ADVOKS GLOBAL · KENYA
The Capital Markets (Credit Rating Agencies) Regulations
28. Inspections and investigations
Edition: 2023-12-15 · In force
28. Inspections and investigations
(1)The Authority may appoint an officer of the Authority to inspect or investigate the books of account, records or documents of a credit rating agency for any of the reasons specified in subregulation (2).(2)An inspection or investigation under subregulation (1) shall be—(a)to ascertain whether the books of account, records or documents of the credit rating agency have been properly kept and maintained;(b)to ascertain whether the credit rating agency has complied with the Act and these Regulations;(c)to investigate may complaint against the credit rating agency by an investor, client or any other person on any matter having a bearing on the activities of the credit rating agency; or(d)in the interest of the securities market or investors.(3)An inspection or investigation under subregulation (1) shall not be for the purpose of examining the appropriateness or merits of a rating assigned to a security or an issuer of a security.(4)The Authority may inspect the appropriateness or merits of a rating assigned to a security or an issuer of a security only in the case of a default of the issuer of the security.(5)An inspection or investigation under subregulation (4) shall be conducted by an officer of the Authority or an independent expert with relevant expertise and experience, or a combination of both.