwe, arali muofisiri wa u ita uri mulayo u tevhedzwe a tshi kundelwa u tevhedza mbetshelo ya ino khethekanyo nga nd ˆ la u kala zwikolodo ˆ o fha ndaela zhendedzi (10) Redzhis tra u d ˆ ˆ ila yone. T ˆ hod ˆ ea dza akhaunthingi na tholo ˆ ta ˆ lo n˙ walisaho ˆ 17. (1) Nga nnd ˆ la u kala tra, zhendedzi ani ha musi zwo tendelwa nga redzhis ˆ ˆ zwikolodo li dzudzanye muvhigo, zwi tshi yelana ˆ na n˙ waha wo teaho wa muvhalelano, muvhigo wonoyo u vhe u sumbedzaho zwi tamennde kha— ˆ (a) lo tsha masheleni musi n˙ waha wa muvhalelano u tshi fhela; tshiimo tsha ˆ (b) mvelelo dza mashumele, u li fanela uri nga n˙ waha ˆ tanganedza na u badela tshelede na tshelede i re ˆ eaho zwi tshi ya nga Zwi hone; the, ndinganelo ya tshifhinga tsho fhelaho, na zwin˙ we zwipid a tshanduko dzo ˆ ˆ zwi tandadi Zwa Mashango a tshakatshaka zwa u ˆ Vhiga Masheleni zwo bviswaho nga Bodo ya Akhaunthingi ya Mashango a tandad Dzitshakatshaka ya Si ˆ ˆ (d) manweledzo a mbekanyamaitele dza akhauthingi na zwa ambiwa kha pharagirafu dza (a) u ya kha (c). thalutshedzo kha zwe ˆ i kana tshiimiswa tsha mushumo; na tod ˆ ˆ (c) a. (2) Zhendedzi lo n˙ walisaho ˆ ta li fanela u itisa uri zwi ˆ ˆ la u kala zwikolodo ˆ zwo ambiwaho kha khethekanyo ya nga fhasi ya (1) zwi tshi ya nga tholo dzo bulwaho sa zwe zwa ˆ Mulayo wa Auditing Professions Act, 2005 (Act No. 26 of 2005), nga mu nnd ˆ (3) Zhendedzi tra hu saathu u fhela tshifhinga tsho randelwaho nga redzhis tolwaho kha redzhis ˆ ˆ tshenetsho tshifhinga tsha u lenga tshine redzhis khumbelo nga zhendedzi tamennde ˆ tolwe nahone zwi vhigwe zwi ˆ talutshedzwa kha khethekanyo ya 1 ya ˆ toli wa nga ˆ tamennde zwo ˆ tra kana ˆ tra a nga tshi tenda ho tou itwa ˆ lo n˙ walisaho ˆ (4) Mbetshelo dza khethekanyo ya 16(8), (9) na (10) dzi shumiswa, na tshandukiso lo n˙ walisaho. a ha zhendedzi ˆ toli wa nga nnd eaho, kha mu ˆ ˆ la u kala zwikolodo ˆ la u kala zwikolodo ˆ la u kala zwikolodo ˆ li fanela u isa zwi ˆ lo n˙ walisaho ˆ tod ˆ ˆ ta ˆ dzi 5 10 15 20 25 30 35 40 45 50 55 28 No. 36071 Act No. 24 of 2012 GOVERNMENT GAZETTE, 14 JANUARY 2013 CREDIT RATING SERVICES ACT, 2012 28 CHAPTER 4 ENDORSEMENT OF EXTERNAL CREDIT RATINGS Requirements for endorsement of external credit ratings 18. (1) A registered credit rating agency may, subject to the approval of the registrar, endorse external credit ratings, if— (a) (b) (c) (d) (e) (f) the credit rating services resulting in the issuing of the credit rating to be endorsed are undertaken partly or entirely— (i) by the registered credit rating agency; or (ii) by an external credit rating agency belonging to the same group as that registered credit rating agency; the registered credit rating agency has verified and is able to demonstrate on an ongoing basis to the registrar that the external credit rating agency is authorised or registered by a regulatory authority to perform credit rating services similar to those regulated under this Act and is subject to the laws of a country other than the Republic, which laws— (i) establish a regulatory framework equivalent to that established by this Act; and (ii) are supervised by a regulatory authority; the ability of the registrar to assess and monitor the compliance of the external credit rating agency with the regulatory framework referred to in paragraph (b) is not limited; the registered credit rating agency provides the registrar, on the registrar’s request, with all information necessary to enable the registrar to monitor, on an ongoing basis, compliance with this Act; there is an objective reason for the credit ratings to be issued in a country other than the Republic, or by an external credit rating agency; and an agreement contemplated in section 29 has been entered into between the registrar and the relevant regulatory authority of the external credit rating agency, which agreement, at least, provides for— (i) mechanisms for the exchange of information; and (ii) procedures for the coordination of regulatory activities to facilitate the monitoring of credit rating activities resulting in the issuing of the endorsed credit rating on an ongoing basis. (2) A credit rating endorsed under this section is deemed— (a) (b) to be a credit rating issued by a credit rating agency registered under this Act; and to have been issued when the credit rating is published on the website of the registered credit rating agency or by other means, or is distributed by subscription and presented and disclosed in accordance with the requirements of this Act. (3) A registered credit rating agency that endorsed a credit rating under this section remains fully responsible for that credit rating and for compliance with this Act. (4) (a) A registered credit rating agency must apply to the registrar in the manner prescribed, for the approval of the external credit rating agencies whose credit ratings it intends to endorse under this section. (b) If the registrar is of the opinion that a credit rating cannot be endorsed in accordance with this section or the requirements of this Act, the registrar may instruct the registered credit rating agency not to endorse the credit rating. (5) A registered credit rating agency may not use endorsement with the intention of avoiding the requirements of this Act. (6) The registrar must maintain a list on the FSB official website of external credit rating agencies whose ratings may be endorsed in terms of this section. 5 10 15 20 25 30 35 40 45 50 GOVERNMENT GAZETTE, 14 JANUARY 2013 MULAYO WA ZWA TSHUMELO DZA U KALA ZWIKOLODO, 2012 Nom. 36071 29 Nom 24 ya 2012 29 NDIMA YA 4 KHWAT ˆ HISEDZO DZA ZWIKALO ZWA ZWIKOLODO DZA NGA NND ˆ A T ˆ hod ˆ ea dza khwa thisedzo dza zwikalo zwa tshikolodo dza nga nnd ˆ ˆ a 18. (1) Zhendzi la u kala zwikolodo ˆ thendelo ya redzhis zhendedzi (a) o khwa lo n˙ walisaho ˆ etshedzwa ha o shun˙ wa thisedzwa nga zwine zwa d ˆ ˆ li tshi khou anana na li nga, musi ˆ ˆ thisedza zwikalo zwa zwikolodo zwo bviswaho nga ˆ la nnd ˆ ˆ tra, khwa ˆ a, arali— la u kala zwikolodo ˆ tshumelo dza u kala zwikolodo dzi tshi fhedza dzo bveledza u n ˆ u kala zwikolodo zwine zwa d ˆ zwi songo fhelelaho kana lwo fhelelaho— (i) nga zhendedzi (ii) nga zhendedzi la u kala zwikolodo ˆ a la nnd ˆ ˆ tshigwada tshithihi na lo n˙ walisaho kana, ˆ lo n˙ walisaho ˆ la u kala zwikolodo ˆ lo zhendedzi lene ˆ ˆ lo n˙ walisaho la u kala zwikolodo ˆ ˆ tra uri zhendedzi li tshi zwi sumbedza kha redzhis ˆ ˆ lo n˙ waliswa uri lo tendelwa kana a ˆ ˆ li tshi ˆ la u kala kona u dzula ˆ li shume zwikolodo ˆ tshumelo dza u kala zwikolodo dzi fanaho na dza ndangulo ya fhasi ha uno Mulayo nahone zwi tshi tevhedza milayo ya shango, hu si Riphabu liki, ine ˆ milayo yeneyo ya— (i) la wela kha line ˆ ˆ la u kala zwikolodo; ˆ lo khwa ˆ alanga u linganaho na hoyo wo thomiwaho nga thisedza nahone ˆ lo n˙ walisaho ˆ la nnd ˆ ˆ thoma mutheo wa maand ˆ uno Mulayo; na (b) zhendedzi (c) vhukoni ha redzhis (ii) u lavheleswa nga tshiimiswa tsha maand alanga; ˆ thuvha u anana ha mazhendedzi tha ˆ ˆ a a u kala zwikolodo a tshi anana na mutheo wo ambiwaho kha tra ha u lavhelesa na u ˆ a nnd ˆ pharagirafu ya (b) a zwi na phungudzelo; la u kala zwikolodo ˆ (d) zhendedzi i tod ˆ ˆ ha uno Mulayo; the tra, nd ˆ ˆ ˆ the, u kona u tevhedzwa eaho musi o i humbela uri a kone u vhona, misi yo ˆ li fha redzhis ˆ lo n˙ walisaho ˆ ivhiso yo (f) (e) hu na mbuno dzi pfadzaho kha zwikalo zwa zwikolodo zwine zwa d ˆ la nnd ˆ ˆ o bviswa a; na liki, kana zhendedzi kha shango husi Riphabu ˆ thendelano yo sumbedzwaho kha khethekanyo ya 30 yo itwaho vhukati ha redzhis la u kala ˆ zwikolodo (i) nd ˆ tolwa ha (ii) maitele a u tshimbidza mishumo ya zwa ndangulo a leludze u ˆ mishumo ya u kala zwikolodo zwi swikisaho kha u n etshedza ˆ khwa tra na tshiimiswa tsha maand ˆ ˆ a, ine thendelano yeneyo, ya vheya ekana nd ˆ la u kala zwikolodo ˆ alanga tsho teaho tsha zhendedzi la nnd ˆ ˆ ila dza u n ˆ thisedzo ya u kalwa ha zwikolodo lu sa khauwi. ˆ (2) u kalwa ha zwikolodo ho khwa thisedzwaho nga fhasi ha ino khethekanyo hu ˆ la uri— ˆ ivhiso; na dzhia— 5 10 15 20 25 30 35 (a) u kalwa ha zwikolodo ho bviswaho nga zhendedzi n˙ walisaho ho n˙ waliswa nga fhasi ha uno Mulayo; nahone la u kala zwikolodo ˆ lo ˆ 40 (b) zwo bviswaho musi u kalwa ha zwikolodo ho and ˆ la u kala zwikolodo ˆ zhendedzi zwi amba, kana zwo phad ˆ sumbedzwa na u dzumbululwa zwi tshi ya nga le ˆ lo n˙ walisaho ˆ zwikolodo nga fhasi ha ino khethekanyo li dzula ˆ kalwa ha zwikolodo na u tevhedza uno Mulayo. la u kala zwikolodo ˆ (3) Zhendedzi thod ˆ ˆ la khwa ˆ li na vhud ˆ ˆ adzwa kha webusaithi ya lo n˙ walisaho kana nga man˙ we mazhendedzi ˆ aladzwa nga phulufhedziso ya mbadelo na u thisedza u kalwa ha ˆ ifhinduleli ha honoho u ea dza uno Mulayo. ila yo randelwaho, lo n˙ walisaho ˆ la u kala zwikolodo ˆ (4) (a) Zhendedzi tra nga nd ˆ ˆ li fanela u ita khumbelo kha ˆ li tshi itela thendelo ya zwikalo zwa zwikolodo zwa ˆ la khou ˆ redzhis a malugana na zwikalo zwa zwikolodo zwine mazhendedzi a nnd ˆ thisedza nga fhasi ha ino khethekanyo. humbula u zwi khwa ˆ (b) Arali redzhis tra a na muhumbulo wa uri u kalwa ha zwikolodo a hu nga ˆ tra ˆ thisedza. li songo zwi khwa ˆ ˆ li na thisedzo li nga shumisi khwa ˆ ˆ ˆ thisedzwi zwi tshi ya nga ino khethekanyo kana ˆ khwa o laela zhendedzi u d ˆ (5) Zhendedzi la u kala zwikolodo ˆ la u kala zwikolodo ˆ lo n˙ walisaho uri ˆ ea dza uno Mulayo, redzhis lone zhendedzi ˆ thod ˆ ˆ lo n˙ walisaho a ˆ ea dza uno Mulayo. muhumbulo wa u thivhela (6) Redzhis tra u fanela u vhulunga mutevhe kha webusaithi ya tshiofisi ya FSB, ˆ a ane zwikalo zwao zwa nga mutevhe wa mazhendedzi a u kala zwikolodo a nnd ˆ themendelwa u ya nga ino khethekanyo. thod ˆ ˆ 45 50 55 30 No. 36071 Act No. 24 of 2012 GOVERNMENT GAZETTE, 14 JANUARY 2013 CREDIT RATING SERVICES ACT, 2012 30 CHAPTER 5 LIABILITY AND INDEPENDENCE OF REGISTERED CREDIT RATING AGENCIES Liability of registered credit rating agency 19. (1) A registered credit rating agency may be delictually liable, in respect of a credit rating issued or credit rating services performed in the ordinary course of business in terms of this Act, for any loss, damages or costs sustained as a result of such credit rating or credit rating service. (2) Subsection (1) does not affect any additional or other liability of a registered credit rating agency to an investor or member of the public, arising from a contractual relationship or the application of any law. Independence

22. Delegation and assignment 23. 24. 25.

26. Directives 27. 28. 29. Exemptions Fees and penalties Cooperation with regulatory authorities CHAPTER 7 ENFORCEMENT ACTIONS AND REMEDIES Enforcement committee Civil action 30. 31.

21. The executive officer and deputy executive officer contemplated in section 1 of the Financial Services Board Act are the registrar and deputy registrar of credit rating agencies, respectively, and have the powers and functions provided for under this Act or any other applicable law. Delegation and assignment 22. (1) The registrar may in writing— (a) delegate any of the powers and functions assigned to the registrar under this Act; and (b) assign any of the duties or functions imposed on the registrar under this Act, to a deputy registrar or any other person, except the power to make rules. (2) The delegation or assignment contemplated in subsection (1)— (a) is subject to any limitations or conditions that the registrar may impose; and (b) does not divest the registrar of the responsibility concerning the exercise of the delegated power. (3) The registrar may confirm, vary or revoke any decision taken by a deputy registrar or any other person, subject to any rights that may have vested as a consequence of the delegation. Powers and functions of registrar 23. (1) The registrar, in addition to the other powers and functions conferred on the registrar in terms of this Act, and subject to subsection (2)— 5 10 15 20 25 30 35 GOVERNMENT GAZETTE, 14 JANUARY 2013 MULAYO WA ZWA TSHUMELO DZA U KALA ZWIKOLODO, 2012 Nom. 36071 31 Nom 24 ya 2012 31 NDIMA YA 5 VHUD ˆ IFHINDULELI NA U D ˆ ZWIKOLODO O N˙ WALISAHO IIMISA HA MAZHENDEDZI A U KALA Vhud ˆ ifhinduleli ha mazhendedzi a u kala zwikolodo o n˙ walisaho 19. (1) Zhendedzi la u kala zwikolodo ˆ ifhinduleli, o vha na vhud ˆ malugana na zwikalo zwa zwikolodo zwe zwa n etshedzwa kana tshumelo dza u kala ˆ zwikolodo dze dza shun˙ wa nga tshifhinga tsha mushumo zwi tshi ya nga uno Mulayo, arali ha vha na ndozwo, tshinyalelo kana mbadelo ye ya vha hone nga vhanga la u kalwa ˆ ha zwikolodo kana nga tshumelo ye lo n˙ walisaho ˆ etshedza. li d ˆ ˆ (2) Khethekanyo ya nga fhasi ya (1) a i kwami zwo tou engedzwaho kana vhun˙ we lo n˙ walisaho kha mubindudzi kana ˆ o wa tshitshavha, zwi tshi bva kha thendelano ya vhushaka kana u shumiswa ha la u kala zwikolodo ˆ ifhinduleli ha u zhendedzi vhud ˆ murad ˆ mulayo mun˙ we na mun˙ we. la i n ˆ ˆ Vhud ˆ iimisi

20. A hu na muthu, hu tshi katelwa redzhis tra ane a nga, thivhela, khakhisa kana nga ˆ nd tuwedza u kalwa ha zwikolodo, zwi re ngomu kha u ila i songo teaho a lingedza u ˆ ˆ kalwa ha zwikolodo kana ngona in˙ we na in˙ we, modele kana mahumbulelwa zwi shumiswaho nga zhendedzi tu ˆ la u kala zwikolodo ˆ lo n˙ walisaho. ˆ NDIMA YA 6 KUTSHIMBIDZELE KWA MULAYO Redzhis zwikolodo tra vha u kala zwikolodo na mazhendedzi a u kala tra na muthusa-redzhis ˆ ˆ

