Celex 32019R2175 en TXT

27.12.
2019 EN Official Journal of the European Union L 334/1
(Legislative acts)
REGULATIONS
REGULATION (EU) 2019/2175 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 18 December 2019
amending Regulation (EU) No 1093/2010 establishing a European Supervisory Authority (European

Banking Authority), Regulation (EU) No 1094/2010 establishing a European Supervisory Authority
(European Insurance and Occupational Pensions Authority), Regulation (EU) No 1095/2010 establishing
a European Supervisory Authority (European Securities and Markets Authority), Regulation (EU)
No 600/2014 on markets in financial instruments, Regulation (EU) 2016/1011 on indices used as
benchmarks in financial instruments and financial contracts or to measure the performance of investment
funds, and Regulation (EU) 2015/847 on information accompanying transfers of funds
(Text with EEA relevance)
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 114 thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Having regard to the opinions of the European Central Bank (1),
Having regard to the opinions of the European Economic and Social Committee (2),
Acting in accordance with the ordinary legislative procedure (3),
Whereas:
(1) Following the financial crisis and the recommendations of a group of high-level experts led by Jacques de Larosière,
the Union has made important progress in creating not only stronger, but also more harmonised rules for the
financial markets in the form of the Single Rulebook. The Union has also set up the European system of financial
supervision (ESFS), built on a two-pillar system which combines micro-prudential supervision, coordinated by
the European Supervisory Authorities (ESAs), and macro-prudential supervision through the establishment of the
European Systemic Risk Board (ESRB). The three ESAs, namely the European Supervisory Authority (European
Banking Authority) (EBA) established by Regulation (EU) No 1093/2010 of the European Parliament and of the
Council (4), the European Supervisory Authority (European Insurance and Occupational Pensions Authority)
(1) OJ C 255, 20.7.2018, p. 2 and OJ C 37, 30.1.2019, p. 1.

(2) OJ C 227, 28.6.2018, p. 63 and OJ C 110, 22.3.2019, p. 58.
(3) Position of the European Parliament of 16 April 2019 (not yet published in the Official Journal) and decision of the Council of
2 December 2019.
(4) Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory
Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC
(OJ L 331, 15.12.2010, p. 12).
L 334/2 EN Official Journal of the European Union 27.12.2019
(EIOPA) established by Regulation (EU) No 1094/2010 of the European Parliament and of the Council (5), and the
European Supervisory Authority (European Securities and Markets Authority) (ESMA) established by Regulation
(EU) No 1095/2010 of the European Parliament and of the Council (6) (collectively the ‘founding regulations’),
became operational in January 2011. The overall objective of the ESAs is to sustainably reinforce the stability and
effectiveness of the financial system throughout the Union and to enhance consumer and investor protection.
(2) The ESAs have made a crucial contribution to the harmonisation of the rules of the financial markets in the
Union by providing the Commission with input for its initiatives for regulations and directives adopted by the
European Parliament and by the Council. The ESAs have also provided the Commission with drafts of detailed
technical rules which have been adopted as delegated and implementing acts.
(3) The ESAs have also contributed to the convergence in financial supervision and supervisory practices in the Union
by means of guidelines directed at competent authorities, financial institutions or financial market participants and
by coordinating reviews of supervisory practices.
(4) Enhanced powers afforded to the ESAs, to enable them to meet their objective, would also require appropriate
governance, an efficient use of resources and sufficient funding. Enhanced powers alone would not be sufficient
to achieve the ESAs’ objectives where they do not have sufficient funding or where they are not governed in an
effective and efficient manner.
(5) When performing their tasks and exercising their powers, the ESAs should act in accordance with the principle
of proportionality laid down in Article 5 of the Treaty on European Union (TEU), as well as with the better
regulation policy. The content and form of the ESAs’ actions and measures including instruments such as guidelines,
recommendations, opinions or questions and answers should always be based on and within the boundaries of the
legislative acts referred to in Article 1(2) of the founding regulations or within the scope of their powers. The ESAs
should not exceed what is necessary to achieve the objectives of this Regulation and should act proportionately to
the nature, scale and complexity of the risks inherent in the financial activity or business of the affected financial
institution or undertaking.
(6) In its Communication of 8 June 2017 on the mid-term review of the Capital Markets Union Action Plan, the
Commission emphasised that more effective and consistent supervision of financial markets and services is pivotal
for the elimination of regulatory arbitrage between Member States in the exercise of their supervisory tasks, in order
to accelerate market integration and to create internal market opportunities for financial entities and investors.
(7) Further progress in supervisory convergence is therefore particularly urgent to complete the capital markets union.
Ten years after the onset of the financial crisis and the establishment of the new supervisory system, financial
services and the capital markets union will be increasingly driven by two major developments: sustainable finance
and technological innovation. Both have the potential to transform financial services and our system of financial
supervision should be equipped for them. It is therefore crucial that the financial system plays its full part in
meeting critical sustainability challenges. This will require active contribution by the ESAs to create the appropriate
regulatory and supervisory framework.
(8) The ESAs should play an important role in identifying and reporting risks that environmental, social and governance
related factors pose to financial stability, and in rendering financial markets activity more consistent with
sustainability objectives. The ESAs should provide guidance on how sustainability considerations can be effectively
embodied in relevant Union financial legislation and promote coherent implementation of those provisions upon
adoption. When initiating and coordinating Union-wide assessments of the resilience of financial institutions to
adverse market developments, the ESAs should duly consider risks that environmental, social and governance
related factors could pose to the financial stability of those institutions.
Authority (European Insurance and Occupational Pensions Authority), amending Decision No 716/2009/EC and repealing Commission
Decision 2009/79/EC (OJ L 331, 15.12.2010, p. 48).
Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision
2009/77/EC (OJ L 331, 15.12.2010, p. 84).
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(9) Technological innovation has had an increasing impact on the financial sector and competent authorities have
therefore taken various initiatives to deal with those technological developments. In order to continue promoting
supervisory convergence and to exchange best practices between relevant authorities on the one hand, and between
relevant authorities and financial institutions or financial market participants on the other hand, the role of the
ESAs with regard to their oversight function and supervisory coordination should be strengthened.
(10) Technological advancements in financial markets can improve financial inclusion, provide access to finance,
enhance market integrity and operational efficiency and also lower barriers to entry in those markets. To the extent
relevant for the applicable substantive rules, training of competent authorities should also extend to technological
innovation. This should help prevent Member States developing divergent approaches in those matters.
(11) EBA should, in its area of expertise, monitor the obstacles to or impact on prudential consolidation and could
provide opinions or recommendations with the aim of identifying appropriate ways to address such obstacles or
impact.
(12) Questions and answers are an important convergence tool that promote common supervisory approaches and
practices by giving guidance on the application of Union legal acts within the scope of the ESAs.
(13) It is becoming increasingly important to promote consistent, systematic and effective monitoring and assessment
of risks in relation to money laundering and terrorist financing in the Union’s financial system. The prevention
and countering of money laundering and of terrorist financing is a shared responsibility of Member States and
Union institutions and bodies, within their respective mandates. They should establish mechanisms for enhanced
cooperation, coordination and mutual assistance, fully utilising all the tools and measures available under the
existing regulatory and institutional framework.
(14) Given the consequences for financial stability which may stem from abuses of the financial sector for money
laundering or terrorist financing purposes, considering that it is in the banking sector that money laundering and
terrorist financing risks are most likely to have systemic impact, and building on the experience already gained
by EBA, which is an authority where the national competent authorities of all Member States are represented, in
protecting the banking sector from such abuses, EBA should take a leading, coordinating and monitoring role at
Union level to prevent the use of the financial system for such purposes. Therefore, it is necessary to entrust EBA,
in addition to its current competences, with the power to act within the scope of Regulations (EU) No 1094/2010
and (EU) No 1095/2010 insofar as such power relates to the prevention and countering of money laundering
or of terrorist financing where it concerns financial sector operators and the competent authorities supervising
them, which are covered by those Regulations. Moreover, concentrating that mandate for the entire financial sector
within EBA would optimise the use of its expertise and resources, and would be without prejudice to the material
obligations laid down in Directive (EU) 2015/849 of the European Parliament and of the Council (7).
(15) In order for EBA to exercise its mandate effectively, it should make full use of all its powers and tools under
Regulation (EU) No 1093/2010 while respecting the principle of proportionality. For that purpose, it should
develop regulatory and supervisory standards, in particular by developing draft regulatory technical standards,
draft implementing technical standards, guidelines and recommendations, and providing opinions for preventing
and countering money laundering and terrorist financing in the financial sector and promoting their consistent
implementation in line with the mandate provided for in the relevant legislative acts referred to in Article 1(2)
and Article 16 of the founding regulations. The measures that EBA adopts to promote integrity, transparency
and security in the financial system and to prevent and counter money laundering and terrorist financing should
not exceed what is necessary to achieve the objectives of this Regulation or of the legislative acts referred to in
Article 1(2) of the founding regulations and should take duly into account the nature, scale and complexity of risks,
business practices, business models and the size of financial sector operators and of markets.
(7) Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial
system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament
and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive
2006/70/EC (OJ L 141, 5.6.2015, p. 73).
(16) In line with its new role, it is important that EBA collects all relevant information on weaknesses in relation to
money laundering and terrorist financing activities identified by the relevant Union and national authorities,
without prejudice to the tasks assigned to authorities under Directive (EU) 2015/849 and without any unnecessary
duplication. In accordance with Regulation (EU) 2018/1725 of the European Parliament and of the Council (8),
EBA should store such information in a centralised database and foster cooperation among authorities by ensuring
appropriate dissemination of relevant information. EBA should therefore be mandated to develop draft regulatory
technical standards regarding the collection of information. EBA may also, where appropriate, transmit evidence in
its possession which could give rise to criminal proceedings to the national judicial authorities of the Member State
concerned and, to the extent it concerns Member States participating in enhanced cooperation on the establishment
of the European Public Prosecutor’s Office under Council Regulation (EU) 2017/1939 (9), to the European Public
Prosecutor’s Office, for those explicitly conferred tasks.
(17) EBA should not collect information on concrete suspicious transactions which financial sector operators are
obliged to report to EU Financial Intelligence Units in their Member States pursuant to Directive (EU) 2015/849.
Weaknesses should be considered material where they constitute a breach or a potential breach by a financial sector
operator, or constitute inappropriate or ineffective application by a financial sector operator, or inappropriate or
ineffective application by a financial sector operator of its internal policies and procedures to comply with the legal
provisions related to the prevention of the use of the financial system for the purpose of money laundering or
terrorist financing. A breach is considered to have occurred where a financial sector operator fails to comply with
the requirements of any Union act and of national law transposing such requirements referred to in Article 1(2)
of the founding regulations to the extent that those acts contribute to the prevention of the use of the financial
system for the purpose of money laundering or terrorist financing. A potential breach is where the competent
authority has reasonable grounds to suspect that a breach has occurred, but at that stage is not in a position to
finally conclude that it has occurred. However, due to the information obtained at that stage such as information
from on-site inspections or off-site proceedings, it is very likely that a breach has occurred. Inappropriate or
ineffective application of legal provisions is constituted by the failure of a financial sector operator to implement
the requirements of those acts in a satisfactory manner. Inappropriate or ineffective application of a financial sector
operator’s internal policies and procedures aiming at ensuring compliance with those acts should be considered as
constituting a weakness substantially raising the risk that breaches have occurred or can occur.
(18) When assessing vulnerabilities to and risks of money laundering and terrorist financing in the financial sector, EBA
should also consider the implications for money laundering and terrorist financing from all predicate offences,
including those that are tax crimes, where applicable.
(19) Upon request, EBA should provide assistance to competent authorities in the exercise of their prudential supervisory
functions. EBA should also coordinate closely, and, where appropriate, exchange information, with competent
authorities including the European Central Bank, in its supervisory capacity, and with authorities entrusted with
supervising obliged entities listed in points (1) and (2) of Article 2(1) of Directive (EU) 2015/849 to ensure efficiency
and to avoid any form of duplicative or inconsistent actions in the prevention and countering of money laundering
or of terrorist financing.
(20) EBA should carry out peer reviews of competent authorities, as well as risk assessments on the appropriateness
of the strategies and resources of competent authorities with a view to the most important emerging money
laundering and terrorist financing risks as identified in the Supranational Risk Assessment. When conducting
such peer reviews in accordance with Article 30 of Regulation (EU) No 1093/2010, EBA should take into account
relevant evaluations, assessments or reports drawn up by international organisations and intergovernmental bodies
with competence in the field of preventing and countering money laundering or terrorist financing as well as the
biannual Report of the Commission under Article 6 of Directive (EU) 2015/849 and the National Risk Assessment
of the relevant Member State prepared under Article 7 of that Directive.
(8) Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the protection of natural persons
with regard to the processing of personal data by the Union institutions, bodies, offices and agencies and on the free movement of such
data, and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC (OJ L 295, 21.11.2018, p. 39).
(9) Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European
Public Prosecutor’s Office (‘the EPPO’) (OJ L 283, 31.10.2017, p. 1).
(21) Furthermore, EBA should have a leading role in contributing to facilitating cooperation between competent
authorities in the Union and the relevant authorities in third countries on those matters with a view to better
coordinate action at Union level in material cases of money laundering and terrorist financing having a cross-
border and third-country dimension. Such role should be without prejudice to regular interactions by competent
authorities with third-country authorities.
(22) In order to enhance the effectiveness of supervisory control of compliance in the area of money laundering and
terrorist financing and to ensure greater coordination of the enforcement by national competent authorities of
breaches of directly applicable Union law or its national transposing measures, EBA should have the power to
carry out analysis of the information collected and, if necessary, pursue investigations on allegations brought to
its attention concerning material breaches or non-application of Union law, and, where there are indications of
material breaches, to request competent authorities to investigate any possible breaches of the relevant rules, to
consider taking decisions and imposing sanctions addressed to financial sector operators requiring them to comply
with their legal obligations. That power should only be used where EBA has indications of material breaches.
(23) For the purposes of the procedure for breach of Union law provided for in Article 17 of the founding regulations
and in the interest of proper application of Union law, it is appropriate to ease, and speed up, the ESAs’ access to
information. They should therefore be enabled to request information directly, via a duly justified and reasoned
request, from other competent authorities whenever requesting information from the competent authority
concerned has proven, or is deemed to be, insufficient to obtain the information that is deemed necessary for the
purpose of investigating an alleged breach or non-application of Union law.
(24) Harmonised supervision of the financial sector requires a consistent approach among competent authorities. To
that end, the activities of the competent authorities are subject to peer reviews. The ESAs should also ensure that
the methodology is applied in the same manner. Such peer reviews should not only focus on the convergence
of supervisory practices, but also on the capacity of competent authorities to achieve high-quality supervisory
outcomes, as well as on the independence of those competent authorities. The main findings of those peer reviews
should be published to encourage compliance and increase transparency, unless such publication would involve
risks to financial stability.
(25) In view of the importance of ensuring that the Union supervisory framework for the prevention and countering of
money laundering and of terrorist financing is applied effectively, peer reviews to provide objective and transparent
perspectives on supervisory practices are of paramount importance. EBA should also assess the strategies, capacities
and resources of the competent authorities to address emerging risks related to money laundering and terrorist
financing.
(26) For carrying out its tasks and exercising its powers for the prevention and countering of money laundering and of
terrorist financing, it should be possible for EBA to take individual decisions addressed to financial sector operators
in accordance with the procedure for breach of Union law and of the procedure of binding mediation even when the
substantive rules are not directly applicable to financial sector operators, after having taken a decision addressed to
the competent authority. Where the substantive rules are laid down in Directives, EBA should apply national law to
the extent it is transposing those Directives. Where the relevant Union law is composed of Regulations and where,
on the date of entry into force of this Regulation, those Regulations expressly grant options to Member States, EBA
should apply national law to the extent that such options have been exercised.
(27) Where this Regulation authorises EBA to apply national law transposing Directives, such national law can be applied
by EBA only to the extent necessary for carrying out the tasks conferred on it by Union law. Therefore, EBA should
apply all the relevant Union rules, and where such rules are laid down in Directives, it should apply national law
transposing those Directives to the extent required by Union law, aiming at an even application of law throughout
the Union while respecting the relevant national law.
(28) Where a decision of EBA is based on, or connected with, its powers for the prevention and countering of
money laundering and of terrorist financing and concerns financial sector operators or competent authorities within
the remit of EIOPA or ESMA, EBA should only be able to take the decision in agreement with EIOPA or ESMA,
respectively. EIOPA and ESMA, in each case taking into account the urgency of the relevant decision, should, when
expressing their views, consider making use of expedited decision procedures in line with their respective internal
governance rules.
(29) The ESAs should have in place dedicated reporting channels for receiving and handling information provided by
a natural or legal person reporting on actual or potential breaches, abuse of law, or non-application of Union law.
The ESAs should ensure that it is possible to submit that information anonymously or confidentially, and safely. The
reporting person should be protected from retaliation. The ESAs should provide feedback to the reporting person.
(30) Harmonised supervision of the financial sector also requires that disagreements between the competent authorities
of different Member States in cross–border situations are settled efficiently. The existing rules for settling such
disagreements are not fully satisfactory. They should therefore be adapted so that they can be more easily applied.
(31) Integral to the work of the ESAs on the convergence of supervisory practices is the promotion of a Union
supervisory culture. Therefore, the Authority may regularly identify up to two priorities of Union-wide relevance.
Those priorities should be taken into account by competent authorities when drawing up their work programmes.
The Board of Supervisors of each ESA should discuss the relevant activities by the competent authorities in the
next year and draw conclusions.
(32) Assessments by the peer review committees should allow in-depth studies based on self-assessment by the reviewed
authorities, followed by an evaluation by the peer review committee. The member of a competent authority under
review should not take part in the assessment when it relates to that competent authority.
(33) Experience of the ESAs has revealed the benefits of enhanced coordination in certain areas via ad hoc groups or
platforms. This Regulation should provide a legal basis for, and strengthen, such arrangements through the creation
of a new tool, namely, the establishment of coordination groups. Such coordination groups should promote
convergence in relation to the supervisory practices undertaken by competent authorities, in particular through
the exchange of information and experience. The participation of all competent authorities in those coordination
groups should be mandatory and competent authorities should provide the coordination groups with the necessary
information. The setting up of coordination groups should be considered wherever the competent authorities
identify a need to coordinate in view of specific market developments. Such coordination groups may be set up
with regard to all areas covered by the legislative acts referred to in Article 1(2) of the founding regulations.
(34) Orderly and well-functioning international financial markets require the monitoring of third-country equivalence
decisions that have been adopted by the Commission. Each ESA should monitor the regulatory and supervisory
developments and the enforcement practices in those third countries. It should do so in order to verify whether
the criteria, on the basis of which those decisions have been taken and of any conditions set out therein, are
still fulfilled. Each ESA should submit a confidential report on its monitoring activities to the Commission on an
annual basis. In that context, each ESA should also, where possible, develop administrative arrangements with third-
country competent authorities to obtain information for monitoring purposes and for coordinating supervisory
activities. That enhanced supervisory regime should ensure that third-country equivalence is more transparent,
more predictable for the third countries concerned and more consistent across all sectors.
(35) The representative of the ESRB on the Board of Supervisors should present the common view of the General Board
of the ESRB with a particular focus on financial stability.
(36) To ensure that the appropriate level of expertise underpins decisions relating to the prevention and countering of
money laundering and of terrorist financing measures, it is necessary to set up a permanent internal committee in
the EBA. That committee should be composed of high-level representatives of authorities and bodies in charge of
compliance with legislation on the prevention and countering of money laundering or of terrorist financing who
have expertise and decision-making powers in the area of the prevention of the use of the financial system for the
purpose of money laundering or terrorist financing. That committee should also include high-level representatives
from the ESAs who have expertise in different business models and their respective sectoral specificities. That
committee should examine and prepare decisions to be taken by EBA. In order to avoid duplication, the new
committee will replace the existing anti-money laundering subcommittee which was set up within the ESAs Joint
Committee. It should be possible for the ESAs to submit written observations on any draft decision of the internal
committee, which the Board of Supervisors of EBA should duly consider before taking its final decision.
(37) In line with the objective of achieving a more coherent and viable supervisory system in the Union to prevent and
counter money laundering and terrorist financing, the Commission should, after consulting all relevant authorities
and stakeholders, conduct a comprehensive assessment of the implementation, functioning and effectiveness of
the specific tasks conferred on EBA under this Regulation related to preventing and countering money laundering
and terrorist financing. In particular, the assessment should – to the extent possible – reflect experience gained
from situations where EBA requests a competent authority to: investigate possible breaches of national laws to
the extent that they transpose Directives or exercise options to Member States by Union law by financial sector
operators; consider imposing sanctions on that operator in respect of such breaches; or consider adopting an
individual decision addressed to that financial sector operator requiring it to undertake all necessary action to
comply with its obligations under national laws to the extent that they transpose Directives or exercise options
granted to Member States by Union law. It should similarly reflect such experience where EBA applies national law
to the extent it transposes Directives or exercises options granted to Member States by Union law. The Commission
should submit that assessment as part of its report pursuant to Article 65 of Directive (EU) 2015/849, together
with legislative proposals, if appropriate, to the European Parliament and to the Council by 11 January 2022. Until
that assessment has been submitted, the powers granted to EBA related to preventing the use of the financial system
for the purpose of money laundering or terrorist financing in Articles 9b, 17(6) and 19(4) of Regulation (EU)
No 1093/2010 should be considered a provisional solution to the extent that they allow EBA to base requests to
competent authorities on possible breaches of national law or allow the application of national law by EBA.
(38) To preserve the confidentiality of the work of the ESAs, the requirements of professional secrecy should also apply
to any person who provides any service, directly or indirectly, permanently or occasionally, related to the tasks of
the ESA concerned.
(39) The founding regulations as well as sectoral legislative acts require the ESAs to seek effective administrative
arrangements, involving the exchange of information with third-country supervisors. The need for effective
cooperation and information exchange should become all the more important when, pursuant to this amending
Regulation, some of the ESAs assume additional, broader responsibilities in relation to the supervision of non-
EU entities and activities. Where, in that context, the ESAs process personal data, including by transferring such
data outside the Union, they are bound by the requirements of Regulation (EU) 2018/1725. In the absence of an
adequacy decision or of appropriate safeguards, for example provided for in administrative arrangements within
the meaning of point (b) of Article 48(3) of Regulation (EU) 2018/1725, the ESAs may exchange personal data
with third-country authorities in accordance with and under the conditions of the public interest derogation set
out in point (d) of Article 50(1) thereof, which in particular applies to cases of international data exchange between
financial supervisory authorities.
(40) The founding regulations provide that, in cooperation with the ESRB, the ESAs should initiate and coordinate
Union-wide stress tests in order to assess the resilience of financial institutions or financial market participants to
adverse market developments. It should also ensure that a consistent methodology is applied, to the extent possible,
at national level to such tests. It should also be clarified, in respect of all of the ESAs, that the professional secrecy
obligations of competent authorities should not prevent competent authorities from transmitting the results of
stress tests to the ESAs for the purpose of publication.
(41) To ensure a high level of convergence in the area of supervision and approval of internal models in accordance with
Directive 2009/138/EC of the European Parliament and of the Council (10), EIOPA should upon request be able to
assist competent authorities in the decision related to the approval of internal models.
(42) In order for the ESAs to perform their tasks related to consumer protection, they should be entitled to coordinate
so-called ‘mystery shopping activities’ of the competent authorities, if applicable.
