(5)According to the second condition, credit rating agencies in the third country must be subject to legally binding rules which are equivalent to those set out in Articles 6 to 12 and Annex I to Regulation (EC) No 1060/2009. The Australian legal and supervisory framework meets the objectives of the EU regulatory framework for credit rating agencies in relation to conflicts-of-interest management. Conflicts-of-interest management is required by the Australian legislation (ASIC Act) including the obligation to manage conflicts of interest and organisational requirements, notably with regard to outsourcing, record keeping and confidentiality. With regard to corporate governance, the ASIC’s licence conditions require a CRA to be organised in a manner that ensures its business interest does not impair the independence and accuracy of its credit rating activities. The Australian framework also requires CRAs to establish a rigorous review function for rating methodologies and contains a wide range of disclosure requirements with regard to credit ratings and rating activities. Therefore, the Australian legal and supervisory framework meets the objectives of Regulation (EC) No 1060/2009 in respect of the management of conflicts of interest, the organisational processes and procedures that a credit rating agency needs to have in place, the quality of ratings and of rating methodologies, the disclosure of credit ratings and the general and periodic disclosure of credit rating activities. It thus provides for equivalent protection in terms of integrity, transparency, good governance of credit rating agencies and reliability of the credit rating activities.