21. Muofisimulangi na muthusi wawe vhe vha bulwa kha khethekanyo ya 1 ya Mulayo wa Bodo ya Tshumelo dza zwa Masheleni ndi vhone redzhis tra na ˆ muthusa-redzhis la u kala zwikolodo vhuvhili havho, nahone vha na tra vha zhendedzi ˆ ˆ maand a kha mishumo yo vhetshelwaho nga fhasi ha uno Mulayo kana mun˙ we mulayo ˆ wo teaho. Vhurumelwa na mushumo a kana mishumo ye a hweswa nga fhasi ha uno Mulayo; na (a) 22. (1) Nga u tou n˙ wala redzhis tra a nga— ˆ fha vhan˙ we maand ˆ u fha mishumo min˙ we na min˙ we ye ya fhiwa redzhis Mulayo a tshi I fha muthusa-redzhis nnd ˆ ani ha maand ˆ a a u ita milayo. (b) tra nga fhasi ha uno ˆ tra kana muthu mun˙ we na mun˙ we, nga ˆ (2) U ruma na u fha mushumo honoho he ha bulwa kha khethekanyo ya nga fhasi ya (1)— (a) hu tevhedza phungudzelo na milayo min˙ we na min˙ we ine redzhis tra a nga I ˆ vhea; nahone (b) a zwi thivheli redzhis ifhinduleli malugana na u shuma zwe a tou rumela kana u shuma mishumo ye a tou rumela mun˙ we muthu. tra vhud ˆ ˆ (3) redzhis tra a nga khwa ˆ thisedza, shandukisa kana u humisela murahu tsheo yo ˆ dzhiiwaho nga muthusa-redzhis tra kana muthu mun˙ we na mun˙ we, zwi tshi itiswa nga ˆ pfanelo dzin˙ we na dzin˙ we dzine dza nga dzo itiswa nga masiandaitwa a vhurumelwa kana u fha mushumo mun˙ we muthu. Maand ˆ tra a na mishumo ya redzhis ˆ 23. (1) Redzhis nahone zwi tshi d ˆ tra, man˙ we maand ˆ ˆ o tevhedza khethekanyo ya nga fhasi ya (2)— a na mishumo yawe zwi tshi ya nga uno Mulayo, 5 10 15 20 25 30 35 40 45 32 No. 36071 Act No. 24 of 2012 GOVERNMENT GAZETTE, 14 JANUARY 2013 CREDIT RATING SERVICES ACT, 2012 32 (a) must supervise and enforce compliance with this Act; (b) must take such steps as the registrar considers necessary, in accordance with the requirements of this Act and other applicable legislation, to protect investors in their dealings with credit ratings, credit rating services and credit rating agencies; (c) may by notice require any person, including a registered credit rating agency, to furnish the registrar, within a specified period, with specified information or documents necessary for exercising his or her powers under this Act; (d) may impose conditions that are consistent with this Act in respect of any registration or approval granted or requirement imposed by the registrar, and may amend or withdraw such conditions; (e) may, on the written request of a registered credit rating agency, extend any period within which any documentation, information or report must be submitted to the registrar; (f) must determine the form, manner and period, if a period is not specified in this Act, within which any documentation, information or report that a registered credit rating agency is required to publish, disclose, provide or submit under this Act must be published, disclosed, provided or submitted; (g) may, despite the provisions of any law, furnish information acquired by the registrar under this Act to any person charged with the performance of a function under any law, including a regulatory authority; (h) may issue guidelines on the application and interpretation of this Act; and (i) may take any measures that the registrar considers necessary for the proper performance and exercise of the powers and functions of the registrar for the implementation of this Act, in accordance with the requirements of this Act and other applicable legislation. (2) The registrar must, in performing his or her powers and functions under this Act or any other applicable law— (a) act in a manner which— (i) (ii) is compatible with the objects of this Act; and is most appropriate for meeting the objects of this Act; and (b) have regard to— (i) (ii) (iii) (iv) (v) international regulatory and supervisory standards; the principle that a restriction which is placed on a registered credit rating agency, the issuing of credit ratings or the performance of credit rating services, should be proportionate to the purpose for which it is intended; the international nature of credit rating agencies, credit ratings and credit rating services; the principle that competition between regulated persons should not be impeded or distorted; and the need to use resources in the most effective and cost-efficient manner. Rules 24. (1) Subject to section 20, the registrar may, by notice in the Gazette, make rules with regard to— (a) organisational requirements for registered credit rating agencies; (b) the independence of registered credit rating agencies and the avoidance of conflicts of interest by registered credit rating agencies; the quality and integrity of credit ratings; the presentation of credit ratings; additional obligations in relation to credit ratings of structured finance instruments; additional disclosures; (c) (d) (e) (f) (g) adequate and appropriate record-keeping; (h) fraudulent and misleading advertising, canvassing and marketing; 5 10 15 20 25 30 35 40 45 50 GOVERNMENT GAZETTE, 14 JANUARY 2013 MULAYO WA ZWA TSHUMELO DZA U KALA ZWIKOLODO, 2012 Nom. 36071 33 Nom 24 ya 2012 33 (a) u fanela u lavhelesa na u ita uri uno Mulayo u tevhedzwe; (b) u fanela u dzhia maga musi a tshi vhona zwo tea, zwi tshi ya nga ea dza uno Mulayo na min˙ we milayosikwa, a tshi itela u tsireledza vhabindudzi musi vha tshi khou shumana na u kalwa ha zwikolodo, tshumelo dza u kala zwikolodo na mazhendedzi a u kala zwikolodo; thod ˆ ˆ la u kala zwikolodo ˆ katelwa zhendedzi man˙ walwa o tod tshi ˆ ˆ (c) khamusi nga kha nd tod ivhadzo a nga ˆ ˆ ˆ la u kala zwikolodo ˆ a uri muthu mun˙ we na mun˙ we, hu tshi ivhiso kana talulwaho hu saathu u fhela tshifhinga tsho imaho ngauri, zwi ˆ a awe nga fhasi ha uno Mulayo; (d) a nga vheya milayo ine ya fana na uno Mulayo malugana na u n˙ waliswa kana tra nahone a nga ˆ tra a shumise maand elwa uri redzhis ˆ ˆ thendelo i fhiwaho kana thod ˆ shandukisa kana u humisela murahu yeneyo milayo; (e) nga kha khumbelo yo tou n˙ walwaho nga zhendedzi lo n˙ walisaho, a tshi isa nd ˆ ˆ ea i vhewaho nga redzhis (f) lin˙ walwa ˆ tra; ivhiso kana muvhigo wa fanela u iswa kha ene redzhis ˆ n˙ walisaho, a nga engedza tshifhinga tshine ngatsho nd ˆ u fanela u lavhelesa fomo, nd ˆ uno Mulayo, zwine kha zwo muvhigo une zhendedzi etshedza kana isa; tana, n ˆ ˆ lin˙ we na ˆ la u kala zwikolodo ˆ ila na tshifhinga, arali zwi songo ambiwa nga ivhiso kana adza, lo n˙ walisaho ˆ li tea u and ˆ ˆ lin˙ we, nd ˆ ˆ lin˙ walwa ˆ lin˙ we na ˆ (g) a nga, naho hu na mbetshelo dza mulayo mun˙ we na mun˙ we, fha nd ˆ ivhiso ye ene redzhis tra a i wana nga fhasi ha uno Mulayo a tshi fha muthu ane a khou ˆ wanwa mulandu wa u shuma mushumo nga fhasi ha mulayo mun˙ we na mun˙ we, hu tshi katelwa maand ˆ redzhis talutshedzele kwa uno ila dza kushumisele na ku tra a nga fha tsumband ˆ ˆ ˆ Mulayo; nahone a nga dzhia maga man˙ we na man˙ we ane redzhis shuma zwavhud ˆ itelwa u shumisa uno Mulayo, zwi tshi ya nga min˙ we milayosikwa yo teaho. tra a vhona a tshi ˆ a na mishumo ya redzhis thod ˆ ˆ ea kha u tod ˆ ˆ tra zwi tshi ˆ ea dza uno Mulayo na i na u shumisa maand ˆ (h) (i) alanga; lo ˆ lin˙ we, ˆ 5 10 15 20 25 (2) Redzhis yawe nga fhasi ha uno Mulayo kana min˙ we milayo yo teaho— tra u fanela, musi a tshi khou shumisa maand ˆ ˆ a awe na u shuma mishumo 30 (a) u shuma nga nd ˆ ila ine— (i) ya anana na zwipikwa zwa uno Mulayo; nahone (ii) nd ˆ (b) a dzhiele nzhele— the kha u fusha zwipikwa zwa uno Mulayo; na uri ila yo teaho tsho ˆ tandadi zwa vhulavhelesi zwa mashango a dzitshaka-tshaka; (i) zwi ˆ (ii) mulayo wa uri u thivhelwa ho vhewaho kha zhendedzi la u kala ˆ zwikolodo lo n˙ walisaho, u bviswa ha zwikalo zwa zwikolodo kana ˆ kushumelwe kwa tshumelo dza u kala zwikolodo, zwi fanela u fana na ndivho ye wa itelwa zwone; (iii) vhuvha ha mashango a dzitshaka-tshaka ha mazhendedzi a u kala zwikolodo, zwikalo zwa zwikolodo na tshumelo dza u kala zwikolodo; tisano vhukati ha vhathu vho tendelwaho nga ˆ ta (iv) mulayo wa uri mu ˆ ndangulo a u faneli u khakhiswa kana u shandwa; na thod ˆ ˆ ea ya u shumisa zwiko nga d ˆ ila yavhud ˆ i nahone i thusaho. (v) Milayo 24. (1) Zwi tshi tevhedza khethekanyo ya 20, redzhis tra a nga, nga nd ˆ ˆ Gazete, ita milayo malugana na— ivhadzo kha ea dza zwiimiswa zwa mazhendedzi a u kala zwikolodo o n˙ walisaho; iimisi ha mazhendedzi a ukala zwikolodo o n˙ walisaho na u thivhela ano ya dzangalelo nga one mazhendedzi a u kala zwikolodo o n˙ walisaho; i na u thembea ha zwikalo zwa zwikolodo; (a) thod ˆ ˆ (b) vhud ˆ khud ˆ (c) vhud ˆ (d) u sumbedzwa ha zwikalo zwa zwikolodo; (e) mbofho dzo tou engedzwaho zwi tshi yelana na zwikalo zwa zwikolodo zwa tshishumiswa tsha zwa masheleni; tha; u bvukululwa ho engedzwaho nga n ˆ ila yone; (f) (g) u vhulunga rekhodo nga nd ˆ (h) u galatsha na nyand ˆ vhufhura; adzo ya zwa maraga, khungedzelo dza mazwifhi na dza 35 40 45 50 55 34 No. 36071 Act No. 24 of 2012 GOVERNMENT GAZETTE, 14 JANUARY 2013 CREDIT RATING SERVICES ACT, 2012 34 (i) (j) (k) (l) suitable guarantees, professional indemnity or fidelity insurance cover, and mechanisms for adjustments of such guarantees or cover; the control or prohibition of incentives given or accepted by a credit rating agency; the responsibilities of credit rating agencies to investors and the public; and any matter that the registrar is required or permitted to prescribe in terms of this Act. (2) The rules contemplated in subsection (1) may— (a) apply to registered credit rating agencies, credit ratings, endorsed credit ratings or credit rating services generally; or (b) be limited in application to a particular type of registered credit rating agency, credit rating or credit rating service. (3) (a) Before the registrar makes any rule under this section, the registrar must— (i) publish a notice of the release of the draft rule in the Gazette, indicating that the draft rules are available on the FSB official website, and calling for public comment in writing within a period stated in the notice, which period may not be less than 30 days from the date of publication of the notice; and submit the draft rule to Parliament while it is in session, for parliamentary scrutiny at least one month prior to promulgation. (ii) 5 10 15 (b) If the registrar alters a draft rule because of any comment, the registrar need not 20 publish the alteration prior to making the rule. (c) After consideration of any comments received in response to the publication and consideration of comments received in respect of the submission of the draft rule to Parliament in terms of paragraph (a)(ii), the registrar may publish the final rule in the Gazette, and a copy of the published final rule must be submitted to Parliament. (4) (a) The registrar may, if in the opinion of the registrar it would impair the achievement of the objects of the Act if a rule is not published immediately, publish that rule in the Gazette without complying with subsection (3)(a), provided that the notice of publication indicates— (i) (ii) the reason why circumstances necessitated publication of the rule without giving notice as contemplated in subsection (3)(a); and that any person who is aggrieved by the rule may make representations to the registrar within a period stated in the notice, which may not be less than 30 days from the date of publication of the notice. (b) If the registrar publishes a rule in terms of paragraph (a), the notice referred to in subsection (1) must be submitted to Parliament, and Parliament may provide submissions on the rule, to the registrar. 25 30 35 Inspections and on-site visits 25. (1) The registrar may— (a) conduct an on-site visit of the business of a registered credit rating agency to 40 (b) determine compliance with this Act; and instruct an inspector appointed in terms of section 2 of the Inspection of Financial Institutions Act, 1998 (Act No. 80 of 1998), to carry out an inspection as contemplated in section 3 of that Act. (2) The registrar, when conducting an on-site visit in terms of subsection (1)(a)— 45 (a) has a right of access at any reasonable time to any document as defined in GOVERNMENT GAZETTE, 14 JANUARY 2013 MULAYO WA ZWA TSHUMELO DZA U KALA ZWIKOLODO, 2012 Nom. 36071 35 Nom 24 ya 2012 35 (i) (j) (l) la kana tsireledzo ya pfulufhedziso dzo teaho, tsireledzo ya phrofeshina ˆ ndindakhombo , na dzind ila dza u livhanyiswa ha dzenedzo thembiso na ˆ tsireledzo; ndango kana nyiledzo ya mbadelo dzi fhiwaho kana dzi zhendedzi tanganedzwaho nga ˆ ifhinduleli ha mazhendedzi a u kala zwikolodo kha vhabindudzi na la u kala zwikolodo; ˆ (k) vhud ˆ tshitshavha; na tshin˙ we na tshin˙ we tshine redzhis Mulayo. tra a ˆ tod ˆ ˆ ea kana a tendelwa u tshi ita nga uno (2) Milayo yo sumbedzwaho kha khethekanyo ya nga fhasi ya (1) i nga— (a) (b) shuma kha mazhendedzi a u kala zwikolodo o n˙ walisaho, zwikalo zwa zwikolodo, zwikalo zwa zwikolodo zwo themendelwaho kana tshumelo dza u kala zwikolodo nga u tou angaredza; kana shuma fhedzi kha lushaka lwonolo lwa zhendedzi n˙ walisaho, u kala zwikolodo na tshumelo dza u kala zwikolodo. la u kala zwikolodo ˆ lo ˆ (3) (a) Phand ˆ fanela -— a ha musi redzhis tra a tshi ita mulayo nga fhasi ha ino khethekanyo, u ˆ (i) u and ˆ adza nd ˆ ivhadzo ya u bviswa ha mvetamveto ya mulayo kha Gazete, a tshi khou sumbedza uri mvetamveto ya milayo i hone kha webusaithi ya tshiofisi ya FSB, nahone a tshi khou ita khuwelelo ya uri tshitshavha tshi n etshedze ˆ mahumbulwa atsho nga u tou n˙ wala hu saathu u fhira tshifhinga tshine tsha d o ˆ ivhadzo, tshine tshifhinga tshenetsho a tshi nga vhi fhasi vha tsho n˙ walwa kha nd ˆ adzwa ha nd ha mad ˆ ˆ uvha a 30 u bva kha datumu ya u and ˆ ivhadzo; nahone (ii) u isa mvetamveto ya mulayo Phalamenndeni musi phalamennde i songo vala, u a ha musi i tshi itela uri phalamennde i ite tsenguluso lwa n˙ wedzi muthihi phand ˆ phad ˆ (b) Arali redzhis aladzwa. adza hoho u shandukisa a saathu ita mulayo. thani ha muhumbulo mun˙ we na ˆ tra a shandukisa mulayo nga n ˆ mun˙ we wo dzinginywaho, ha tei u and ˆ tha mahumbulwa o ˆ (c) Nga murahu ha u dzhiela n tha mahumbulwa o ˆ tanganedzwaho kha nyand adzo na ˆ ˆ la mvetamveto likumedzwa ˆ ˆ tra a nga ˆ adza mulayo wa u fhedzisela kha Gazete, nahone khophi ya u fhedzisela ya mulayo u dzhiela n ya mulayo Phalamenndeni zwi tshi ya nga pharagirafu ya (a) (ii), redzhis and ˆ i nga itwa uri ambiwe nga hayo Phalamenndeni. tanganedzwaho malugana na ˆ (4) (a) Redzhis tra a nga, arali u ya nga muhumbulo wa ene redzhis ˆ tra zwi tshi d ˆ ˆ khakhisa u swikelela zwipikwa zwa Mulayo arali mulayo u songo and ˆ tavhanya, u d ˆ ˆ fhasi ya (3)(a), tenda iyo nd ˆ o adzwa nga u adza uyo mulayo kha Gazete a songo tevhedza khethekanyo ya nga ivhadzo ya sumbedza— adzwe hu songo thoma ha ivhadzo sa zwe zwa sumbedzwa kha khethekanyo ya nga fhasi ya (3)(a); a uri hu and ˆ (i) mbuno uri ndi ngani nyimele dzi tshi o and ˆ tod ˆ ˆ itwa nd ˆ na ivhadzo, tshine tshifhinga tshenetsho a tshi fhiri mad ˆ (ii) uri muthu mun˙ we na mun˙ we ane a pfa o khakhelwa nga mulayo a nga zwi tra hu saathu u fhira tshifhinga tsho bulwaho kha sumbedza kha redzhis ˆ nd uvha a 30 u bva kha ˆ datumu ya u and ˆ tra a and ˆ ˆ ivhadzo yo bulwaho kha khethekanyo ya nga fhasi ya (1) i fanela u iswa Phalamenndeni, nahone Phalamennde I nga ita adza mulayo zwi tshi ya nga pharagirafu ya (a), nd ˆ adzwa ha nd ˆ (b) Arali redzhis ivhadzo. likumedzwa ˆ tra. la mulayo, kha ene redzhis ˆ ˆ U dalela hune ha shumelwa hone zwi tshi itelwa u ingamela 5 10 15 20 25 30 35 40 45 25. (1) Redzhis tra a nga— ˆ (a) dalela bindu tshi khou anana na uno Mulayo; na la zhendedzi ˆ la u kala zwikolodo ˆ lo n˙ walisaho u vhona arali ˆ li ˆ 50 (b) u laela muingameli o tholwaho zwi tshi ya nga khethekanyo ya 2 ya Mulayo wa Nyingamelo ya Zwiimiswa zwa zwa Masheleni, wa 1998 (Mulayo wa Nomboro ya. 80 wa 1998), a tshi ingamela sa zwo bulwaho kha khethekanyo ya 3 ya wonoyu Mulayo. (2) Redzhis tra musi o dalela fhethu hune ha shumelwa hone zwi tshi ya nga ˆ khethekanyo ya nga fhasi ya (1)(a)— (a) u na pfanelo ya u dzhena nga tshifhinga tshin˙ we na tshin˙ we a sedza lin˙ walwa ˆ talutshedzwaho nga Mulayo wa Nyingamelo ya lin˙ we na ˆ ˆ Zwiimiswa zwa zwa Masheleni, wa 1998 (Mulayo wa Nomboro ya. 80 wa lin˙ we sa zwo ˆ 55 60 36 No. 36071 Act No. 24 of 2012 GOVERNMENT GAZETTE, 14 JANUARY 2013 CREDIT RATING SERVICES ACT, 2012 36 terms of the Inspection of Financial institutions Act, 1998 (Act No. 80 of 1998) as may reasonably be required for the purposes of the on-site visit; (b) may require a registered credit rating agency, associate, or any person holding, or who is accountable for, any such document or involved in the management of the business or affairs of the registered credit rating agency or associate, to provide such information and explanation as may be necessary for purposes of the on-site visit; (c) may examine, make extracts from and copy any such document; and (d) may, where a contravention of this Act has been detected during an on-site visit, and it may be necessary to commence an inspection in terms of the Inspection of Financial Institutions Act, 1998 (Act No. 80 of 1998)— (i) issue an instruction prohibiting the removal or destruction of any document or information; or in order to prevent the destruction of information, against a receipt, temporarily remove the document, (ii) pending the completion of an inspection in terms of the Inspection of Financial Institutions Act, 1998 (Act No. 80 of 1998). (3) After an on-site visit or inspection has been carried out in terms of subsection (1), the registrar may direct the registered credit rating agency or associate concerned to take any steps, to refrain from performing or continuing to perform any act, or to terminate or remedy any contravention of or failure to comply with any provision of this Act. (4) The registrar may, by notice on the FSB official website, or by means of any other appropriate public media, make known— (a) (b) (c) the status and outcome of an inspection; the details of an inspection, if disclosure is in the public interest; after having considered the impact upon and the interests of the credit rating agency, the outcome and details of an on-site visit, if disclosure is in the public interest. Directives 26. (1) The registrar may, in order to ensure proper implementation and administra- tion of this Act, or to further the objects of the Act in section 2, issue a directive to a registered credit rating agency— (a) (b) (c) to implement specific practices, procedures or processes; to take specific actions or measures; to desist from undertaking specific practices, procedures, processes, actions or measures; or (d) generally prohibiting certain practices, procedures, processes, actions or measures. 