(43) The ESAs should be properly and adequately resourced and staffed to effectively contribute to the consistent,
efficient and effective financial supervision within their respective competences under this Regulation. Additional
competences and workload conferred upon the ESAs should be matched with sufficient human and financial
resources.
(44) The evolution of the scope of direct supervision might require financial institutions, and financial market
participants directly supervised by the ESAs, to make additional contributions based on the estimated expenditure
of the relevant ESA.
(45) Inconsistencies in the quality, formatting, reliability and cost of trading data have a detrimental effect on transparency,
investor protection and market efficiency. In order to enhance the monitoring and reconstruction of trading data,
and to improve the consistency and quality of those data and their availability and accessibility at reasonable cost
throughout the Union for the relevant trading venues, Directive 2014/65/EU of the European Parliament and of
the Council (11) introduced a new legal framework for data reporting services, including the authorisation and
supervision of data reporting services providers.
(46) The quality of trading data and of the processing and provision of those data, including processing and provision
of cross-border data, is of paramount importance to achieve the main objective of Regulation (EU) No 600/2014
of the European Parliament and of the Council (12), namely, strengthening the transparency of financial markets.
The provision of core data services is therefore pivotal for users to be able to obtain the desired overview of
trading activity across Union financial markets and for competent authorities to receive accurate and comprehensive
information on relevant transactions.
(47) In addition, trading data is an increasingly essential tool for effective enforcement of requirements stemming from
Regulation (EU) No 600/2014. Given the cross-border dimension of data handling, data quality and the necessity
to achieve economies of scale, and to avoid the adverse impact of potential divergences on both data quality and
the tasks of data reporting services providers, it is beneficial and justified to transfer authorisation and supervisory
powers in relation to data reporting services providers from competent authorities to ESMA, except for those
benefiting from a derogation, and to specify those powers in Regulation (EU) No 600/2014 enabling, at the same
time, the consolidation of the benefits arising from pooling data-related competences within ESMA.
(48) Retail investors should be adequately informed about potential risks when they decide to invest in a financial
instrument. The legal framework of the Union aims to reduce the risk of misselling where retail investors are sold
financial products which do not fit their needs or expectations. To that end, Directive 2014/65/EU and Regulation
(EU) No 600/2014 enhance organisational and conduct of business requirements to ensure that investment firms
act in the best interests of their clients. Those requirements include enhanced risk disclosure to clients, better
assessment of suitability of products recommended as well as an obligation to distribute financial instruments to
the identified target market, taking into account factors such as the solvency of issuers. ESMA should make full
use of its powers to ensure supervisory convergence and support national authorities in achieving a high level of
investor protection and effective oversight of risks associated with financial products.
(10) Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business
of Insurance and Reinsurance (Solvency II) (OJ L 335, 17.12.2009, p. 1).
(11) Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending
Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349).
(12) Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and
amending Regulation (EU) No 648/2012 (OJ L 173, 12.6.2014, p. 84).
(49) It is important to ensure the effective and efficient submission, compilation, analysis and publication of data for
the purposes of calculations for determining the requirements for the pre- and post-trade transparency and trading
obligation regimes, as well as for the purposes of reference data in accordance with Regulation (EU) No 600/2014
and Regulation (EU) No 596/2014 of the European Parliament and of the Council (13). ESMA, in addition to
competent authorities, should therefore be conferred competences to undertake direct data gathering from market
participants in relation to pre- and post-trade transparency requirements, as well as their authorisation and oversight
of data reporting services providers.
(50) Granting those competences to ESMA allows for a centrally managed authorisation and oversight, which would avoid
the current situation where multiple trading venues, systematic internalisers, approved publication arrangements
(APAs) and consolidated tape providers (CTPs) are required to provide multiple competent authorities with data
which are only then provided to ESMA. Such a centrally managed system should be highly beneficial to the market
participants in terms of higher data transparency, investor protection and market efficiency.
(51) The conferral of data gathering powers, authorisation and oversight from competent authorities to ESMA is also
instrumental to other tasks ESMA is performing under Regulation (EU) No 600/2014, such as market monitoring
and ESMA’s temporary intervention powers.
(52) For ESMA to exercise its supervisory powers effectively within the area of data processing and provision, ESMA
should be able to conduct investigations and on-site inspections. ESMA should be able to impose fines or periodic
penalty payments to compel data reporting services providers to put an end to an infringement, to supply complete
and correct information required by ESMA or to submit them to an investigation or an on-site inspection, and to
impose administrative sanctions or other administrative measures where it finds that a person has committed,
intentionally or negligently, an infringement of Regulation (EU) No 600/2014.
(53) Financial products using critical benchmarks are available in all Member States. Those benchmarks are therefore
of crucial importance for the functioning of financial markets and financial stability in the Union. The supervision
of a critical benchmark should therefore take a holistic view of potential impacts, not only in the Member State
where the administrator is located and the Member States where its contributors are located, but across the entire
Union. It is therefore appropriate that certain critical benchmarks are supervised at Union level by ESMA. To avoid
duplication of tasks, administrators of critical benchmarks should be supervised only by ESMA, including any non-
critical benchmarks they might administer.
(54) As administrators of, and contributors to critical benchmarks are put under stricter requirements than administrators
of, and contributors to, other benchmarks, the designation of benchmarks as critical benchmarks should be
undertaken by the Commission or requested by ESMA and should be codified by the Commission. As national
competent authorities have best access to data on, and information about, benchmarks they supervise, they should
notify the Commission or ESMA of any benchmarks which, in their opinion, fulfil the criteria identifying critical
benchmarks.
(55) The procedure to determine the Member State of reference for benchmark administrators located in third countries
that apply for recognition in the Union is cumbersome and time-consuming for both applicants and national
competent authorities. Applicants might try to influence that determination in the hope of having supervisory
arbitrage. Those benchmark administrators might choose their legal representative strategically in a Member State
where they consider supervision less strict. A harmonised approach with ESMA as the competent authority
for recognising third-country benchmark administrators avoids those risks and the costs of determining the
Member State of reference as well as of the subsequent supervision. Furthermore, ESMA’s role as competent
authority for recognised third-country benchmark administrators establishes it as the counterpart in the Union for
supervisors in third countries, making cross-border cooperation more efficient and effective.
(13) Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse
regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC,
2003/125/EC and 2004/72/EC (OJ L 173, 12.6.2014, p. 1).
(56) Many, if not the majority of, benchmark administrators are banks or financial services firms handling client
money. In order not to undermine the Union’s fight against money laundering or terrorist financing, it should be
a precondition for the conclusion of a cooperation arrangement with a competent authority under an equivalence
regime that the country of the competent authority is not on the list of jurisdictions which have strategic deficiencies
in their national anti-money laundering, and countering the financing of terrorism, regimes that pose significant
threats to the financial system of the Union.
(57) Almost all benchmarks are referenced in financial products which are available in several Member States, if not
the entire Union. To detect risks related to the provision of benchmarks that might no longer be reliable or
representative of the market or economic reality that they intend to measure, competent authorities, including
ESMA, should cooperate and assist each other, where appropriate.
(58) It is appropriate to provide for a reasonable period to make the necessary arrangements for the delegated and
implementing acts in order to enable the ESAs and the other parties concerned to apply the rules set out in this
Regulation.
(59) Regulations (EU) No 1093/2010, (EU) No 1094/2010, (EU) No 1095/2010, (EU) No 600/2014, Regulation
(EU) 2016/1011 of the European Parliament and of the Council (14) and Regulation (EU) 2015/847 of the
European Parliament and of the Council (15) should therefore be amended accordingly,
HAVE ADOPTED THIS REGULATION:
Article 1
Amendments to Regulation (EU) No 1093/2010
Regulation (EU) No 1093/2010 is amended as follows:
(1) Article 1 is amended as follows:
(a) paragraphs 2 and 3 are replaced by the following:
‘2. The Authority shall act within the powers conferred by this Regulation and within the scope of
Directive 2002/87/EC, Directive 2008/48/EC (*), Directive 2009/110/EC, Regulation (EU) No 575/2013 (**),
Directive 2013/36/EU (***), Directive 2014/49/EU (****), Directive 2014/92/EU (*****), Directive
(EU) 2015/2366 (******) of the European Parliament and of the Council and, to the extent that those acts apply
to credit and financial institutions and the competent authorities that supervise them, within the relevant parts of
Directive 2002/65/EC, including all directives, regulations, and decisions based on those acts, and of any further
legally binding Union act which confers tasks on the Authority. The Authority shall also act in accordance with
Council Regulation (EU) No 1024/2013 (*******).
The Authority shall also act within the powers conferred by this Regulation and within the scope of Directive
(EU) 2015/849 of the European Parliament and of the Council (********) and of Regulation (EU) 2015/847 of the
European Parliament and of the Council (*********) to the extent that that Directive and Regulation apply to financial
sector operators and the competent authorities that supervise them. For that purpose only, the Authority shall carry
out the tasks conferred by any legally binding Union act on the European Supervisory Authority (European Insurance
and Occupational Pensions Authority), established by Regulation (EU) No 1094/2010 of the European Parliament and
of the Council (**********) or on the European Supervisory Authority (European Securities and Markets Authority),
established by Regulation (EU) No 1095/2010 of the European Parliament and of the Council (***********). When
carrying out such tasks, the Authority shall consult those European Supervisory Authorities and keep them
informed of its activities concerning any entity which is a “financial institution” as defined in point (1) of Article 4
of Regulation (EU) No 1094/2010 or a “financial market participant” as defined in point (1) of Article 4 of Regulation
(EU) No 1095/2010.
(14) Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial
instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and
2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1).
(15) Regulation (EU) 2015/847 of the European Parliament and of the Council of 20 May 2015 on information accompanying transfers of
funds and repealing Regulation (EC) No 1781/2006 (OJ L 141, 5.6.2015, p. 1).
3. The Authority shall act in the field of activities of credit institutions, financial conglomerates, investment firms,
payment institutions and e-money institutions in relation to issues not directly covered by the legislative acts referred
to in paragraph 2, including matters of corporate governance, auditing and financial reporting, taking into account
sustainable business models and the integration of environmental, social and governance related factors, provided
that such actions are necessary to ensure the effective and consistent application of those acts.
(*) Directive 2008/48/EC of the European Parliament and of the Council of 23 April 2008 on credit

agreements for consumers and repealing Council Directive 87/102/EEC (OJ L 133, 22.5.2008, p. 66).
(**) Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on
prudential requirements for credit institutions and amending Regulation (EU) No 648/2012 (OJ L 176,
27.6.2013, p. 1).
(***) Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the
activity of credit institutions and the prudential supervision of credit institutions and investment firms,
amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176,
27.6.2013, p. 338).
(****) Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014 on deposit
guarantee schemes (OJ L 173, 12.6.2014, p. 149).
(*****) Directive 2014/92/EU of the European Parliament and of the Council of 23 July 2014 on the
comparability of fees related to payment accounts, payment account switching and access to payment
accounts with basic features (OJ L 257, 28.8.2014, p. 214).
(******) Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015
on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC
and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (OJ L 337,
23.12.2015, p. 35).
(*******) Council Regulation (EU) No 1024/2013 of 15 October 2013 conferring specific tasks on the European
Central Bank concerning policies relating to the prudential supervision of credit institutions (OJ L 287,
29.10.2013, p. 63).
(********) Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the
prevention of the use of the financial system for the purposes of money laundering or terrorist
financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council,
and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission
Directive 2006/70/EC (OJ L 141, 5.6.2015, p. 73).
(*********) Regulation (EU) 2015/847 of the European Parliament and of the Council of 20 May 2015 on
information accompanying transfers of funds and repealing Regulation (EC) No 1781/2006 (OJ L 141,
5.6.2015, p. 1).
(**********) Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010
establishing a European Supervisory Authority (European Insurance and Occupational Pensions
Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/79/EC
(OJ L 331, 15.12.2010, p. 48).
(***********) Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010
establishing a European Supervisory Authority (European Securities and Markets Authority), amending
Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010,
p. 84).’;
(b) paragraph 5 is amended as follows:
(i) the first subparagraph is amended as follows:
— the introductory part is replaced by the following:
‘5. The objective of the Authority shall be to protect the public interest by contributing to the short-,
medium- and long-term stability and effectiveness of the financial system, for the Union economy, its
citizens and businesses. The Authority shall, within its respective competences, contribute to:’;
— points (e) and (f) are replaced by the following:
‘(e) ensuring that the taking of credit and other risks are appropriately regulated and supervised;
(f) enhancing customer and consumer protection;’;

— the following points are added:
‘(g) enhancing supervisory convergence across the internal market;
(h) preventing the use of the financial system for the purposes of money laundering and terrorist
financing.’;
(ii) the second subparagraph is replaced by the following:
‘For those purposes, the Authority shall contribute to ensuring the consistent, efficient and effective application
of the acts referred to in paragraph 2 of this Article, foster supervisory convergence, and provide opinions in
accordance with Article 16a to the European Parliament, to the Council, and to the Commission.’;
(iii) the fourth subparagraph is replaced by the following:
‘When carrying out its tasks, the Authority shall act independently, objectively and in a non-discriminatory and
transparent manner, in the interests of the Union as a whole and shall respect, where relevant, the principle of
proportionality. The Authority shall be accountable and act with integrity and shall ensure that all stakeholders
are treated fairly.’;
(iv) the following subparagraph is added:
‘The content and form of the Authority’s actions and measures, in particular guidelines, recommendations,
opinions, questions and answers, draft regulatory standards and draft implementing standards, shall fully
respect the applicable provisions of this Regulation and of the legislative acts referred to in paragraph 2. To the
extent permitted and relevant under those provisions, the Authority’s actions and measures shall, in accordance
with the principle of proportionality, take due account of the nature, scale and complexity of the risks inherent
in the business of a financial institution, undertaking, other subject or financial activity, that is affected by the
Authority’s actions and measures.’;
(c) the following paragraph is added:
‘6. The Authority shall establish, as an integral part thereof, a Committee advising it as to how, in full compliance
with applicable rules, its actions and measures should take account of specific differences prevailing in the sector,
pertaining to the nature, scale and complexity of risks, to business models and practice as well as to the size of financial
institutions and of markets to the extent that such factors are relevant under the rules considered.’;
(a) paragraph 1 is replaced by the following:
‘1. The Authority shall form part of a European system of financial supervision (ESFS). The main objective of
the ESFS shall be to ensure that the rules applicable to the financial sector are adequately implemented to preserve
financial stability and to ensure confidence in the financial system as a whole, and effective and sufficient protection
for the customers and consumers of financial services.’;
(b) paragraph 4 is replaced by the following:
‘4. In accordance with the principle of sincere cooperation pursuant to Article 4(3) of the Treaty on European Union
(TEU), the parties to the ESFS shall cooperate with trust and full mutual respect, in particular in ensuring the flow
of appropriate and reliable information among them and from the Authority to the European Parliament, to the
Council and to the Commission.’;
(c) in paragraph 5, the following subparagraph is added:
‘Without prejudice to national competences, references in this Regulation to supervision shall include all relevant
activities of all competent authorities to be carried out pursuant to the legislative acts referred to in Article 1(2).’;
(3) Article 3 is replaced by the following:
‘Article 3
Accountability of the Authorities
1. The Authorities referred to in points (a) to (d) of Article 2(2) shall be accountable to the European Parliament and to
the Council. The European Central Bank shall be accountable to the European Parliament and to the Council with regard to
the exercise of the supervisory tasks conferred on it by Regulation (EU) No 1024/2013 in accordance with that Regulation.
2. In accordance with Article 226 TFEU, the Authority shall fully cooperate with the European Parliament during any
investigation carried out under that Article.
3. The Board of Supervisors shall adopt an annual report on the activities of the Authority, including on the performance
of the Chairperson’s duties, and shall, by 15 June each year, transmit that report to the European Parliament, to the Council,
to the Commission, to the Court of Auditors and to the European Economic and Social Committee. The report shall be
made public.
4. At the request of the European Parliament, the Chairperson shall participate in a hearing before the European Parliament
on the performance of the Authority. A hearing shall take place at least annually. The Chairperson shall make a statement
before the European Parliament and answer any questions from its members, whenever so requested.
5. The Chairperson shall report in writing on the activities of the Authority to the European Parliament when requested
and at least 15 days before making the statement referred to in paragraph 4.
6. In addition to the information referred to in Articles 11 to 18 and Articles 20 and 33, the report shall also include
any relevant information requested by the European Parliament on an ad hoc basis.
7. The Authority shall reply orally or in writing to any question addressed to it by the European Parliament or by the
Council within five weeks of its receipt.
8. Upon request, the Chairperson shall hold confidential oral discussions behind closed doors with the Chair, Vice-Chairs
and Coordinators of the competent committee of the European Parliament. All participants shall respect the requirements
of professional secrecy.
9. Without prejudice to its confidentiality obligations stemming from participation in international fora, the Authority
shall inform the European Parliament upon request about its contribution to a united, common, consistent and effective
representation of the Union’s interests in such international fora.’;
(a) point (1) is replaced by the following:
‘(1) “financial institution” means any undertaking that is subject to regulation and supervision pursuant to any of
the legislative acts referred to in Article 1(2);’;
(b) the following point is inserted:
‘(1a) “financial sector operator” means an “entity” as referred to in Article 2 of Directive (EU) 2015/849, which
is either a financial institution as defined in point (1) of this Article or in point (1) of Article 4 of Regulation
(EU) No 1094/2010 or a “financial market participant” as defined in point (1) of Article 4 of Regulation (EU)
No 1095/2010;’;
(c) point (2) is replaced by the following:
‘(2) “competent authorities” means:
(i) competent authorities as defined in point (40) of Article 4(1) of Regulation (EU) No 575/2013, including
the European Central Bank with regard to matters relating to the tasks conferred on it by Regulation (EU)
No 1024/2013;
(ii) with regard to Directive 2002/65/EC, the authorities and bodies competent for ensuring compliance with
the requirements of that Directive by financial institutions;
(iii) with regard to Directive (EU) 2015/849, the authorities and bodies that supervise financial sector operators
and are competent for ensuring their compliance with the requirements of that Directive;
(iv) with regard to deposit guarantee schemes, bodies which administer deposit guarantee schemes pursuant
to Directive 2014/49/EU or, where the operation of the deposit guarantee scheme is administered by a
private company, the public authority supervising those schemes pursuant to that Directive, and relevant
administrative authorities as referred to in that Directive;
(v) with regard to Directive 2014/59/EU of the European Parliament and of the Council (*) and to Regulation
(EU) No 806/2014 of the European Parliament and of the Council (**), the resolution authorities designated
in accordance with Article 3 of Directive 2014/59/EU, the Single Resolution Board established by
Regulation (EU) No 806/2014, and the Council and the Commission when taking actions under Article 18
of Regulation (EU) No 806/2014, except where they exercise discretionary powers or make policy choices;
(vi) “competent authorities” as referred to in Directive 2014/17/EU of the European Parliament and of the

Council (***), in Regulation (EU) 2015/751 of the European Parliament and of the Council (****), in Directive
(EU) 2015/2366, in Directive 2009/110/EC of the European Parliament and of the Council (*****), and in
Regulation (EU) No 260/2012 of the European Parliament and of the Council (******);
(vii) “bodies and authorities” as referred to in Article 20 of Directive 2008/48/EC.
(*) Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a

framework for the recovery and resolution of credit institutions and investment firms and amending
Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC,
2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and
(EU) No 648/2012, of the European Parliament and of the Council (OJ L 173, 12.6.2014, p. 190).
(**) Regulation (EU) No 806/2014 of the European Parliament and of the Council of 15 July 2014
establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain
investment firms in the framework of a Single Resolution Mechanism and a Single Resolution Fund
and amending Regulation (EU) No 1093/2010 (OJ L 225, 30.7.2014, p. 1).
(***) Directive 2014/17/EU of the European Parliament and of the Council of 4 February 2014 on
credit agreements for consumers relating to residential immovable property and amending
Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010 (OJ L 60, 28.2.2014,
p. 34).
(****) Regulation (EU) 2015/751 of the European Parliament and of the Council of 29 April 2015 on
interchange fees for card-based payment transactions (OJ L 123, 19.5.2015, p. 1).
(*****) Directive 2009/110/EC of the European Parliament and of the Council of 16 September 2009 on the
taking up, pursuit and prudential supervision of the business of electronic money institutions amending
Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC (OJ L 267, 10.10.2009,
p. 7).
(******) Regulation (EU) No 260/2012 of the European Parliament and of the Council of 14 March 2012
establishing technical and business requirements for credit transfers and direct debits in euro and
amending Regulation (EC) No 924/2009 (OJ L 94, 30.3.2012, p. 22).’;
(a) paragraph 1 is amended as follows:
(i) point (a) is replaced by the following:
‘(a) based on the legislative acts referred to in Article 1(2), to contribute to the establishment of high-quality
common regulatory and supervisory standards and practices, in particular by developing draft regulatory
and implementing technical standards, guidelines, recommendations, and other measures, including
opinions;’;
(ii) point (aa) is replaced by the following:
‘(aa) to develop and maintain an up-to-date Union supervisory handbook on the supervision of financial
institutions in the Union which is to set out supervisory best practices and high-quality methodologies
and processes and takes into account, inter alia, changing business practices and business models and the
size of financial institutions and of markets;’;
(iii) the following point is inserted:
‘(ab) to develop and maintain an up-to-date Union resolution handbook on the resolution of financial
institutions in the Union which is to set out best practices and high-quality methodologies and processes
for resolution, taking into account the work of the Single Resolution Board, and changing business
practices and business models and the size of financial institutions and of markets;’;
(iv) point (b) is replaced by the following:
‘(b) to contribute to the consistent application of legally binding Union acts, in particular by contributing to
a common supervisory culture, ensuring consistent, efficient and effective application of the legislative
acts referred to in Article 1(2), preventing regulatory arbitrage, fostering and monitoring supervisory
independence, mediating and settling disagreements between competent authorities, ensuring effective
and consistent supervision of financial institutions, ensuring a coherent functioning of colleges of
supervisors and taking actions, inter alia, in emergency situations;’;
(v) points (e) to (h) are replaced by the following:
‘(e) to organise and conduct peer reviews of competent authorities, and, in that context, to issue guidelines and
recommendations and to identify best practices, with a view to strengthening consistency in supervisory
outcomes;
(f) to monitor and assess market developments in the area of its competence including where relevant,
developments relating to trends in credit, in particular, to households and SMEs and in innovative financial
services duly considering developments relating to environmental, social and governance related factors;
(g) to undertake market analyses to inform the discharge of the Authority’s functions;
(h) to foster, where relevant, depositor, consumer and investor protection, in particular with regards to
shortcomings in a cross-border context and taking related risks into account;’;
(vi) the following point is inserted:
‘(ia) to contribute to the establishment of a common Union financial data strategy;’;
(vii) the following point is inserted:
‘(ka) to publish on its website, and to update regularly, all regulatory technical standards, implementing technical
standards, guidelines, recommendations and questions and answers for each legislative act referred to in
Article 1(2), including overviews that concern the state of play of ongoing work and the planned timing
of the adoption of draft regulatory technical standards and draft implementing technical standards.’;
(viii) the following point is added:
‘(l) to contribute to the prevention of the use of the financial system for the purposes of money laundering
and terrorist financing, including by promoting consistent, efficient and effective application of legislative
acts referred to in Article 1(2) of this Regulation, Article 1(2) of Regulation (EU) No 1094/2010 and
Article 1(2) of Regulation (EU) No 1095/2010 respectively with regard to the prevention of the use of
the financial system for the purpose of money laundering or terrorist financing.’;
(b) in paragraph 1a, point (b) is replaced by the following:
‘(b) with due regard to the objective to ensure the safety and soundness of financial institutions, take fully into
account the different types, business models and sizes of financial institutions; and’;
(c) in paragraph 1a, the following point is added:
‘(c) take account of technological innovation, innovative and sustainable business models, and the integration of
environmental, social and governance related factors.’;
(d) paragraph 2 is amended as follows:
(i) the following point is inserted:
‘(ca) issue recommendations, as laid down in Article 29a;’;
(ii) the following point is inserted:
‘(da) issue warnings in accordance with Article 9(3);’;
(iii) point (g) is replaced by the following:
‘(g) issue opinions to the European Parliament, to the Council, or to the Commission as provided for in
Article 16a;’;
(iv) the following points are inserted:
‘(ga) issue answers to questions, as laid down in Article 16b;
(gb) take action in accordance with Article 9c;’;
(e) paragraph 2a is replaced by the following:
‘3. When carrying out the tasks referred to in paragraph 1 and exercising the powers referred to in paragraph 2,
the Authority shall act based on and within the limits of the legislative framework and shall have due regard to the
principle of proportionality, where relevant, and better regulation, including the results of cost-benefit analyses in
accordance with this Regulation.
