On April 20, 2012, National Instrument 25-101 - Designated Rating Organizations (NI 25-101) came into force, establishing a regulatory framework for the oversight of credit rating organizations, by permitting them to apply for Designated Rating Organization (DRO) status. This framework is consistent with international regimes applicable to credit rating agencies.

The four rating agencies granted DRO status are in compliance in all material respects with US federal securities laws applicable to a nationally recognized statistical rating organization (NRSRO) as determined by the Securities and Exchange Commission (SEC). The US requirements set out in the NRSRO regime are equivalent to the obligations under NI 25-101 and impose obligations to adhere to rules concerning conflicts of interest, governance, conduct, compliance and required filings.

The designation orders make each of the DROs subject to regulation under Canadian Applicable Securities Laws.

See National Instrument 25-101 — Designated Rating Organizations.