5 10 15 20 25 30 35 (2) A directive contemplated in subsection (1) may— (a) apply to registered credit rating agencies, credit ratings or credit rating 40 services generally; (b) apply to a specific registered credit rating agency, credit rating or credit rating service; or (c) be limited in its application to a particular type of registered credit rating agency, whether local or external, a credit rating service published or performed in the Republic, or a credit rating, whether relating to an opinion regarding— (i) an entity; (ii) (iii) an issuer of securities or a financial instrument. securities or a financial instrument; or 45 50 (3) A directive issued in terms of subsection (1) takes effect on the date determined by the registrar in the directive, and may take effect immediately. (4) The registrar may amend, cancel or revoke any previously issued directives. GOVERNMENT GAZETTE, 14 JANUARY 2013 MULAYO WA ZWA TSHUMELO DZA U KALA ZWIKOLODO, 2012 Nom. 36071 37 Nom 24 ya 2012 37 ea u itela ndivho dza u dalela hune ha shumelwa tod ˆ ˆ 1998), sa zwine zwa hone— (b) a nga (c) tod ˆ ˆ a zhendedzi lin˙ walwa ˆ la u kala zwikolodo ˆ lo n˙ walisaho, zhendedzi ˆ li ˆ ifhinduleli lin˙ we kana a kwameaho kha vhulangi ha bindu kana ˆ lishumisani, a lo n˙ walisaho kana la u kala zwikolodo ˆ ˆ ˆ thalutshedzo u itela ndivho dza madalo. ˆ shumisani, kana muthu o faraho mukovhe, kana ane a vha na vhud ˆ kha, lin˙ we na ˆ vhushaka ha zhendedzi tshi bvisa nd ivhiso na ˆ a nga tha ˆ lin˙ we; nahone ˆ thuvha, a dzhia zwine a dzhia kha khophi ya ˆ lin˙ walwa ˆ lin˙ we na ˆ (d) a nga ri musi hu na u pfuka uno Mulayo o hu wanaho musi e kha madalo nahone zwi nga a uri a thome u ingamela zwi tshi ya nga Mulayo wa Nyingamelo ya Zwiimiswa zwa zwa Masheleni, wa 1998 (Mulayo wa Nomboro ya. 80 wa 1998), -— (i) fha ndaela ya u iledza u bviswa kana u kherukanywa ha lin˙ walwa kana nd ˆ ivhiso in˙ we na in˙ we; kana tod ˆ ˆ (ii) u itela u thivhela u kherukanywa ha nd ˆ lwa tshifhinga nyana, ivhiso, a nga tou bvisa nd ˆ ivhiso hu tshi khou lindelwa u fhedziswa ha nyingamelo zwi tshi ya nga Mulayo wa Nyingamelo ya Zwiimiswa zwa zwa Masheleni, wa 1998 (Mulayo wa Nomboro ya. 80 wa 1998), (3) Nga murahu ha u dalela fhethu ha zhendedzi kana u ingamela ho itwaho zwi tshi la u kala ˆ li dzhie maga ˆ li litshe u ˆ la khou kundelwa u tevhedza mbetshelo ˆ ya nga khethekanyo ya nga fhasi ya (1), redzhis lishumisani lo n˙ walisaho kana zhendedzi- zwikolodo ˆ ˆ a na u shuma, kana u litsha kana kana li litshe u shuma kana u bvela phand ˆ ˆ khakha hune la khou khakha hone kana hune ˆ in˙ we na in˙ we ya uno Mulayo. tra a nga laela zhendedzi ˆ li kwameaho uri ˆ tra nga nd (4) Redzhis ˆ ˆ Tshumelo dza zwa Masheleni, kana nga nd ˆ uri hu d ˆ (a) (b) zwidodombedzwa zwa nyingamelo, arali u bvukulula hoho zwi dzangalelo ivhadzo, a nga, kana webusaithi ya tshiofisi ya Bodo ya ila in˙ we na in˙ we ya tshirathisi tsho teaho, ita tshiimo na mvelelo dza nyingamelo; ivhee— la ˆ tshitshavha; (c) nga murahu ha u dzhiela n la u ˆ kala zwikolodo, mvelelo na zwidodombedzwa zwa u dalela hune ha shumelwa hone, arali u bvukulula hoho zwi dzangalelo thuwedzo na madzangalelo a zhendedzi ˆ thu ˆ tha ˆ la tshitshavha. ˆ Dzindaela 26. (1) Redzhis Mulayo, kana u isa phand ˆ ndaela zhendedzi tra, u itela u thoma u shumiswa zwavhud ˆ ˆ i na kutshimbidzele kwa uno a zwipikwa zwa uno Mulayo kha khethekanyo ya 2, a nga fha la u kala zwikolodo ˆ lo n˙ walisaho uri— ˆ li thome u shumisa nyito, kana maitele o imaho nga uri, ˆ li dzhie nyito na maga o imaho nga uri; ˆ litshisa u shuma nyito, maitele, mishumo kana maga; kana (a) (b) (c) (d) nga u angaredza a nga iledza dzin˙ we nyito, maitele, mishumo kana maga. (2) Ndaela dzo bulwaho kha khethekanyo ya nga fhasi ya (1) dzi nga— (a) (b) (c) lene ˆ lo, u kalwa ha zwikolodo kana ˆ shuma kha mazhendedzi a u kala zwikolodo o n˙ walisaho, zwikalo zwa zwikolodo kana tshumelo dza u kala zwikolodo nga u angaredza; shuma kha zhendedzi la u kala zwikolodo ˆ tshumelo ya u kala zwikolodo yeneyo; kana i nga tou livhiswa kha u shumiswa hayo kha lushaka lwa zhendedzi zwikolodo tshumelo ya u kala zwikolodo i and ˆ Riphabu muhumbulo malugana na— (i) (ii) mikovhe kana tshishumiswa tsha zwa masheleni; kana (iii) mufhi wa mikovhe kana tshishumiswa tsha zwa masheleni. la u kala ˆ avha, adzwaho kana i shun˙ waho kha liki, kana kha u kala zwikolodo, zwi nga vha zwi yelanaho na ˆ la mashangod ˆ ˆ lo n˙ walisaho, ˆ li nga vha ˆ lapo kana ˆ tshiimiswa; lene ˆ lo ˆ (3) Ndaela i fhiwaho zwi tshi ya nga khethekanyo ya nga fhasi ya (1) i thoma u shuma tra, nahone i nga thoma u shuma nga datumu ine tsheo ya hone ya dzhiiwa nga redzhis ˆ nga u tra a nga shandukisa, fhelisa kana humisela murahu ndaela dze dza itwa ˆ tavhanya. ˆ (4) Redzhis tshifhinga tsho fhelaho. 5 10 15 20 25 30 35 40 45 50 55 60 38 No. 36071 Act No. 24 of 2012 GOVERNMENT GAZETTE, 14 JANUARY 2013 CREDIT RATING SERVICES ACT, 2012 38 (5) The registrar must, where a directive is issued to ensure the protection of investors, potential investors or the public in general, publish the directive in the Gazette and in any other media that the registrar deems appropriate, and a copy of the published directive must be submitted to Parliament. Exemptions 27. (1) The registrar may, on application or on the registrar’s initiative exempt any person, category of persons or registered credit rating agency from, or in respect of, any provision of the Act if the registrar is satisfied that— (a) practicalities impede the strict application of a specific provision of the Act; (b) and the granting of the exemption will not— (i) conflict with the public interest; (ii) prejudice the interests of— (aa) the clients of registered credit rating agencies; (bb) the users of credit ratings or credit rating services; or (cc) regulatory authorities that rely on, refer to or use credit ratings in their supervision and regulation activities; and frustrate the achievement of the objects of this Act. (iii) (2) An exemption contemplated in subsection (1) may— (a) apply to any person, category of persons or registered credit rating agencies generally, a specific registered credit rating agency or be limited in its application to a particular type of registered credit rating agency; and (b) be made subject to conditions and be granted for a period that the registrar may determine. (3) The registrar may, at any time by notice on the FSB official website, withdraw, wholly or in part, and on any ground which the registrar deems sufficient, any exemption granted under subsection (1). (4) The registrar must, where an exemption applies generally or to a type of registered credit rating agency, publish the exemption in the Gazette and any other media that the registrar deems appropriate, and a copy of the published exemption must be submitted to Parliament. Fees and penalties 28. (1) (a) The registrar may by notice on the FSB official website determine the fees payable to the registrar by any person, or category of persons seeking a decision, applying for registration or the performance of any other act by the registrar under this Act, and the registrar may in a similar manner amend, substitute or withdraw any such notice. (b) The fees are payable in the manner, and are subject to the requirements, determined by the registrar by notice on the FSB official website. (2) (a) A person who is liable to pay the fees contemplated in subsection (1)(a) and who fails to pay the amount due on the date or within the period specified, must pay interest on the amount outstanding at the prescribed rate. (b) The fees and interest owed in respect thereof are regarded as debts due to the registrar and may be recovered by the registrar by way of a judicial process in a competent court. (3) The registrar may impose an administrative penalty on a registered credit rating agency for failure to submit, to the registrar within a period specified in terms of this Act, any statement, report, return or other document or information required to be submitted 5 10 15 20 25 30 35 40 45 GOVERNMENT GAZETTE, 14 JANUARY 2013 MULAYO WA ZWA TSHUMELO DZA U KALA ZWIKOLODO, 2012 Nom. 36071 39 Nom 24 ya 2012 39 (5) Redzhis tra u fanela, uri kha he ha itwa ndaela a tshi ˆ itela tsireledzo ya vhabindudzi, na vhane vha nga vha vhabindudzi kana tshitshavha nga u angaredza, and tra a vhona zwo tea, ˆ ˆ na khophi ya ndaela dzo and ˆ adza ndaela kha Gazete na zwin˙ we zwirathisi zwine ene redzhis adzwaho I fanela u iswa phalamenndeni. U tendelwa u sa tevhedza mulayo 27. (1) Redzhis tra o tou zwi thoma ene tra a nga, musi ho itwa khumbelo kana redzhis ˆ ˆ mun˙ e, tendela muthu mun˙ we na mun˙ we, khethekanyo in˙ we na in˙ we ya vhathu kana la sa vhoxwe nga, mbetshelo lin˙ we zhendedzi ˆ ˆ tra a tshi fushea uri— in˙ we na in˙ we ya Mulayo arali redzhis ˆ la u kala zwikolodo ˆ lo n˙ walisaho ˆ linwe na ˆ (a) nyito dzi khakhisa u shumiswa ha mbetshelo yeneyo ya Mulayo; na (b) u fha thendelo a hu nga d ˆ ana na dzangalelo (i) kud ˆ (ii) khethulula madzangalelo a— la tshitshavha; ˆ o— 5 10 (aa) khasi (bb) vhashumisi vha zwikalo zwa zwikolodo kana tshumelo dza u kala tama dza mazhendedzi a u kala zwikolodo o n˙ walisaho; ˆ 15 zwikolodo; kana (cc) zwiimiswa zwa maand ˆ itika nga, sedza kha, kana shumisa zwikalo zwa zwikolodo musi zwi kha mishumo ya u lavhelesa na u langa; na isa u swikelela zwipikwa zwa uno Mulayo. alanga zwine zwa d ˆ (iii) u d ˆ ad ˆ (2) Thendelo yo sumbedzwaho kha khethekanyo ya nga fhasi ya (1) I nga— (a) (b) la u kala zwikolodo ˆ shuma kha muthu mun˙ we na mun˙ we, khethekanyo ya vhathu in˙ we na in˙ we kana mazhendedzi a u kala zwikolodo o n˙ walisaho nga u angaredza, lo n˙ walisaho kana u shumiswa ha zhendedzi lo lene ˆ ˆ ˆ thendelo ha tou livhiswa fhedzi kha lushaka lwa zhendedzi la u kala ˆ zwikolodo itwa uri I tevhedze nyimele nahone ya fhiwa lwa tshifhinga tshine redzhis tra ˆ a d ˆ lo n˙ walisaho; na ˆ o tou ta. lene ˆ lo ˆ (3) Redzhis the kana tshipid ˆ ˆ ivhadzo kha tra a nga ri, nga tshifhinga tshin˙ we na tshin˙ we nga nd ˆ ˆ webusaithi ya tshiofisi ya Bodo ya Tshumelo dza zwa Masheleni, humisela murahu, tsho tra a vhona yo a, nahone nga mbuno in˙ we na in˙ we ine redzhis ˆ lingana, u tendelwa u sa tevhedza Mulayo nga fhasi ha khethekanyo ya nga fhasi ya (1). tra u fanela u, hune thendelo ya shumiswa nga u angaredza kana kha (4) Redzhis ˆ adza thendelo kha Gazete lushaka lwa zhendedzi lo n˙ walisaho, and ˆ ˆ tra a vhona zwo tea, nahone khophi ya thendelo yo na zwin˙ we zwirathisi zwine redzhis ˆ adzwaho i iswe phalamenndeni. and ˆ la u kala zwikolodo ˆ tiso Mbadelo na nda ˆ tra nga nd ˆ ˆ 28. (1) (a) Redzhis ivhadzo kha webusaithi ya tshiofisi ya Bodo ya tra nga muthu Tshumelo dza zwa Masheleni a nga ta mbadelo dzi badelwaho kha redzhis ˆ mun˙ we na mun˙ we, kana khethekanyo in˙ we na in˙ we ya vhathu vha aho tsheo, vhane vha khou humbela u n˙ walisa kana kushumele kwa mulayo mun˙ we na mun˙ we nga redzhis ila i fanaho a nga shandukiswa, imelwa kana yeneyo nd ˆ (b) Mbadelo dzi badelwa nga nd ˆ dzhiiwa nga redzhis tra nga kha nd ˆ ˆ Tshumelo dza zwa Masheleni. tra nga nd tra nga fhasi ha uno Mulayo, nahone redzhis ˆ ˆ ˆ ivhadzo ya tou humiselwa murahu. ila ine, ya tevhedza ea, dzine tsheo ya hone ya ivhadzo kha webusaithi ya tshiofisi ya Bodo ya thod ˆ ˆ tod ˆ ˆ (2) (a) Muthu ane a vha na vhud ˆ ifhinduleli ha u badela mbadelo dzo sumbedzwaho kha khethekanyo ya nga fhasi ya (1)(a) nahone ane a kundelwa u badela mutengo nga datumu yo vhewaho kana u kundelwa u badela hu saathu u fhira tshifhinga tsho vhewaho, u fanela u badela nyingapfuma kha mutengo une a khou koloda nahone nyingapfuma dza hone dzi dzo rendelaho. (b) Mbadelo na nyingapfuma dzine dza khou kolodwa dzo the hafho, dzi dzhiiwa sa ˆ zwikolodo zwine zwa tea u badelwa kha, nahone redzhis tra a nga ita uri dzi badelwe nga ˆ lwa mulayo nga khothe ine ya zwi kona. (3) Redzhis zwikolodo uno Mulayo, u sa isa tshi zwi tiso musi ho vha na u kundelwa nga zhendedzi tra a nga vhea nda ˆ ˆ la u kala ˆ lo n˙ walisaho u isa hu saathu u fhela tshifhinga tsho bulwaho zwi tshi ya nga ˆ ivhiso tiso yeneyo a i nga fhiri tshelede waho u iswa zwi tshi ya nga uno Mulayo, nda ˆ tamennde, muvhigo, mbuelo kana ˆ lin˙ walwa kana nd ˆ ˆ tod ˆ ˆ ta ˆ 20 25 30 35 40 45 50 55 40 No. 36071 Act No. 24 of 2012 GOVERNMENT GAZETTE, 14 JANUARY 2013 CREDIT RATING SERVICES ACT, 2012 40 in terms of this Act, such penalty to be prescribed by the registrar for every day during which the failure continues. (4) The registrar must, before imposing a penalty, by written notice to the registered credit rating agency— (a) (b) (c) (d) (e) inform the registered credit rating agency of the intention of the registrar to impose a penalty; specify the particulars of the alleged failure; set out the reasons for the intended imposition of a penalty; specify the amount of the penalty intended to be imposed; and call upon the registered credit rating agency to show cause within a period specified by the registrar why the penalty should not be imposed. 5 10 (5) If the registrar, after consideration of representations made by the registered credit rating agency, decides to impose a penalty, the registrar must notify the registered credit rating agency in writing that it may— (a) pay the penalty within a stipulated period; or (b) appeal to appeal board in accordance with section 33 against the imposition of 15 the penalty. (6) If a registered credit rating agency fails to pay the penalty or to note an appeal within the periods stipulated in the notice contemplated in subsection (5), the registrar may, by way of civil action in any competent court, recover the amount of the penalty from the registered credit rating agency concerned. Cooperation with regulatory authorities 29. (1) The registrar may— liaise with any regulatory authority on matters of common interest; (a) (b) negotiate agreements with any regulatory authority to— (i) coordinate and harmonise the reporting and other obligations of credit rating agencies, external credit rating agencies and groups as defined in section 1; (ii) provide mechanisms for the exchange of information in accordance with domestic law; and (iii) provide procedures for the coordination of regulatory activities to facilitate the monitoring of credit rating activities resulting in the issuing of the endorsed credit rating on an ongoing basis; (c) participate in the proceedings of any regulatory authority; and (d) advise or receive advice from any regulatory authority. (2) The registrar may, without detracting from the generality of subsection (1), enter into a written agreement, including a memorandum of understanding, with a foreign regulatory authority in whose country a subsidiary or holding company of a credit rating agency is incorporated, which cooperation agreement may include— (a) a provision that the registrar or foreign regulatory authority may conduct an on-site examination or an inspection of a credit rating agency, an external credit rating agency or any member of a group as defined in section 1; (b) a provision that the registrar and foreign regulatory authority may share information relating to the financial condition and performance of the institutions contemplated in paragraph (a); a provision that the registrar or foreign regulatory authority— (i) be informed of adverse assessments of qualitative aspects of the operations of a credit rating agency or the institutions contemplated in paragraph (a); or (c) 20 25 30 35 40 45 GOVERNMENT GAZETTE, 14 JANUARY 2013 MULAYO WA ZWA TSHUMELO DZA U KALA ZWIKOLODO, 2012 Nom. 36071 41 Nom 24 ya 2012 41 tra, lwa d ˆ ˆ uvha na d ˆ uvha nga tshifhinga tsha musi zhendedzi yo randelwaho nga redzhis li tshi khou balelwa. ˆ (4) Redzhis lo n˙ walisaho nga ha muhumbulo ˆ 5 tra u fanela uri, phand ˆ ˆ a ha u vhea nda tiso, nga u tou n˙ walela nd ˆ ˆ ivhadzo zhendedzi (a) u d ˆ lo n˙ walisaho— la u kala zwikolodo ˆ ˆ la u kala zwikolodo ivhadza zhendedzi ˆ tiso; tra wa u ita nda wa redzhis ˆ ˆ li sumbedze nga ˆ tra uri ndi ngani ˆ sumbedza mbuno dza muhumbulo wa u ita ndatiso; (b) bula zwidodombedzwa zwa u kundelwa u badela; (c) (d) bula mutengo wa nda (e) u vhidza zhendedzi tiso une wa khou humbulelwa u itwa;na ˆ la u kala zwikolodo ˆ lo n˙ walisaho uri ˆ tshifhinga tsho imaho nga uri tshe tsha tiwa nga redzhis nda (5) Arali redzhis tiso i sa tei u itwa. ˆ tra, nga murahu ha u lavhelesa zwe zhendedzi ˆ tiso, redzhis la sumbedza, a dzhia tsheo ya u ita nda ˆ ˆ la u kala zwikolodo ˆ lo ˆ ivhadza lo n˙ walisaho nga u tou n˙ wala a tshi vhudza zhendedzi ˆ la u kala zwikolodo ˆ tra u fanela u d ˆ ˆ n˙ walisaho zhendedzi uri— (a) u badela nda (b) u aphi la kha bodo ya zwa aphi ˆ tiso yeneyo. na nda ˆ (6) Arali zhendedzi tiso hu saathu u fhela tshifhinga tsho bulwaho; kana ˆ li zwi tshi ya nga khethekanyo ya 33 malugana ˆ la u kala zwikolodo ˆ kana u n˙ wala aphi li nga mad ˆ ˆ redzhis vha na vhukoni, a nga wana tshelede yeneyo ya nda zwikolodo tiso la kundelwa u badela nda ˆ ˆ uvha o buliwaho kha khethekanyo ya nga fhasi ya (5), ila ya u tou zwi ita mulandu wa mbilo kha khothe in˙ we na in˙ we ine ya la u kala ˆ tiso kha zhendedzi ˆ lo n˙ walisaho ˆ tra nga nd ˆ ˆ lo n˙ walisaho. ˆ Tshumisano na zwiimiswa zwa maand ˆ alanga 29. (1) Redzhis tra a nga— ˆ (a) shumisana na tshiimiswa tshin˙ we na tshin˙ we tsha maand ˆ kwamaho madzangalelo ane a fana; alanga kha zwi (b) ambedzana zwi kwamaho thendelano na tshiimiswa tshin˙ we na tshin˙ we tsha alanga kha— maand ˆ (i) u dzudzanya na u mazhendedzi a u kala zwikolodo, na mazhendedzi a nnd ˆ zwikolodo na zwigwada sa zwe zwa ya 1; tanganyisa u vhiga na dzin˙ we mbofho dza ˆ a a u kala talutshedzwa kha khethekanyo ˆ (ii) u n ˆ etshedza dzind ˆ hayani; na ila dza u n ˆ ekana nd ˆ ivhiso zwi tshi ya nga mulayo wa 35 etshedza maitele kha u tshimbidza mishumo ya zwiimiswa zwa (iii) u n ˆ maand alanga u itela u leludza zwa u lavhelesa mishumo ya u kala ˆ zwikolodo, mvelelo dzi tshi bva kha u fha u kalwa ha zwikolodo ho khwa ila i sa imiho. thisedzwaho nga nd ˆ ˆ (c) u dzhenelela kha u tshimbila ha zwiimiswa zwa maand ˆ (d) u eletshedza kana u tanganedza ngeletshedzo dzi tshi bva kha zwiimiswa zwa ˆ alanga; na maand ˆ alanga. (2) Redzhis tra a nga, hu si na u kheluwa kha nyangaredzo ya khethekanyo ya nga ˆ fhasi ya (1), u dzhena kha thendelano yo tou n˙ walwaho, zwi tshi katela memorandamu wa u pfesesana, na zwiimiswa zwa maand a zwa nga fhasi ˆ kana zwine zwa vha na mikovhe ya mazhendedzi a u kala zwikolodo zwo katelwa, zwine thendelano ya tshumisano i nga katela— alanga zwa mashango a nnd ˆ tha ˆ a tshi nga ita (a) mbetshelo ya uri redzhis tra kana tshiimiswa tsha maand ˆ ˆ alanga tsha mashango thuvho ya fhethu kana nyingamelo kha mazhendedzi a ˆ o mun˙ we na mun˙ we wa tshigwada sa zwe zwa a nnd ˆ u kala zwikolodo kana murad ˆ talutshedziswa zwone kha khethekanyo ya 18; ˆ (b) mbetshelo ya uri redzhis ekana nd a vha nga n ˆ ˆ nnd ˆ na kushumele kwa zwiimiswa zwo sumbedzwaho kha pharagirafu ya (a); alanga zwa mashango a tra na zwiimiswa zwa maand ˆ ˆ ivhiso zwi tshi yelana na tshiimo tsha zwa masheleni (c) mbetshelo ya uri redzhis tra kana zwiimiswa zwa maand ˆ ˆ alanga zwa mashango a— a nnd ˆ (i) zwi vhudzwe nga ha thuvho nga ha tshiimo tsha mashumele a ˆ zhendedzi la u kala zwikolodo kana zwiimiswa zwo sumbedzwaho kha ˆ pharagirafu ya (a); kana tha ˆ 10 15 20 25 30 40 45 50 55 60 42 No. 36071 Act No. 24 of 2012 GOVERNMENT GAZETTE, 14 JANUARY 2013 CREDIT RATING SERVICES ACT, 2012 42 (ii) may provide information regarding significant problems that are being experienced within a credit rating agency or the institutions contem- plated in paragraph (a); and (d) such other matters as the registrar may deem relevant. CHAPTER 7 5 ENFORCEMENT ACTIONS AND REMEDIES Enforcement committee