The open public consultations referred to in Articles 10, 15, 16 and 16a shall be conducted as widely as possible
to ensure an inclusive approach towards all interested parties and shall allow reasonable time for stakeholders to
respond. The Authority shall publish a summary of the input received from stakeholders and an overview of how
information and views gathered from the consultation were used in a draft regulatory technical standard and a draft
implementing technical standard.’;
‘(a) collecting, analysing and reporting on consumer trends, such as the development of costs and charges of
retail financial services and products in Member States;’;
(ii) the following points are inserted:
‘(aa) undertaking in-depth thematic reviews of market conduct, building a common understanding of market
practices in order to identify potential problems and analyse their impact;
(ab) developing retail risk indicators for the timely identification of potential causes of consumer harm;’;
(iii) the following points are added:
‘(e) contributing to a level playing field in the internal market where consumers and other users of financial
services have fair access to financial services and products;
(f) fostering further developments in terms of regulation and supervision which could facilitate deeper
harmonisation and integration at the Union level;
(g) coordinating mystery shopping activities of competent authorities, if applicable.’;
‘2. The Authority shall monitor new and existing financial activities and may adopt guidelines and recommendations
with a view to promoting the safety and soundness of markets, and convergence and effectiveness of regulatory and
supervisory practices.’;
(c) paragraphs 4 and 5 are replaced by the following:
‘4. The Authority shall establish, as an integral part thereof, a Committee on consumer protection and financial
innovation, which brings together all relevant competent authorities and authorities responsible for consumer
protection with a view to enhancing consumer protection, achieving a coordinated approach to the regulatory and
supervisory treatment of new or innovative financial activities, and providing advice for the Authority to present
to the European Parliament, to the Council and to the Commission. The Authority shall closely cooperate with the
European Data Protection Board established by Regulation (EU) 2016/679 of the European Parliament and of the
Council (*) to avoid duplication, inconsistencies and legal uncertainty in the sphere of data protection. The Authority
may also invite national data protection authorities as observers in the Committee.
5. The Authority may temporarily prohibit or restrict the marketing, distribution or sale of certain financial
products, instruments or activities that have the potential to cause significant financial damage to customers or
consumers, or threaten the orderly functioning and integrity of financial markets or the stability of the whole or
part of the financial system in the Union in the cases specified, and under the conditions laid down, in the legislative
acts referred to in Article 1(2), or, if so required, in the case of an emergency situation in accordance with, and under
the conditions laid down in, Article 18.
The Authority shall review the decision referred to in the first subparagraph at appropriate intervals and at least every
six months. Following at least two consecutive renewals, and based on proper analysis which aims to assess the impact
on the customer or consumer, the Authority may decide on the annual renewal of the prohibition.
A Member State may request the Authority to reconsider its decision. In that case, the Authority shall decide, in
accordance with the procedure set out in the second subparagraph of Article 44(1), whether to maintain that decision.
The Authority may also assess the need to prohibit or restrict certain types of financial activity or practice and, where
there is such a need, inform the Commission and the competent authorities in order to facilitate the adoption of any
such prohibition or restriction.
(*) Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection
of natural persons with regard to the processing of personal data and on the free movement of such data, and
repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1).’;
(7) the following articles are inserted:
‘Article 9a
Special tasks related to preventing and countering money laundering and terrorist financing
1. The Authority shall, within its respective competences, take a leading, coordinating and monitoring role in promoting
integrity, transparency and security in the financial system by means of adopting measures to prevent and counter money
laundering and terrorist financing in that system. In line with the principle of proportionality, those measures shall not
exceed what is necessary to achieve the objectives of this Regulation and of the legislative acts referred to in Article 1(2) and
shall have due regard to the nature, scale and complexity of risks, business practices, business models and size of financial
sector operators and of markets. Those measures shall include:
(a) collecting information from competent authorities relating to weaknesses identified during ongoing supervision
and authorisation procedures in the processes and procedures, governance arrangements, fitness and propriety,
acquisition of qualifying holdings, business models and activities of financial sector operators in relation to preventing
and countering money laundering and terrorist financing as well as measures taken by competent authorities, in
response to the following material weaknesses affecting one or more requirements of the legislative acts referred to
in Article 1(2) of this Regulation, Article 1(2) of Regulation (EU) No 1094/2010 and Article 1(2) of Regulation (EU)
No 1095/2010 and of any national laws transposing them, respectively, with regard to the prevention and countering
the use of the financial system for the purpose of money laundering or of terrorist financing:
(i) a breach or a potential breach by a financial sector operator of such requirements,
(ii) the inappropriate or ineffective application by a financial sector operator of such requirements, or
(iii) the inappropriate or ineffective application by a financial sector operator of its internal policies and procedures
to comply with such requirements.
Competent authorities shall provide all such information to the Authority in addition to any obligations under
Article 35 of this Regulation and shall keep the Authority informed in due time about any subsequent developments
relating to the information provided. The Authority shall coordinate closely with EU Financial Intelligence Units
(FIUs) as referred to in Directive (EU) 2015/849, while respecting their status and obligations and without any
unnecessary duplication.
Competent authorities may share, in accordance with national law, any additional information that they deem
relevant to the prevention and countering of the use of the financial system for the purpose of money laundering or
terrorist financing with the central database referred to in paragraph 2;
(b) coordinating closely, and, where appropriate, exchanging information, with competent authorities, including the
European Central Bank with regard to matters relating to the tasks conferred on it by Regulation (EU) No 1024/2013,
and with authorities entrusted with the public duty of supervising obliged entities listed in points (1) and (2) of
Article 2(1) of Directive (EU) 2015/849 as well as with FIUs, while respecting the status and obligations of the FIUs
under Directive (EU) 2015/849;
(c) developing common guidance and standards for preventing and countering money laundering and terrorist financing
in the financial sector and promoting their consistent implementation in particular by developing draft regulatory and
implementing technical standards, in line with the mandates laid down in the legislative acts referred to in Article 1(2),
guidelines, recommendations, and other measures, including opinions which shall be based on the legislative acts
referred to in Article 1(2);
(d) providing assistance to competent authorities, following their specific requests;
(e) monitoring market developments and assessing vulnerabilities and risks in relation to money laundering and terrorist
financing in the financial sector.
By 31 December 2020, the Authority shall develop draft regulatory technical standards specifying the definition of
weaknesses as referred to in point (a) of the first subparagraph, including the corresponding situations where weaknesses
may occur, the materiality of weaknesses and the practical implementation of the information collection by the Authority
as well as the type of information that should be provided pursuant to point (a) of the first subparagraph. In developing
those technical standards, the Authority shall consider the volume of the information to be provided and the need to avoid
duplication. It shall also set out arrangements to ensure effectiveness and confidentiality.
Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards
referred to in the second subparagraph of this paragraph in accordance with Articles 10 to 14.
2. The Authority shall establish and keep up to date a central database of information collected pursuant to point (a) of
paragraph 1. The Authority shall ensure that that information is analysed and made available to competent authorities on
a need-to-know and confidential basis. The Authority may, where appropriate, transmit evidence that is in its possession
which could give rise to criminal proceedings to the national judicial authorities and the competent authorities of the
Member State concerned in accordance with national procedural rules. The Authority may also, where appropriate,
transmit evidence to the European Public Prosecutor’s Office where such evidence concerns offences in respect of which
the European Public Prosecutor’s Office exercises or could exercise competence in accordance with Council Regulation
(EU) 2017/1939 (*).
3. Competent authorities may address to the Authority reasoned requests for information about financial sector operators
relevant for their supervisory activities with regard to the prevention of the use of the financial system for the purpose
of money laundering or of terrorist financing. The Authority shall assess those requests and provide the information
requested by competent authorities on a need-to-know basis and in a timely manner. Where the Authority does not
provide the requested information, it shall inform the requesting competent authority and give an explanation as to why
the information is not provided. The Authority shall inform the competent authority, or any other authority or institution
that has initially provided the requested information, of the identity of the requesting competent authority, the identity
of the financial sector operator concerned, the reason for the information request as well as whether the information has
been shared. In addition, the Authority shall analyse the information in order to share relevant information on its own
initiative with competent authorities for their supervisory activities with regard to the prevention of the use of the financial
system for the purpose of money laundering or terrorist financing. Where it does so share, it shall notify the competent
authority that initially provided the information. It shall also conduct analysis on an aggregate basis for the opinion it is
requested to deliver pursuant to Article 6(5) of Directive (EU) 2015/849.
By 31 December 2020, the Authority shall develop draft regulatory technical standards specifying how information is to
be analysed and made available to competent authorities on a need-to-know and confidential basis.
referred to in the second subparagraph of this paragraph in accordance with Articles 10 to 14.
4. The Authority shall promote convergence of supervisory processes referred to in Directive (EU) 2015/849, including
by conducting peer reviews, and issuing related reports and follow-up measures in accordance with Article 30 of this
Regulation. The Authority, when conducting such reviews in accordance with Article 30 of this Regulation, shall take
into account relevant evaluations, assessments or reports drawn up by international organisations and intergovernmental
bodies competent in the field of preventing money laundering or terrorist financing as well as the biannual report made
by the Commission under Article 6 of Directive (EU) 2015/849, and the risk assessments carried out by Member States
pursuant to Article 7 of that Directive.
5. The Authority shall, with the participation of the competent authorities, perform risk assessments of the strategies,
capacities and resources of competent authorities to address the most important emerging risks related to money
laundering and terrorist financing at Union level as identified in the supranational risk assessment. It shall perform those
risk assessments in particular for the purpose of issuing the opinion that it is requested to deliver pursuant to Article 6(5)
of Directive (EU) 2015/849. The Authority shall perform risk assessments on the basis of the information available to it,
including peer reviews in accordance with Article 30 of this Regulation, the analysis that it has conducted on an aggregate
basis of the information collected for the purposes of the central database pursuant to paragraph 2 of this Article, as well
as relevant evaluations, assessments or reports drawn up by international organisations and intergovernmental bodies
with competence in the field of preventing money laundering and terrorist financing and the risk assessments by the
Member States prepared pursuant to Article 7 of Directive (EU) 2015/849. The Authority shall make the risk assessments
available to all competent authorities.
For the purposes of the first subparagraph of this paragraph, the Authority, through the internal committee established
under paragraph 7 of this Article, shall develop and apply methods to allow for an objective assessment, as well as a high-
quality and consistent review of the assessments and the application of the methodology and to ensure a level playing
field. That internal committee shall carry out the quality and consistency review of the risk assessments. It shall prepare
the draft risk assessments for adoption by the Board of Supervisors in accordance with Article 44.
6. In cases where there are indications of breaches, on the part of financial sector operators, of the requirements laid
down in Directive (EU) 2015/849 and where there is a cross-border dimension with third countries, the Authority
shall have a leading role in contributing to facilitate cooperation between competent authorities in the Union and the
relevant authorities in third countries where necessary. This role of the Authority shall be without prejudice to the regular
interactions by competent authorities with third-country authorities.
7. The Authority shall establish a permanent internal committee on anti-money-laundering and countering terrorist
financing to coordinate measures in order to prevent and counter the use of the financial system for the purpose of
money laundering or terrorist financing and to prepare, in accordance with Regulation (EU) 2015/847 and Directive
(EU) 2015/849, all draft decisions to be taken by the Authority in accordance with Article 44 of this Regulation.
8. The committee referred to in paragraph 7 shall be composed of high-level representatives of the authorities and bodies
of all Member States competent to ensure the compliance of financial sector operators with Regulation (EU) 2015/847
and Directive (EU) 2015/849 who have expertise and decision-making powers in the area of the prevention of the use of
the financial system for the purpose of money laundering or terrorist financing as well as high-level representatives who
have expertise in the different business models and sectoral specificities of the Authority, of the European Supervisory
Authority (European Insurance and Occupational Pensions Authority) and of the European Supervisory Authority
(European Securities and Markets Authority) respectively. The high-level representatives of the Authority and of those
other European Supervisory Authorities shall participate in the meetings of that committee without the right to vote. In
addition, the Commission, the ESRB, and the Supervisory Board of the European Central Bank, shall each nominate a
high-level representative to participate in meetings of that committee, as observers. The chair of that committee shall be
elected by and from the voting members of that committee.
Each institution, authority and body referred to in the first subparagraph shall nominate an alternate representative from
its staff, who may replace the member where that person is prevented from attending. Member States where more than
one authority is competent for ensuring compliance with Directive (EU) 2015/849 for financial sector operators may
nominate one representative for each competent authority. Irrespective of the number of competent authorities represented
in the meeting, each Member State shall have one vote. That committee may establish internal working groups on specific
aspects of its work with a view to preparing draft decisions of that committee. Those groups shall be open for participation
to staff from all competent authorities represented in that committee and from the Authority, the European Supervisory
Authority (European Insurance and Occupational Pensions Authority) and the European Supervisory Authority (European
Securities and Markets Authority).
9. The Authority, the European Supervisory Authority (European Insurance and Occupational Pensions Authority)
and the European Supervisory Authority (European Securities and Markets Authority) may at any time submit written
observations on any draft decision of the committee referred to in paragraph 7 of this Article. The Board of Supervisors
shall duly consider such observations before taking its final decision. Where a draft decision is based on, or connected
with, the powers conferred upon the Authority under Article 9b, 17 or 19 and concerns:
(a) financial institutions as defined in point (1) of Article 4 of Regulation (EU) No 1094/2010 or any of the competent
authorities supervising them, or
(b) financial market participants as defined in point (1) of Article 4 of Regulation (EU) No 1095/2010 or any of the
competent authorities supervising them,
the Authority may only take the decision in agreement with the European Supervisory Authority (European Insurance
and Occupational Pensions Authority), in the case of point (a), or of the European Supervisory Authority (European
Securities and Markets Authority), in the case of point (b). The European Supervisory Authority (European Insurance and
Occupational Pensions Authority) or the European Supervisory Authority (European Securities and Markets Authority)
shall notify their views to the Authority within 20 days from the date of the draft decision by the committee referred to in
paragraph 7. Where they do not notify their views to the Authority within 20 days nor request a duly justified prolongation
for notifying such views the agreement shall be presumed.
Article 9b
Request for investigation related to the prevention and countering of money laundering and of terrorist financing
1. In matters concerning the prevention of and countering the use of the financial system for the purposes of money
laundering and terrorist financing, in accordance with Directive (EU) 2015/849, the Authority may, where it has indications
of material breaches, request a competent authority as referred to in point (2)(iii) of Article 4: (a) to investigate possible
breaches of Union law, and where such Union law is composed of Directives or explicitly grants options for Member States,
breaches of national law to the extent that it transposes Directives or exercises options granted to Member States by Union
law, by a financial sector operator; and (b) to consider imposing sanctions on that operator in respect of such breaches.
Where necessary, it may also request a competent authority as referred to in point (2)(iii) of Article 4 to consider adopting
an individual decision addressed to that financial sector operator requiring it to undertake all necessary action to comply
with its obligations under directly applicable Union law, or under national law to the extent that it transposes Directives
or exercises options granted to Member States by Union law, including the cessation of any practice. The requests referred
to in this paragraph shall not impede ongoing supervisory measures by the competent authority to which the request is
addressed.
2. The competent authority shall comply with any request addressed to it in accordance with paragraph 1 and shall
inform the Authority, as soon as possible and within 10 working days at the latest, of the steps it has taken or intends to
take to comply with that request.
3. Without prejudice to the powers of the Commission under Article 258 TFEU, where a competent authority does not
inform the Authority within 10 working days of the steps it has taken or intends to take to comply with paragraph 2 of
this Article, Article 17 of this Regulation shall apply.
Article 9c
No action letters
1. The Authority shall take the measures referred to in paragraph 2 of this Article only in exceptional circumstances when
it considers that the application of one of the legislative acts referred to in Article 1(2), or of any delegated or implementing
acts based on those legislative acts, is liable to raise significant issues, for one of the following reasons:
(a) the Authority considers that provisions contained in such act may directly conflict with another relevant act;
(b) where the act is one of the legislative acts referred to in Article 1(2), the absence of delegated or implementing acts that
would complement or specify the act in question would raise legitimate doubts concerning the legal consequences
flowing from the legislative act or its proper application;
(c) the absence of guidelines and recommendations as referred to in Article 16 would raise practical difficulties
concerning the application of the relevant legislative act.
2. In the cases referred to in paragraph 1, the Authority shall send a detailed account in writing to the competent
authorities and the Commission of the issues it considers to exist.
In the cases referred to in points (a) and (b) of paragraph 1, the Authority shall provide the Commission with an opinion
on any action it considers appropriate, in the form of a new legislative proposal or a proposal for a new delegated or
implementing act, and on the urgency that, in the Authority’s judgment, is attached to the issue. The Authority shall make
its opinion public.
In the case referred to in point (c) of paragraph 1 of this Article, the Authority shall evaluate as soon as possible the need
to adopt relevant guidelines or recommendations in accordance with Article 16.
The Authority shall act expeditiously, in particular with a view to contributing to the prevention of the issues referred to
in paragraph 1, whenever possible.
3. Where necessary in the cases referred to in paragraph 1, and pending the adoption and application of new measures
following the steps referred to in paragraph 2, the Authority shall issue opinions regarding specific provisions of the
acts referred to in paragraph 1 with a view to furthering consistent, efficient and effective supervisory and enforcement
practices, and the common, uniform and consistent application of Union law.
4. Where, on the basis of information received, in particular from competent authorities, the Authority considers that any
of the legislative acts referred to in Article 1(2), or any delegated or implementing act based on those legislative acts, raises
significant exceptional issues pertaining to market confidence, consumer, customer or investor protection, the orderly
functioning and integrity of financial markets or commodity markets, or the stability of the whole or part of the financial
system in the Union, it shall, without undue delay, send a detailed account in writing to the competent authorities and the
Commission of the issues it considers to exist. The Authority may provide the Commission with an opinion on any action
it considers appropriate, in the form of a new legislative proposal or a proposal for a new delegated or implementing act,
and on the urgency of the issue. The Authority shall make its opinion public.
(*) Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment
of the European Public Prosecutor’s Office (“the EPPO”) (OJ L 283, 31.10.2017, p. 1).’;
(i) the first subparagraph is replaced by the following:
‘1. Where the European Parliament and the Council delegate power to the Commission to adopt regulatory
technical standards by means of delegated acts pursuant to Article 290 TFEU in order to ensure consistent
harmonisation in the areas specifically set out in the legislative acts referred to in Article 1(2) of this Regulation,
the Authority may develop draft regulatory technical standards. The Authority shall submit its draft regulatory
technical standards to the Commission for adoption. At the same time, the Authority shall forward those draft
regulatory technical standards for information to the European Parliament and to the Council.’;
(ii) the third subparagraph is replaced by the following:
‘Before submitting them to the Commission, the Authority shall conduct open public consultations on draft
regulatory technical standards and shall analyse the potential related costs and benefits, unless such consultations
and analyses are highly disproportionate in relation to the scope and impact of the draft regulatory technical
standards concerned or in relation to the particular urgency of the matter. The Authority shall also request the
advice of the Banking Stakeholder Group referred to in Article 37.’;
(iii) the fourth subparagraph is deleted;
(iv) the fifth and the sixth subparagraphs are replaced by the following:
‘Within three months of receipt of a draft regulatory technical standard, the Commission shall decide whether
to adopt it. The Commission shall inform the European Parliament and the Council in due time where the
adoption cannot take place within the three-month period. The Commission may adopt the draft regulatory
technical standard in part only, or with amendments, where the Union’s interests so require.
Where the Commission intends not to adopt a draft regulatory technical standard or to adopt it in part or with
amendments, it shall send the draft regulatory technical standard back to the Authority, explaining why it
does not adopt it or explaining the reasons for its amendments. The Commission shall send a copy of its letter
to the European Parliament and to the Council. Within a period of six weeks, the Authority may amend the
draft regulatory technical standard on the basis of the Commission’s proposed amendments and resubmit it in
the form of a formal opinion to the Commission. The Authority shall send a copy of its formal opinion to the
European Parliament and to the Council.’;
‘2. Where the Authority has not submitted a draft regulatory technical standard within the time limit set out in
the legislative acts referred to in Article 1(2), the Commission may request such a draft within a new time limit.
The Authority shall inform the European Parliament, the Council and the Commission, in due time, that it will not
comply with the new time limit.’;
(c) in paragraph 3, the second subparagraph is replaced by the following:
‘The Commission shall conduct open public consultations on draft regulatory technical standards and analyse the
potential related costs and benefits, unless such consultations and analyses are disproportionate in relation to the
scope and impact of the draft regulatory technical standards concerned or in relation to the particular urgency of the
matter. The Commission shall also request the advice of the Banking Stakeholder Group referred to in Article 37.’;
(d) paragraph 4 is replaced by the following:
‘4. The regulatory technical standards shall be adopted by means of regulations or decisions. The words “regulatory
technical standard” shall appear in the title of such regulations or decisions. Those standards shall be published in
the Official Journal of the European Union and shall enter into force on the date stated therein.’;
(9) in Article 13(1), the second subparagraph is deleted;
‘1. Where the European Parliament and the Council confer implementing powers on the Commission to adopt
implementing technical standards by means of implementing acts pursuant to Article 291 TFEU, in the areas
specifically set out in the legislative acts referred to in Article 1(2) of this Regulation, the Authority may develop
draft implementing technical standards. Implementing technical standards shall be technical, shall not imply strategic
decisions or policy choices and their content shall be to determine the conditions of application of those acts. The
Authority shall submit its draft implementing technical standards to the Commission for adoption. At the same time,
the Authority shall forward those technical standards for information to the European Parliament and to the Council.
Before submitting draft implementing technical standards to the Commission, the Authority shall conduct open
public consultations and shall analyse the potential related costs and benefits, unless such consultations and analyses
are highly disproportionate in relation to the scope and impact of the draft implementing technical standards
concerned or in relation to the particular urgency of the matter. The Authority shall also request the advice of the
Banking Stakeholder Group referred to in Article 37.
Within three months of receipt of a draft implementing technical standard, the Commission shall decide
whether to adopt it. The Commission may extend that period by one month. The Commission shall inform the
European Parliament and the Council in due time where the adoption cannot take place within the three-month
period. The Commission may adopt the draft implementing technical standard in part only, or with amendments,
where the Union’s interests so require.
Where the Commission intends not to adopt a draft implementing technical standard or intends to adopt it in part
or with amendments, it shall send it back to the Authority explaining why it does not intend to adopt it or explaining
the reasons for its amendments. The Commission shall send a copy of its letter to the European Parliament and to the
Council. Within a period of six weeks, the Authority may amend the draft implementing technical standard on the
basis of the Commission’s proposed amendments and resubmit it in the form of a formal opinion to the Commission.
