S.L. 370.29 Art. 3Over-reliance on credit ratings.

Taking into account the nature, scale and complexity of the activities of UCITS, AIFs and occupational retirement schemes, the competent authority shall:

(a) monitor the adequacy of the credit assessment processes of the Maltese management company or the Maltese UCITS, AIFMs and occupational retirement schemes;

(b) assess the use of references to credit ratings issued by credit rating agencies in the investment policies of UCITS, AIFs and occupational retirement schemes; and

(c) where appropriate, encourage mitigation of the impact of such references to credit ratings, with a view to reducing sole and mechanistic reliance on credit ratings.