What changed between the plenary report and the adopted text

Removed:– (xv) an insurance holding company as defined in Article 212(1), point (f), of Directive 2009/138/EC or a mixed financial holding company as defined in Article 212(1), point (h), of Directive 2009/138/EC, which is part of an insurance group that is subject to supervision at the level of the group pursuant to Article 213 of that Directive and which is not exempted from group supervision pursuant to Article 214(2) of that Directive;

Removed:– (xvi) a payment institution as defined in Article 1(1), point (d), of Directive (EU) 2015/2366 of the European Parliament and of the Council;

Removed:– (xvii) an electronic money institution as defined in Article 2, point (1), of Directive 2009/110/EC of the European Parliament and of the Council;

Removed:– (xviii) a crowdfunding service provider as defined in Article 2(1), point (e), of Regulation (EU) 2020/1503 of the European Parliament and of the Council;

Removed:– (xix) a crypto-asset service provider as defined in Article 3(1), point (8), of [the proposal for a Regulation of the European Parliament and of the Council on Markets in Crypto-assets] where performing one or more crypto-asset services as defined in Article 3(1), point (9), of [the proposal for a Regulation of the European Parliament and of the Council on Markets in Crypto-assets];

Removed:– (xx) a trade repository as defined in Article 2, point (2), of Regulation (EU) No 648/2012;

Removed:– (xxi) a securitisation repository as defined in Article 2, point (23), of Regulation (EU) 2017/2402;

Removed:– (xxii) an administrator of benchmarks as defined in Article 3(1), point (3), of Regulation (EU) 2016/1011 of the European Parliament and of the Council ;

Removed:– (xxiii) a credit rating agency as defined in Article 3(1), point (b), of Regulation (EC) No 1060/2009;

Removed:(6) ‘rating analyst’ means a person who performs analytical functions for the purpose of issuing ESG ratings on an ESG profile or characteristics, exposure to ESG risks, or the impact of an entity, financial instrument, company or financial product on people, society and the environment;

Removed:(7) ‘rated entity’ means a legal person, a financial instrument, a financial product or a public authority or a body governed by public law which is explicitly or implicitly rated in the ESG rating or score, irrespective of whether such rating has been requested for and irrespective of whether the legal person has provided information for that ESG rating or score;

Removed:(8) ‘user’ means a natural or legal person, including a public authority or a body governed by public law, to which an ESG rating is provided;

Removed:(9) ‘competent authorities’ means the authorities designated by each Member State for the purposes of this Regulation;

Removed:(9a) ‘management body’ means an ESG rating provider’s body or bodies which are empowered to define the ESG rating provider’s strategy and objectives and which are responsible for overseeing and monitoring the ESG rating provider’s activities;

Removed:(10) ‘senior management’ means the person or persons who effectively run the business of the ESG rating provider and the member or members of the ESG rating provider’s administrative or supervisory board.

Removed:(11) ‘group of ESG rating providers' means a group of undertakings established in the Union consisting of a parent undertaking and its subsidiaries within the meaning of Article 2 of Directive 2013/34/EU, and undertakings linked to each other by a relationship and whose occupation includes the provision of ESG ratings.

Removed:Provision of ESG ratings in the Union

Removed:Requirements to provide ESG ratings in the Union

Removed:Any legal person who wishes to provide ESG ratings in the Union shall be subject to either of the following:

Removed:(a) an authorisation issued by ESMA as referred to in Article 5;

Removed:(b) an implementing decision as referred to in Article 9;

Removed:(c) an authorisation for endorsement as referred to in Article 10.

Removed:(d) a recognition as referred to in Article 11;

Removed:Authorisation to provide ESG ratings in the Union

Removed:Application for an authorisation to provide an ESG rating

Removed:1. Legal persons established in the Union that wish to provide ESG ratings in the Union shall apply for authorisation to ESMA.

