The Financial Market Regulation and Development Agency has crafted a policy document for the proposed law on the National Rating Agency. The document outlines that the National Rating Agency will ensure legal regulation of the market with accessible, independent, and objective rating services.
Implementing regulation for the national rating agency in line with international best practices will enhance accountability for assigned ratings, promote adherence to principles of quality and integrity in the rating process, independence, conflict of interest prevention, transparency, information disclosure, and handling of confidential information.
Establishing a national rating agency will contribute to reducing information asymmetry in financial markets, enhancing resource allocation efficiency in the economy, and fostering the development of the capital market as a source of financing for Kazakhstan's economy.
Currently, Kazakhstan lacks national rating agencies and their regulation, limiting the efficiency of financial markets in resource allocation and economic financing. The legal regulation of the National Rating Agency is expected to provide accessible, independent, and objective rating services, allow participation in the capital of financial institutions, financial market infrastructure organizations, and foreign rating agencies, empower the authorized body through the agency with regulatory and supervisory powers over the National Rating Agency, set requirements for the organization of rating activities and corporate governance of the National Rating Agency, and create conditions for harmonizing requirements for rating agencies within the EAEU to establish a unified market for rating services and ensure free capital movement.
The document is available on the "Open Regulatory Legal Acts" website for public discussion until May 16th.
