New Q&As available

What Changed

• - ESMA clarifies what constitutes a “defined ranking system” under the EU ESG Ratings Regulation (ESGRR), including when rating scales, score bands or league tables will be regarded as a ranking system that must be clearly disclosed, consistently app
• ESMA sets out transitional provisions for existing ESG rating providers active before ESGRR application, detailing conditions and timelines under which they may continue operating while completing authorisation/registration and aligning methodologies
• ESMA explains how ESG rating providers established after the ESGRR date of entry into force must comply, including the need to obtain authorisation/registration before commencing activity in the EU (or within any limited start-up grace periods, if pr
• ESMA defines what qualifies as “material changes to registration information” for ESG rating providers under ESGRR, indicating the types of changes (e.g. ownership, key management, methodology, outsourcing, scope of activities) that trigger mandatory
• Under MAR and Commission Delegated Regulation (EU) 2016/957, ESMA clarifies expectations regarding the annually conducted audit of market soundings arrangements, including scope, independence of the function performing the review, documentation stand
• For the Markets in Crypto-Assets Regulation (MiCA), ESMA provides detail on the exemption from white paper requirements when offering a crypto-asset other than an asset-referenced token (ART) or e‑money token (EMT), including the conditions that must

Suggested Considerations

• Map all existing and planned ESG rating products against ESMA’s clarified concept of a “defined ranking system” and update methodologies, scales, and disclosures to ensure they meet ESGRR and Q&A expectations.
• For ESG rating providers operating before 02 July 2026, develop and execute a documented transitional compliance plan that aligns governance, methodologies, data controls and transparency with ESGRR, ensuring timely notification to ESMA within one month from 02 July 2026.
• For entities intending to launch ESG rating activities after ESGRR entry into force, prepare and submit complete authorisation or registration files to ESMA before commencing rating activity, incorporating the Q&A guidance on initial registration requirements.
• Establish or enhance a formal process to identify, assess and record “material changes to registration information” for ESG rating providers, and implement controls to ensure ESMA is notified within required timelines before or immediately after such changes, as specified in the Q&A.
• Review and update MAR compliance frameworks, with particular focus on market soundings procedures, to incorporate ESMA’s expectations on the scope, independence, and documentation of the annually conducted audit required under Commission Delegated Regulation (EU) 2016/957.
• For MiCA-in-scope crypto‑asset offerings (other than ARTs or EMTs), assess each planned offer against ESMA’s Q&A criteria for the white paper exemption, document legal and compliance analyses, and put in place controls to prevent reliance on the exemption where conditions are not fully met.

Key Dates

Who is Affected