The Authority shall send a copy of its formal opinion to the European Parliament and to the Council.
If, on the expiry of the six-week period referred to in the fourth subparagraph, the Authority has not submitted an
amended draft implementing technical standard, or has submitted a draft implementing technical standard that is
not amended in a way consistent with the Commission’s proposed amendments, the Commission may adopt the
implementing technical standard with the amendments it considers relevant or reject it.
The Commission shall not change the content of a draft implementing technical standard prepared by the Authority
without prior coordination with the Authority, as set out in this Article.
2. Where the Authority has not submitted a draft implementing technical standard within the time limit set out
in the legislative acts referred to in Article 1(2), the Commission may request such a draft within a new time limit.
(b) in paragraph 3, the second subparagraph is replaced by the following:
‘The Commission shall conduct open public consultations on draft implementing technical standards and analyse
the potential related costs and benefits, unless such consultations and analyses are disproportionate in relation to the
scope and impact of the draft implementing technical standards concerned or in relation to the particular urgency of
the matter. The Commission shall also request the advice of the Banking Stakeholder Group referred to in Article 37.’;
(c) paragraph 4 is replaced by the following:
‘4. The implementing technical standards shall be adopted by means of regulations or decisions. The words
“implementing technical standard” shall appear in the title of such regulations or decisions. Those standards shall be
published in the Official Journal of the European Union and shall enter into force on the date stated therein.’;
‘1. The Authority shall, with a view to establishing consistent, efficient and effective supervisory practices within the
ESFS, and to ensuring the common, uniform and consistent application of Union law, issue guidelines addressed to all
competent authorities or all financial institutions and issue recommendations to one or more competent authorities
or to one or more financial institutions.
Guidelines and recommendations shall be in accordance with the empowerments conferred by the legislative acts
referred to in Article 1(2) or in this Article.
2. The Authority shall, where appropriate, conduct open public consultations regarding the guidelines and
recommendations which it issues and analyse the related potential costs and benefits of issuing such guidelines
and recommendations. Those consultations and analyses shall be proportionate in relation to the scope, nature
and impact of the guidelines or recommendations. The Authority shall, where appropriate, also request advice
from the Banking Stakeholder Group referred to in Article 37. Where the Authority does not conduct open public
consultations or does not request advice from the Banking Stakeholder Group, the Authority shall provide reasons.’;
(b) the following paragraph is inserted:
‘2a. Guidelines and recommendations shall not merely refer to, or reproduce, elements of legislative acts. Before
issuing a new guideline or recommendation, the Authority shall first review existing guidelines and recommendations,
in order to avoid any duplication.’;
‘4. In the report referred to in Article 43(5), the Authority shall inform the European Parliament, the Council and
the Commission of the guidelines and recommendations that have been issued.’;
‘Article 16a
Opinions
1. The Authority may, upon a request from the European Parliament, from the Council or from the Commission, or
on its own initiative, provide opinions to the European Parliament, to the Council and to the Commission on all issues
related to its area of competence.
2. The request referred to in paragraph 1 may include a public consultation or a technical analysis.
3. With regard to assessments referred to in Article 22 of Directive 2013/36/EU, and which according to that
Article require consultation between competent authorities from two or more Member States, the Authority may, at the
request of one of the competent authorities concerned, issue and publish an opinion on such assessments. The opinion
shall be issued promptly and, in any event, before the end of the assessment period referred to in that Article.
4. The Authority may, upon a request from the European Parliament, from the Council or from the Commission provide
technical advice to the European Parliament, the Council and the Commission in the areas set out in the legislative acts
referred to in Article 1(2).
Article 16b
Questions and answers
1. Without prejudice to paragraph 5 of this Article, questions relating to the practical application or implementation of
the provisions of legislative acts referred to in Article 1(2), associated delegated and implementing acts, and guidelines and
recommendations, adopted pursuant to those legislative acts, may be submitted by any natural or legal person, including
competent authorities and Union institutions and bodies, to the Authority in any official language of the Union.
Before submitting a question to the Authority, financial institutions shall consider whether to address the question in the
first place to their competent authority.
Before publishing answers to admissible questions, the Authority may seek further clarification on questions asked by the
natural or legal person referred to in this paragraph.
2. Answers by the Authority to questions as referred to in paragraph 1 shall be non-binding. Answers shall be made
available at least in the language in which the question was submitted.
3. The Authority shall establish and maintain a web-based tool available on its website for the submission of questions and
the timely publication of all questions received as well as all answers to all admissible questions pursuant to paragraph 1,
unless such publication is in conflict with the legitimate interest of those persons or would involve risks to the stability of
the financial system. The Authority may reject questions it does not intend to answer. Rejected questions shall be published
by the Authority on its website for a period of two months.
4. Three voting members of the Board of Supervisors may request the Board of Supervisors to decide pursuant to
Article 44 whether to address the issue of the admissible question referred to in paragraph 1 of this Article in guidelines
pursuant to Article 16, to request advice from the Stakeholder Group referred to in Article 37, to review questions and
answers at appropriate intervals, to conduct open public consultations or to analyse potential related costs and benefits.
Such consultations and analyses shall be proportionate in relation to the scope, nature and impact of the draft questions
and answers concerned or in relation to the particular urgency of the matter. When involving the Stakeholder Group
referred to in Article 37, a duty of confidentiality shall apply.
5. The Authority shall forward questions that require the interpretation of Union law to the Commission. The Authority
shall publish any answers provided by the Commission.’;
‘2. Upon request from one or more competent authorities, the European Parliament, the Council, the
Commission, the Banking Stakeholder Group, or on its own initiative, including when this is based on well-
substantiated information from natural or legal persons, and after having informed the competent authority
concerned, the Authority shall outline how it intends to proceed with the case and, where appropriate,
investigate the alleged breach or non-application of Union law.’;
(ii) the following subparagraphs are added:
‘Without prejudice to the powers laid down in Article 35, the Authority may, after having informed the
competent authority concerned, address a duly justified and reasoned request for information directly to
other competent authorities whenever requesting information from the competent authority concerned has
proven, or is deemed to be, insufficient to obtain the information that is deemed necessary for the purpose of
investigating an alleged breach or non-application of Union law.
The addressee of such a request shall provide the Authority with clear, accurate and complete information
without undue delay.’;
‘2a. Without prejudice to powers under this Regulation and before issuing a recommendation as set out in
paragraph 3, the Authority shall engage with the competent authority concerned, where it considers such engagement
appropriate in order to resolve a breach of Union law, in an attempt to reach agreement on actions necessary for the
competent authority to comply with Union law.’;
‘6. Without prejudice to the powers of the Commission pursuant to Article 258 TFEU, where a competent authority
does not comply with the formal opinion referred to in paragraph 4 of this Article within the period specified therein,
and where it is necessary to remedy, in a timely manner, such non-compliance in order to maintain or restore neutral
conditions of competition in the market or ensure the orderly functioning and integrity of the financial system, the
Authority may, where the relevant requirements of the legislative acts referred to in Article 1(2) of this Regulation
are directly applicable to financial institutions or, in the context of matters relating to the prevention and countering
of money laundering and of terrorist financing, to financial sector operators, adopt an individual decision addressed
to a financial institution or another financial sector operator requiring it to take all necessary action to comply with
its obligations under Union law, including the cessation of any practice.
In matters concerning the prevention of the use of the financial system for the purpose of money laundering or of
terrorist financing, where the relevant requirements of the legislative acts referred to in Article 1(2) are not directly
applicable to financial sector operators, the Authority may adopt a decision requiring the competent authority to
comply with the formal opinion referred to in paragraph 4 of this Article within the period specified therein. If the
authority does not comply with that decision, the Authority may also adopt a decision in accordance with the first
subparagraph. To that effect, the Authority shall apply all relevant Union law, and, where that Union law is composed
of Directives, national law to the extent that it transposes those Directives. Where the relevant Union law is composed
of Regulations and where those Regulations explicitly grant options for Member States, the Authority shall apply
also national law to the extent that such options have been exercised.
The decision of the Authority shall be in conformity with the formal opinion issued by the Commission pursuant
to paragraph 4.
7. Decisions adopted in accordance with paragraph 6 shall prevail over any previous decision adopted by the
competent authorities on the same matter.
When taking action in relation to issues which are subject to a formal opinion pursuant to paragraph 4 or to a
decision pursuant to paragraph 6, competent authorities shall comply with the formal opinion or the decision, as
the case may be.’;
(14) the following article is inserted:
‘Article 17a
Protection of reporting persons
1. The Authority shall have in place dedicated reporting channels for receiving and handling information provided by a
natural or legal person reporting on actual or potential breaches, abuse of law, or non-application of Union law.
2. The natural or legal persons reporting through those channels shall be protected against retaliation in accordance
with Directive (EU) 2019/1937 of the European Parliament and of the Council (*), where applicable.
3. The Authority shall ensure that all information may be submitted anonymously or confidentially, and safely. Where
the Authority deems that the submitted information contains evidence or significant indications of a material breach, it
shall provide feedback to the reporting person.
(*) Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of
persons who report breaches of Union law (OJ L 305, 26.11.2019, p. 17).’;
(15) in Article 18, paragraph 3 is replaced by the following:
‘3. Where the Council has adopted a decision pursuant to paragraph 2 of this Article and, in exceptional circumstances,
where coordinated action by competent authorities is necessary to respond to adverse developments which may seriously
jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial
system in the Union or customer and consumer protection, the Authority may adopt individual decisions requiring
competent authorities to take the necessary action in accordance with the legislative acts referred to in Article 1(2) to
address any such developments by ensuring that financial institutions and competent authorities satisfy the requirements
laid down in those legislative acts.’;
‘1. In cases specified in the legislative acts referred to in Article 1(2) and without prejudice to the powers laid down
in Article 17, the Authority may assist the competent authorities in reaching an agreement in accordance with the
procedure set out in paragraphs 2 to 4 of this Article in either of the following circumstances:
(a) at the request of one or more of the competent authorities concerned where a competent authority disagrees
with the procedure or content of an action, proposed action, or inactivity of another competent authority;
(b) in cases where the legislative acts referred to in Article 1(2) provide that the Authority may assist, on its
own initiative, where on the basis of objective reasons, disagreement can be determined between competent
authorities.
In cases where the legislative acts referred to in Article 1(2) require a joint decision to be taken by competent
authorities and where, in accordance with those acts, the Authority may assist, on its own initiative, in reaching an
agreement in accordance with the procedure set out in paragraphs 2 to 4 of this Article, the competent authorities
concerned, a disagreement shall be presumed in the absence of a joint decision being taken by those authorities
within the time limits set out in those acts.’;
(b) the following paragraphs are inserted:
‘1a. The competent authorities concerned shall, in the following cases, notify the Authority without undue delay
that an agreement has not been reached:
(a) where a time limit for reaching an agreement between competent authorities has been provided for in the
legislative acts referred to in Article 1(2), and either of the following occurs:
(i) the time limit has expired; or
(ii) at least two competent authorities concerned conclude that a disagreement exists, on the basis of objective
reasons;
(b) where no time limit for reaching an agreement between competent authorities has been provided for in the
(i) at least two competent authorities concerned conclude that a disagreement exists on the basis of objective
reasons; or
(ii) two months have elapsed from the date of receipt by a competent authority of a request from another
competent authority to take certain action in order to comply with those acts and the requested authority
has not yet adopted a decision that satisfies the request.
1b. The Chairperson shall assess whether the Authority should act in accordance with paragraph 1. Where the
intervention is at the Authority’s own initiative, the Authority shall notify the competent authorities concerned of
its decision regarding the intervention.
Pending the Authority’s decision in accordance with the procedure set out in Article 44(3a), in cases where the
legislative acts referred to in Article 1(2) require a joint decision to be taken, all competent authorities involved
in the joint decision shall defer their individual decisions. Where the Authority decides to act, all the competent
authorities involved in the joint decision shall defer their decisions until the procedure set out in paragraphs 2 and 3
of this Article is concluded.’;
‘Where the competent authorities concerned fail to reach an agreement within the conciliation phase referred to in
paragraph 2, the Authority may take a decision requiring those authorities to take specific action, or to refrain from
certain action, in order to settle the matter, and to ensure compliance with Union law. The decision of the Authority
shall be binding on the competent authorities concerned. The Authority’s decision may require competent authorities
to revoke or amend a decision that they have adopted or to make use of the powers which they have under the
relevant Union law.’;
(d) the following paragraph is inserted:
‘3a. The Authority shall notify the competent authorities concerned of the conclusion of the procedures under
paragraphs 2 and 3 together with, where applicable, its decision taken under paragraph 3.’;
(e) paragraph 4 is replaced by the following:
does not comply with the decision of the Authority, and thereby fails to ensure that a financial institution or, in the
context of matters relating to the prevention and countering of money laundering or of terrorist financing, a financial
sector operator complies with requirements directly applicable to it by virtue of the legislative acts referred to in
Article 1(2) of this Regulation, the Authority may adopt an individual decision addressed to that financial institution
or financial sector operator requiring it to take all necessary action to comply with its obligations under Union law,
including the cessation of any practice.
In matters concerning the prevention of the use of the financial system for the purpose of money laundering or
of terrorist financing, the Authority may also adopt a decision in accordance with the first subparagraph of this
paragraph where the relevant requirements of the legislative acts referred to in Article 1(2) are not directly applicable
to financial sector operators. To that effect, the Authority shall apply all relevant Union law, and where such Union
law is composed of Directives, national law to the extent that it transposes those Directives. Where the relevant
Union law is composed of Regulations and where those Regulations explicitly grant options for Member States, the
Authority shall apply also national law to the extent that such options have been exercised.’;
‘1. The Authority shall promote and monitor, within the scope of its powers, the efficient, effective and consistent
functioning of the colleges of supervisors where established by legislative acts referred to in Article 1(2) and foster the
consistency and coherence of the application of Union law among the colleges of supervisors. With the objective of
converging supervisory best practices, the Authority shall promote joint supervisory plans and joint examinations,
and staff from the Authority shall have full participation rights in the colleges of supervisors and, as such, shall be
able to participate in the activities of the colleges of supervisors, including on-site inspections, carried out jointly by
two or more competent authorities.’;
(b) in paragraph 2, third subparagraph, point (b) is replaced by the following:
‘(b) initiate and coordinate Union-wide stress tests in accordance with Article 32 to assess the resilience of financial
institutions, in particular the systemic risk posed by financial institutions as referred to in Article 23, to
adverse market developments, and evaluate the potential for systemic risk to increase in situations of stress,
ensuring that a consistent methodology is applied at national level to such tests and, where appropriate,
address a recommendation to the competent authority to correct issues identified in the stress test, including a
recommendation to conduct specific assessments; it may recommend competent authorities to carry out on-site
inspections, and may participate in such on-site inspections, in order to ensure comparability and reliability of
methods, practices and results of Union-wide assessments;’;
‘3. The Authority may develop draft regulatory and implementing technical standards in accordance with the
empowerments laid down in the legislative acts referred to in Article 1(2), and in accordance with Articles 10 to 15,
to ensure uniform conditions of application with respect to the provisions regarding the operational functioning of
colleges of supervisors. The Authority may issue guidelines and recommendations in accordance with Article 16
to promote convergence in supervisory functioning and best practices that have been adopted by the colleges of
supervisors.’;
(a) the title is replaced by the following:
‘General provisions on systemic risk’;
(b) in paragraph 2, the first subparagraph is replaced by the following:
‘2. The Authority shall, in collaboration with the ESRB, and in accordance with Article 23, develop a common set
of quantitative and qualitative indicators (risk dashboard) to identify and measure systemic risk.’;
‘4. Upon request from one or more competent authorities, the European Parliament, the Council or the Commission,
or on its own initiative, the Authority may conduct an inquiry into a particular type of financial institution or type
of product or type of conduct in order to assess potential threats to the stability of the financial system or to the
protection of customers or consumers.
Following an inquiry conducted pursuant to the first subparagraph, the Board of Supervisors may make appropriate
recommendations for action to the competent authorities concerned.
For those purposes, the Authority may use the powers conferred on it under this Regulation, including Article 35.’;
‘1. The Authority shall, in consultation with the ESRB, develop criteria for the identification and measurement of systemic
risk and an adequate stress-testing regime which includes an evaluation of the potential for systemic risk posed by, or
to, financial institutions to increase in situations of stress, including potential environmental-related systemic risk. The
financial institutions that may pose a systemic risk shall be subject to strengthened supervision, and where necessary, the
recovery and resolution procedures referred to in Article 25.’;
(20) in Article 27(2), the third subparagraph is deleted;
(i) the following points are inserted:
‘(aa) establishing Union strategic supervisory priorities in accordance with Article 29a;
(ab) establishing coordination groups in accordance with Article 45b to promote supervisory convergence
and identify best practices;’;
(ii) point (b) is replaced by the following:
‘(b) promoting an effective bilateral and multilateral exchange of information between competent authorities,
pertaining to all relevant issues, including cyber security and cyber-attacks, with full respect for the
applicable confidentiality and data protection provisions provided for in the relevant Union legislative
acts;’;
(iii) point (e) is replaced by the following:
‘(e) establishing sectoral and cross-sectoral training programmes, including with respect to technological
innovation, facilitating personnel exchanges and encouraging competent authorities to intensify the use
of secondment schemes and other tools;’;
(iv) the following point is added:
‘(f) putting in place a monitoring system to assess material environmental, social and governance-related
risks, taking into account the Paris Agreement to the United Nations Framework Convention on Climate
Change;’;
‘2. The Authority may, as appropriate, develop new practical instruments and convergence tools to promote
common supervisory approaches and practices.
For the purpose of establishing a common supervisory culture, the Authority shall develop and maintain an up-
to-date Union supervisory handbook on the supervision of financial institutions in the Union, which duly takes
into account the nature, scale and complexity of risks, business practices, business models and the size of financial
institutions and of markets. The Authority shall also develop and maintain an up-to-date Union resolution handbook
on the resolution of financial institutions in the Union, which duly takes into account the nature, scale and complexity
of risks, business practices, business models and the size of financial institutions and of markets. Both the Union
supervisory handbook and the Union resolution handbook shall set out best practices and shall specify high-quality
methodologies and processes.
The Authority shall, where appropriate, conduct open public consultations regarding the opinions referred to in
point (a) of paragraph 1 and tools and instruments referred to in this paragraph. It shall also, where appropriate,
analyse the related potential costs and benefits. Such consultations and analyses shall be proportionate in relation
to the scope, nature and impact of the opinions or tools and instruments. The Authority shall, where appropriate,
also request advice from the Banking Stakeholder Group referred to in Article 37.’;
‘Article 29a
Union strategic supervisory priorities
Following a discussion in the Board of Supervisors and taking into account contributions received from competent
authorities, existing work by the Union Institutions, and analysis, warnings and recommendations published by the ESRB,
the Authority shall, at least every three years, by 31 March, identify up to two priorities of Union-wide relevance which
shall reflect future developments and trends. Competent authorities shall take those priorities into account when drawing
up their work programmes and shall notify the Authority accordingly. The Authority shall discuss the relevant activities
by the competent authorities in the following year and draw conclusions. The Authority shall discuss possible follow-up
which may include guidelines, recommendations to competent authorities, and peer reviews, in the respective area.
The priorities of Union-wide relevance identified by the Authority shall not prevent competent authorities from applying
their best practices, acting on their additional priorities and developments, and national specificities shall be considered.’;
‘Article 30
Peer reviews of competent authorities
1. The Authority shall periodically conduct peer reviews of some or all of the activities of competent authorities, to
further strengthen consistency and effectiveness in supervisory outcomes. To that end, the Authority shall develop methods
to allow for an objective assessment and comparison between the competent authorities reviewed. When planning and
conducting peer reviews, existing information and evaluations already made with regard to the competent authority
concerned, including any relevant information provided to the Authority in accordance with Article 35, and any relevant
information from stakeholders shall be taken into account.
2. For the purposes of this Article, the Authority shall establish ad hoc peer review committees, which shall be composed
of staff from the Authority and members of the competent authorities. The peer review committees shall be chaired by a
member of the Authority’s staff. The Chairperson, after consulting the Management Board and following an open call for
participation, shall propose the chair and the members of a peer review committee which shall be approved by the Board
of Supervisors. The proposal shall be deemed to be approved unless, within 10 days of the Chairperson proposing it, the
Board of Supervisors adopts a decision to reject it.
3. The peer review shall include an assessment of, but shall not be limited to:
(a) the adequacy of resources, the degree of independence, and governance arrangements of the competent authority,
with particular regard to the effective application of the legislative acts referred to in Article 1(2) and the capacity to
respond to market developments;
(b) the effectiveness and the degree of convergence reached in the application of Union law and in supervisory practice,
including regulatory technical standards and implementing technical standards, guidelines and recommendations
adopted pursuant to Articles 10 to 16, and the extent to which the supervisory practice achieves the objectives set
out in Union law;
(c) the application of best practices developed by competent authorities whose adoption might be of benefit for other
competent authorities;
(d) the effectiveness and the degree of convergence reached with regard to the enforcement of the provisions adopted in
the implementation of Union law, including the administrative sanctions and other administrative measures imposed
against persons responsible where those provisions have not been complied with.
4. The Authority shall produce a report setting out the results of the peer review. That peer review report shall be prepared
by the peer review committee and adopted by the Board of Supervisors in accordance with Article 44(3a). When drafting
that report, the peer review committee shall consult the Management Board in order to maintain consistency with other
peer review reports and to ensure a level playing field. The Management Board shall assess in particular whether the
methodology has been applied in the same manner. The report shall explain and indicate the follow-up measures that are
deemed appropriate, proportionate and necessary as a result of the peer review. Those follow-up measures may be adopted
in the form of guidelines and recommendations pursuant to Article 16 and opinions pursuant to point (a) of Article 29(1).
In accordance with Article 16(3), the competent authorities shall make every effort to comply with any guidelines and
recommendations issued.
When developing draft regulatory technical standards or draft implementing technical standards in accordance with
Articles 10 to 15, or guidelines or recommendations in accordance with Article 16, the Authority shall take into account
the outcome of the peer review, along with any other information acquired by the Authority in carrying out its tasks, in
order to ensure convergence of the highest quality supervisory practices.
5. The Authority shall submit an opinion to the Commission where, having regard to the outcome of the peer review
or to any other information acquired by the Authority in carrying out its tasks, it considers that further harmonisation of
Union rules applicable to financial institutions or competent authorities would be necessary from the Union’s perspective.
6. The Authority shall undertake a follow-up report after two years of the publication of the peer review report. The
follow-up report shall be prepared by the peer review committee and adopted by the Board of Supervisors in accordance
with Article 44(3a). When drafting that report, the peer review committee shall consult the Management Board in order
to maintain consistency with other follow-up reports. The follow-up report shall include an assessment of, but shall not
be limited to, the adequacy and effectiveness of the actions undertaken by the competent authorities that are subject to
the peer review in response to the follow-up measures of the peer review report.
7. The peer review committee shall, after consulting the competent authorities subject to the peer review, identify the
reasoned main findings of the peer review. The Authority shall publish the reasoned main findings of the peer review and
of the follow-up report referred to in paragraph 6. Where the reasoned main findings of the Authority differ from those
identified by the peer review committee, the Authority shall transmit, on a confidential basis, the peer review committee’s
findings to the European Parliament, to the Council and to the Commission. Where a competent authority that is subject
to the peer review is concerned that the publication of the Authority’s reasoned main findings would pose a risk to the
stability of the financial system, it shall have the possibility to refer the matter to the Board of Supervisors. The Board of
Supervisors may decide not to publish those extracts.