Removed:2. The application for authorisation shall contain all of the information listed in Annex I and shall be submitted in any of the official languages of the Union. Council Regulation No 1 shall apply mutatis mutandis to any other communication between ESMA and the ESG rating providers and their staff.

Removed:3. ESMA shall develop draft regulatory technical standards to specify further the information listed in Annex I.

Removed:ESMA shall submit those draft regulatory technical standards to the Commission by... [9 months from the date of entry into force of this Regulation].

Removed:Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with the procedure laid down in Articles 10 to 14 of Regulation (EU) No 1095/2010.

Removed:4. An authorised ESG rating provider shall comply with the conditions for initial authorisation at all times.

Removed:5. ESG rating providers shall notify ESMA of any material changes to the conditions for initial authorisation, including any opening or closing of a branch within the Union, without undue delay.

Removed:5a. ESMA shall develop draft regulatory technical standards to specify what is considered to constitute a material change as referred to in paragraph 5. ESMA shall submit those draft regulatory technical standards to the Commission by XX XXXX XXXX.

Removed:Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph in accordance with the procedure laid down in Articles 10 to 14 of Regulation (EU) No 1095/2010.

Removed:Examination of the application for authorisation of ESG rating providers by ESMA

Removed:1. Within 20 working days of receipt of the application referred to in Article 5(2), ESMA shall assess whether the application is complete. Where the application is not complete, ESMA shall set a deadline by which the applicant is to provide additional information.

Removed:2. After having assessed whether an application is complete, ESMA shall notify the applicant of the result of that assessment.

Removed:3. Within 90 working days of the notification referred to in paragraph 2, ESMA shall adopt a fully reasoned decision to authorise or refuse authorisation.

Removed:4. ESMA may extend the period referred to in the paragraph 3 to 100 working days in particular where the applicant:

Removed:(a) envisages endorsing ESG ratings as referred to in Article 10;

Removed:(b) envisages using outsourcing; or

Removed:(c) requests exemption from compliance in accordance with Article 20.

Removed:5. The decision adopted by ESMA pursuant to paragraph 3 shall take effect on the fifth working day following its adoption.

Removed:5a. If no decision is adopted by ESMA within the period referred to in paragraph 3 or 4, as applicable, the applicant shall not be considered authorised to provide ESG ratings in the Union.

Removed:Decision to grant or to refuse the authorisation to provide ESG ratings and notification of that decision

Removed:1. ESMA shall authorise the applicant as ESG rating provider where it concludes from the examination of the application referred to in Article 6 that the applicant complies with the conditions for the provision of ratings set out in this Regulation.

Removed:2. ESMA shall inform the applicant within five working days of that decision referred to in the first paragraph.

Removed:3. ESMA shall inform the Commission, the EBA and EIOPA of any decision taken pursuant to paragraph 2.

Removed:4. The authorisation shall be effective for the entire territory of the Union.

Removed:Withdrawal or suspension of authorisation

Removed:1. ESMA shall withdraw or suspend the authorisation of an ESG rating provider in any of the following cases:

Removed:(a) the ESG rating provider has expressly renounced the authorisation or has provided no ESG ratings for 12 months preceding that withdrawal or suspension;

Removed:(b) the ESG rating provider has obtained its authorisation by making false statements or by any other irregular means;

Removed:(c) the ESG rating provider no longer meets the conditions under which it was authorised;

Removed:(d) the ESG rating provider has seriously or repeatedly infringed this Regulation.

Removed:2. The decision on the withdrawal or suspension of authorisation shall take immediate effect throughout the Union.

Removed:2a. In the event of a withdrawal or suspension based on any of the cases listed in paragraph 1, points (b) to (d), ESMA shall publish the decision on the withdrawal or suspension on its website.

Removed:Provision of ESG ratings in the Union by third country ESG rating providers

Removed:Equivalence decision

Removed:1. A third country ESG rating provider that wishes to provide ESG ratings in the Union shall only be able to do so where it is included in the register referred to in Article 13 and provided that all of the following conditions have been complied with: