Going forward, the SC intends to make it a requirement for the majority of the board members (at both the holding and rating companies) as well as the rating committee to be independent and for any decision to provide dividend to shareholders to require the SC’s prior approval.
KUALA LUMPUR: The Securities Commission (SC) says it will continue to take pro-active measures to strengthen rating independence and objectivity, and where required, impose additional conditions to approvals given to applicants.
As such, the regulator is reviewing the existing framework, including on rating committees and their composition.
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