8. For the purposes of this Article, the Management Board shall make a proposal for a peer review work plan for the
coming two years, which shall inter alia reflect the lessons learnt from the past peer review processes and discussions of
coordination groups referred to in Article 45b. The peer review work plan shall constitute a separate part of the annual
and multiannual working programme. It shall be made public. In case of urgency or unforeseen events, the Authority may
decide to carry out additional peer reviews.’;
(a) the first paragraph is replaced by the following:
‘1. The Authority shall fulfil a general coordination role between competent authorities, in particular in situations
where adverse developments could potentially jeopardise the orderly functioning and integrity of financial markets
or the stability of the financial system in the Union.’;
(b) the second paragraph is amended as follows:
(i) the introductory part is replaced by the following:
‘2. The Authority shall promote a coordinated Union response, inter alia, by:’;
(ii) point (e) is replaced by the following:
‘(e) taking appropriate measures in the event of developments which may jeopardise the functioning of the
financial markets with a view to the coordination of actions undertaken by relevant competent authorities;’;
‘(ea) taking appropriate measures to coordinate actions undertaken by relevant competent authorities with a
view to facilitating the entry into the market of actors or products relying on technological innovation;’;
‘3. In order to contribute to the establishment of a common European approach towards technological innovation,
the Authority shall promote supervisory convergence, with the support, where relevant, of the Committee on
consumer protection and financial innovation, facilitating entry into the market of actors or products relying on
technological innovation, in particular through the exchange of information and best practices. Where appropriate,
the Authority may adopt guidelines or recommendations in accordance with Article 16.’;
(25) the following Article is inserted:
‘Article 31a
Information exchange on fitness and propriety
The Authority shall, together with the European Supervisory Authority (European Insurance and Occupational Pensions
Authority) and with the European Supervisory Authority (European Securities and Markets Authority), establish a system
for the exchange of information relevant to the assessment of the fitness and propriety of holders of qualifying holdings,
directors and key function holders of financial institutions by competent authorities in accordance with the legislative
acts referred to in Article 1(2).’;
‘Assessment of market developments, including stress tests’;
‘1. The Authority shall monitor and assess market developments in the area of its competence and, where necessary,
inform the European Supervisory Authority (European Insurance and Occupational Pensions Authority) and the
European Supervisory Authority (European Securities and Markets Authority), the ESRB, and the European Parliament,
the Council and the Commission about the relevant micro-prudential trends, potential risks and vulnerabilities. The
Authority shall include in its assessments an analysis of the markets in which financial institutions operate and an
assessment of the impact of potential market developments on such institutions.’;
(c) paragraph 2 is amended as follows:
‘2. The Authority shall initiate and coordinate Union-wide assessments of the resilience of financial institutions
to adverse market developments. To that end, it shall develop:’;
(ii) point (a) is replaced by the following:
‘(a) common methodologies for assessing the effect of economic scenarios on a financial institution’s financial
position taking into account inter alia risks stemming from adverse environmental developments;’;
‘(aa) common methodologies for identifying financial institutions to be included in Union-wide assessments;’;
(iv) points (c) and (d) are replaced by the following:
‘(c) common methodologies for assessing the effect of particular products or distribution processes on a
financial institution;
(d) common methodologies for asset evaluation, as necessary, for the purpose of the stress testing; and’;
(v) the following point is added:
‘(e) common methodologies for assessing the effect of environmental risks on the financial stability of
financial institutions.’;
(vi) the following subparagraph is added:
‘For the purposes of this paragraph, the Authority shall cooperate with the ESRB.’;
(d) in paragraph 3, the first subparagraph is replaced by the following:
‘3. Without prejudice to the tasks of the ESRB set out in Regulation (EU) No 1092/2010, the Authority shall, once
a year, and more frequently where necessary, provide assessments to the European Parliament, to the Council, to the
Commission and to the ESRB of trends, potential risks and vulnerabilities in its area of competence, in combination
with the risk dashboard referred to in Article 22(2) of this Regulation.’;
(e) paragraph 3b is replaced by the following:
‘3b. The Authority may request that the competent authorities require that financial institutions make information
that they must provide under paragraph 3a subject to an independent audit.’;
‘Article 33
International relations including equivalence
1. Without prejudice to the respective competences of the Member States and the Union institutions, the Authority
may develop contacts and enter into administrative arrangements with regulatory, supervisory and, where applicable,
resolution authorities, international organisations and third-country administrations. Those arrangements shall not create
legal obligations in respect of the Union and its Member States nor shall they prevent Member States and their competent
authorities from concluding bilateral or multilateral arrangements with those third countries.
Where a third country, in accordance with a delegated act, which is in force, adopted by the Commission pursuant to
Article 9 of Directive (EU) 2015/849, is on the list of jurisdictions which have strategic deficiencies in their national anti-
money laundering and countering the financing of terrorism regimes that pose significant threats to the financial system
of the Union, the Authority shall not conclude administrative arrangements with the regulatory, supervisory and, where
applicable, resolution authorities of that third country. This shall not preclude other forms of cooperation between the
Authority and the respective third-country authorities with a view to reduce threats to the financial system of the Union.
2. The Authority shall assist the Commission in preparing equivalence decisions pertaining to regulatory and supervisory
regimes in third countries following a specific request for advice from the Commission or where required to do so by the
legislative acts referred to in Article 1(2).
3. The Authority shall monitor, with a particular focus on their implications for financial stability, market integrity,
investor protection and the functioning of the internal market, relevant regulatory, supervisory and, where applicable,
resolution developments, and enforcement practices and market developments in third countries, to the extent they are
relevant to risk-based equivalence assessments, for which equivalence decisions have been adopted by the Commission
pursuant to the legislative acts referred to in Article 1(2).
Furthermore, it shall verify whether the criteria, on the basis of which those equivalence decisions have been taken, and
any conditions set out therein, are still fulfilled.
The Authority may liaise with relevant authorities in third countries. The Authority shall submit a confidential report
to the European Parliament, to the Council, to the Commission and to the European Supervisory Authority (European
Insurance and Occupational Pensions Authority) and the European Supervisory Authority (European Securities and
Markets Authority) summarising the findings of its monitoring of all equivalent third countries. The report shall focus in
particular on implications for financial stability, market integrity, investor protection or the functioning of the internal
market.
Where the Authority identifies relevant developments in relation to the regulation, supervision or, where applicable,
resolution, or the enforcement practices in the third countries referred to in this paragraph that may affect the financial
stability of the Union or of one or more of its Member States, market integrity, investor protection or the functioning of
the internal market, it shall inform the European Parliament, the Council and the Commission on a confidential basis and
without undue delay.
4. Without prejudice to specific requirements set out in the legislative acts referred to in Article 1(2) and subject to the
conditions set out in the second sentence of paragraph 1 of this Article, the Authority shall cooperate where possible
with the relevant competent authorities, and where applicable, also with resolution authorities, of third countries whose
regulatory and supervisory regimes have been recognised as equivalent. In principle, that cooperation shall be pursued on
the basis of administrative arrangements concluded with the relevant authorities of those third countries. When negotiating
such administrative arrangements, the Authority shall include provisions on the following:
(a) the mechanisms which allow the Authority to obtain relevant information, including information on the regulatory
regime, the supervisory approach, relevant market developments and any changes that may affect the equivalence
decision;
(b) to the extent necessary for the follow-up of such equivalence decisions, the procedures concerning the coordination
of supervisory activities including, where necessary, on-site inspections.
The Authority shall inform the Commission where a third-country competent authority refuses to conclude such
administrative arrangements or when it refuses to effectively cooperate.
5. The Authority may develop model administrative arrangements, with a view to establishing consistent, efficient
and effective supervisory practices within the Union and to strengthening international supervisory coordination. The
competent authorities shall make every effort to follow such model arrangements.
In the report referred to in Article 43(5), the Authority shall include information on the administrative arrangements
agreed upon with supervisory authorities, international organisations or administrations in third countries, the assistance
provided by the Authority to the Commission in preparing equivalence decisions and the monitoring by the Authority in
accordance with paragraph 3 of this Article.
6. The Authority shall, within its powers pursuant to this Regulation and to the legislative acts referred to in Article 1(2),
contribute to the united, common, consistent and effective representation of the Union’s interests in international fora.’;
(28) Article 34 is deleted;
(a) paragraph 3 is deleted;
(b) paragraphs 4 and 5 are replaced by the following:
‘4. On receipt of a warning or recommendation from the ESRB addressed to the Authority, the Authority shall
discuss that warning or recommendation at the next meeting of the Board of Supervisors or, where appropriate,
earlier, in order to assess the implications of, and possible follow-up to, such a warning or recommendation for the
fulfilment of its tasks.
It shall decide, by the relevant decision-making procedure, on any actions to be taken in accordance with the powers
conferred upon it by this Regulation for addressing the issues identified in the warnings and recommendations.
If the Authority does not act on a warning or recommendation, it shall explain to the ESRB its reasons for not doing
so. The ESRB shall inform the European Parliament thereof in accordance with Article 19(5) of Regulation (EU)
No 1092/2010. The ESRB shall also inform the Council thereof.
5. On receipt of a warning or recommendation from the ESRB addressed to a competent authority, the Authority
shall, where relevant, use the powers conferred upon it by this Regulation to ensure a timely follow-up.
Where the addressee intends not to follow the recommendation of the ESRB, it shall inform and discuss with the
Board of Supervisors its reasons for not acting.
Where the competent authority, in accordance with Article 17(1) of Regulation (EU) No 1092/2010, informs the
European Parliament, the Council, the Commission and the ESRB of the actions it has undertaken in response to a
recommendation of the ESRB, it shall take due account of the views of the Board of Supervisors.’;
(c) paragraph 6 is deleted;
‘2. The Banking Stakeholder Group shall be composed of 30 members. Those members shall comprise of:
(a) 13 members representing, in balanced proportions, financial institutions operating in the Union of whom three
shall represent cooperative and savings banks;
(b) 13 members representing employees’ representatives of financial institutions operating in the Union, consumers,
users of banking services and representatives of SMEs; and
(c) four members who are independent top-ranking academics.

3. The members of the Banking Stakeholder Group shall be appointed by the Board of Supervisors following
an open and transparent selection procedure. In making its decision, the Board of Supervisors shall, to the extent
possible, ensure an appropriate reflection of diversity of the banking sector, geographical and gender balance and
representation of stakeholders across the Union. Members of the Banking Stakeholder Group shall be selected
according to their qualifications, skills, relevant knowledge and proven expertise.’;
‘3a. Members of the Banking Stakeholder Group shall elect a Chair from among its members. The position of Chair
shall be held for a period of two years.
The European Parliament may invite the Chair of the Banking Stakeholder Group to make a statement before it and
answer any questions from its members whenever so requested.’;
(c) in paragraph 4, the first subparagraph is replaced by the following:
‘4. The Authority shall provide all necessary information subject to professional secrecy as set out in Article 70 of
this Regulation and ensure adequate secretarial support for the Banking Stakeholder Group. Adequate compensation
shall be provided to members of the Banking Stakeholder Group representing non-profit organisations, excluding
industry representatives. This compensation shall take into account the members’ preparatory and follow-up work
and shall be at least equivalent to the reimbursement rates of officials pursuant to Title V, Chapter 1, Section 2 of the
Staff Regulations of Officials of the European Union and the Conditions of Employment of Other Servants of the
European Union, laid down in Council Regulation (EEC, Euratom, ECSC) No 259/68 (*) (the Staff Regulations). The
Banking Stakeholder Group may establish working groups on technical issues. Members of the Banking Stakeholder
Group shall serve for a period of four years, following which a new selection procedure shall take place.
(*) OJ L 56, 4.3.1968, p. 1.’;
‘5. The Banking Stakeholder Group may submit advice to the Authority on any issue related to the tasks of the
Authority with particular focus on the tasks set out in Articles 10 to 16, 29, 30 and 32.
Where members of the Banking Stakeholder Group cannot agree on advice, one third of its members or the members
representing one group of stakeholders shall be permitted to issue separate advice.
The Banking Stakeholder Group, the Securities and Markets Stakeholder Group, the Insurance and Reinsurance
Stakeholder Group, and the Occupational Pensions Stakeholder Group may issue a joint advice on issues related to
the work of the ESAs under Article 56 on joint positions and common acts.’;
‘7. The Authority shall make public the advice of the Banking Stakeholder Group, the separate advice of its
members, and the results of its consultations as well as information on how advice and results of consultations have
been taken into account.’;
‘Article 39
Decision-making procedures
1. The Authority shall act in accordance with paragraphs 2 to 6 of this Article when adopting decisions pursuant to
Articles 17, 18 and 19.
2. The Authority shall inform any addressee of a decision of its intention to adopt the decision, in the official language of
the addressee, setting a time limit within which the addressee may express its views on the subject-matter of the decision,
taking full account of the urgency, complexity and potential consequences of the matter. The addressee may express its
views in its official language. The provision laid down in the first sentence shall apply mutatis mutandis to recommendations
as referred to in Article 17(3).
3. The decisions of the Authority shall state the reasons on which they are based.
4. The addressees of decisions of the Authority shall be informed of the legal remedies available under this Regulation.
5. Where the Authority has taken a decision pursuant to Article 18(3) or 18(4), it shall review that decision at appropriate
intervals.
6. The decisions which the Authority takes pursuant to Article 17, 18 or 19 shall be made public. The publication shall
disclose the identity of the competent authority or financial institution concerned and the main content of the decision,
unless such publication is in conflict with the legitimate interest of those financial institutions, or with the protection of
their business secrets, or could seriously jeopardise the orderly functioning and integrity of financial markets or the stability
of the whole or part of the financial system of the Union.’;
(a) in paragraph 1, point (a) is replaced by the following:
‘(a) the Chairperson;’;
(b) the following paragraph is added:
‘8. Where the national public authority referred to in point (b) of paragraph 1 is not responsible for the enforcement
of consumer protection rules, the member of the Board of Supervisors referred to in that point may decide to invite a
representative from the Member State’s consumer protection authority, who shall be non-voting. In the case where
the responsibility for consumer protection is shared by several authorities in a Member State, those authorities shall
agree on a common representative.’;
(33) Articles 41 and 42 are replaced by the following:
‘Article 41
Internal committees
1. The Board of Supervisors, on its own initiative or at the request of the Chairperson, may establish internal committees
for specific tasks attributed to it. Upon request from the Management Board or from the Chairperson, the Board of
Supervisors may establish internal committees for specific tasks attributed to the Management Board. The Board of
Supervisors may provide for the delegation of certain clearly defined tasks and decisions to internal committees, to the
Management Board or to the Chairperson.
2. For the purposes of Article 17, and without prejudice to the role of the committee referred to in Article 9a(7), the
Chairperson shall propose a decision to convene an independent panel, to be adopted by the Board of Supervisors. The
independent panel shall consist of the Chairperson and six other members, to be proposed by the Chairperson after
consulting the Management Board and following an open call for participation. The six other members shall not be
representatives of the competent authority alleged to have breached Union law and shall not have any interest in the matter
or direct links to the competent authority concerned.
Each member of the panel shall have one vote.
Decisions of the panel shall be taken where at least four members vote in favour.
3. For the purposes of Article 19, and without prejudice to the role of the committee referred to in Article 9a(7), the
Chairperson shall propose a decision to convene an independent panel, to be adopted by the Board of Supervisors. The
independent panel shall consist of the Chairperson and six other members, to be proposed by the Chairperson after
consulting the Management Board and following an open call for participation. The six other members shall not be
representatives of the competent authorities party to the disagreement and shall not have any interest in the matter or
direct links to the competent authorities concerned.
4. For the purposes of conducting the inquiry provided for in the first subparagraph of Article 22(4), the Chairperson
may propose a decision to launch the inquiry and a decision to convene an independent panel, to be adopted by the Board
of Supervisors. The independent panel shall consist of the Chairperson and six other members, to be proposed by the
Chairperson after consulting the Management Board and following an open call for participation.
5. The panels referred to in paragraphs 2 and 3 of this Article or the Chairperson shall propose decisions under Article 17,
or Article 19, except on matters concerning the prevention of the use of the financial system for the purpose of money
laundering or of terrorist financing, for final adoption by the Board of Supervisors. A panel referred to in paragraph 4 of
this Article shall present the outcome of the inquiry conducted pursuant to the first subparagraph of Article 22(4) to the
Board of Supervisors.
6. The Board of Supervisors shall adopt rules of procedure for the panels referred to in this Article.
Article 42
Independence of the Board of Supervisors
1. When carrying out the tasks conferred upon them by this Regulation, the members of the Board of Supervisors shall
act independently and objectively in the sole interest of the Union as a whole and shall neither seek nor take instructions
from Union institutions or bodies, from any government or from any other public or private body.
2. Member States, Union institutions or bodies, and any other public or private body, shall not seek to influence the
members of the Board of Supervisors in the performance of their tasks.
3. Members of the Board of Supervisors, the Chairperson as well as non-voting representatives and observers participating
in the meetings of the Board of Supervisors shall, before such meetings, accurately and completely declare the absence
or existence of any interest which might be considered prejudicial to their independence in relation to any items on the
agenda, and shall abstain from participating in the discussion of, and voting upon, such points.
4. The Board of Supervisors shall lay down, in its rules of procedure, the practical arrangements for the rule on declaration
of interest referred to in paragraph 3 and for the prevention and the management of conflict of interest.’;
‘1. The Board of Supervisors shall give guidance to the work of the Authority and shall be in charge of taking the
decisions referred to in Chapter II. The Board of Supervisors shall adopt the opinions, recommendations, guidelines
and decisions of the Authority, and issue the advice referred to in Chapter II, based on a proposal of the relevant
internal committee or panel, the Chairperson, or of the Management Board, as applicable.’;
(b) paragraphs 2 and 3 are deleted;
‘5. The Board of Supervisors shall adopt, on the basis of a proposal by the Management Board, the annual report
on the activities of the Authority, including on the performance of the Chairperson’s duties, and shall transmit that
report to the European Parliament, to the Council, to the Commission, to the Court of Auditors and to the European
Economic and Social Committee by 15 June each year. The report shall be made public.’;
‘8. The Board of Supervisors shall exercise disciplinary authority over the Chairperson and the Executive Director.
It may remove the Executive Director from office in accordance with Article 51(5).’;
‘Article 43a
Transparency of decisions adopted by the Board of Supervisors
Notwithstanding Article 70, within six weeks of each meeting of the Board of Supervisors, the Authority shall, at least
provide the European Parliament with a comprehensive and meaningful record of the proceedings of that meeting that
enables a full understanding of the discussions, including an annotated list of decisions. Such record shall not reflect
discussions within the Board of Supervisors relating to individual financial institutions, unless otherwise provided for in
Article 75(3) or in the legislative acts referred to in Article 1(2).’;
‘1. Decisions of the Board of Supervisors shall be taken by a simple majority of its members. Each voting member
shall have one vote.
With regard to the acts specified in Articles 10 to 16 of this Regulation and measures and decisions adopted under
the third subparagraph of Article 9(5) of this Regulation, and Chapter VI of this Regulation and, by way of derogation
from the first subparagraph of this paragraph, the Board of Supervisors shall take decisions on the basis of a qualified
majority of its members, as defined in Article 16(4) TEU and in Article 3 of the Protocol No 36 on transitional
provisions, which shall include at least a simple majority of the members, present at the vote, from competent
authorities of Member States that are participating Member States as defined in point (1) of Article 2 of Regulation
(EU) No 1024/2013 (“participating Member States”) and a simple majority of the members, present at the vote, from
competent authorities of Member States that are not participating Member States (“non-participating Member States”).
The Chairperson shall not vote on the decisions referred to in the second subparagraph.
With regard to the composition of the panels in accordance with Article 41(2), (3) and (4), and the members of the
peer review committee referred to in Article 30(2), the Board of Supervisors, when considering the proposals by its
Chairperson, shall strive for consensus. In the absence of consensus, decisions of the Board of Supervisors shall be
taken by a majority of three quarters of its voting members. Each voting member shall have one vote.
With regard to decisions adopted under Article 18(3) and (4), and by way of derogation from the first subparagraph of
this paragraph, the Board of Supervisors shall take decisions on the basis of a simple majority of its voting members,
which shall include a simple majority of its members from competent authorities of participating Member States and
a simple majority of its members from competent authorities of non-participating Member States.’;
‘3a. With regard to the decisions in accordance with Article 30, the Board of Supervisors shall vote on the proposed
decisions using a written procedure. The voting members of the Board of Supervisors shall have eight working days
to vote. Each voting member shall have one vote. The proposed decision shall be considered adopted unless a simple
majority of voting members of the Board of Supervisors objects. Abstentions shall not be counted as approvals or
as objections, and shall not be considered when calculating the number of votes cast. If three voting members of the
Board of Supervisors object to the written procedure, the draft decision shall be discussed and decided on by the
Board of Supervisors in accordance with the procedure set out in paragraph 1 of this Article.
3b. With regard to decisions in accordance with Articles 17 and 19, the Board of Supervisors shall vote on the
proposed decision using a written procedure. The voting members of the Board of Supervisors shall have eight
working days to vote. Each voting member shall have one vote. The proposed decision shall be considered adopted
unless a simple majority of its members from competent authorities of participating Member States, or a simple
majority of its members from competent authorities of non-participating Member States, objects to it. Abstentions
shall not be counted as approvals or as objections, and shall not be considered when calculating the number of votes
cast. If three voting members of the Board of Supervisors object to the written procedure, the draft decision shall be
discussed by the Board of Supervisors and can be adopted by a simple majority of the voting members of the Board
of Supervisors, which shall include a simple majority of its members from competent authorities of participating
Member States and a simple majority of its members from competent authorities of non-participating Member States.
By way of derogation from the first subparagraph, from the date when four or fewer voting members are from
competent authorities of non-participating Member States, the decision proposed shall be adopted by a simple
majority of the voting members of the Board of Supervisors, which shall include at least one vote from members
from competent authorities of non-participating Member States.’;
(c) paragraphs 4 and 4a are replaced by the following:
‘4. The non-voting members and the observers shall not attend any discussions within the Board of Supervisors
relating to individual financial institutions, unless otherwise provided for in Article 75(3) or in the legislative acts
The first subparagraph shall not apply to the Executive Director and the European Central Bank representative
nominated by its Supervisory Board.
4a. The Authority’s Chairperson shall have the prerogative to call a vote at any time. Without prejudice to that
power and to the effectiveness of the Authority’s decision-making procedures, the Board of Supervisors of the
Authority shall strive for consensus when taking its decisions.’;
‘Article 45
Composition
1. The Management Board shall be composed of the Chairperson and six members of the Board of Supervisors, elected
by and from the voting members of the Board of Supervisors.
Other than the Chairperson, each member of the Management Board shall have an alternate, who may replace him or her
if he or she is prevented from attending.
2. The term of office of the members elected by the Board of Supervisors shall be two-and-a-half years. That term may be
extended once. The composition of the Management Board shall be gender balanced and proportionate and shall reflect the
Union as a whole. The Management Board shall include at least two representatives of non-participating Member States.
Mandates shall be overlapping and an appropriate rotating arrangement shall apply.
3. Meetings of the Management Board shall be convened by the Chairperson at his or her own initiative or at the request
of at least a third of its members, and shall be chaired by the Chairperson. The Management Board shall meet prior to
every meeting of the Board of Supervisors and as often as the Management Board deems necessary. It shall meet at least
five times a year.