32. Offences and penalties Right of appeal 33. CHAPTER 8 MISCELLANEOUS AND GENERAL PROVISIONS Regulations 34. 35. Saving of rights

30. The registrar may, despite and in addition to taking any step that the registrar may take under this Act, refer any contravention of this Act to the enforcement committee established in terms of section 10(3) of the Financial Services Board Act. 10 Civil action

31. The registrar may, when satisfied on the basis of available facts and information that a person has contravened or not complied with any provision of this Act, or is likely so to contravene or not to comply, apply to a court for an order— (a) (b) (c) restraining such person from continuing to commit any such act or omission; restraining such person from committing such an act in future; or requiring the person to take such remedial steps as the court deems necessary to rectify the consequences of the act or omission. Offences and penalties

32. Any person who— (a) contravenes or fails to comply with section 3(2); (b) deliberately makes a misleading, false or deceptive statement, or conceals any (c) material fact; or in the execution of duties imposed by this Act, gives an auditor or compliance officer information which is false, misleading or conceals any material fact, is guilty of an offence and on conviction liable to a fine or to imprisonment for a period not exceeding 10 years or to both a fine and such imprisonment. Right of appeal 33. (1) Whenever the registrar makes a decision in terms of this Act which adversely affects the rights of a person, the registrar must inform the affected person of that person’s right to appeal in accordance with section 26 of the Financial Services Board Act. (2) Any person who feels aggrieved by any decision of the registrar made in terms of this Act, may appeal in the prescribed manner to the appeal board established in terms of section 26(A) of the Financial Services Board Act, and in accordance with section 26 of that Act. 15 20 25 30 35 CHAPTER 8 GENERAL PROVISIONS Regulations 34. (1) The Minister may make regulations not inconsistent with this Act with regard 40 to any matter that is required or permitted to be prescribed in terms of this Act. (2) (a) Before the Minister makes any regulations under this section, the Minister must— GOVERNMENT GAZETTE, 14 JANUARY 2013 MULAYO WA ZWA TSHUMELO DZA U KALA ZWIKOLODO, 2012 Nom. 36071 43 Nom 24 ya 2012 43 (ii) zwi nga fhiwa nd ˆ ivhiso malugana na thaidzo dza ndeme dzine dza khou tanganiwa nadzo ngomu ha mazhendedzi a u kala zwikolodo kana ˆ zwiimiswa zwo sumbedzwaho kha pharagirafu ya (a); na (d) tra u d izwo zwin˙ we redzhis ˆ ˆ o ita nga hune a vhona zwo tea. NDIMA YA 7 NYITO DZA U KOMBETSHEDZA NA THANDULULO Komiti ya u ita uri mulayo u tevhedzwe

36. Amendment of laws 37. Short title and commencement CHAPTER 1 DEFINITIONS, OBJECTS AND APPLICATION Definitions and interpretation 1. (1) In this Act, unless the context indicates otherwise— ‘‘associate’’, in relation to— (a) a juristic person— (i) which is a company, means its subsidiary and its holding company and any other subsidiary or holding company thereof as defined in section 1 of the Companies Act; (ii) which is a close corporation registered under the Close Corporations Act, 1984 (Act No. 69 of 1984), means any member thereof as defined in section 1 of that Act; 5 10 15 20 25 30 35 40 GOVERNMENT GAZETTE, 14 JANUARY 2013 MULAYO WA ZWA TSHUMELO DZA U KALA ZWIKOLODO, 2012 Nom. 36071 5 Nom 24 ya 2012 5 N˙ NDIMA YA 4 KHWAT ˆ HISEDZO DZA ZWIKALO ZWA ZWIKOLODO DZA NGA NND ˆ A 18. T ˆ hod ˆ ea dza khwa thisedzo dza zwikalo zwa zwikolodo dza nga nnd ˆ ˆ a NDIMA YA 5 ZWIKOLODO NA U D ˆ IIMISA HA ZHENDEDZI L ˆ O N˙ WALISAHO L ˆ A U KALA ZWIKOLODO

30. Redzhis tha ha zwenezwo zwa u dzhia tra a nga, naho zwo ralo nahone nga n ˆ ˆ liga ˆ o isa u pfukwa ha uno Mulayo kha komoti lin˙ we nga fhasi ha uno Mulayo, u d lin˙ we na ˆ ˆ ˆ ya u ita uri Mulayo u tevhedzwe yo thon˙ waho zwi tshi ya nga khethekanyo ya 10(3) ya Mulayo wa Bodo ya Tshumelo dza zwa Masheleni. iga L ˆ la mulayo ˆ

