Government of pakistan securities and exchange commission of pakistan notification

  

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Annexure F  
  
  
FIT AND PROPER CRITERIA FOR RATING ANALYST
[see Regulations 11(A)(c)]
  
  
"Rating Analyst" means an employee of the credit rating company who performs analytical 
functions that are necessary for the issuing or monitoring of a credit rating or participates in 
determining credit ratings.
  
APPLICATION AND SCOPE   
(1) 
The Fit and Proper Criteria in relation to credit rating company is applicable to the 
following persons:
(i) 
Rating Analyst; or
(ii) 
Any other term being used for persons performing the function of rating services 
with a credit rating company.
(2) 
A proposed rating analyst of the credit rating company shall not assume the charge of office 
until they fulfill the fit and proper criteria as prescribed by the Commission.
(3) 
The fitness and propriety of Rating Analyst shall be assessed by taking into account all the 
relevant factors including but not limited to the following:
(a) 
Competence and capabilities of the person;
(b) 
Reputation and past record;
(c) 
Financial integrity of such person; and
(d) 
Conflict of interest of such person with the business of the credit rating company.
(4) 
The Fit and Proper Criteria for Rating Analyst is perpetual in nature and credit rating 
company shall ensure compliance with the provisions of Fit and Proper Criteria.
ASSESSMENT OF FITNESS AND PROPRIETY
(a)
Competence and Capabilities 
  
In determining a person’s competence and capability the following shall be considered:
(i) 
The analyst should have completed at least 16 years of education in Accounting, 
Finance, Commerce, Mathematics, Statistics, Economics or have completed 
professional qualifications in ACCA, ICMA, CA , CFA or FRM etc.; 
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[or]
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Substituted for the word “and” vide S.R.O 582(I)/2020 dated June 29, 2020. 

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(ii) 
the Analyst 
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[
should have a graduate degree in finance, economics, commerce, or 
other business related discipline and] 
has at least 2 years of relevant experience in 
the field of financial audit and analysis, commercial bank, investment advisory 
services relating to investment in securities particularly the corporate bonds, 
corporate finance, 
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[ ] or any other related activities; 
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[
(iia) the requirements of clause (ii) may be relaxed in case of fresh graduates hired as 
rating analyst provided they have no leading and decision making role in the rating 
process; and]
(iii) 
the analyst should have demonstrated, through his qualification and experience, the 
capacity to successfully undertake the cognate responsibilities of the position; and