New Q&As available

What Changed

• - ESMA added a Q&A clarifying consulting activities to investors or undertakings under the EU ESG Ratings Regulation (ESGRR), which is relevant where a ratings provider’s advisory services may overlap with regulated ESG ratings activity.
• ESMA added Q&As on the application and scope of the two working day notification period under ESGRR, indicating that firms must apply the notification clock consistently and in line with ESMA’s interpretation.
• ESMA clarified access to the dataset for factual error review under ESGRR, which affects how rated entities or issuers can review underlying data used in ESG ratings processes.
• ESMA added a Q&A on notifications without a designated contact under ESGRR, which is relevant for governance and outreach workflows when a notification lacks an identified recipient.
• ESMA clarified the obligation to consider issuer feedback under ESGRR, reinforcing that issuer comments cannot be ignored and must be handled through a documented review process.
• ESMA added a Q&A on ESG ratings used for internal purposes or in-house financial services, helping firms determine when internal-use arrangements may fall inside or outside the ESGRR framework.

Suggested Considerations

• Review ESG ratings policies to ensure consulting, notification, issuer feedback, and factual error review procedures align with ESMA’s latest ESGRR Q&As.
• Update internal case-handling workflows so notifications are screened for the designated contact issue and the two-working-day notification period is calculated consistently.
• Document how your firm distinguishes internal-use ESG ratings or in-house financial services from externally provided ESG ratings activity.
• Reassess whether any second-party opinion business can rely on the ESGRR exemption and record the legal basis for that conclusion.
• Re-map MiCA permissions for custody, administration, transfer, and lending services to confirm the firm is not performing activities outside its authorisation scope.
• Compare crypto-asset advice offerings against MiFID II and MiCA to identify where the higher-risk perimeter issues arise and where disclosures or permissions may need adjustment.

Key Dates

Who is Affected