31. Redzhis ivhiso kha zwa tra a nga ri, musi a tshi fushea nga mbuno dzi re hone na nd ˆ ˆ uri muthu o pfuka kana ha ngo tevhedza in˙ we ya mbetshelo dza uno Mulayo, kana hu na vhuhulu ha u nga pfuka kana u sa tevhedza mulayo, ene redzhis tra a nga shumisa Khothe ˆ u ita ndaela— (a) i thivhelaho uyo muthu u isa phand ˆ honoho; i thivhelaho uyo muthu u ita iyo nyito tshifhingani tshi d ˆ i vhona zwo tea u khakhulula masiandaitwa a nyito kana uho u khakha. aho muthu a tshi dzhia maga a u tandulula thaidzo sa zwine Khothe ya a na u ita yeneyo nyito kana u pfuka aho; kana (b) (c) tod ˆ ˆ tiso Vhutshinyi na nda ˆ

32. Muthu mun˙ we na mun˙ we ane a— ta ˆ (a) pfuka kana u kundelwa u tevhedza khethekanyo ya 3(2); (b) tamennde tshi xedzaho, tsha mazwifhi kana tsha vhufhura, ˆ ita nga khole tshi kana a tshi khou dzumba vhu tanzi; kana ˆ shuma mishumo yo vhewaho nga uno Mulayo a fha mutholi kana muofisiri wa u ita uri mulayo u tevhedzwe nd ivhiso ya u zwifha, ine ya xedza kana ya ˆ tanzi, dzumba vhu ˆ (c) una mulandu wa vhutshinyi nahone u vhonwa mulandu une u vha na vhud ˆ u fhiwa nda tiso kana u tou valelwa dzhele lwa tshifhinga tshi sa pad ˆ ˆ kana vhuvhili hazwo zwo tiso na u valelwa dzhele. the, nda ˆ ˆ ifhinduleli ha iho min˙ waha ya 10, la Pfanelo dza u aphi ˆ 33. (1) Tshifhinga tshin˙ we na tshin˙ we musi redzhis tra a tshi ita tsheo ine ya kwama ˆ tra u fanela u vhudza muthu ane a kwamea muthu zwi tshi ya nga uno Mulayo, redzhis ˆ li zwi tshi ya nga khethekanyo ya a tshi mu vhudza nga ha pfanelo dzawe dza u ita aphi ˆ 26 ya Mulayo wa Financial Services Board Act. (2) Muthu mun˙ we na mun˙ we ane a pfa o khakhelwa nga tsheo yo itwaho nga redzhis li nga nd tra zwi tshi ya nga uno Mulayo a nga ita aphi ila yo randelwaho kha bodo ˆ ˆ ˆ ya zwa aphi li yo thon˙ waho zwi tshi ya nga khethekanyo ya 26(A) ya Mulayo wa ˆ Financial Services Board Act, nahone zwi tshi ya nga khethekanyo ya 26 ya Mulayo wonoyu. NDIMA YA 8 MBETSHELO-NYANGAREDZI Ndangulo 5 10 15 20 25 30 35 40 45 zwi waho kana zwi tendelwaho u randelwa nga uno Mulayo. 34. (1) Minis ta a nga ita ndangulo dzi sa kud ˆ ˆ (2) (a) Phand ˆ a ha musi Minis tod ˆ ˆ ta a tshi ita ndangulo nga fhasi ha ino khethekanyo, ˆ aniho na uno Mulayo zwi tshi yelana na Minis ta u fanela u— ˆ 44 No. 36071 Act No. 24 of 2012 GOVERNMENT GAZETTE, 14 JANUARY 2013 CREDIT RATING SERVICES ACT, 2012 44 (i) publish a notice of the publication of the draft regulations in the Gazette, indicating that the draft regulations are available on the National Treasury official website, and calling for public comment in writing within a period stated in the notice, which period may not be less than 30 days from the date of publication of the notice; and the draft regulations to Parliament while it submit parliamentary scrutiny at least one month before promulgation. is in session, for (ii) (b) If the Minister alters a draft regulation because of any comment, the Minister need not publish the alteration before promulgating the regulation. (c) After consideration of any comments received in response to the publication and consideration of comments received pursuant to the submission of the proposed regulations to Parliament in terms of paragraph (a)(ii), the Minister may promulgate the regulation in the Gazette. (d) A copy of a regulation promulgated in terms of paragraph (c) must be submitted to Parliament. Saving of rights

35. No provision of this Act, and no act performed under or in terms of any provision thereof, may be construed as affecting any right of a person to seek appropriate legal redress in terms of common law or any other relevant legislation, whether relating to civil or criminal matters, in respect of a credit rating or credit rating agency. Amendment of law

36. The law referred to in the Schedule is hereby amended to the extent specified in the third column thereof. Short title and commencement 5 10 15 20

37. This Act is called the Credit Rating Services Act, 2012, and comes into operation 25 on a date determined by the Minister by notice in the Gazette. GOVERNMENT GAZETTE, 14 JANUARY 2013 MULAYO WA ZWA TSHUMELO DZA U KALA ZWIKOLODO, 2012 Nom. 36071 45 Nom 24 ya 2012 45 (i) (ii) ivhadzo; na adza nd ˆ ivhadzo ya nyand ˆ adzo ya mvetamveto ya ndangulo kha Gazete, a and ˆ tshi khou sumbedza uri mvetamveto ya ndangulo i hone kha webusaithi ya tshiofisi ya Muhasho wa Gwama la muvhuso wa Lushaka, nahone a tshi khou ita ˆ khuwelelo ya mahumbulwa u bva kha tshitshavha, dzo tou n˙ waliwa hu saathu u fhira tshifhinga tsho bulwaho kha nd ˆ isa mvetamveto ya ndaulo Phalamenndeni musi Phalamennde i songo vala, u itela uri Phalamennde i ite tsenguluso lwa n˙ wedzi muthihi phand a ha musi I tshi ˆ phad ˆ (b) Arali Minis thani ha madzinginywa a ta a shandukisa mvetamveto ya ndaulo nga n ˆ ˆ a ha musi a ta ha tsha tea u ita nyand tshitshavha, Minis ˆ ˆ tshi phad ˆ (c) Nga murahu ha u dzhiela n tha mahumbulwa a bvaho tshitshavhani malugana na ˆ nyand likumedzwa ˆ ˆ la ndaulo dzo dzinginywaho kha Phalamennde zwi tshi ya nga pharagirafu ya (a) (ii), ˆ Minis adzo ya heyo tshanduko phand ˆ tanganedzwaho u ya nga ˆ tha ha mahumbulwa o ˆ aladza ndangulo kha Gazete. adzo na u dzhielwa n aladzwa. aladza. aladzwaho zwi tshi ya nga pharagirafu ya (c) i fanela u ta a nga phad ˆ ˆ (d) Khophi ya ndaulo yo phad ˆ iswa Phalamenndeni. U tsireledza pfanelo

35. A hu na mbetshelo ya uno Mulayo, na nyito i itwaho nga fhasi kana zwi tshi ya nga talutshedzwa sa i kwamaho pfanelo in˙ we na in˙ we ya mbetshelo henefho, ine ya nga ˆ in˙ we ya muthu kha u a thandululo ya zwa mulayo zwi tshi ya nga mulayo-zwawo kana mulayosikwa mun˙ we na mun˙ we, u nga vha u tshi yelana na mbilo kana zwa milandu, zwi tshi yelana na u kalwa ha zwikolodo kana mazhendedzi a u kala zwikolodo. tod ˆ ˆ U khwin ˆ iswa ha milayo

36. Mulayo une wa khou ambiwa kha Shedu lumu ya vhuraru. talusiwa kha kho ˆ ˆ Dzina lipfufhi na u Thoma u shumisa mulayo ˆ lu hafha u khou khwin ˆ ˆ iswa zwine zwo 5 10 15 20 25

37. Mulayo uno u vhidzwa upfi Credit Rating Services Act, 2012, nahone u d ˆ u shuma nga datumu ine ya d ˆ ta nga nd o tiwa nga Minis ˆ ˆ ivhadzo kha Gazete. o thoma 30 46 No. 36071 Act No. 24 of 2012 GOVERNMENT GAZETTE, 14 JANUARY 2013 CREDIT RATING SERVICES ACT, 2012 46 SCHEDULE LAW AMENDED (Section 36) No. and year of Act Short title Extent of repeal or amendment Act No. 97 of 1990 Financial Services Board Act, 1990 Amends section 1 by the addition in the definition of ‘‘financial institution’’ of the following subparagraph after paragraph (xii): ‘‘(xiii) any ‘‘credit rating agency’’ as defined in section 1 of the Credit Rating Services Act, 2012;’’. GOVERNMENT GAZETTE, 14 JANUARY 2013 MULAYO WA ZWA TSHUMELO DZA U KALA ZWIKOLODO, 2012 Nom. 36071 47 Nom 24 ya 2012 47 SHEDUL ˆ U MILAYO YO SHANDUKISWAHO (Khethekanyo ya 36) Nomboro na N˙ waha wa Mulayo Dzina lipfufhi ˆ Vhungafhani ha u fheliswa kana u shandukiswa I Nomboro ya mulayo. 97 wa 1990 Financial Services Board Act, 1990 U shandukisa khethekanyo ya 1 nga u engedza thalutshedzo ya ‘‘tshiimiswa tsha ˆ zwa masheleni’’ kha pharagirafu ya nga fhasi I tevhelaho nga murahu ha pharagirafu ya (xii): la u kala zwikolo- ‘‘(xiii) ‘‘zhendedzi ˆ do’’ lin˙ we sa zwe zwa lin˙ we na ˆ ˆ talutshedzwa kha khethekanyo ˆ ya 1 ya Mulayo wa Credit Rating Service Act, 2012;’’. 48 No. 36071 Act No. 24 of 2012 GOVERNMENT GAZETTE, 14 JANUARY 2013 CREDIT RATING SERVICES ACT, 2012 GOVERNMENT GAZETTE, 14 JANUARY 2013 MULAYO WA ZWA TSHUMELO DZA U KALA ZWIKOLODO, 2012 Nom. 36071 49 Nom 24 ya 2012

20. Vhud ˆ ifhinduleli ha mazhendedzi a u kala zwikolodo o n˙ walisaho iimisi NDIMA YA 6 KUTSHIMBIDZELE KWA MULAYO tra vha mazhendedzi a u kala zwikolodo tra na muthusa-redzhis ˆ ˆ Redzhis tra a na mishumo ya redzhis ˆ 21.

22. Vhurumelwa na mushumo

25. U dalela hune ha shumelwa hone zwi tshi itelwa u ingamela

27. U tendelwa u sa tevhedza mulayo

28. Mbadelo na nda 29. Tshumisano na zwiimiswa zwa maand ˆ alanga tiso ˆ NDIMA YA 7 NYITO DZA U KOMBETSHEDZA NA THANDULULO L ˆ iga