4. The members of the Management Board may, subject to the rules of procedure, be assisted by advisers or experts. The
non-voting members, with the exception of the Executive Director, shall not attend any discussions within the Management
Board relating to individual financial institutions.’;
(38) the following Articles are inserted:
‘Article 45a
Decision-making
1. Decisions by the Management Board shall be adopted by simple majority of its members whilst striving for consensus.
Each member shall have one vote. The Chairperson shall be a voting member.
2. The Executive Director and a representative of the Commission shall participate in meetings of the Management
Board without the right to vote. The representative of the Commission shall have the right to vote on matters referred to
in Article 63.
3. The Management Board shall adopt and make public its rules of procedure.
Article 45b
Coordination Groups
1. The Management Board may set up coordination groups on its own initiative or upon the request of a competent
authority on defined topics for which there may be a need to coordinate having regard to specific market developments.
The Management Board shall set up coordination groups on defined topics at the request of five members of the Board
of Supervisors.
2. All competent authorities shall participate in the coordination groups and shall provide, in accordance with Article 35,
to the coordination groups the information necessary in order to allow the coordination groups to conduct their
coordinating tasks in accordance with their mandate. The work of the coordination groups shall be based on information
provided by the competent authorities and any findings identified by the Authority.
3. The groups shall be chaired by a member of the Management Board. Each year, the respective member of the
Management Board in charge of the coordination group shall report to the Board of Supervisors on the main elements
of the discussions and findings and, where relevant, make a suggestion for a regulatory follow-up or a peer review in the
respective area. Competent authorities shall notify the Authority as to how they have taken into account the work of
coordination groups in their activities.
4. When monitoring market developments that may be the focus of coordination groups, the Authority may request
competent authorities in accordance with Article 35 to provide information necessary to allow the Authority to perform
its monitoring role.’;
‘Article 46
Independence of the Management Board
The members of the Management Board shall act independently and objectively in the sole interest of the Union as a
whole and shall neither seek nor take instructions from the Union institutions or bodies, from any government or from
any other public or private body.
Member States, Union institutions or bodies and any other public or private body shall not seek to influence the members
of the Management Board in the performance of their tasks.’;
(a) the following paragraph is inserted:
‘3a. The Management Board may examine, give an opinion on, and make proposals on all matters, except for tasks
laid down in Articles 9a, 9b, 30 as well as Articles 17 and 19 on matters concerning the prevention of the use of the
financial system for the purpose of money laundering and of terrorist financing.’;
‘6. The Management Board shall propose an annual report on the activities of the Authority, including on the
Chairperson’s duties, to the Board of Supervisors for approval.’;
‘8. The Management Board shall appoint and remove the members of the Board of Appeal in accordance with
Article 58(3) and (5), taking duly into account a proposal by the Board of Supervisors.’;
(d) the following paragraph is added:
‘9. The members of the Management Board shall make public all meetings held and any hospitality received.
Expenses shall be recorded publicly in accordance with the Staff Regulations.’;
(a) in paragraph 1, the second subparagraph is replaced by the following:
‘The Chairperson shall be responsible for preparing the work of the Board of Supervisors, including setting the
agenda to be adopted by the Board of Supervisors, convening the meetings and tabling items for decision, and shall
chair the meetings of the Board of Supervisors.
The Chairperson shall be responsible for setting the agenda of the Management Board, to be adopted by the
Management Board, and shall chair the meetings of the Management Board.
The Chairperson may invite the Management Board to consider setting up a coordination group in accordance with
Article 45b.’;
‘2. The Chairperson shall be selected on the basis of merit, skills, knowledge of financial institutions and markets,
and of experience relevant to financial supervision and regulation, following an open selection procedure which
shall respect the principle of gender balance and shall be published in the Official Journal of the European Union. The
Board of Supervisors shall draw up a shortlist of qualified candidates for the position of the Chairperson, with the
assistance of the Commission. Based on the shortlist, the Council shall adopt a decision to appoint the Chairperson,
after confirmation by the European Parliament.
Where the Chairperson no longer fulfils the conditions referred to in Article 49 or has been found guilty of
serious misconduct, the Council may, acting on a proposal from the Commission which has been approved by the
European Parliament, adopt a decision to remove him or her from office.
The Board of Supervisors shall also elect, from among its members, a Vice-Chairperson who shall carry out the
functions of the Chairperson in the absence of the Chairperson. That Vice-Chairperson shall not be elected from
among the members of the Management Board.’;
‘For the purpose of the evaluation referred to in the first subparagraph, the tasks of the Chairperson shall be carried
out by the Vice-Chairperson.
The Council, acting on a proposal from the Board of Supervisors and with the assistance of the Commission,
and taking into account the evaluation referred to in the first subparagraph, may extend the term of office of the
Chairperson once.’;
‘5. The Chairperson may be removed from office only on serious grounds. He or she may only be removed by
the European Parliament following a decision of the Council, adopted after consulting the Board of Supervisors.’;
‘Independence of the Chairperson’;
(b) the first paragraph is replaced by the following:
‘Without prejudice to the role of the Board of Supervisors in relation to the tasks of the Chairperson, the Chairperson
shall neither seek nor take instructions from the Union institutions or bodies, from any government or from any
other public or private body.’;
(43) Article 49a is replaced by the following:
‘Article 49a
Expenses
The Chairperson shall make public all meetings held with external stakeholders within a period of two weeks following
the meeting and any hospitality received. Expenses shall be recorded publicly in accordance with the Staff Regulations.’;
‘2. The Joint Committee shall serve as a forum in which the Authority shall cooperate regularly and closely
to ensure cross-sectoral consistency, while considering sectoral specificities, with the European Supervisory
Authority (European Insurance and Occupational Pensions Authority) and the European Supervisory Authority
(European Securities and Markets Authority), in particular regarding:’;
(ii) the first indent is replaced by the following:
‘— financial conglomerates and, where required by Union law, prudential consolidation,’;
(iii) the fifth and sixth indents are replaced by the following:
‘— cybersecurity,
— information and best practice exchange with the ESRB and the other ESAs,’;
(iv) the following indents are added:
‘— retail financial services and depositor, consumer and investor protection issues;
— advice by the Committee established in accordance with Article 1(6).’;
‘2a. The Joint Committee may assist the Commission in assessing the conditions and the technical specifications
and procedures for ensuring secure and efficient interconnection of the centralised automated mechanisms pursuant
to the report referred in Article 32a(5) of Directive (EU) 2015/849 as well as in the effective interconnection of the
national registers under that Directive.’;
‘3. The Joint Committee shall have a dedicated staff provided by the ESAs that shall act as a permanent secretariat.
The Authority shall contribute adequate resources to administrative, infrastructure and operational expenses.’;
‘3. The Chairperson of the Joint Committee shall be appointed on an annual rotational basis from among the
Chairpersons of the ESAs. The Chairperson of the Joint Committee shall be the second Vice-Chair of the ESRB.’;
‘The Joint Committee shall meet at least once every three months.’;
‘5. The Chairperson of the Authority shall regularly inform the Board of Supervisors on positions taken in the
meetings of the Joint Committee.’;
‘Article 56
Joint positions and common acts
Within the scope of its tasks set out in Chapter II of this Regulation, and in particular with respect to the implementation
of Directive 2002/87/EC, where relevant, the Authority shall reach joint positions by consensus with, as appropriate,
the European Supervisory Authority (European Insurance and Occupational Pensions Authority) and with the European
Supervisory Authority (European Securities and Markets Authority).
Where required by Union law, measures pursuant to Articles 10 to 16, and decisions pursuant to Articles 17, 18 and 19,
of this Regulation in relation to the application of Directive 2002/87/EC and of any other legislative acts referred to
in Article 1(2) of this Regulation that also fall within the area of competence of the European Supervisory Authority
(European Insurance and Occupational Pensions Authority) or the European Supervisory Authority (European Securities
and Markets Authority) shall be adopted, in parallel, by, as appropriate, the Authority, the European Supervisory Authority
(European Insurance and Occupational Pensions Authority), and the European Supervisory Authority (European Securities
and Markets Authority).
Article 57
Sub-Committees
1. The Joint Committee may establish sub-committees for the purpose of preparing draft joint positions and common
acts for the Joint Committee.
2. Each sub-committee shall be composed of the individuals referred to in Article 55(1), and one high-level representative
from the current staff of the relevant competent authority from each Member State.
3. Each sub-committee shall elect a chairperson from among the representatives of the relevant competent authorities,
who shall also be an observer in the Joint Committee.
4. For the purposes of Article 56, a sub-committee on financial conglomerates to the Joint Committee shall be established.
5. The Joint Committee shall make public on its website all established sub-committees including their mandates and a
list of their members with their respective functions in the sub-committee.’;
‘1. The Board of Appeal of the European Supervisory Authorities is hereby established.’;
‘2. The Board of Appeal shall be composed of six members and six alternates, who shall be individuals of high
repute with a proven record of relevant knowledge of Union law and of having international professional experience,
to a sufficiently high level in the fields of banking, insurance, occupational pensions, securities markets or other
financial services, excluding current staff of the competent authorities or other national or Union institutions or
bodies involved in the activities of the Authority and members of the Banking Stakeholder Group. Members and
alternates shall be nationals of a Member State and shall have a thorough knowledge of at least two official languages
of the Union. The Board of Appeal shall have sufficient legal expertise to provide expert legal advice on the legality,
including proportionality, of the Authority’s exercise of its powers.’;
‘3. Two members of the Board of Appeal and two alternates shall be appointed by the Management Board of the
Authority from a shortlist proposed by the Commission, following a public call for expressions of interest published
in the Official Journal of the European Union, and after consultation of the Board of Supervisors.
After having received the shortlist, the European Parliament may invite candidates for members and alternates to
make a statement before it and answer any questions from its Members.
The European Parliament may invite the members of the Board of Appeal to make a statement before it and answer any
questions from its Members whenever so requested, to the exclusion of statements, questions or answers pertaining
to individual cases decided by, or pending before, the Board of Appeal.’;
‘2. Members of the Board of Appeal, and staff of the Authority providing operational and secretariat support, shall not
take part in any appeal proceedings in which they have any personal interest, if they have previously been involved as
representatives of one of the parties to the proceedings, or if they have participated in the decision under appeal.’;
‘2. The appeal, together with a statement of grounds, shall be filed in writing at the Authority within three months of
the date of notification of the decision to the person concerned, or, in the absence of a notification, of the day on which
the Authority published its decision.
The Board of Appeal shall decide upon the appeal within three months after the appeal has been lodged.’;
‘Article 60a
Exceeding of competence by the Authority
Any natural or legal person may send reasoned advice to the Commission if that person is of the opinion that the Authority
has exceeded its competence, including by failing to respect the principle of proportionality referred to in Article 1(5),
when acting under Articles 16 and 16b, and that is of direct and individual concern to that person.’;
(52) in Article 62, paragraph 1 is amended as follows:
(a) the introductory part is replaced by the following:
‘1. The revenues of the Authority, a European body in accordance with Article 70 of Regulation (EU,
Euratom) 2018/1046 of the European Parliament and of the Council (*) (“the Financial Regulation”), shall consist,
in particular, of any combination of the following:
(*) Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the
financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU)
No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU)
No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom)
No 966/2012 (OJ L 193, 30.7.2018, p. 1).’;
(b) the following points are added:
‘(d) any voluntary contribution from Member States or observers;
(e) agreed charges for publications, training and for any other services provided by the Authority where they have
been specifically requested by one or more competent authorities.’;
(c) the following sub-paragraph is added:
‘Any voluntary contribution from Member States or observers referred to in point (d) of the first sub-paragraph shall
not be accepted if such acceptance would cast doubt on the independence and impartiality of the Authority. Voluntary
contributions that constitute compensation for the cost of tasks delegated by a competent authority to the Authority
shall not be considered to cast doubt on the independence of the latter.’;
(53) Articles 63, 64 and 65 are replaced by the following:
‘Article 63
Establishment of the budget
1. Each year, the Executive Director shall draw up a provisional draft single programming document of the Authority for
the three following financial years setting out the estimated revenue and expenditure, as well as information on staff, from
its annual and multi-annual programming and shall forward it to the Management Board and the Board of Supervisors,
together with the establishment plan.
2. The Board of Supervisors shall, on the basis of the draft which has been approved by the Management Board, adopt
the draft single programming document for the three following financial years.
3. The single programming document shall be transmitted by the Management Board to the Commission, the
European Parliament and the Council and to the European Court of Auditors by 31 January.
4. Taking account of the single programming document, the Commission shall enter in the draft budget of the Union
the estimates it deems necessary in respect of the establishment plan and the amount of the balancing contribution to be
charged to the general budget of the Union in accordance with Articles 313 and 314 TFEU.
5. The European Parliament and the Council shall adopt the establishment plan for the Authority. The European Parliament
and the Council shall authorise the appropriations for the balancing contribution to the Authority.
6. The budget of the Authority shall be adopted by the Board of Supervisors. It shall become final after the final adoption
of the general budget of the Union. Where necessary, it shall be adjusted accordingly.
7. The Management Board shall, without undue delay, notify the European Parliament and the Council of its intention
to implement any project which may have significant financial implications for the funding of its budget, in particular any
project relating to property, such as the rental or purchase of buildings.
8. Without prejudice to Articles 266 and 267 of the Financial Regulation, authorisation from the European Parliament
and the Council shall be required for any project which may have significant financial or long-term implications for the
funding of the Authority’s budget, in particular any project relating to property, such as the rental or purchase of buildings,
including break clauses.
Article 64
Implementation and control of the budget
1. The Executive Director shall act as authorising officer and shall implement the Authority’s annual budget.
2. The Authority’s accounting officer shall send the provisional accounts to the Commission’s accounting officer and
to the Court of Auditors by 1 March of the following year. Article 70 shall not preclude the Authority from providing to
the Court of Auditors any information requested by the Court of Auditors that is within its competence.
3. The Authority’s accounting officer shall send, by 1 March of the following year, the required accounting information
for consolidation purposes to the accounting officer of the Commission, in the manner and format laid down by that
accounting officer.
4. The Authority’s accounting officer shall also send, by 31 March of the following year, the report on budgetary and
financial management to the members of the Board of Supervisors, to the European Parliament, to the Council and to the
Court of Auditors.
5. After receiving the observations of the Court of Auditors on the provisional accounts of the Authority in accordance
with Article 246 of the Financial Regulation, the Authority’s accounting officer shall draw up the Authority’s final accounts.
The Executive Director shall send them to the Board of Supervisors, which shall deliver an opinion on those accounts.
6. The Authority’s accounting officer shall, by 1 July of the following year, send the final accounts, accompanied by the
opinion of the Board of Supervisors, to the accounting officer of the Commission, the European Parliament, the Council
and the Court of Auditors.
The Authority’s accounting officer shall also send, by 15 June each year, a reporting package to the Commission’s accounting
officer, in a standardised format as laid down by the Commission’s accounting officer for consolidation purposes.
7. The final accounts shall be published in the Official Journal of the European Union by 15 November of the following year.
8. The Executive Director shall send the Court of Auditors a reply to the latter’s observations by 30 September and shall
also send a copy of that reply to the Management Board and to the Commission.
9. The Executive Director shall submit to the European Parliament, at the latter’s request and as provided for in
Article 261(3) of the Financial Regulation, any information necessary for the smooth application of the discharge
procedure for the financial year in question.
10. The European Parliament, following a recommendation from the Council acting by qualified majority, shall,
before 15 May of the year N + 2, grant a discharge to the Authority for the implementation of the budget for the
financial year N.
11. The Authority shall provide a reasoned opinion on the position of the European Parliament and on any other
observations made by the European Parliament provided in the discharge procedure.
Article 65
Financial rules
The financial rules applicable to the Authority shall be adopted by the Management Board after consulting the Commission.
Those rules may not depart from Commission Delegated Regulation (EU) 2019/715 (*) unless the specific operational
needs for the functioning of the Authority so require and only with the prior agreement of the Commission.
(*) Commission Delegated Regulation (EU) 2019/715 of 18 December 2018 on the framework financial regulation for the
bodies set up under the TFEU and Euratom Treaty and referred to in Article 70 of Regulation (EU, Euratom) 2018/1046
of the European Parliament and of the Council (OJ L 122, 10.5.2019, p. 1).’;
‘1. For the purposes of combating fraud, corruption and any other illegal activity, Regulation (EU, Euratom) No 883/2013
of the European Parliament and of the Council (*) shall apply to the Authority without any restriction.
(*) Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013
concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC)
No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999
(OJ L 248, 18.9.2013, p. 1).’;
‘1. Members of the Board of Supervisors, and all members of the staff of the Authority, including officials seconded
by Member States on a temporary basis, and all other persons carrying out tasks for the Authority on a contractual
basis, shall be subject to the requirements of professional secrecy pursuant to Article 339 TFEU and the relevant
provisions in Union legislation, even after their duties have ceased.’;
‘The obligation under paragraph 1 of this Article and the first subparagraph of this paragraph shall not prevent
the Authority and the competent authorities from using the information for the enforcement of the legislative acts
referred to in Article 1(2), and in particular for legal procedures for the adoption of decisions.’;
(c) the following paragraph is inserted:
‘2a. The Management Board and the Board of Supervisors shall ensure that individuals who provide any service,
directly or indirectly, permanently or occasionally, relating to the tasks of the Authority, including officials and other
persons authorised by the Management Board and the Board of Supervisors or appointed by the competent authorities
for that purpose, are subject to the requirements of professional secrecy equivalent to those in paragraphs 1 and 2.
The same requirements for professional secrecy shall also apply to observers who attend the meetings of the
Management Board and the Board of Supervisors and who take part in the activities of the Authority.’;
(d) paragraphs 3 and 4 are replaced by the following:
‘3. Paragraphs 1 and 2 shall not prevent the Authority from exchanging information with competent authorities
in accordance with this Regulation and with other Union legislation applicable to financial institutions.
That information shall be subject to the conditions of professional secrecy referred to in paragraphs 1 and 2.
The Authority shall lay down in its internal rules of procedure the practical arrangements for implementing the
confidentiality rules referred to in paragraphs 1 and 2.
4. The Authority shall apply Commission Decision (EU, Euratom) 2015/444 (*).
(*) Commission Decision (EU, Euratom) 2015/444 of 13 March 2015 on the security rules for protecting EU classified
information (OJ L 72, 17.3.2015, p. 53).’;
‘Article 71
Data protection
This Regulation shall be without prejudice to the obligations of Member States relating to their processing of personal
data under Regulation (EU) 2016/679 or the obligations of the Authority relating to its processing of personal data under
Regulation (EU) 2018/1725 of the European Parliament and of the Council (*) when fulfilling its responsibilities.
(*) Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the protection of
natural persons with regard to the processing of personal data by the Union institutions, bodies, offices and agencies
and on the free movement of such data, and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC
(OJ L 295, 21.11.2018, p. 39).’;
‘2. The Management Board shall adopt practical measures for applying Regulation (EC) No 1049/2001.’;
(58) in Article 74, the first paragraph is replaced by the following:
‘The necessary arrangements concerning the accommodation to be provided for the Authority in the Member State where
its seat is located and the facilities to be made available by that Member State, as well as the specific rules applicable in that
Member State to the staff of the Authority and members of their families, shall be laid down in a Headquarters Agreement
between the Authority and that Member State which they concluded after obtaining the approval of the Management
Board.’;
‘Article 76
Relationship with the Committee of European Banking Supervisors
The Authority shall be considered the legal successor of Committee of European Banking Supervisors (CEBS). By the
date of establishment of the Authority, all assets and liabilities and all pending operations of CEBS shall be automatically
transferred to the Authority. CEBS shall establish a statement showing its closing asset and liability situation as of the date
of that transfer. That statement shall be audited and approved by CEBS and by the Commission.’;
(i) the introductory sentence is replaced by the following:
‘1. By 31 December 2021, and every three years thereafter, the Commission shall publish a general report
on the experience acquired as a result of the operation of the Authority and the procedures laid down in this
Regulation. That report shall evaluate, inter alia:’;
(ii) in point (a), the introductory sentence, and point (i) are replaced by the following:
‘(a) the effectiveness and convergence in supervisory practices reached by competent authorities:
(i) the independence of the competent authorities and convergence in standards equivalent to corporate
governance;’;
‘(g) the functioning of the Joint Committee;
(h) the obstacles to or impact on prudential consolidation pursuant to Article 8.’;
‘2a. As part of the general report referred to in paragraph 1 of this Article, the Commission shall, after consulting
all relevant authorities and stakeholders, conduct a comprehensive assessment of the application of Article 9c.
2b. As part of the general report referred to in paragraph 1 of this Article, the Commission shall, after consulting
all relevant competent authorities and stakeholders, conduct a comprehensive assessment of the implementation,
functioning and effectiveness of the specific tasks related to preventing and countering money laundering and
terrorist financing and conferred on the Authority pursuant to Article 1(2), point (l) of Article 8(1), and Articles 9a,
9b, 17 and 19, of this Regulation. As part of its assessment, the Commission shall analyse the interaction between
those tasks and the tasks conferred on the European Supervisory Authority (European Insurance and Occupational
Pensions Authority) and the European Supervisory Authority (European Securities and Markets Authority), as well as
the legal practicality of the powers of the Authority to the extent they allow the Authority to base action on national
law that transposes Directives or exercises options. In addition, the Commission shall, based on a comprehensive
cost and benefit analysis as well as following the objective of ensuring consistency, efficiency and effectiveness,
thoroughly investigate the possibility of conferring specific tasks with regard to the prevention and countering of
money laundering or of terrorist financing on an existing or new dedicated EU-wide agency.’.
Article 2
‘2. The Authority shall act within the powers conferred by this Regulation and within the scope of
Directive 2009/138/EC with the exception of Title IV thereof, of Directive 2002/87/EC, Directive (EU) 2016/97 (*)
and Directive (EU) 2016/2341 (**) of the European Parliament and of the Council, and, to the extent that those acts
apply to insurance undertakings, reinsurance undertakings, institutions for occupational retirement provision and
insurance intermediaries, within the relevant parts of Directive 2002/65/EC, including all directives, regulations,
and decisions based on those acts, and of any further legally binding Union act which confers tasks on the Authority.
The Authority shall contribute to the work of the European Supervisory Authority (European Banking Authority)
established by Regulation (EU) No 1093/2010 of the European Parliament and of the Council (***) related to
the prevention of the use of the financial system for the purpose of money laundering or terrorist financing in
accordance with Directive (EU) 2015/849 of the European Parliament and of the Council (****) and Regulation (EU)
No 1093/2010. The Authority shall decide on its agreement in accordance with Article 9a(9) of Regulation (EU)
No 1093/2010.
3. The Authority shall act in the field of activities of insurance undertakings, reinsurance undertakings, financial
conglomerates, institutions for occupational retirement provision and insurance intermediaries, in relation to issues
not directly covered by the legislative acts referred to in paragraph 2, including matters of corporate governance,
auditing and financial reporting, taking into account sustainable business models and the integration of environmental,
social and governance related factors, provided that such actions are necessary to ensure the effective and consistent
application of those acts.
(*) Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance
distribution (OJ L 26, 2.2.2016, p. 19).
(**) Directive (EU) 2016/2341 of the European Parliament and of the Council of 14 December 2016 on the activities
and supervision of institutions for occupational retirement provision (IORPs) (OJ L 354, 23.12.2016, p. 37).
(***) Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010
establishing a European Supervisory Authority (European Banking Authority), amending Decision
No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12).
