Advancements in EU Regulations
The EU is advancing its regulations concerning Environmental, Social, and Governance (ESG) ratings, as well as the crypto-assets sector.
European ESG Ratings Regulation (ESGRR)
Key aspects of the European ESG Ratings Regulation (ESGRR) include the stipulation of a two-day notification period, known as the ‘48h rule’. This rule mandates timely notifications regarding various aspects, including:
- A separation of consulting roles for investors
- The need for designated contacts
- The integration of issuer feedback in rating considerations
Notably, there is also a provision allowing for review of factual errors by providing access to datasets within this notification period. An exemption has been made for Specific Performance Obligations (SPO) providers under this regulation.
Markets in Crypto-Assets Regulation (MiCA)
Simultaneously, the Markets in Crypto-Assets Regulation (MiCA) seeks to clarify the landscape for cryptocurrency activities. It introduces authorized Crypto-Asset Service Providers (CASPs) that can offer custody, administration, or transfer services for crypto-assets post-public offering. Additionally, it distinguishes the perimeter of advice under MiCA from that of the Markets in Financial Instruments Directive II (MiFID II) and lays out regulations for crypto-asset lending services.
Markets in Financial Instruments Regulation (MiFIR)
The Markets in Financial Instruments Regulation (MiFIR) also highlights the establishment of an opt-in regime for Consolidated Tape Providers, which involves specific requirements like the timestamping of orders to enhance transparency in secondary markets.
Conclusion
As these regulations evolve, stakeholders will find answers to pressing questions and clarifications in the newly released Q&As section.