30. Komiti ya u ita uri mulayo u tevhedzwe 31. la mulayo ˆ

32. Vhutshinyi na nda tiso ˆ li Pfanelo dza u ita aphi 33. ˆ NDIMA YA 8 MBETSHELO-NYANGAREDZI

35. U tsireledza pfanelo

36. Khwinifhadzo ya milayo

37. Dzina lipfufhi na u Thoma u shumisa mulayo ˆ NDIMA YA 1 HALUTSHEDZO, NDIVHO NA KUSHUMISELE T ˆ T ˆ talutshedzele halutshedzo na ku ˆ 5 10 15 20 25 30 1. (1) Kha uno Mulayo, nga nnd ˆ ‘‘mushumisani’’, zwi yelana na— (a) muthu o fhiwaho maand ˆ a— ani ha musi nyimele i tshi sumbedza nga in˙ we nd ˆ ila— 35 (i) zwine ha vha khamphani, zwi a mba khamphani ya nga fhasi na khamphani yo faraho mikovhe na dzin˙ we dzo faraho mikovhe sa zwe talutshedzwa kha khethekanyo ya 1 ya Mulayo wa zwa Khamphani; zwa ˆ (ii) zwine ha vha khamphani ine ya vha close corporation yo n˙ waliswaho nga fhasi ha Mulayo wa Close Corporations Act, 1984 (Act No. 69 of 1984), zwi amba murad talutshedzwa ˆ ˆ kha khethekanyo ya 1 ya uyo Mulayo; o mun˙ we na mun˙ we sa zwe zwa 40 6 No. 36071 Act No. 24 of 2012 GOVERNMENT GAZETTE, 14 JANUARY 2013 CREDIT RATING SERVICES ACT, 2012 6 (iii) which is not a company or close corporation, means another juristic person which would have been its subsidiary or holding company— (aa) had it been a company; or (bb) in the case where that other juristic person is not a company either, had both it and that other juristic person been a company; (iv) means any person in accordance with whose directions or instructions its board of directors or, in the case where such juristic person is not a company, the governing body of such juristic person, acts; or (b) any person— (i) means any juristic person whose board of directors or, in the case where such juristic person is not a company, the governing body of such juristic person, acts in accordance with its directions or instructions; or (ii) means a trust controlled or administered by the juristic person; an issuer of a security or a financial instrument, ‘‘Companies Act’’ means the Companies Act, 2008 (Act No. 71 of 2008); ‘‘credit rating’’ means an opinion regarding the creditworthiness of— (a) an entity; (b) a security or a financial instrument; or (c) using an established and defined ranking system of rating categories, excluding any recommendation to purchase, sell or hold any security or financial instrument; ‘‘credit rating agency’’ means a person who provides credit rating services; ‘‘credit rating services’’ means data and information analysis, evaluation, approval, issuing or review, for the purposes of credit ratings; ‘‘deputy registrar’’ means the deputy registrar of credit contemplated in section 21; ‘‘external credit rating’’ means a credit rating issued by an external credit rating agency; ‘‘external credit rating agency’’ means a person who provides credit rating services and who is authorised or registered by a regulatory authority to perform credit rating services similar to those regulated under this Act and who is subject to the laws of a country other than the Republic, which laws— (a) establish a regulatory framework which is approved by the registrar as being rating agencies equivalent to that established by this Act; and (b) are supervised and monitored by a regulatory authority; ‘‘Financial Services Board Act’’ means the Financial Services Board Act, 1990 (Act No. 97 of 1990); ‘‘FSB official website’’ means the website of the Financial Services Board established by section 2 of the Financial Services Board Act; ‘‘group’’ means a group consisting of two or more juristic persons, irrespective of whether any of those persons is domiciled in the same country as any of the others, and one or more of which is a credit rating agency, where— (a) each of the juristic persons is an associate of any one of the others; or (b) the juristic persons are so interconnected that should one of them experience financial difficulties, another one or all of them would likely be adversely affected; ‘‘Minister’’ means the Minister of Finance; 5 10 15 20 25 30 35 40 45 GOVERNMENT GAZETTE, 14 JANUARY 2013 MULAYO WA ZWA TSHUMELO DZA U KALA ZWIKOLODO, 2012 Nom. 36071 7 Nom 24 ya 2012 7 (iii) zwine ha si vhe khamphani kana khamphani ine ya vha close corporation, zwi amba muthu mun˙ we o hweswaho maand a nga mulayo ˆ we a vha a tshi nga vha khamphani ya nga fhasi kana khamphani yo faraho mikovhe— (aa) yo vha i tshi nga vha Khamphani; kana (bb) kha nyimele hune onoyo muthu a re na maand ˆ a a sa vhe khammphani, a vha e na dzo vhuvhili hadzo nahone na uyo muthu mun˙ we o vha e khamphani; (iv) zwi amba muthu mun˙ we na mun˙ we zwi tshi ya nga masia kana ndaela dzine bodo ya hone ya vhalanguli kana, kha tshiimo hune muthu a re na maand a, ya a a sa vhe khamphani, khorombusi ya onoyo a re na maand ˆ ˆ ita; (b) muthu mun˙ we na mun˙ we— (i) zwi amba muthu mun˙ we na mun˙ we o hweswaho maand ˆ a nga mulayo ane bodo yawe ya vhalanguli kana, kha tshiimo hune onoyo muthu o hweswaho maand a a sa vhe khamphani, khorombusi ya onoyo muthu, ya ˆ shuma zwi tshi ya nga tsumbedzelo na ndaela ; (ii) zwi amba tshikwama tshi langwaho kana tshi tshimbidzwaho nga muthu ane o hweswa maand ˆ a nga mulayo; tshiimiswa; ‘‘Mulayo wa zwa dzikhamphani’’ zwi amba Mulayo wa zwa Khamphani, wa 2008 (Mulayo wa Nomboro ya. 71 wa 2008); ‘‘u kala tshikolodo’’ zwi amba muhumbulo malugana na u fusha kolodwa ha— (a) (b) mikovhe kana tshishumiswa tsha zwa masheleni; kana (c) mun ˆ etshedzi wa mikovhe kana tshishumiswa tsha zwa masheleni, hu tshi khou shumiswa sisi talutshedzwaho, teme ya u kala yo thon˙ waho nahone yo ˆ ˆ ine ya vha khethekanyo dza u kala, hu sa katelwi themendelo in˙ we na in˙ we ya u renga, u rengisa, kana u fara mukovhe mun˙ we na mun˙ we kana tshishumiswa tsha zwa masheleni; ea dza u thod ˆ ˆ etshedza tshumelo dza la u kala zwikolodo’’ zwi amba muthu ane a n ˆ ˆ ivhiso malugana na etshedza kana u sedzulusa ndivho hu tshi ‘‘zhendedzi u kala zwikolodo; ‘‘tshumelo dza zwa u kala zwikolodo’’ zwi amba data na nd ˆ tsenguluso, ndingululo, thendelo, u n ˆ itelwa zwikalo zwa tshikolodo; ‘‘muthusa-redzhis tra’’ zwi amba muthusa-redzhis tra wa mazhendedzi o bulwaho ˆ ˆ kha khethekanyo ya 21; ‘‘u kala zwikolodo mashangod ˆ nga zhendedzi avha; la mashangod ˆ ˆ la u kala zwikolodo’’ zwi amba muthu ane a avha la mashangod ‘‘zhendedzi ˆ ˆ ˆ n etshedza tshumelo dza u kala zwikolodo nahone o tendelwaho nahone o ˆ alanga uri a shume tshumelo dzi fanaho na n˙ waliswaho kha tshiimiswa tsha maand ˆ hedzo dzi langulwaho nga fhasi ha uno Mulayo nahone a tevhedzaho milayo ya shango nga nnd ˆ (a) ya thoma mutheo wa ndangulo une wa tendelwa nga redzhis avha’’ zwi amba u kalwa ha zwikolodo hu itwaho liki, ine milayo— ani ha ya Riphabu ˆ thon˙ waho nga uno Mulayo; na ine ya lavheleswa nga tshiimiswa tsha maand ˆ alanga; (b) ‘‘webusaithi ya tshiofisi ya FSB’’ zwi amba webusaithi ya Bodo ya Tshumelo dza zwa Masheleni (FSB) yo thon˙ waho nga khethekanyo ya 2 ya Mulayo wa Bodo ya Tshumelo dza zwa Masheleni; ‘‘Mulayo wa Bodo ya Tshumelo dza zwa Masheleni’’ zwi amba Mulayo wa Bodo ya Tshumelo dza zwa Masheleni, wa 1990 (Mulayo wa Nomboro ya. 97 wa 1990); ‘‘tshigwada’’ zwi amba tshigwada tsho vhumbwaho nga vhathu vhavhili kana a, hu songo sedzwa uri kana mun˙ we wa vhanzhi vhane vho hweswa maand ˆ vhenevho vhathu u dzula kha shango sa vhan˙ we, nahone mun˙ we wavho kana vhanzhi vha vha zhendedzi (a) mun˙ we na mun˙ we wa havho vha re na maand ˆ la u kala zwikolodo nahone— ˆ a hu mushumisani wa mun˙ we na mun˙ we wa vhan˙ we vhathu; kana tra sa hoyo wo ˆ (b) muthu a re na maand ˆ a a vhu tumani honoho ha u ita uri arali mun˙ we wa ˆ i kha zwa masheleni, zwa nga kona u kwama-vho mushumisani a na vhukond ˆ na avho vhan˙ we nga nd ila i si yavhud ˆ ˆ ta’’ zwi amba minis ta wa Muhasho wa zwa Masheleni; ˆ ˆ i; ‘‘Minis 5 10 15 20 25 30 35 40 45 50 55 60 8 No. 36071 Act No. 24 of 2012 GOVERNMENT GAZETTE, 14 JANUARY 2013 CREDIT RATING SERVICES ACT, 2012 8 ‘‘outsource’’ means the contracting out of a function to an external provider in a manner that may materially impair the quality of the internal control of the registered credit rating agency and the ability of the registrar to supervise the compliance of the registered credit rating agency with its obligations under this Act; ‘‘person’’ means any natural person, partnership or trust, and includes— (a) an organ of state as defined in section 239 of the Constitution of the Republic of South Africa, 1996; any body of persons, corporate or unincorporate; (b) any company incorporated or registered as such under any law; or (c) ‘‘prescribe’’ means prescribe by the Minister by regulation, or by the registrar by rule or by notice in the Gazette, and ‘‘prescribed’’ has a corresponding meaning; ‘‘Promotion of Administrative Justice Act’’ means the Promotion of Adminis- trative Justice Act, 2000 (Act No. 3 of 2000); ‘‘publish’’ means any direct or indirect communication transmitted by any medium, or any representation or reference written, inscribed, recorded, encoded upon or embedded within any medium, by means of which a person seeks to bring any information to the attention of a person, or all or part of the public, and ‘‘published’’, ‘‘publishes’’ or ‘‘made public’’ has a corresponding meaning; ‘‘public regulation’’ means any legislation, including subordinate legislation, or any registration, licence, directive or similar authorisation issued by a regulatory authority or pursuant to any statutory authority; ‘‘rating category’’ means a rating symbol, such as a letter symbol or a numerical symbol which might be accompanied by appending identifying characters, used in a credit rating to provide a relative measure of risk to distinguish the different risk characteristics of the type of rated entity, issuer or financial instrument or other asset; ‘‘registrar’’ means the registrar of credit rating agencies contemplated in section 21; ‘‘registered credit rating agency’’ means a credit rating agency or an external credit rating agency registered in terms of section 5; ‘‘regulated person’’ means a person that has been granted authority to conduct business or activities by a regulatory authority; ‘‘regulatory authority’’ means an organ of state as defined in setion 239 of the Constitution of the Republic of South Africa, 1996, responsible for the supervision or enforcement of legislation dealing with the regulation of institutions and the provision of financial services, or a similar body designated in the laws of a country other than the Republic to supervise and enforce legislation of that country; ‘‘regulatory purposes’’ means the use of credit ratings for the specific purpose of complying with national legislation or the listings requirements made by an exchange under section 12 of the Securities Services Act, 2004 (Act No. 36 of 2004); ‘‘rule’’ means a rule made in terms of section 24; ‘‘structured finance instrument’’ means a financial instrument or other asset resulting from a securitisation transaction or other structured financial transaction or scheme; ‘‘this Act’’ includes the regulations, rules and any notices or directives issued, exemption granted, determinations made, requirements determined or conditions imposed by the registrar, that have general application; and 5 10 15 20 25 30 35 40 45 GOVERNMENT GAZETTE, 14 JANUARY 2013 MULAYO WA ZWA TSHUMELO DZA U KALA ZWIKOLODO, 2012 Nom. 36071 9 Nom 24 ya 2012 9 a zwi tshi yelana na mushumo kha mun ˆ ila ine zwi tshi ya kha zwishumiswa wo vha u tshi d ˆ ‘‘u bvisa mushumo uri u shun˙ we nga mun˙ we’’ zwi amba u ita thendelano na etshedzatshumelo wa nga vhan˙ we nga nnd ˆ o vhaisa tshileme nnd a nga nd ˆ ˆ lo n˙ walisaho nahone tsha ndango ya nga ngomu ha zhendedzi ˆ vhukoni ha redzhis la u kala ˆ lo n˙ walisaho zwo sedza mbofho dza nga fhasi ha Mulayo; zwikolodo ˆ ‘‘muthu’’ zwi amba muthu mun˙ we na mun˙ we wa mvelo, mushumisani kana tshikwama, nahone zwi katela— (a) tra kha u langa zwa u tevhedza mulayo nga zhendedzi ˆ la u kala zwikolodo ˆ tshiimiswa tsha muvhuso sa zwi liki ya Afrika Tshipembe, ya 1996; Ndayotewa ya Riphabu ˆ talutshedzwaho kha khethekanyo ya 239 ya ˆ (b) khamphani in˙ we na in˙ we i re ngomu kana yo n˙ walisaho ngauralo nga fhasi ha mulayo mun˙ we na mun˙ we; kana a nd ˆ thendelo, ndaela kana thendelo i adza kana ‘‘u ita uri zwi d ˆ alanga kana zwi tshi ya nga maand ˆ tra a tshi khou shumisa mulayo kana nga nd ˆ ˆ ta a tshi khou shumisa ndangulo, kana ˆ ivhadzo kha Gazete nahone thalutshedzo ya hone i tshi fana na ya ipfi randela; ˆ ere kana tshiga tsha nomboro tshine tsha nga fheletshedzwa nga u taluli, zwi shumiswaho kha u kala zwikolodo u itela u n ˆ ˆ (c) mun˙ we na mun˙ we wa vhathu vha koporasi kana hu si koporasi; ‘‘randela’’ zwi amba u randelwa nga Minis nga redzhis ‘‘zwo randelwaho’’ ‘‘Mulayo wa Nyaluso ya u Langa zwa Vhulamukanyi’’ zwi amba Mulayo wa Nyaluso ya u Langa zwa Vhulamukanyi, wa 2000 (Mulayo wa Nomboro ya. 3 wa 2000); ‘‘uand adza’’ zwi amba u davhidzana ho livhaho na vhu songo livhaho vhu ˆ pfukiswaho nga tshirathisi tshin˙ we na tshin˙ we, kana u sumbedzwa hun˙ we na talutshedzwaho kana kha tshirathisi hun˙ we kana zwo tou n˙ walwaho, rekhodiwaho, ˆ ivhiso in˙ we na in˙ we uri i tod ila ine muthu u tshin˙ we na tshin˙ we, nga nd ˆ ˆ ˆ a tsha tshitshavha, nahone ‘‘zwo thetsheleswe nga muthu, kana tshipid ˆ ivhiwe nga tshitshavha’’ adzwaho’’, ‘‘u and and ˆ ˆ adza’’ ‘’ndangulo ya muvhuso’’ thalutshedzo ya hone i tshi fana na ya ipfi ‘‘and ˆ ˆ mulayosikwa mun˙ we na mun˙ we, zwi tshi katela mulayosikwa wa nga fhasi kana u fanaho yo n˙ waliswa hun˙ we na hun˙ we, n alanga etshedzwaho nga tshiimiswa tsha maand ˆ ˆ a mulayo; ‘‘khethekanyo ya u kala’’ zwi amba tshiga tsha u kala, u tou fana na tshiga tsha tumetshedza led ˆ ˆ ˆ etshedza tshikalo tshi re zwi na vhushaka na mulingo u itela u fhambanyisa zwi taluli zwo fhambanaho zwa ˆ mulingo kha lushaka lwa tshiimiswa tshine tsha khou kalwa, mukolodi, kana tshishumiswa tsha zwa masheleni kana in˙ we thundu; ‘‘redzhis tra wa zhendedzi ˆ zwenezwo zwo sumbedzwa kha khethekanyo ya 21; ‘‘zhendedzi la u kala zwikolodo ˆ zwikolodo kana zhendedzi khethekanyo ya 24; ‘‘muthu o tendelwaho nga ndangulo’’ zwi amba muthu ane o fhiwa maand ˆ a u tshimbidza bindu kana mishumo nga tshiimiswa tsha maand ˆ alanga’’ zwi amba tshiimiswa tsha muvhuso sa zwe zwa ‘‘tshiimiswa tsha maand ˆ liki ya talutshedziswa zwone kha khethekanyo ya 239 ya Ndayotewa ya Riphabu ˆ ˆ ifhinduleli ha u lavhelesa na u Afrika Tshipembe, kombetshedza mulayosikwa u shumanaho na ndangulo ya zwiimiswa na u etshedza tshumelo ya zwa masheleni, kana tshiimiswa tshi fanaho na zwenezwo, n ˆ tsho itwaho nga milayo ya shango husi Riphabu liki ndivho i ya u lavhelesa na u ˆ kombetshedza mulayosikwa uri u tevhedzwe kha shango ‘‘ndivho dza ndangulo’’ zwi amba u shumiswa ha zwikalo zwa tshikolodo zwi tshi itelwa ndivho dzenedzo dza u anana na mulayosikwa wa lushaka kana mitevhe ekano nga fhasi ha khethekanyo ya 12 ya Securities ya Services Act, 2004 (Act No. 36 of 2004); ‘‘‘mulayo ’’’ zwi amba mulayo wo itwaho zwi tshi ya nga khethekanyo ya 24; ‘‘tshishumiswa tsha zwa masheleni tsho vhumbwaho ’’ zwi amba tshishumiswa tsha zwa masheleni kana in˙ we thundu yo bveledzwaho u bva kha mikovhe ya thirantsekisheni ya zwa masheleni yo vhumbwaho kana thirantsekisheni kana in˙ we ˆ ˆ tshikimu; ‘‘uno Mulayo’’ u katela dzindangulo, milayo, na nd ivhadzo dzin˙ we na dzin˙ we ˆ etshedzwa, thendelo yo fhiwaho, ndavheleso dzo itwaho, kana ndaela dze dza n ˆ tra; dzine dza vha na thod ˆ ˆ ˆ tshumisonyangaredzi; na la u kala zwikolodo zwine ˆ lo n˙ walisaho’’ zwi amba zhendedzi ˆ la u kala zwikolo ˆ la u kala ˆ lo n˙ walisaho zwi tshi ya nga ˆ ea dzo lavheleswaho kana milayo yo vhewaho nga redzhis tshine tsha vha na vhud ˆ tra’’ zwi amba redzhis ˆ ea dzo itwaho nga mun ˆ lo; lene ˆ ˆ la nnd ˆ ˆ thod ˆ ˆ alanga; alanga a 5 10 15 20 25 30 35 40 45 50 55 60 10 No. 36071 Act No. 24 of 2012 GOVERNMENT GAZETTE, 14 JANUARY 2013 CREDIT RATING SERVICES ACT, 2012 10 ‘‘website’’ has the meaning set out in section 1 of the Electronic Communications and Transactions Act, 2002 (Act No. 25 of 2002). (2) For purposes of this Act, any reference to ‘‘company’’, ‘‘holding company’’ or ‘‘subsidiary’’ means a reference to a company, holding company or subsidiary, as the case may be, as defined in the Companies Act, or a similar entity incorporated under the laws of a country other than the Republic. (3) Any decision or other action of an administrative nature taken by the registrar that affects the rights of another person, including a regulated person, must comply with the Promotion of Administrative Justice Act or this Act. 5 (4) Nothing in this Act deprives any person of any right that such person holds under 10 the Promotion of Access to Information Act, 2000 (Act No. 2 of 2000). (5) (a) A registered credit rating agency that publishes any information or any credit rating in the performance of credit rating services or is required to publish, disclose, produce or provide a policy, code, document or information under this Act, must publish, disclose, produce or provide that credit rating, information, policy, code or document— in a prescribed form; or in plain language, if no form has been prescribed. (i) (ii) (b) For the purposes of this Act, a credit rating, policy, code, document or information is in plain language if it is reasonable to conclude that a person of the class of persons for whom the credit rating, policy, code, document or information is intended, with average literacy skills and experience in dealing with credit ratings, credit rating services and credit rating agencies, could be expected to understand the content, significance and import of the credit rating, information, policy, code, document or information without difficulty, having regard to— (i) (ii) (iii) (iv) the context, comprehensiveness and consistency of the credit rating, informa- tion, policy, code, document or information; the organisation, form and style of the credit rating, policy, code, document or information; the vocabulary, usage and sentence structure of the credit rating, policy, code, document or information; and the use of any illustrations, examples, headings or other aids to reading and understanding the credit rating, policy, code, document or information. (6) If, in terms of this Act, a credit rating, policy, code, document, information, record or statement is required to be— (a) retained, it is sufficient if an electronic original or reproduction of that credit rating, policy, code, document, information, record or statement is retained as provided for in sections 15 and 16 of the Electronic Communications and Transactions Act, 2002 (Act. No. 25 of 2002); or (b) published, disclosed, produced or provided, it is sufficient if— (i) an electronic original or reproduction of that credit rating, policy, code, document, information, record or statement is published, disclosed, produced or provided by electronic communication in such a manner and form that the credit rating, policy, code, document, information, record or statement can conveniently be printed by the recipient within a reasonable time and at a reasonable cost; or (ii) a notice of the availability of that credit rating, policy, code, document, information, record or statement, summarising its content and satisfying any prescribed requirements, is delivered to each intended recipient of 15 20 25 30 35 40 45 GOVERNMENT GAZETTE, 14 JANUARY 2013 MULAYO WA ZWA TSHUMELO DZA U KALA ZWIKOLODO, 2012 Nom. 36071 11 Nom 24 ya 2012 11 li na ˆ lo kha khethekanyo ya 1 ya Mulayo wa the ipfi ‘‘webusaithi’’ thalutshedzo ya ˆ ˆ Electronic Communications and Transactions Act, 2002 (Act No. 25 of 2002). (2) U itela ndivho ya uno Mulayo, riferentsi in˙ we na in˙ we kha ‘‘khamphani’’, ‘‘khamphani yo faraho mukovhe’’ ‘‘kana tshiimiswa tsha muvhuso’’ zwi amba riferentsi kha khamphani, khamphani yo faraho mukovhe kana tshiimiswa tsha muvhuso, sa zwine zwa vha, sa zwe zwa talutshedzwa kha Mulayo wa zwa ˆ Dzikhamphani, kana tshiimiswa tshi fanaho nazwo tshe tsha katelwa nga fhasi ha liki. milayo ya shango hu si Riphabu ˆ (3) Tsheo in˙ we na in˙ we kana nga nnd ˆ a ha nyito ya vhulangi yo dzhiiwaho nga tra ine ya kwama pfanelo dza mun˙ we muthu, hu tshi katelwa na muthu o redzhis ˆ tendelwaho nga ndangulo, i fanela u vha i tshi anana na Mulayo wa Nyaluso ya Vhulangi ha Vhulamukanyi, wa 2000 (Mulayo wa Nomboro ya. 3 wa 2000), kana uno Mulayo. (4) A hu na kha uno Mulayo, tshi khakhisaho pfanelo in˙ we na in˙ we ye muthu mun˙ we li ˆ tod ˆ ˆ wa uri li and ˆ ˆ adza nd ˆ na mun˙ we a i fara nga fhasi ha Mulayo la u kala zwikolodo ˆ (5) (a) Zhendedzi lo n˙ walisaho ˆ ivhiso in˙ we na in˙ we kana u kala zwikolodo hun˙ we na hun˙ we kha kushumele kwa tshumelo dza zwa u kala adze, dzumbulula, u bvisa kana u zwikolodo kana zhendedzi li and ˆ ˆ ivhiso nga fhasi ha n lin˙ walwa kana nd etshedza honoho u kalwa ha zwikolodo, khoudu, ˆ ˆ ˆ etshedza honoho u kalwa ha li fanela u and uno Mulayo, ˆ ˆ ivhiso, mbekanyamaitele, khoudu kana zwikolodo, nd ˆ adza, dzumbulula, bvisa kana n ˆ ivhiso i vha kha luambo lu sa kond ˆ (i) kha fomo yo randelwaho;kana (ii) nga luambo lu sa kond ˆ (b) U itela ndivho dza uno Mulayo, u kalwa ha zwikolodo, mbekanyamaitele, mulayo, lin˙ walwa kana nd i arali zwi zwi pfadzaho u vhina uri ˆ ˆ lin˙ wawa vhathu vha ki lasi vhane u kalwa ha zwikolodo, mbekanyamaitele, mulayo, ˆ ˆ kana nd ivhiso i khou livhiswa khavho, vha tou vha na zwikili zwo tou linganelaho ˆ nahone vha na tshenzhemo zwi tshi ya kha u shumana na u kalwa ha zwikolodo, tshumelo dza u kala zwikolodo na mazhendedzi a u kala zwikolodo, hu lavhelelwa u vha ivhiso, hu tshi pfeseswa zwi mbekanyamaitele, khoudu, tahelaho, hu ˆ tshi dzhielwa n re ngomu, ndeme ya u kala zwikolodo, nd ˆ lin˙ walwa kana nd ˆ ˆ (i) nyimele, u fhelela na u sa shanduka-shanduka ha zwikalo zwa zwikolodo, i, arali hu si na fomo yo randelwaho. ivhiso hu si na ndingedzo dzo lin˙ walwa— ˆ tha— ˆ ivhiso, mbekanyamaitele, khoudu, nd ˆ lin˙ walwa kana nd ˆ ˆ ivhiso; (ii) dzangano, fomo na tshitaila zwa u kala zwikolodo, mbekanyamaitele, khoudu, (iii) ivhiso; lin˙ walwa na nd ˆ ˆ tshivhumbeo tsha vokhabu lari, kushumisele na mutaladzi zwa u kala zwikolodo, ˆ lin˙ walwa kana nd mbekanyamaitele,khoudu, ˆ ˆ (iv) u shumisa tsumbedzelo, tsumbo, ivhiso, na u pfesesa u kalwa ha zwikolodo, mbekanyamaitele, khoudu, nd ˆ ivhiso. thoho kana zwin˙ we zwi thusaho kha u vhala na ˆ lin˙ walwa kana ˆ (6) Arali, zwi tshi ya nga uno Mulayo, u kala zwikolodo, mbekanyamaitele, khoudu, lin˙ walwa, nd ˆ ˆ ta ivhiso, rekhodo kana tshi ˆ tamennde zwi tshi ˆ tod ˆ ˆ ea uri zwi vhe— (a) zwo vhewa, zwo lingana arali zwavhukuma-kuma zwa i thironiki kana u ˆ lin˙ walwa, bveledzululwa ha u kala zwikolodo, mbekanyamaitele, khoudu, ˆ nd tamennde tsho vhewa sa zwe zwa vhetshelwa ta ˆ ˆ ˆ nga khethekanyo dza 15 na 16 dza Mulayo wa Electronic Communications and Transactions Act, 2002 (Act. No.25 of 2002); kana ivhiso, rekhodo kana tshi leki ˆ etshedzwa, zwi vha zwo adzwa, bvukululwa, bveledzwa kana n ˆ (b) zwo and ˆ lingana arali— thironiki kana u bveledzululwa ha honoho leki (i) zwavhukuma-kuma zwa i ˆ ˆ ivhiso, u kalwa ha zwikolodo, mbekanyamaitele, khoudu, adzwa, bvukululwa, bveledzwa rekhodo kana tshi ta ˆ ila ine na nga zwine kana nga vhudavhidzani ha i leki ˆ lin˙ walwa, honoho u kalwa ha zwikolodo, mbekanyamaitele, khoudu, ˆ iswa nga tamennde tshi nga kona u kand ta nd ivhiso, rekhodo kana tshi ˆ ˆ ˆ ˆ mu tanganedzi nga tshifhinga tshi pfadzaho nahone na data ya hone nga ˆ mutengo u pfadzaho; kana tamennde tsho and ˆ ˆ thironiki nga nd ˆ ˆ lin˙ walwa, nd ˆ ˆ (ii) nd ˆ khoudu, ivhadzo ya u vha hone ha honoho u kalwa ha zwikolodo, rekhodo kana mbekanyamaitele, lin˙ walwa, ˆ ea dzo thod tamennde, i nweledzaho zwi re ngomu na u fusha ta tshi ˆ ˆ ˆ ˆ tanganedza iswa kha mun˙ we na mun˙ we a teaho u randelwaho, ˆ mbekanyamaitele, kana rekhodo lin˙ walwa, ˆ tanganedza mbekanyamaitele tamennde, khathihi na ndaela dza u ta tshi ˆ ˆ ˆ khoudu, ivhiso, ivhiso, nd ˆ nd ˆ i 5 10 15 20 25 30 35 40 45 50 55 60 12 No. 36071 Act No. 24 of 2012 GOVERNMENT GAZETTE, 14 JANUARY 2013 CREDIT RATING SERVICES ACT, 2012 12 the policy, code, document, information, record or statement, together with instructions for receiving the complete policy, code, document, information, record or statement. Objects of Act

