Regulatory Framework

Understanding the regulations that govern credit rating agencies and our compliance measures.

Global Regulatory Landscape

Following the 2008 global financial crisis, credit rating agencies have been subject to enhanced regulatory oversight worldwide. These regulations aim to improve rating quality, manage conflicts of interest, and increase transparency in the rating process.

World Rating is committed to operating in full compliance with all applicable regulations in the jurisdictions where we provide our services. We actively engage with regulators to ensure our methodologies and practices meet or exceed regulatory requirements.

Key Regulatory Frameworks

Turkey - Capital Markets Board (SPK)

The Capital Markets Board of Turkey (SPK) regulates credit rating activities in Turkish capital markets through the "Communiqué on Principles Regarding Rating Activities and Rating Agencies".

  • Authorization and licensing requirements for rating agencies operating in Turkey

  • Independence and objectivity requirements for rating analysts

  • Disclosure and transparency obligations for rating methodologies and decisions

Turkey - Banking Regulation and Supervision Agency (BDDK)

The Banking Regulation and Supervision Agency (BDDK) oversees credit rating activities related to banking institutions in Turkey through the "Regulation on the Principles Regarding the Authorization and Activities of Rating Agencies".

  • Specific requirements for rating agencies evaluating banks and financial institutions

  • Criteria for recognition of international rating agencies in the Turkish banking sector

  • Regulations on the use of ratings in capital adequacy calculations for banks

European Union

The EU Credit Rating Agencies Regulation (CRA Regulation) establishes a comprehensive framework for CRA activities within the European Union.

  • Registration and supervision by the European Securities and Markets Authority (ESMA)

  • Strict rules on conflicts of interest and disclosure requirements

  • Requirements for methodology transparency and periodic review

United States

The Dodd-Frank Wall Street Reform and Consumer Protection Act established enhanced regulations for Nationally Recognized Statistical Rating Organizations (NRSROs).

  • Oversight by the Securities and Exchange Commission (SEC)

  • Enhanced internal controls and governance requirements

  • Separation of ratings and sales/marketing functions

International Standards

IOSCO Code of Conduct

The International Organization of Securities Commissions (IOSCO) Code of Conduct Fundamentals for Credit Rating Agencies provides a global framework for CRA self-regulation.

  • Quality and integrity of the rating process

  • Independence and management of conflicts of interest

  • Transparency and disclosure obligations

G20/FSB Principles

The G20 and Financial Stability Board (FSB) have established principles for reducing reliance on credit ratings while improving their quality.

  • Reducing mechanistic reliance on ratings in regulations and market practices

  • Encouraging investors to perform their own credit assessments

  • Promoting competition and diversity in the rating industry

Our Compliance Framework

World Rating has implemented a robust compliance framework to ensure adherence to all applicable regulations and industry best practices. Our compliance program includes:

Governance Structure

  • Independent Board of Directors with oversight responsibilities

  • Dedicated Compliance Department reporting directly to the Board

  • Separation of analytical and commercial functions

Policies and Procedures

  • Comprehensive Code of Conduct aligned with IOSCO principles

  • Conflict of Interest Policy with strict disclosure requirements

  • Methodology development and review procedures

Regulatory Disclosures

In accordance with regulatory requirements, World Rating publishes various disclosures to enhance transparency and help users of our ratings understand our processes and performance.

Methodology Disclosures

Detailed documentation of our rating methodologies, including key assumptions and limitations.

Performance Reports

Annual reports on the historical accuracy and performance of our ratings across different sectors.

Transparency Reports

Information on our internal controls, governance structure, and compliance with regulatory requirements.