(****) Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of
the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation
(EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the
European Parliament and of the Council and Commission Directive 2006/70/EC (OJ L 141, 5.6.2015, p. 73).’;
‘(e) ensuring that the taking of risks related to insurance, reinsurance and occupational pensions activities
is appropriately regulated and supervised;
(f) enhancing customer and consumer protection; and’;
— the following point is added:
‘(g) enhancing supervisory convergence across the internal market.’;
‘When carrying out its tasks, the Authority shall act independently, objectively and in a non-discriminatory
and transparent manner, in the interests of the Union as a whole and shall respect, wherever relevant, the
principle of proportionality. The Authority shall be accountable and act with integrity and shall ensure that all
stakeholders are treated fairly.’;
in the business of a financial institution, undertaking, other subject or financial activity, that is affected by the
Authority’s actions and measures.’;
financial stability and to ensure confidence in the financial system as a whole and effective and sufficient protection
for the customers and consumers of financial services.’;
‘Article 3
the Council.
made public.
(4) in Article 4, point (2), point (ii) is replaced by the following:
‘(ii) with regard to Directive 2002/65/EC, the authorities and bodies competent for ensuring compliance with the
requirements of that Directive by financial institutions;’;
(5) In Article 7 the following paragraph is added:
‘The location of the seat of the Authority shall not affect the Authority’s execution of its tasks and powers, the organisation
of its governance structure, the operation of its main organisation, or the main financing of its activities, while allowing,
where applicable, for the sharing with Union agencies of administrative support services and facility management services
which are not related to the core activities of the Authority.’;
opinions;’;
institutions in the Union which is to set out best practices and high-quality methodologies and processes,
and takes into account, inter alia, changing business practices and business models and the size of financial
institutions and of markets;’;
(iii) point (b) is replaced by the following:
and consistent supervision of financial institutions, ensuring a coherent functioning of colleges of
supervisors, and taking actions, inter alia, in emergency situations;’;
(iv) points (e) to (h) are replaced by the following:
‘(e) to organise and conduct peer reviews of competent authorities, and, in that context, to issue guidelines and
outcomes;
developments relating to trends in insurance, reinsurance and occupational pensions, in particular, to
households and SMEs and in innovative financial services duly considering developments relating to
environmental, social and governance related factors;
(h) to foster, where relevant, the protection of policyholders, pension scheme members and beneficiaries,
consumers and investors, in particular with regards to shortcomings in a cross-border context and taking
related risks into account;’;
(v) the following point is inserted after point (i):
(vi) the following point is inserted after point (k):
(vii) point (l) is deleted;
‘1a. When carrying out its tasks in accordance with this Regulation, the Authority shall:
(a) use the full powers available to it;
(b) with due regard to the objective to ensure the safety and soundness of financial institutions, take fully into
account the different types, business models and sizes of financial institutions; and
(c) take account of technological innovation, innovative and sustainable business models such as cooperatives and
mutuals, and the integration of environmental, social and governance related factors.’;
‘(ca) issue recommendations, as laid down in Article 29a;’,
(ii) point (g) is replaced by the following:
Article 16a;’;
(iii) the following points are inserted:
(gb) take action in accordance with Article 9a;’;
information and views gathered from the consultation were used in a draft regulatory technical standard and a draft
‘(aa) undertaking in-depth thematic reviews of market conduct, building a common understanding of markets
(ab) developing retail risk indicators for the timely identification of potential causes of consumer and investor
harm;’;
(f) coordinating mystery shopping activities of competent authorities, if applicable.’;
‘Article 9a
No action letters
flowing from the legislative act or its proper application,
its opinion public.
The Authority shall act expeditiously, in particular with a view to contributing to the prevention of the issues referred to
in paragraph 1, whenever possible.
significant exceptional issues pertaining to market confidence, consumer, customer or investor protection, the orderly
functioning and integrity of financial markets or commodity markets, or the stability of the whole or part of the financial
system in the Union, it shall without undue delay send a detailed account in writing to the competent authorities and the
Commission of the issues it considers to exist. The Authority may provide the Commission with an opinion on any action
it considers appropriate, in the form of a new legislative proposal or a proposal for a new delegated or implementing act,
and on the urgency of the issue. The Authority shall make its opinion public.’;
advice of the relevant Stakeholder Group referred to in Article 37.’;
to adopt it. The Commission shall inform the European Parliament and the Council in due time where the
amendments, it shall send the draft regulatory technical standard back to the Authority, explaining why it does
not adopt it, or explaining the reasons for its amendments. The Commission shall send a copy of its letter to
the European Parliament and to the Council. Within a period of six weeks, the Authority may amend the draft
regulatory technical standard on the basis of the Commission’s proposed amendments and resubmit it in the
form of a formal opinion to the Commission. The Authority shall send a copy of its formal opinion to the
scope and impact of the draft regulatory technical standards concerned or in relation to the particular urgency of the
matter. The Commission shall also request the advice of the relevant Stakeholder Group referred to in Article 37.’;
relevant Stakeholder Group referred to in Article 37.
Where the Commission intends not to adopt a draft implementing technical standard or intends to adopt it in part or
with amendments, it shall send it back to the Authority explaining why it does not intend to adopt it, or explaining
the matter. The Commission shall also request the advice of the relevant Stakeholder Group referred to in Article 37.’;
ESFS, and to ensuring the common, uniform and consistent application of Union law, issue guidelines addressed to all
competent authorities or all financial institutions and issue recommendations to one or more competent authorities
or to one or more financial institutions.
Guidelines and recommendations shall be in accordance with the empowerments conferred in the legislative acts
recommendations which it issues and analyse the related potential costs and benefits of issuing such guidelines and
recommendations. Those consultations and analyses shall be proportionate in relation to the scope, nature and
impact of the guidelines or recommendations. The Authority shall, where appropriate, also request advice from the
Insurance and Reinsurance Stakeholder Group and of the Occupational Pensions Stakeholder Group referred to in
Article 37. Where the Authority does not conduct open public consultations or does not request advice from the
Insurance and Reinsurance Stakeholder Group and of the Occupational Pensions Stakeholder Group, the Authority
shall provide reasons.’;
‘Article 16a
Opinions
1. The Authority may, upon a request from the European Parliament, from the Council or from the Commission, or
on its own initiative, provide opinions to the European Parliament, to the Council and to the Commission on all issues
related to its area of competence.
3. With regard to the prudential assessment of mergers and acquisitions falling within the scope of Directive 2009/138/EC
and which, according to that Directive, require consultation between competent authorities from two or more Member States,
the Authority may, at the request of one of the competent authorities concerned, issue and publish an opinion on a
prudential assessment, except in relation to the criteria set out in point (e) of Article 59(1) of Directive 2009/138/EC.
The opinion shall be issued promptly and, in any event, before the end of the assessment period in accordance with
Directive 2009/138/EC.
technical advice to the European Parliament, the Council and the Commission in the areas set out in the legislative acts
Article 16b
Before submitting a question to the Authority, financial institutions shall consider whether to address the question in the
first place to their competent authority.
Commission, the relevant Stakeholder Group, or on its own initiative, including when this is based on well
substantiated information from natural or legal persons, and after having informed the competent authority
concerned, the Authority shall outline how it intends to proceed with the case and, where appropriate,
‘2a. Without prejudice to powers under this Regulation, and before issuing a recommendation as set out in
paragraph 3, the Authority shall engage with the competent authority concerned where it considers such engagement
and where it is necessary to remedy in a timely manner such non-compliance in order to maintain or restore neutral
Authority may, where the relevant requirements of the legislative acts referred to in Article 1(2) of this Regulation are
directly applicable to financial institutions, adopt an individual decision addressed to a financial institution requiring
it to take all necessary action to comply with its obligations under Union law, including the cessation of any practice.
to paragraph 4.
‘Article 17a
‘3. Where the Council has adopted a decision pursuant to paragraph 2 of this Article and, in exceptional circumstances,
system in the Union, or customer and consumer protection, the Authority may adopt individual decisions requiring
competent authorities to take the necessary action in accordance with the legislative acts referred to in Article 1(2) to
address any such developments by ensuring that financial institutions and competent authorities satisfy the requirements
laid down in those legislative acts.’;
authorities.
authorities, and where in accordance with those acts the Authority may assist, on its own initiative in reaching an
reasons;
reasons; or
Pending the Authority’s decision in accordance with the procedure set out in Article 44(4), in cases where the
‘3. Where the competent authorities concerned fail to reach an agreement within the conciliation phase referred
to in paragraph 2, the Authority may take a decision requiring those authorities to take specific action, or to refrain
from certain action, in order to settle the matter, and to ensure compliance with Union law. The decision of the
Authority shall be binding on the competent authorities concerned. The Authority’s decision may require competent
authorities to revoke or amend a decision that they have adopted or to make use of the powers which they have under
the relevant Union law.’;
does not comply with the decision of the Authority, and thereby fails to ensure that a financial institution complies
with requirements directly applicable to it by virtue of the legislative acts referred to in Article 1(2) of this Regulation,
the Authority may adopt an individual decision addressed to that financial institution requiring it to take all necessary
action to comply with its obligations under Union law, including the cessation of any practice.’;
‘1. The Authority shall, promote and monitor within the scope of its powers, the efficient, effective and consistent
‘2. The Authority shall lead in ensuring a consistent and coherent functioning of colleges of supervisors for
cross-border institutions across the Union, taking account of the systemic risk posed by financial institutions
referred to in Article 23, and shall, where appropriate, convene a meeting of a college of supervisors.’;
(ii) in the third subparagraph, point (b) is replaced by the following:
‘(b) initiate and coordinate Union-wide stress tests in accordance with Article 32 to assess the resilience
of financial institutions, in particular the systemic risk posed by financial institutions as referred to in
Article 23, to adverse market developments, and evaluate the potential for systemic risk to increase in
situations of stress, ensuring that a consistent methodology is applied at national level to such tests and,
where appropriate, address a recommendation to the competent authority to correct issues identified in
the stress test, including a recommendation to conduct specific assessments; it may recommend competent
authorities to carry out on-site inspections, and may participate in such on-site inspections, in order to
ensure comparability and reliability of methods, practices and results of Union-wide assessments;’;
supervisors.’;
‘2. The Authority shall, in collaboration with the ESRB, and in accordance with Article 23, develop a common
approach to the identification and measurement of systemic importance, including quantitative and qualitative
indicators as appropriate.’;
or on its own initiative, the Authority may conduct an inquiry into a particular type of financial institution or type
of product or type of conduct in order to assess potential threats to the stability of the financial system or to the
protection of customers or consumers.
risk and an adequate stress-testing regime which includes an evaluation of the potential for systemic risk posed by, or to,
financial market participants to increase in situations of stress, including potential environmental-related systemic risk.
The financial market participants that may pose a systemic risk shall be subject to strengthened supervision, and where
necessary, the recovery and resolution procedures referred to in Article 25.’;
acts;’;
innovation, different forms of cooperatives and mutuals, facilitating personnel exchanges and encouraging
competent authorities to intensify the use of secondment schemes and other tools;’;
Change;’;
For the purpose of establishing a common supervisory culture, the Authority shall develop and maintain an up-
to-date Union supervisory handbook on the supervision of financial institutions in the Union, which duly takes
into account the nature, scale and complexity of risks, business practices, business models and size of financial
institutions and of markets. The Union supervisory handbook shall set out best practices and shall specify high-
quality methodologies and processes.
point (a) of paragraph 1, tools and instruments referred to in this paragraph. It shall also, where appropriate, analyse
the related potential costs and benefits. Such consultations and analyses shall be proportionate in relation to the
scope, nature and impact of the opinions or tools and instruments. The Authority shall, where appropriate, also
request advice from the relevant Stakeholder Group referred to in Article 37.’;
‘Article 29a
authorities, existing work by the Union institutions, and analysis, warnings and recommendations published by the ESRB,
by the competent authorities in the following year and draw conclusions. The Authority shall discuss possible follow
up which may include guidelines, recommendations to competent authorities, and peer reviews, in the respective area.
‘Article 30
out in Union law;
4. The Authority shall produce a report setting out the results of the peer review. That peer review report shall be
prepared by the peer review committee and adopted by the Board of Supervisors in accordance with Article 44(4). When
drafting that report, the peer review committee shall consult the Management Board in order to maintain consistency with
other peer review reports and to ensure a level playing field. The Management Board shall assess in particular whether the
5. The Authority shall submit an opinion to the Commission where, having regard to the outcome of the peer review
or to any other information acquired by the Authority in carrying out its tasks, it considers that further harmonisation of
Union rules applicable to financial institutions or competent authorities would be necessary from the Union’s perspective.
with Article 44(4). When drafting that report, the peer review committee shall consult the Management Board in order
to maintain consistency with other follow up reports. The follow-up report shall include an assessment of, but shall not
the peer review in response to the follow up measures of the peer review report.
8. For the purposes of this Article, the Management Board shall make a proposal for a peer review work plan for the
coming two years, which shall inter alia reflect the lessons learnt from the past peer review processes and discussions of
coordination groups referred to in Article 45b. The peer review work plan shall constitute a separate part of the annual
or the stability of the financial system or in situations of cross-border business potentially affecting the protection
of policyholders, pension scheme members and beneficiaries in the Union.’;
‘Article 31a
The Authority shall, together with the European Supervisory Authority (European Banking Authority) and with the
European Supervisory Authority (European Securities and Markets Authority), establish a system for the exchange of
information relevant to the assessment of the fitness and propriety of holders of qualifying holdings, directors and key
function holders of financial institutions by competent authorities in accordance with the legislative acts referred to in
Article 1(2).’;
‘1. The Authority shall monitor and assess market developments in the area of its competence and, where
necessary, inform the European Supervisory Authority (European Banking Authority) and the European Supervisory
Authority (European Securities and Markets Authority), the ESRB, and the European Parliament, the Council and
the Commission about the relevant micro-prudential trends, potential risks and vulnerabilities. The Authority shall
include, in its assessments, an analysis of the markets in which financial institutions operate and an assessment of
the impact of potential market developments on such institutions.’;
‘2. The Authority shall initiate and coordinate Union-wide assessments of the resilience of financial institutions
to adverse market developments. To that end, it shall develop:’;
‘(a) common methodologies for assessing the effect of economic scenarios on a financial institution’s financial
position taking into account inter alia risks stemming from adverse environmental developments;’;
‘(aa) common methodologies for identifying financial institutions to be included in Union-wide assessments;’;
‘(d) common methodologies for assessing the effect of environmental risks on the financial stability of
financial institutions.’;
(v) the following subparagraph is added:
with the indicators referred to in Article 22(2) of this Regulation.’;
‘Article 33
1. Without prejudice to the respective competences of the Member States and the Union institutions, the Authority may
develop contacts and enter into administrative arrangements with regulatory and supervisory authorities, international
organisations and third-country administrations. Those arrangements shall not create legal obligations in respect of the
Union and its Member States nor shall they prevent Member States and their competent authorities from concluding
bilateral or multilateral arrangements with those third countries.
money laundering and in countering the financing of terrorism regimes that pose significant threats to the financial system
of the Union, the Authority shall not conclude administrative arrangements with the regulatory and supervisory authorities
of that third country. This shall not preclude other forms of cooperation between the Authority and the respective third-
country authorities with a view to reducing threats to the financial system of the Union.
policy holder protection and the functioning of the internal market, relevant regulatory and supervisory developments
and enforcement practices and market developments in third countries, to the extent they are relevant to risk-based
equivalence assessments, for which equivalence decisions have been adopted by the Commission pursuant to the legislative
acts referred to in Article 1(2).
Furthermore, it shall verify whether the criteria on the basis of which those equivalence decisions have been taken, and
any conditions set out therein are still fulfilled.
The Authority may liaise with relevant authorities in third countries. The Authority shall submit a confidential report
to the European Parliament, to the Council, to the Commission and to the European Supervisory Authority (European
Banking Authority) and to the European Supervisory Authority (European Securities and Markets Authority) summarising
the findings of its monitoring of all equivalent third countries. The report shall focus in particular on implications for
financial stability, market integrity, policy holder protection or the functioning of the internal market.
Where the Authority identifies relevant developments in relation to the regulation and supervision or the enforcement
practices in the third countries referred to in this paragraph that may affect the financial stability of the Union or of one
or more of its Member States, market integrity, policy holder protection or the functioning of the internal market, it shall
inform the European Parliament, the Council and the Commission on a confidential basis and without undue delay.
conditions set out in the second sentence of paragraph 1 of this Article, the Authority shall cooperate where possible with
the relevant competent authorities of third countries whose regulatory and supervisory regimes have been recognised as
equivalent. In principle, that cooperation shall be pursued on the basis of administrative arrangements concluded with
the relevant authorities of those third countries. When negotiating such administrative arrangements, the Authority shall
include provisions on the following:
decision;
of supervisory activities including, where necessary, on-site inspections
The Authority shall inform the Commission, where a third-country competent authority refuses to conclude such
(a) paragraphs 2, 3 and 4 are replaced by the following:
‘2. The Insurance and Reinsurance Stakeholder Group shall be composed of 30 members. Those members shall
comprise of:
(a) 13 members representing, in balanced proportions, insurance and reinsurance undertakings and insurance
intermediaries operating in the Union, of whom three shall represent cooperative and mutual insurers or
reinsurers;
(b) 13 members representing employees’ representatives of insurance and reinsurance undertakings and insurance
intermediaries operating in the Union, consumers, users of insurance and reinsurance services, representatives
of SMEs and representatives of relevant professional associations; and
3. The Occupational Pensions Stakeholder Group shall be composed of 30 members. Those members shall
comprise of:
(a) 13 members representing in balanced proportions institutions for occupational retirement provision operating
in the Union;
(b) 13 members representing representatives of employees, representatives of beneficiaries, representatives of

SMEs and representatives of relevant professional associations; and
4. The members of the Stakeholder Groups shall be appointed by the Board of Supervisors, following an open and
transparent selection procedure. In making its decision, the Board of Supervisors shall, to the extent possible, ensure
an appropriate reflection of diversity of the insurance, reinsurance and occupational pensions sectors, geographical
and gender balance and representation of stakeholders across the Union. Members of the Stakeholder Groups shall
be selected according to their qualifications, skills, relevant knowledge and proven expertise.’;
‘4a. Members of the relevant Stakeholder Group shall elect a Chair from among its members. The position of the
Chair shall be held for a period of two years.
The European Parliament may invite the Chair of any Stakeholder Group to make a statement before it and answer
any questions from its members whenever so requested.’;
(c) in paragraphs 5, the first subparagraph is replaced by the following:
‘5. The Authority shall provide all necessary information subject to professional secrecy as set out in Article 70
of this Regulation and ensure adequate secretarial support for the Stakeholder Groups. Adequate compensation
shall be provided to members of the Stakeholder Groups representing non-profit organisations, excluding industry
representatives. This compensation shall take into account the members’ preparatory and follow-up work and
shall be at least equivalent to the reimbursement rates of officials pursuant to Title V, Chapter 1, Section 2 of the
Staff Regulations of Officials of the European Union and the Conditions of Employment of Other Servants of the
European Union, laid down in Council Regulation (EEC, Euratom, ECSC) No 259/68 (*) (the Staff Regulations). The
Stakeholder Groups may establish working groups on technical issues. Members of the Insurance and Reinsurance
Stakeholder Group and of the Occupational Pensions Stakeholder Group shall serve for a period of four years,
following which a new selection procedure shall take place.
(*) OJ L 56, 4.3.1968, p. 1.’;
‘6. The Stakeholder Groups may submit advice to the Authority on any issue related to the tasks of the Authority
with particular focus on the tasks set out in Articles 10 to 16, and 29, 30 and 32.
Where members of the Stakeholder Groups cannot agree on advice, one third of their members or the members
representing one group of stakeholders shall be permitted to issue separate advice.
The Insurance and Reinsurance Stakeholder Group, the Occupational Pensions Stakeholder Group, the Banking
Stakeholder Group, and the Securities and Markets Stakeholder Group may issue joint advice on issues related to
‘8. The Authority shall make public the advice of the Stakeholder Groups, the separate advice of its members, and
the results of its consultations as well as information on how advice and results of consultations have been taken
into account.’;
‘Article 39
intervals.
disclose the identity of the competent authority or financial institution concerned and the main content of the decision,
unless such publication is in conflict with the legitimate interest of those financial institutions, or with the protection of
their business secrets, or could seriously jeopardise the orderly functioning and integrity of financial markets or the stability
of the whole or part of the financial system of the Union.’;
(32) Article 40 is amended as follows
‘Article 41
Internal committees
1. The Board of Supervisors, on its own initiative or at the request of the Chairperson, may establish internal committees
2. For the purposes of Article 17, the Chairperson shall propose a decision to convene an independent panel, to be
adopted by the Board of Supervisors. The independent panel shall consist of the Chairperson and six other members, to
be proposed by the Chairperson after consulting the Management Board and following an open call for participation. The
six other members shall not be representatives of the competent authority alleged to have breached Union law and shall
not have any interest in the matter or direct links to the competent authority concerned.
six other members shall not be representatives of the competent authorities party to the disagreement and shall not have
any interest in the conflict or direct links to the competent authorities concerned.
of Supervisors. The independent panel shall consist of the Chairperson and six other members, to be proposed by the
or Article 19, for final adoption by the Board of Supervisors. A panel referred to in paragraph 4 of this Article shall present
the outcome of the inquiry conducted pursuant to the first subparagraph of Article 22(4) to the Board of Supervisors.
Article 42
2. Member States, Union institutions or bodies, and any other public or private body, shall not seek to influence the

‘Article 43a
Notwithstanding Article 70, within six weeks of each meeting of the Board of Supervisors, the Authority shall, at least,
discussions within the Board of Supervisors relating to individual financial institutions, unless otherwise provided for in
Article 75(3) or in the legislative acts referred to in Article 1(2).’;
the third subparagraph of Article 9(5) of this Regulation and Chapter VI of this Regulation and, by way of derogation
majority of its members, as defined in Article 16(4) of the Treaty on European Union and in Article 3 of the Protocol
No 36 on transitional provisions.
peer review committee referred to in Article 30(2), the Board of Supervisors, when considering the proposals by the
this paragraph, the Board of Supervisors shall take decisions on the basis of a simple majority of its voting members.’;
‘4. With regard to the decisions in accordance with Articles 17, 19 and 30 the Board of Supervisors shall vote on
the proposed decisions using a written procedure. The voting members of the Board of Supervisors shall have eight
unless a simple majority of voting members of the Board of Supervisors objects. Abstentions shall not be counted
as approvals or as objections, and shall not be considered when calculating the number of votes cast. If three voting
members of the Board of Supervisors object to the written procedure, the draft decision shall be discussed and decided
on by the Board of Supervisors in accordance with the procedure set out in paragraph 1 of this Article.
The non-voting members and the observers, with the exception of the Executive Director, shall not attend any
discussions within the Board of Supervisors relating to individual financial institutions, unless otherwise provided
for in Article 75(3) or in the legislative acts referred to in Article 1(2).’;
‘5. The Authority’s Chairperson shall have the prerogative to call a vote at any time. Without prejudice to that power
and to the effectiveness of the Authority’s decision-making procedures, the Board of Supervisors of the Authority
shall strive for consensus when taking its decisions.’;
‘Article 45
Composition
Other than the Chairperson, each member of the Management Board shall have an alternate who may replace him if he
is prevented from attending.
2. The term of office of the members elected by the Board of Supervisors shall be two-and-a-half years. That term may
be extended once. The composition of the Management Board shall be gender balanced and proportionate and shall reflect
the Union as a whole. Mandates shall be overlapping and an appropriate rotating arrangement shall apply.
Board relating to individual financial institutions.’;
‘Article 45a
Decision-making
in Article 63.