2. The objects of this Act are to— (a) ensure responsible and accountable credit rating agencies; (b) protect the integrity, transparency and reliability of the credit rating process and credit ratings; improve investor protection; improve the fairness, efficiency and transparency of financial markets; and reduce systemic risk. (c) (d) (e) 5 10 Application of Act 3. (1) Subject to subsection (4), this Act applies to— (a) credit rating services performed in the Republic; (b) credit ratings that are issued by credit rating agencies registered in the 15 (c) Republic; and any person that performs credit rating services or issues credit ratings in the Republic. (2) With effect from a date determined by the Minister by notice in the Gazette, a person may not perform credit rating services or issue a credit rating in the Republic, unless that person is a registered credit rating agency. (3) This Act does not create a general obligation for— (a) all securities or financial instruments to be credit-rated; (b) financial institutions or investors to invest only in entities, securities or financial instruments that are credit-rated. (4) This Act does not apply to private credit ratings and private credit rating services produced pursuant to an individual order and provided exclusively to the person who placed the order and which are not intended for public disclosure or distribution by subscription. Use of credit ratings 4. (1) Where a regulated person uses published credit ratings for regulatory purposes, such a regulated person must only use credit ratings that are— (a) (b) issued or endorsed by credit rating agencies which are registered in accordance with this Act; or issued or endorsed by an external credit rating agency approved by the registrar. (2) The registrar may prescribe additional requirements in respect of the use of credit ratings for regulatory purposes. CHAPTER 2 REGISTRATION 20 25 30 35 40 Application for registration 5. (1) An application for registration as a registered credit rating agency must be made in the form and manner prescribed by the registrar, and must be lodged with the registrar and be accompanied by— (a) a certificate of incorporation of the applicant under the Companies Act, where the applicant is located in the Republic, or proof of registration of the 45 GOVERNMENT GAZETTE, 14 JANUARY 2013 MULAYO WA ZWA TSHUMELO DZA U KALA ZWIKOLODO, 2012 Nom. 36071 13 Nom 24 ya 2012 13 yo ta tshi ˆ fhelelaho, tamennde. ˆ nd ˆ ivhiso ya khoudu, lin˙ walwa, ˆ rekhodo kana Zwipikwa zwa Mulayo

