Article 43
Endorsement of services under this Regulation provided in a third country
1.
An external reviewer established in the Union registered in accordance with Article 23 may apply to ESMA for an authorisation of an endorsement of the services provided by a third-country external reviewer on an ongoing basis in the Union, provided that the following conditions are fulfilled:
(a)
the external reviewer has verified and is able to demonstrate to ESMA on an ongoing basis that the provision of services under this Regulation by the third-country external reviewer fulfils requirements which are at least as stringent as the requirements laid down in this Regulation;
(b)
the external reviewer has the necessary expertise to monitor effectively the activity of the provision of services under this Regulation by the third-country external reviewer and to manage the associated risks;
(c)
the services of the third-country external reviewer are used for any of the following objective reasons:
(i)
the specificities of the underlying markets or investments;
(ii)
the proximity of the third-country external reviewer to third-country markets, issuers or investors;
(iii)
the expertise of the third-country external reviewer in providing the services of external review or in specific markets or investments.
2.
An external reviewer who submits an application referred to in paragraph 1 (the ‘endorsing external reviewer’) shall provide all information that is necessary to satisfy ESMA that, at the time of application, all conditions referred to in that paragraph are fulfilled.
3.
ESMA shall assess whether the application referred to in paragraph 1 is complete within 20 working days of receipt of the application.
Where the application is not complete, ESMA shall notify the endorsing external reviewer accordingly and shall set a deadline by which the endorsing external reviewer is to provide additional information.
Where the application is complete, ESMA shall notify the endorsing external reviewer accordingly.
Within 45 working days of receipt of the complete application, ESMA shall examine the application and adopt a decision to authorise or refuse the endorsement. ESMA shall notify the endorsing external reviewer of its decision. The decision shall provide reasons and shall take effect on the fifth working day after its adoption.
4.
Services provided under this Regulation by a third-country external reviewer whose services have been endorsed shall be considered to be services provided by the endorsing external reviewer. The endorsing external reviewer shall not use the endorsement with the intention of avoiding the requirements of this Regulation.
5.
The endorsing external reviewer shall remain fully responsible for the services provided under this Regulation by the third-country external reviewer whose services have been endorsed and for compliance with this Regulation.
6.
Where ESMA has well-founded reasons to consider that the conditions laid down in paragraph 1 are no longer fulfilled, it shall have the power to require the endorsing external reviewer to cease the endorsement.
7.
The endorsing external reviewer shall publish the information referred to in Article 38 on its website.
8.
The endorsing external reviewer shall report to ESMA annually on the services it has endorsed during the previous 12 months.