Article 40
Equivalence decision
1.
The Commission may adopt a decision in relation to a third country stating that the legal and supervisory frameworks of that third country ensure the following:
(a)
that external reviewers registered or authorised in that third country comply with legally binding organisational and business conduct requirements which have equivalent effect to the requirements laid down in this Regulation and in the implementing measures adopted pursuant to this Regulation;
(b)
that the legal framework of that third country provides for an effective equivalent system for the recognition of external reviewers registered or authorised under the law of that third country.
2.
The Commission may consider the organisational and business conduct framework of a third country to have equivalent effect to the requirements of this Regulation where, within that framework, entities providing external review services are subject to the following:
(a)
registration or authorisation and effective supervision and enforcement on an ongoing basis;
(b)
adequate organisational requirements in the area of internal control functions;
(c)
appropriate conduct of business rules.
3.
ESMA shall establish cooperation arrangements with the relevant competent authorities of third countries whose legal and supervisory frameworks have been recognised as effectively equivalent in accordance with paragraph 1. Such arrangements shall specify the following:
(a)
the mechanism for the exchange of information between ESMA and the competent authorities of the third countries concerned, including access to all information regarding the third-country external reviewers registered or authorised in third countries that is requested by ESMA;
(b)
the mechanism for prompt notification to ESMA where a third-country competent authority deems that a third-country external reviewer that it is supervising and ESMA has registered in the register referred to in Article 67 infringes the conditions of its registration or authorisation or the applicable law;
(c)
the procedures concerning the coordination of supervisory activities including, where appropriate, on-site inspections.
4.
A third-country external reviewer established in a country whose legal and supervisory framework has been recognised to be effectively equivalent in accordance with paragraph 1 of this Article, and which is registered in the register referred to in Article 67, shall be able to provide the services covered by the registration to issuers of European Green Bonds throughout the Union.
5.
A third-country external reviewer shall no longer use the rights under Article 39 where the Commission revokes its decision referred to in paragraph 1 of this Article in relation to that third country.