2. Zwipikwa zwa uno Mulayo ndi u— thisa vhud ˆ ˆ (a) khwa (b) ifhinduleli ha mazhendedzi a u kala zwikolodo; tsireledza u fhulufhedzea, u vha khagala na u thembea ha kuitele kwa u kala zwikolodo na zwikalo zwa zwikolodo; (c) khwinisa tsireledzo ya mubindudzi; (d) khwinisa u fhulufhedzea, vhukoni na u vha khagala ha mimaraga ya zwa masheleni; na u fhungudza mulingo u iteaho nga khole. (e) Kushumisele kwa Mulayo 3. (1) Zwi tshi tevhedzela khethekanyo ya nga fhasi ya (4), uno Mulayo u shuma kha— liki; tshumelo dza zwa u kala zwikolodo dzine dza shun˙ wa kha Riphabu ˆ etshedzwaho nga mzhendedzi o n˙ walisaho kha (a) (b) zwikalo zwa zwikolodo zwi n ˆ liki; na ˆ Riphabu (c) muthu mun˙ we na mun˙ we ane a shuma tshumelo dza zwa u kala zwikolodo zwi and ˆ liki. adzwaho kha Riphabu ˆ ta nahone zwo d o dzhiwa nga Minis ˆ ˆ (2) U tou bva datumu ya u thoma u shumiswa ha Mulayo na datumu ine tsheo ya hone o shuma etshedza zwikalo zwa zwikolodo kha lo ˆ ya d ˆ tshumelo dza u kala zwikolodo kana u n ˆ Riphabu n˙ walisaho. ivhadzwa kha Gazete, muthu ha nga d ˆ ani ha musi onoyo muthu a zhendedzi la u kala zwikolodo ˆ liki nga nnd ˆ ˆ (3) Uno Mulayo a u iti mbofho-nyangaredzi kha— (a) zwishumiswa zwo zwine zwa d ˆ o kalwa; the zwa mikovhe na zwishumiswa zwa zwa masheleni ˆ (b) zwiimiswa zwa zwa masheleni kana vhabindudzi vha d ˆ zwiimiswa, mikovhe kana kha zwishumiswa zwine zwa kala zwikolodo. o bindudza fhedzi kha (4) Uno Mulayo a u shumiswi kha u kalwa ha zwikolodo ha phuraivethe na kha tshumelo dza u kala zwikolodo ha phuraivethe zwi tshi ya nga muthu nahone zwo itwaho lwo khetheaho kha muthu onoyo ane o ita muhodo nahone zwine a zwongo bvukululelwa tshitshavha kana u phad ˆ aladzwa zwi tshi itelwa mbadelo. U shumiswa ha zwikalo zwa tshikolodo 4. (1) Hune muthu a re nga fhasi ha ndaulo a shumisa zwikalo zwa zwikolodo zwo adzwaho ndivho dzi dza u ita ndaulo, muthu onoyo a re fhasi ha ndaulo u fanela u and ˆ shumisa zwikalo zwa zwikolodo zwa— (a) n etshedzwaho kana zwo khwa ˆ zwikolodo o n˙ walisaho zwi tshi ya nga uno Mulayo, kana (b) n thisedzwaho nga zhendedzi etshedzwaho kana zwo khwa ˆ ˆ la nnd ˆ ˆ tra lo tendelwa nga redzhis ˆ ˆ line ˆ a thisedzwaho nga mazhendedzi a u kala ˆ la u kala zwikolodo ˆ ea malugana na u shumiswa ha zwikalo zwa tra a nga randela dzin˙ we (2) Redzhis ˆ zwikolodo ndivho hu tshi itelwa zwa ndaulo. thod ˆ ˆ NDIMA YA 2 U N˙ WALISA Khumbelo ya u n˙ walisa 5. (1) Khumbelo ya u n˙ walisa u vha zhendedzi fanela u itwa kha fomo nahone nga nd ˆ tra musi yo fhelekedzwa nga— u itwa kha redzhis ˆ la u kala zwikolodo ˆ ila yo randelwaho nga redzhis lo n˙ walisaho I ˆ tra, nahone I fanela ˆ thanziela ya u dzheniswa ha muhumbeli nga fhasi ha Mulayo wa zwa ˆ liki, kana Dzikhamphani; hune muhumbeli a wanala hone kha Riphabu ˆ a nga fhasi ha thisedzo ya u n˙ walisa ha muhumbeli sa khamphani ya nnd khwa ˆ ˆ (a) 5 10 15 20 25 30 35 40 45 50 14 No. 36071 Act No. 24 of 2012 GOVERNMENT GAZETTE, 14 JANUARY 2013 CREDIT RATING SERVICES ACT, 2012 14 applicant as an external company under the Companies Act, where the applicant is an external credit rating agency. (b) details of its— (i) incorporation, registration, authorisation or approval in countries other than the Republic to undertake credit rating services, if applicable; (ii) ownership structure, organisational structure and corporate governance; (iii) (iv) (v) programme of operations, including indications of where the main business activities are expected to be carried out, branches are to be established, and the type of business that will be undertaken; subsidiaries, if any; resources and expertise to perform credit rating services; (vi) expected outsourcing arrangements, including details of the persons that will be assuming outsourcing functions; (vii) policies and procedures to identify, manage and disclose any conflicts of interests; (viii) compensation and performance evaluation arrangements; and (ix) compliance with or adherence to the code of conduct prescribed in terms of section 11; (c) (d) (e) (f) the applicant, a description of the procedures and methodologies to be used to issue and review credit ratings; information to satisfy the registrar that its directors and employees comply with the fit and proper requirements prescribed by the registrar, in respect of— (i) personal character qualities of honesty and integrity; (ii) competence; (iii) operational ability; and (iv) financial soundness; the application fee prescribed by the registrar; and any other information prescribed by the registrar. (2) An applicant must promptly amend its application for registration and inform the registrar if, during the application process, the information contemplated in subsection (1) becomes inaccurate. (3) The registrar may exempt an applicant who, or whose holding company, or a related company in the same group, is registered, authorised or approved by a foreign regulatory authority as a credit rating agency from providing some or all of the information required under subsection (1), if— the applicant requests an exemption; the applicant provides proof of such registration, authorisation or approval; and the registrar is satisfied that such registration, authorisation or approval was granted in accordance with public regulation that is equivalent to this Act. (a) (b) (c) (4) The registrar must give notice of the receipt of an application on the FSB official website, which notice must state— (a) (b) the name of the applicant; and the period within which objections to the application may be lodged with the registrar. (5) The registrar may— (a) (b) to furnish additional require an applicant information and require that information or any information that accompanied the application to be verified; and take into consideration any other information regarding the applicant, derived from any other source, including another regulatory authority. (6) (a) The registrar must, after consideration of an application and after consultation with any local regulatory authority that relies on, refers to or uses credit ratings in its supervision and regulatory activities— (i) (ii) if satisfied that an applicant complies with the requirements of this Act, grant the application; or if not so satisfied, subject to paragraph (b), refuse the application. 5 10 15 20 25 30 35 40 45 50 55 GOVERNMENT GAZETTE, 14 JANUARY 2013 MULAYO WA ZWA TSHUMELO DZA U KALA ZWIKOLODO, 2012 Nom. 36071 15 Nom 24 ya 2012 15 Mulayo wa zwa Dzikhamphani, hune muhumbeli ha vha hu zhendedzedzi u kala zwikolodo a. la ˆ (b) zwidodombedzwa zwa muhumbeli— la nnd ˆ ˆ (i) u katelwa, u n˙ waliswa, u tendelwa kana thendelo ya kha mashango man˙ we arali hu si Riphabu o shuma tshumelo dza zwa u kala liki ine ya d ˆ ˆ zwikolodo, arali e hone; (ii) khoro ya vhan ˆ vhuvhusi ha koporasi; e vha tshiimiswa, vhathu vho vhumbaho tshiimiswa na (iii) zwiimiswa zwi langwaho, arali zwi hone; (iv) zwiko na nd ˆ ivho zwine zwa d ˆ zwikolodo; o shuma kha tshumelo dza u kala (v) mbekanyamushumo ya mashumele, hu tshi katelwa na u sumbedza fhethu hune mishumo minzhi ya bindu ya lavhelelwa u shumelwa hone, matavhi ane a d ˆ (vi) nzudzanyo dzo lavhelelwaho dza u bvisa mushumo uri u shun˙ we nga o thoma in˙ we khamphani, hu tshi katelwa na vhathu vhane vha d ˆ mushumo wa u bvisa mushumo uri u shun˙ we nga in˙ we khamphani; (vii) mbekanyamaitele na maitele a u nanga, u langa na u bvukulula u kud ˆ o vulwa, na lushaka lwa bindu line la d ˆ ˆ o shun˙ wa ana hun˙ we na hun˙ we ha madzangalelo; (viii) miholo na nzudzanyo dza u sedzulusa mashumele; na (ix) u anana na mulayo wa vhud ˆ khethekanyo ya 11; ifari wo randelwaho zwi tshi ya nga o shumiswa hu tshi n ˆ etshedzwa (c) thalutshedzo ya maitele na ngona dzine dza d ˆ ˆ na u tola zwikalo zwa zwikolodo; ˆ ivhiso ya u fusha redzhis (d) nd ˆ vhawe vha anane nahone vha fushe malugana na— (i) ndeme dza vhuvha ha muthu kha u fhulufhedzea na (ii) vhukoni; (iii) u kona u shuma ; na (iv) u pfesesa zwa masheleni; tra uri muhumbeli, vhalanguli vhawe na vhashumi ˆ tra, ea dzo randelwaho nga redzhis ˆ thod ˆ ˆ thonifho; ˆ nd ˆ (e) mbadelo ya u ita khumbelo yo randelwaho nga redzhis tra; na ˆ (f) tra. ˆ (2) Muhumbeli u fanela u shandukisa khumbelo yawe nga u ivhiso in˙ we na in˙ we yo randelwaho nga redzhis tavhanya u itela u ˆ n˙ walisa nahone a vhudze redzhis ivhiso yo tra arali, nga tshifhinga tsha u ita khumbelo nd ˆ ˆ ambiwaho kha khethekanyo ya nga fhasi ya (1) i tshi nga vha i sa tsha vha ya vhukuma. tra a nga tendela muhumbeli ane, kana khamphani yawe yo faraho (3) Redzhis ˆ mukovhe, kana in˙ we ine ya vha na vhushaka na itsho tshigwada, yo n˙ walisa, tendelwa avha, khamphani i vhe kana tendelwa nga tshiimiswa tsha maand ˆ yo tendwelwa sa zhendedzi ivhiso kana nd eaho nga fhasi ha khethekanyo ya nga fhasi ya (1), arali the i ivhiso yo ˆ ˆ muhumbeli— alanga tsha mashangod ˆ la u kala zwikolodo kha u fha in˙ we ya nd ˆ ˆ tod ˆ ˆ (a) a humbela u tendelwa; na (b) u n ˆ (c) redzhis zwi tshi ya nga ndangulo ya muvhuso ine ya lingana na uno Mulayo. tra a fushea uri hoho u n˙ waliswa, u tendelwa kana thendelo yo fhiwa ˆ etshedza tsumbo ya honoho u n˙ walisa, u tendelwa na thendelo, nahone ivhadzo ya uri o tanganedza khumbelo kha webusaithi ˆ ivhadzo ya fanela u bula— ya tshiofisi ya FSB, hune yeneyo nd ˆ tra u fanela u ita nd (4) Redzhis ˆ ˆ (a) dzina (b) la muhumbeli; na ˆ (a) tra. tshifhinga tshine khatsho khumbelo ya hania, zwi nga vhigwa kha redzhis ˆ tanzi na u ivhiso kana vhu ˆ tra a nga— (5) Redzhis ˆ a muhumbeli a tshi engedza in˙ we nd tod ˆ ˆ ˆ nd ivhiso in˙ we na in˙ we i tshi fhelekedzwa nga u tou ivhiso kana nd ˆ ˆ khwa (b) u dzhiela n tha nd ˆ ˆ kha tshiko tshin˙ we na tshin˙ we, hu tshi katelwa tshiimiswa tsha maand ˆ ivhiso in˙ we na in˙ we zwi tshi yelana na muhumbeli, i bvaho alanga tra u fanela u, nga murahu ha u lavhelesa khumbelo na nga murahu ha ˆ u kwamana na tshiimiswa tshin˙ we na tshin˙ we tsha maand alanga tshapo tshine a tshi ˆ fhulufhela, sedza khatsho kana tsha shumisa zwikalo zwa zwikolodo kha vhulavhelesi hatsho na mishumo i kwamaho zwa ndangulo— a iyo tod ˆ ˆ tolwa uri i ˆ thisedzwe; na ˆ (6) (a) Redzhis (i) (ii) arali a tshi fushea uri uyo muhumbeli u anana na khumbelo; kana arali a sa fushei, zwi tshi itiswa nga pharagirafu ya (b), khumbelo i d ˆ thod ˆ ˆ ea dza uno Mulayo, u fha o haniwa. 5 10 15 20 25 30 35 40 45 50 55 60 16 No. 36071 Act No. 24 of 2012 GOVERNMENT GAZETTE, 14 JANUARY 2013 CREDIT RATING SERVICES ACT, 2012 16 (b) If an application is refused, the registrar must— (i) notify the applicant of the refusal; (ii) provide the applicant with written reasons for the refusal; and (iii) advise the applicant of the right to appeal, in accordance with section 33. (7) The registrar may grant an application subject to any condition that the registrar may determine, which condition may not be inconsistent with this Act. (8) The registrar must, on granting an application, issue a certificate of registration to the credit rating agency and publish a notice of the registration on the FSB official website. (9) A registered credit rating agency must ensure that— (a) a reference to the fact that such a certificate of registration is held, is contained (b) in all business documentation and advertisements; and its certificate of registration is at all times available to any person requesting proof of its registration status under authority of a law or for the purpose of entering into a business relationship with the registered credit rating agency concerned. (10) The registrar must maintain a list on the FSB official website of registered credit rating agencies. Suspension and cancellation of registration 6. (1) The registrar may, after consultation, where applicable, with any local regulatory authority that relies on, refers to or uses credit ratings in its supervision and regulatory activities, at any time, suspend or cancel the registration of a registered credit rating agency if the registrar is satisfied, on the basis of available facts and information, that the registered credit rating agency— 5 10 15 20 (a) expressly renounces the registration or has provided no credit rating services 25 for the preceding six months; (b) has obtained the registration by providing false information or by any other irregular means; (c) no longer meets the conditions under which it was registered; (d) has failed to comply with any condition imposed under this Act; (e) has failed to comply with any directive issued under this Act; or (f) has been liquidated. (2) (a) If the registrar suspends or cancels the registration of a registered credit rating agency under subsection (1), the registrar may do so subject to any conditions that the registrar may determine, which conditions may not be inconsistent with this Act. (b) The registrar may revoke any suspension under subsection (1) if the registrar is satisfied that the registered credit rating agency has complied with all the conditions to which the suspension was made subject. (3) Subject to the provisions of the Promotion of Administrative Justice Act, the registrar must, before the suspension or cancellation of a registration— (a) notify the registered credit rating agency in writing of the registrar’s intention to suspend or cancel the registration and the reasons therefor; (b) give the registered credit rating agency 30 days’ written notice, calculated from the date on which the notice was given, to make representations on why its registration should not be suspended or cancelled; and consider any representations received. (c) (4) (a) The registrar must notify the registered credit rating agency of its decision and publish a notice of any suspension or cancellation of registration, the reasons therefor and any conditions attached thereto on the FSB official website and any other appropriate media. (b) The suspension or cancellation of the registration of a registered credit rating agency takes effect on a date specified in the notice contemplated in paragraph (a). 30 35 40 45 50 GOVERNMENT GAZETTE, 14 JANUARY 2013 MULAYO WA ZWA TSHUMELO DZA U KALA ZWIKOLODO, 2012 Nom. 36071 17 Nom 24 ya 2012 17 (b) Arali khumbelo ya u n˙ walisa i tshi khou hanwa, redzhis tra u fanela u— ˆ ivhadza muhumbeli nga ha uho u hanwa; (i) d ˆ fha muhumbeli mbuno dzi pfalaho nahone dzo tou n˙ walwaho malugana (ii) na uho u hana; na li, zwi tshi ya nga ˆ (iii) u eletshedza muhumbeli nga ha pfanelo ya u ita aphi (7) Redzhis khethekanyo ya 33. tra a nga fha khumbelo ya u n˙ walisa zwi tshi tevhedza tshiimo tshine ene ˆ redzhis tra a nga tshi lavhelesa, tshine tshiimo tshenetsho tsha sa vhe tshi lwaho na uno ˆ Mulayo. (8) Redzhis nga ha u n˙ waliswa ha zhendedzi la u kala zwikolodo nahone a and ˆ ˆ n˙ waliswa uho kha webusaithi ya tshiofisi ya tshiimiswa tsha FSB. tra u fanela u, musi a tshi khou fha muhumbeli, fanela u fha ˆ adze nd ˆ thanziela ya ˆ ivhadzo ya u (a) (b) (9) Zhendedzi la u kala zwikolodo ˆ lo n˙ walisaho ˆ li fanela u vhona uri— ˆ lo dza u n˙ walisa tshifhinga tsho ˆ thanziela ya u n˙ walisa i hone kha man˙ walwa o ˆ riferentsi kha yeneyo bindu na khungedzelo; na the dzi sumbedzwe muthu thanziela dza ˆ ˆ mun˙ we na mun˙ we ane a humbela u sumbedzwa tshiimo tsha u n˙ walisa nga fhasi ha maand a a mulayo kana ndivho i ya u dzhena kha vhushaka ha zwa ˆ vhubindudzi na zhendedzi li kwameaho. ˆ tra u fanela u vhulunga mutevhe wa mazhendedzi a u kala zwikolodo o ˆ lo n˙ walisaho ˆ the a zwa ˆ (10) Redzhis n˙ walisaho kha webusaithi ya tshiofisi ya FSB U imiswa na u fhelisa u n˙ waliswa ivhiso I re hone, ya uri i la u kala zwikolodo ˆ 6. (1) Redzhis tra a nga, nga murahu ha u kwamana, he zwa fanela, na tshiimiswa tsha ˆ alanga tshapo tshine tsha thembea , sedza kana u shumisa zwikalo zwa zwikolodo alanga, tshifhinga tshin˙ we na tshin˙ we, a nga lo n˙ walisaho arali o ˆ la u kala ˆ maand ˆ kha vhulavhelesi na mishumo ya maand ˆ imisa kana a fhelisa u n˙ waliswa ha zhendedzi fushea, nga kha mbuno dzi re hone na nd ˆ zwikolodo (a) lo n˙ walisaho— ˆ lo sumbedza u hana u n˙ walisa kana ˆ zwikolodo kha min˙ wedzi ya u thoma ya rathi; lo n˙ walisa nga u n ˆ ˆ li sa tsha fusha milayo ye ˆ lo kundelwa u anana na milayo yo vhewaho nga fhasi ha uno Mulayo; ˆ lo kundelwa u anana na ndaela yo bviswaho nga fhasi ha uno Mulayo; kana ˆ lo valwa nga thaidzo ya zwikolodo. ˆ etshedza mazwifhi kana in˙ we nd ˆ (2) (a) Arali redzhis tra a imisa kana a fhelisa u n˙ waliswa ha zhendedzi ˆ la u kala ˆ zwikolodo tra a nga ita lo n˙ walisaho ga fhasi ha khethekanyo ya nga fhasi ya (1), redzhis ˆ ˆ ngauralo zwi tshi itiswa nga milayo min˙ we na min˙ we ine a nga i lavhelesa, ine milayo yeneyo ya sa tou tea u vha i tshi yelana na uno Mulayo. la n˙ walisa nga fhasi hayo; ˆ etshedza zwikalo zwa lo zhendedzi ˆ ila i songo d ˆ li songo n ˆ ˆ (b) (c) (d) (e) (f) aho; (b) Redzhis tra a nga fhelisa u imiswa ha zhendedzi nga fhasi ha khethekanyo ya nga ˆ lo n˙ walisaho ˆ tra a tshi fushea uri zhendedzi fhasi ya (1) arali redzhis ˆ li vhe lo anana na milayo yo ˆ ˆ the ye ya vha yo ita uri ˆ la u kala zwikolodo ˆ lo imiswa u shuma. ˆ (3) Zwi tshi itiswa nga mbetshelo dza Mulayo wa Nyaluso ya u Langa zwa a ha u imisa kana u fhelisa u n˙ waliswa ha Vhulamukanyi, redzhis tra u fanela uri, phand ˆ ˆ zhendedzi— ivhadze zhendedzi (a) d ˆ muhumbulo wawe wa u nahone na mbuno dza hone a dzi n˙ wale henefho; la u kala zwikolodo ˆ la u kala zwikolodo ˆ (b) a fhe zhendedzi lo n˙ walisaho nga u tou n˙ wala hoyo ˆ li imisa kana u fhelisa u n˙ waliswa ha zhendedzi ˆ uvha a 30 ivhadzo ya mad ˆ ivhadzo ya lo, zwi tshi itelwa u sumbedza uri ndi ngani u n˙ waliswa ha ˆ lo n˙ walisaho nd ˆ ˆ uvha a tshi vhaliwa u bva datumu ye nd ˆ yo tou n˙ waliwaho, mad ˆ n ewa nga ˆ zhendedzi hu songo fanela u imiswa kana u fheliswa; nahone a sedze-vho u sumbedzwa hun˙ we na hun˙ we ho (c) tanganedzwaho. ˆ (4) (a) Redzhis ivhadza zhendedzi tra u fanela u d ˆ ˆ lo n˙ walisaho ˆ nga ha tsheo nahone a and adze u imiswa na u fheliswa ha u n˙ waliswa ha zhendedzi, ˆ mbuno na nyimele zwo itisaho na zwone zwi sumbedzwe kha webusaithi ya tshiofisi ya Bodo ya Tshumelo dza zwa Masheleni na kha zwin˙ we zwirathisi. (b) U imiswa u shuma na u fhelisa u n˙ waliswa ha zhendedzi la u kala zwikolodo ˆ la u kala zwikolodo lo ˆ ˆ ivhadzo yo ambiwaho kha n˙ walisaho hu thoma u shuma nga datumu yo bulwaho kha nd ˆ pharagirafu ya (a). 5 10 15 20 25 30 35 40 45 50 55 60 18 No. 36071 Act No. 24 of 2012 GOVERNMENT GAZETTE, 14 JANUARY 2013 CREDIT RATING SERVICES ACT, 2012 18 (c) If a registered credit rating agency has appealed against a suspension or cancellation of registration, the registrar must not publish the notice contemplated in paragraph (a) until the appeal process has been finalised. (5) (a) Credit ratings issued by a credit rating agency whose registration has been suspended or cancelled, may continue to be used for regulatory purposes for— 5 (i) 14 days after the publication of the notice contemplated to in subsection (4)(a), if credit ratings of such credit rating agency were also issued by other credit rating agencies registered under this Act; or three months after the publication of the notice contemplated in subsection (4)(a), if no credit ratings of such credit rating agency were issued by other credit rating agencies registered under this Act. (ii) (b) The registrar may extend the period referred to in paragraph (a)(ii), in order to 10 mitigate any potential market disruption or to ensure financial stability. CHAPTER 3 DUTIES OF REGISTERED CREDIT RATING AGENCY 15 Duties

20. No person, including the registrar, may hinder, interfere with, obstruct or improperly attempt to influence a credit rating, the content of a credit rating, or any methodology, model or key assumption used by a registered credit rating agency to derive a credit rating. CHAPTER 6 ADMINISTRATION OF ACT Registrar and deputy registrar of credit rating agencies