Art. 22 · Review and evaluation

Previous version, in force 22 June 2022 02014R0909-20220622 → this version, in force 16 January 2024 02014R0909-20240116

Article 22 Review and evaluation 1. The competent authority shall, at least on an annual basis, shall review the arrangements, strategies, processes and mechanisms implemented by a CSD CSD, including the plans referred to in Article 22a, with respect to compliance with this Regulation and evaluate the risks to which the CSD is, or might be, exposed or which it creates for the smooth functioning of securities markets or stability of the financial markets. The competent authority shall establish the frequency and depth of the review and evaluation referred to in the first subparagraph having regard to the size, systemic importance, risk profile, nature, scale and complexity of the activities of the CSD concerned. The review and evaluation shall take place at least every three years. 2. The competent authority shall require the CSD to submit to the competent authority an adequate recovery plan to ensure continuity of its critical operations. 3. The competent authority shall ensure that an adequate resolution plan is established and maintained for each CSD so as to ensure continuity of at least its core functions, having regard to the size, systemic importance, nature, scale and complexity of the activities of the CSD concerned and any relevant resolution plan established in accordance with Directive 2014/59/EU. 4. The competent authority shall establish the frequency and depth of the review and evaluation referred to in paragraph 1 having regard to the size, systemic importance, nature, scale and complexity of the activities of the CSD concerned. The review and evaluation shall be updated at least on an annual basis. 5. The competent authority shall subject the CSD to on-site inspections. 6. When performing the review and evaluation referred to in paragraph 1, the competent authority shall, at an early stage, consult transmit the necessary information to the relevant authorities, in particular concerning the functioning of the securities settlement systems operated by the CSD authorities and, where applicable, the authority referred to in Article 67 of Directive 2014/65/EU. 2014/65/EU, and consult them on whether the requirements of this Regulation or other requirements of Union law are met by the CSD as regards the functioning of the securities settlement systems operated by the CSD. The consulted authorities may issue a reasoned opinion within their areas of competence within three months of receipt of the information from the competent authority. Where a consulted authority does not provide an opinion within that deadline it shall be deemed to have issued a positive opinion. Where a consulted authority issues a negative reasoned opinion and the competent authority disagrees with it, that competent authority shall, within one month of receipt of the negative opinion, provide the consulted authority with a reasoning addressing the negative opinion. Any of the consulted authorities that issued a negative opinion may refer the matter to ESMA for assistance under Article 31(2), point (c), of Regulation (EU) No 1095/2010. Where the issue is not settled within one month of its referral to ESMA, the competent authority shall take the final decision on the review and evaluation and provide a detailed explanation of its decision in writing to the relevant authorities. Negative opinions referred to in the fourth subparagraph shall state in writing the full and detailed reasons why the requirements laid down in this Regulation or other requirements of Union law are not met. 7. The competent authority shall regularly, and at least once a year, inform the relevant authorities authorities, ESMA and, where applicable, the college referred to in Article 24a of this Regulation and the authority referred to in Article 67 of Directive 2014/65/EU of the results, including any remedial actions action or penalties, of the review and evaluation referred to in paragraph 1. 1 of this Article. 8. When performing the review and evaluation referred to in paragraph 1, the competent authorities responsible for supervising CSDs which maintain the types of relations referred to in points (a), (b) and (c) of Article 17(6) shall supply one another with all relevant information that is likely to facilitate their tasks. 9. The competent authority shall require a CSD that does not meet the requirements of this Regulation to take at an early stage the necessary actions or steps to address the situation. 10. ESMA shall, in close cooperation with the members of the ESCB, develop draft regulatory technical standards to specify the following: (a) the information that the CSD is to provide to the competent authority for the purposes of the review and evaluation referred to in paragraph 1; (b) the information that the competent authority is to supply to the relevant authorities, as set out in accordance with paragraph 7; (c) the information that the competent authorities referred to in paragraph 8 are to supply one another. ESMA shall submit those draft regulatory technical standards to the Commission by 18 June 2015. 17 January 2025. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with in Articles 10 to 14 of Regulation (EU) No 1095/2010. 11. ESMA shall, in close cooperation with the members of the ESCB, develop draft implementing technical standards to determine standard forms, templates and procedures for the provision of information referred to in the first subparagraph of paragraph 10. ESMA shall submit those draft implementing technical standards to the Commission by 18 June 2015. 17 January 2025. Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) No 1095/2010.