AI Summary of Article 32 Recognition of an administrator located in a third country
Third-country administrators of significant, EU Paris-aligned, EU Climate Transition or Annex II commodity benchmarks seeking ESMA recognition must comply with this Regulation except Articles 11(4), 16, 20, 21 and 23. Equivalence may be demonstrated by applying IOSCO principles for financial benchmarks or PRAs; ESMA may take into account an independent auditor’s assessment or certification by the third-country competent authority. Administrators demonstrating a benchmark is a regulated-data or Annex II commodity benchmark need not comply with requirements excluded by Articles 17 and 19. A Union-based legal representative must be appointed to share oversight and is accountable to ESMA; ESMA may impose supervisory measures or fines for listed infringements or failures to cooperate.
Applications are submitted to ESMA, which assesses completeness within 15 working days (and within 15 days after any requested information) and verifies conditions within 90 working days of a complete application, refusing with reasons if unmet. Recognition additionally requires appropriate cooperation arrangements with the third-country competent authority where supervised and that ESMA’s effective supervision is not prevented by third-country law or limitations. ESMA shall suspend or withdraw recognition where an administrator acts prejudicially to users or markets, seriously infringes requirements, or obtained recognition by false statements or irregular means; ESMA may draft regulatory technical standards on application form and content and submit them to the Commission.
Article 32 Recognition of an administrator located in a third country
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2. An administrator of a significant benchmark, of an EU Paris-aligned Benchmark, of an EU Climate Transition Benchmark or of a commodity benchmark subject to Annex II located in a third country that intends to obtain recognition shall comply with this Regulation, with the exception of Article 11(4) and Articles 16, 20, 21 and 23. The administrator may fulfil that condition by applying the IOSCO principles for financial benchmarks or the IOSCO principles for PRAs, as applicable, provided that such application is equivalent to compliance with this Regulation, with the exception of Article 11(4) and Articles 16, 20, 21 and 23.
When determining whether the condition referred to in the first subparagraph is fulfilled and assessing the compliance with the IOSCO principles for financial benchmarks or the IOSCO principles for PRAs, as applicable, ESMA may take into account:
(a) an assessment of the administrator by an independent external auditor;