An entity seeking approval must:
- hold an Australian financial services licence
- have appropriate processes to undertake assessment of the operational and financial capacity of an applicant
- have procedures for training and monitoring people employed/engaged to undertake assessments
- have the operational and financial capacity to undertake assessments
- impose fees that are reasonable
- have appropriate processes for internally reviewing assessments and managing complaints.
Approved rating entities may charge the applicant a fee for providing rating reports. In seeking approval to be a rating entity, an entity must include details of proposed fees and how those are reasonable in relation to the services they will offer.
Further information is available in the Guidelines for rating entities applying to be approved under the Act [PDF 401.3 KB].
Entities who wish to be approved as a rating entity under the Act should email CEDConsumerProtectionPolicy@act.gov.au.