Article 45b
Coordination Groups
of Supervisors.
‘Article 46
‘3a. The Management Board may examine, give an opinion on and make proposals on all matters except for tasks
laid down in Article 30.’;
Article 45b.’;
‘2. The Chairperson shall be selected on the basis of merit, skills, knowledge of financial institutions and markets,
and of experience relevant to financial supervision and regulation, following an open selection procedure which
shall respect the principle of gender balance and shall be published in the Official Journal of the European Union. The
Board of Supervisors shall draw up a shortlist of qualified candidates for the position of the Chairperson, with the
assistance of the Commission. Based on the shortlist, the Council shall adopt a decision to appoint the Chairperson,
‘Article 49a
Expenses
Authority (European Banking Authority) and the European Supervisory Authority (European Securities and
Markets Authority), in particular regarding:’;
(iii) the fifth indent is replaced by the following:
‘— cybersecurity,’;
(iv) the sixth indent is replaced by the following:
‘— information and best practice exchange with the ESRB and the other ESAs,’;
(v) the following indents are added:
‘— retail financial services and consumer and investor protection issues;
and procedures for ensuring secure and efficient inter-connection of the centralised automated mechanisms pursuant
‘Article 56
Within the scope of its tasks set out in Chapter II of this Regulation, and in particular with respect to the implementation
of Directive 2002/87/EC, where relevant, the Authority shall reach joint positions by consensus with, as appropriate, the
European Supervisory Authority (European Banking Authority) and with the European Supervisory Authority (European
Securities and Markets Authority).
(European Banking Authority) or the European Supervisory Authority (European Securities and Markets Authority) shall be
adopted, in parallel, by, as appropriate, the Authority, the European Supervisory Authority (European Banking Authority)
and the European Supervisory Authority (European Securities and Markets Authority).
Article 57
Sub-Committees
1. The Joint Committee may establish sub-committees for the purposes of preparing draft joint positions and common
3. Each sub-Committee shall elect a chairperson from among the representatives of the relevant competent authorities,
5. The Joint Committee shall make public on its website all established Sub-Committees including their mandates and
a list of their members with their respective functions in the sub-committee.’;
bodies involved in the activities of the Authority and members of the Insurance and Reinsurance Stakeholder Group
and members of the Occupational Pensions Stakeholder Group. Members and alternates shall be nationals of a
Member State and shall have a thorough knowledge of at least two official languages of the Union. The Board of
Appeal shall have sufficient legal expertise to provide expert legal advice on the legality, including proportionality,
of the Authority’s exercise of its powers’;
‘Article 60a
No 966/2012 (OJ L 193, 30.7.2018, p. 1).’;
‘Any voluntary contribution from Member States or observers referred to in point d of the first sub-paragraph shall
‘Article 63
and the Council shall be required for any project which may have significant financial or long- term implications for the
Article 64
the Court of Auditors any information requested by the Court of Auditors that is within its competence.
accounting officer.
Court of Auditors.
financial year N.
Article 65
Financial rules
(OJ L 248, 18.9.2013, p. 1).’;
‘2a. The Management Board, and the Board of Supervisors shall ensure that individuals who provide any service,
Management Board, and the Board of Supervisors and who take part in the activities of the Authority.’;
in accordance with this Regulation and with other Union legislation applicable to financial institutions.
‘Article 71
Data protection
(OJ L 295, 21.11.2018, p. 39).’;
Board.’;
‘Article 76
Relationship with the Committee of European Insurance and Occupational Pensions Supervisors
The Authority shall be considered the legal successor of the Committee of European Insurance and Occupational Pensions
Supervisors (CEIOPS). By the date of establishment of the Authority, all assets and liabilities and all pending operations of
CEIOPS shall be automatically transferred to the Authority. CEIOPS shall establish a statement showing its closing asset
and liability situation as of the date of that transfer. That statement shall be audited and approved by CEIOPS and by the
Commission.’;
(ii) in point (a), the introductory sentence, and point (i) are replaced by the following:
governance;’;
(iii) the following point is added:
‘(g) the functioning of the Joint Committee.’;
all relevant authorities and stakeholders, conduct a comprehensive assessment of the application of Article 9a.’.
Article 3
‘2. The Authority shall act within the powers conferred by this Regulation and within the scope of Directives 97/9/EC,
98/26/EC, 2001/34/EC, 2002/47/EC, 2004/109/EC, 2009/65/EC, Directive 2011/61/EU of the European Parliament
and of the Council (*), Regulation (EC) No 1060/2009 and Directive 2014/65/EU of the European Parliament and of
the Council (**), Regulation (EU) 2017/1129 of the European Parliament and of the Council (***), and to the extent
that those acts apply to firms providing investment services or to collective investment undertakings marketing their
units or shares and the competent authorities that supervise them, within the relevant parts of, Directives 2002/87/EC
and 2002/65/EC, including all directives, regulations, and decisions based on those acts, and of any further legally
binding Union act which confers tasks on the Authority.
The Authority shall contribute to the work of the European Supervisory Authority (European Banking Authority)
established by Regulation (EU) No 1093/2010 of the European Parliament and of the Council (****) related to
the prevention of the use of the financial system for the purpose of money laundering or terrorist financing in
accordance with Directive (EU) 2015/849 of the European Parliament and of the Council (*****) and Regulation
(EU) No 1093/2010. The Authority shall decide on its agreement in accordance with Article 9a(9) of Regulation
(EU) No 1093/2010.
3. The Authority shall act in the field of activities of financial market participants in relation to issues not directly
covered by the legislative acts referred to in paragraph 2, including matters of corporate governance, auditing and
financial reporting, taking into account sustainable business models and the integration of environmental, social and
governance related factors, provided that such actions are necessary to ensure the effective and consistent application
of those acts. The Authority shall also take appropriate action in the context of take-over bids, clearing and settlement
and derivative issues.
(*) Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment
Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009
and (EU) No 1095/2010 (OJ L 174, 1.7.2011, p. 1).
(**) Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial
instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349).
(***) Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus
to be published when securities are offered to the public or admitted to trading on a regulated market, and
repealing Directive 2003/71/EC (OJ L 168, 30.6.2017, p. 12).
(****) Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010
establishing a European Supervisory Authority (European Banking Authority), amending Decision
No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12).
(*****) Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the
use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation
(EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of
the European Parliament and of the Council and Commission Directive 2006/70/EC (OJ L 141, 5.6.2015,
p. 73).’;
‘3a. This Regulation shall apply without prejudice to other Union acts conferring the functions of authorisation
or supervision and corresponding powers upon the Authority.’;
‘(e) ensuring that the taking of investment and other risks are appropriately regulated and supervised;
(f) enhancing customer and investor protection;’;
— the following point is added:
‘(g) enhancing supervisory convergence across the internal market.’;
‘When carrying out its tasks, the Authority shall act independently, objectively and in a non-discriminatory
and transparent manner, in the interests of the Union as a whole, and shall respect, wherever relevant, the
principle of proportionality. The Authority shall be accountable and act with integrity and shall ensure that all
stakeholders are treated fairly.’;
in the business of a financial market participant, undertaking, other subject or financial activity, that is affected
by the Authority’s actions and measures.’;
financial stability and to ensure confidence in the financial system as a whole and effective and sufficient protection
for the customers of financial services.’;
‘Article 3
the Council.
made public.
(4) in Article 4, point (3), point (ii) is replaced by the following:
‘(ii) with regard to Directive 2002/65/EC, the authorities and bodies competent for ensuring compliance with the
requirements of that Directive by firms providing investment services and by collective investment undertakings
marketing their units or shares;’;
(5) in Article 7, the following paragraph is added:
‘The location of the seat of the Authority shall not affect the Authority’s execution of its tasks and powers, the organisation
of its governance structure, the operation of its main organisation, or the main financing of its activities, while allowing,
where applicable, for the sharing with Union agencies of administrative support services and facility management services
which are not related to the core activities of the Authority.’;
opinions;’;
market participants in the Union which is to set out best practices and high-quality methodologies and
processes and takes into account, inter alia, changing business practices and business models and the size
of financial market participants and of markets;’;
(iii) point (b) is replaced by the following:
and consistent supervision of financial market participants, ensuring a coherent functioning of colleges
of supervisors and taking actions, inter alia, in emergency situations;’;
(iv) points (e) to (h) are replaced by the following:
‘(e) to organise and conduct peer reviews of competent authorities and, in that context, to issue guidelines and
outcomes;
developments relating to trends in innovative financial services duly considering developments relating
to environmental, social and governance related factors;
(h) to foster, where relevant, consumer and investor protection, in particular with regards to shortcomings
in a cross-border context and taking related risks into account;’;
(v) the following point is inserted:
(vi) the following point is inserted:
(vii) point (l) is deleted;
‘1a. When carrying out its tasks in accordance with this Regulation, the Authority shall:
(a) use the full powers available to it;
(b) with due regard to the objective to ensure the safety and soundness of financial market participants, take fully
into account the different types, business models and sizes of financial market participants; and
(c) take account of technological innovation, innovative and sustainable business models, and the integration of
environmental, social and governance related factors.’;
‘(ca) issue recommendations, as laid down in Article 29a;’,

(ii) point (g) is replaced by the following:
Article 16a;’;
(iii) the following points are inserted:
(gb) take action in accordance with Article 9a;’;
information and views gathered from the consultations were used in a draft regulatory technical standard and a draft
‘(aa) undertaking in-depth thematic reviews of market conduct, building a common understanding of markets
(ab) developing retail risk indicators for the timely identification of potential causes of consumer and investor
harm;’;
(f) coordinating mystery shopping activities of competent authorities, if applicable.’;
(b) paragraph 2 is replaced by the following
‘Article 9a
No action letters
flowing from the legislative act or its proper application;
its opinion public.
The Authority shall act expeditiously, in particular with a view to contributing to the prevention of the issues as referred
to in paragraph 1, whenever possible.
significant exceptional issues pertaining to market confidence, customer or investor protection, the orderly functioning
and integrity of financial markets or commodity markets, or the stability of the whole or part of the financial system in the
Union, it shall, without undue delay, send a detailed account in writing to the competent authorities and the Commission
of the issues it considers to exist. The Authority may provide the Commission with an opinion on any action it considers
appropriate, in the form of a new legislative proposal or a proposal for a new delegated or implementing act, and on the
urgency of the issue. The Authority shall make its opinion public.’;
advice of the Securities and Markets Stakeholder Group referred to in Article 37.’;
to adopt it. The Commission shall inform the European Parliament and the Council, in due time, where the
amendments, it shall send the draft regulatory technical standard back to the Authority, explaining why it does
not adopt it, or explaining the reasons for its amendments. The Commission shall send a copy of its letter to
the European Parliament and to the Council. Within a period of six weeks, the Authority may amend the draft
regulatory technical standard on the basis of the Commission’s proposed amendments and resubmit it in the
form of a formal opinion to the Commission. The Authority shall send a copy of its formal opinion to the
scope and impact of the draft regulatory technical standards concerned or in relation to the particular urgency of
the matter. The Commission shall also request the advice of the Securities and Markets Stakeholder Group referred
to in Article 37.’;
Securities and Markets Stakeholder Group referred to in Article 37.
Where the Commission intends not to adopt a draft implementing technical standard or intends to adopt it in part
or with amendments, it shall send it back to the Authority explaining why it does not intend to adopt it or explaining
the matter. The Commission shall also request the advice of the Securities and Markets Stakeholder Group referred
to in Article 37.’;
ESFS, and to ensuring the common, uniform and consistent application of Union law, issue guidelines addressed to
all competent authorities or all financial market participants and issue recommendations to one or more competent
authorities or to one or more financial market participants.
Guidelines and recommendations shall be in accordance with the empowerments conferred in the legislative acts
recommendations which it issues and analyse the related potential costs and benefits of issuing such guidelines and
recommendations. Those consultations and analyses shall be proportionate in relation to the scope, nature and
impact of the guidelines or recommendations. The Authority shall, where appropriate, also request advice from the
Securities and Markets Stakeholder Group referred to in Article 37. Where the Authority does not conduct open
public consultations or does not request advice from the Securities and Markets Stakeholder Group, the Authority
shall provide reasons.’;
‘Article 16a
Opinions
1. The Authority may, upon a request from the European Parliament, from the Council or from the Commission, or on
its own initiative, provide opinions to the European Parliament, the Council and the Commission on all issues related to
its area of competence.
3. With regard to the prudential assessment of mergers and acquisitions falling within the scope of Directive 2014/65/EU
and which according to that Directive require consultation between competent authorities from two or more Member States,
the Authority may, at the request of one of the competent authorities concerned, issue and publish an opinion on a
prudential assessment, except in relation to the criteria set out in in point (e) of Article 13(1) of Directive 2014/65/EU.
The opinion shall be issued promptly and, in any event, before the end of the assessment period in accordance with
Directive 2014/65/EU.
technical advice to the European Parliament, to the Council and to the Commission in the areas set out in the legislative
acts referred to in Article 1(2).
Article 16b
Before submitting a question to the Authority, financial market participants shall consider whether to address the question
in the first place to their competent authority.
Commission, the Securities and Markets Stakeholder Group, or on its own initiative, including when this is
based on well substantiated information from natural or legal persons, and after having informed the competent
authority concerned, the Authority shall outline how it intends to proceed with the case and, where appropriate,
‘2a. Without prejudice to powers under this Regulation and before issuing a recommendation as set out in
paragraph 3, the Authority shall engage with the competent authority concerned where it considers such engagement
and where it is necessary to remedy in a timely manner such non-compliance in order to maintain or restore neutral
Authority may, where the relevant requirements of the legislative acts referred to in Article 1(2) of this Regulation
are directly applicable to financial market participants, adopt an individual decision addressed to a financial market
participant requiring it to take all necessary action to comply with its obligations under Union law including the
cessation of any practice.
to paragraph 4.
‘Article 17a
‘3. Where the Council has adopted a decision pursuant to paragraph 2 of this Article, and in exceptional circumstances,
system in the Union or customer and investor protection, the Authority may adopt individual decisions requiring competent
authorities to take the necessary action in accordance with the legislative acts referred to in Article 1(2) to address any
such developments by ensuring that financial market participants and competent authorities satisfy the requirements laid
down in those legislative acts.’;
authorities.
authorities and, where, in accordance with those acts, the Authority may assist, on its own initiative, in reaching an
reasons;
reasons; or
Pending the Authority’s decision in accordance with the procedure set out in Article 44(4), in cases where the
‘3. Where the competent authorities concerned fail to reach an agreement within the conciliation phase referred
to in paragraph 2, the Authority may take a decision requiring those authorities to take specific action, or to refrain
from certain action, in order to settle the matter, and to ensure compliance with Union law. The decision of the
Authority shall be binding on the competent authorities concerned. The Authority’s decision may require competent
authorities to revoke or amend a decision that they have adopted or to make use of the powers which they have under
the relevant Union law.’;
does not comply with the decision of the Authority, and thereby fails to ensure that a financial market participant
complies with requirements directly applicable to it by virtue of the legislative acts referred to in Article 1(2) of this
Regulation, the Authority may adopt an individual decision addressed to that financial market participant requiring
it to take all necessary action to comply with its obligations under Union law, including the cessation of any practice.’;
‘1. The Authority shall promote and monitor, within the scope of its powers, the efficient, effective and consistent
‘2. The Authority shall lead in ensuring a consistent and coherent functioning of colleges of supervisors
for cross-border institutions across the Union, taking account of the systemic risk posed by financial market
participants referred to in Article 23, and shall, where appropriate, convene a meeting of a college.’;
(ii) in the third subparagraph, point (b) is replaced by the following:
‘(b) initiate and coordinate Union-wide stress tests in accordance with Article 32 to assess the resilience of
financial market participants, in particular the systemic risk posed by financial market participants as
referred to in Article 23, to adverse market developments, and evaluate the potential for systemic risk
posed by key financial market participants to increase in situations of stress, ensuring that a consistent
methodology is applied at national level to such tests and, where appropriate, address a recommendation
to the competent authority to correct issues identified in the stress test, including a recommendation to
conduct specific assessments; it may recommend competent authorities to carry out on-site inspections,
and may participate in such on-site inspections, in order to ensure comparability and reliability of methods,
practices and results of Union-wide assessments;’;
supervisors.’;

or on its own initiative, the Authority may conduct an inquiry into a particular type of financial activity or type of
product or type of conduct in order to assess potential threats to the integrity of the financial markets or the stability
of the financial system or to the protection of customers or investors.
risk and an adequate stress-testing regime which includes an evaluation of the potential for systemic risk posed by, or to,
financial market participants to increase in situations of stress, including potential environmental-related systemic risk.
The financial market participants that may pose a systemic risk shall be subject to strengthened supervision, and where
necessary, the recovery and resolution procedures referred to in Article 25.’;
acts;’;
innovation, facilitating personnel exchanges and encouraging competent authorities to intensify the use
of secondment schemes and other tools;’;
Change;’;
For the purpose of establishing a common supervisory culture, the Authority shall develop and maintain an up-to-
date Union supervisory handbook on the supervision of financial markets participants in the Union, which duly
takes into account the nature, scale and complexity of risks, business practices, business models and size of financial
institutions and of markets, including changes due to technological innovation, of financial market participants and
markets. The Union supervisory handbook shall set out best practices and shall specify high-quality methodologies
and processes.
point (a) of paragraph 1, and tools and instruments referred to in this paragraph. It shall also, where appropriate,
analyse the related potential costs and benefits. Such consultations and analyses shall be proportionate in relation
to the scope, nature and impact of the opinions or tools and instruments. The Authority shall, where appropriate,
also request advice from the Securities and Markets Stakeholder Group.’;
‘Article 29a
authorities, existing work by the Union institutions, and analysis, warnings and recommendations published by the ESRB,
by the competent authorities in the following year and draw conclusions. The Authority shall discuss possible follow
up which may include guidelines, recommendations to competent authorities, and peer reviews, in the respective area.
‘Article 30
out in Union law;
4. The Authority shall produce a report setting out the results of the peer review. That peer review report shall be
prepared by the peer review committee and adopted by the Board of Supervisors in accordance with Article 44(4). When
drafting that report, the peer review committee shall consult the Management Board in order to maintain consistency with
other peer review reports and to ensure a level playing field. The Management Board shall assess in particular whether the
5. The Authority shall submit an opinion to the Commission where, having regard to the outcome of the peer review or to
any other information acquired by the Authority in carrying out its tasks, it considers that further harmonisation of Union
rules applicable to financial market participants or competent authorities would be necessary from the Union’s perspective.
with Article 44(4). When drafting that report, the peer review committee shall consult the Management Board in order
to maintain consistency with other follow up reports. The follow-up report shall include an assessment of, but shall not
the peer review in response to the follow up measures of the peer review report.
8. For the purposes of this Article the Management Board shall make a proposal for a peer review work plan for the
coming two years, which shall inter alia reflect the lessons learnt from the past peer re-view processes and the discussions
of coordination groups referred to in Article 45b. The peer review work plan shall constitute a separate part of the annual
or the stability of the financial system in the Union.’;
‘Article 31a
The Authority shall, together with the European Supervisory Authority (European Banking Authority) and with the
European Supervisory Authority (European Insurance and Occupational Pensions Authority), establish a system for the
exchange of information relevant to the assessment of the fitness and propriety of holders of qualifying holdings, directors
and key function holders of financial market participant by competent authorities in accordance with the legislative acts
Article 31b
Coordination function in relation to orders, transactions and activities with significant cross-border effects
Where a competent authority has evidence or clear indications from several different sources to suspect that orders,
transactions or any other activity with significant cross-border effects threaten the orderly functioning and integrity
of financial markets or the financial stability in the Union, it shall promptly notify the Authority and provide the
relevant information. The Authority may issue an opinion on appropriate follow-up to the competent authorities of the
Member States where the suspected activity has occurred.’;
‘1. The Authority shall monitor and assess market developments in the area of its competence and, where necessary,
inform the European Supervisory Authority (European Banking Authority), and the European Supervisory Authority
(European Insurance and Occupational Pensions Authority), the ESRB, and the European Parliament, the Council and
the Commission about the relevant micro-prudential trends, potential risks and vulnerabilities. The Authority shall
include in its assessments an analysis of the markets in which financial market participants operate and an assessment
of the impact of potential market developments on such financial market participants.’;
‘2. The Authority shall initiate and coordinate Union-wide assessments of the resilience of financial market
participants to adverse market developments. To that end, it shall develop:’;
‘(a) common methodologies for assessing the effect of economic scenarios on the financial position of a
financial market participant, taking into account inter alia risks stemming from adverse environmental
developments;’;
‘(aa) common methodologies for identifying financial market participants to be included in Union-wide
assessments;’;
‘(d) common methodologies for assessing the effect of environmental risks on the financial stability of
financial market participants.’;
(v) the following subparagraph is added:
with the indicators referred to in Article 22(2) of this Regulation.’;
‘Article 33
1. Without prejudice to the respective competences of the Member States and the Union institutions, the Authority may
develop contacts and enter into administrative arrangements with regulatory and supervisory authorities, international
organisations and third-country administrations. Those arrangements shall not create legal obligations in respect of the
Union and its Member States nor shall they prevent Member States and their competent authorities from concluding
bilateral or multilateral arrangements with those third countries.
money laundering and countering the financing of terrorism regimes that pose significant threats to the financial system of
the Union, the Authority shall not conclude administrative arrangements with the regulatory and supervisory authorities
of that third country. This shall not preclude other forms of cooperation between the Authority and the respective third-
country authorities with a view to reduce threats to the financial system of the Union.
investor protection and the functioning of the internal market, relevant regulatory and supervisory developments and
enforcement practices and market developments in third countries, to the extent they are relevant to risk-based equivalence
assessments, for which equivalence decisions have been adopted by the Commission pursuant to the legislative acts referred
to in Article 1(2).
Furthermore, it shall verify whether the criteria, on the basis of which those equivalence decisions have been taken, and
any conditions set out therein, are still fulfilled.
The Authority may liaise with relevant authorities in third countries. The Authority shall submit a confidential report to the
European Parliament, to the Council, to the Commission and to the European Supervisory Authority (European Banking
Authority) and to the European Supervisory Authority (European Insurance and Occupational Pensions Authority)
summarising the findings of its monitoring of all equivalent third countries. The report shall focus in particular on
implications for financial stability, market integrity, investor protection or the functioning of the internal market.
Where the Authority identifies relevant developments in relation to the regulation and supervision or the enforcement
practices in the third countries referred to in this paragraph that may affect the financial stability of the Union or of one or
more of its Member States, market integrity, investor protection or the functioning of the internal market, it shall inform
the European Parliament, the Council and the Commission on a confidential basis and without undue delay.
conditions set out in the second sentence of paragraph 1 of this Article, the Authority shall cooperate where possible with
the relevant competent authorities, of third countries whose regulatory and supervisory regimes have been recognised as
equivalent. In principle, that cooperation shall be pursued on the basis of administrative arrangements concluded with
the relevant authorities of those third countries. When negotiating such administrative arrangements, the Authority shall
include provisions on the following:
decision;
of supervisory activities including, where necessary, on-site inspections
The Authority shall inform the Commission where a third-country competent authority refuses to conclude such

‘2. The Securities and Markets Stakeholder Group shall be composed of 30 members. Those members shall
comprise of:
(a) 13 members representing, in balanced proportions, financial market participants operating in the Union;
(b) 13 members representing employees’ representatives of financial market participants operating in the Union,
consumers, users of financial services and representatives of SMEs; and
3. The members of the Securities and Markets Stakeholder Group shall be appointed by the Board of Supervisors,
following an open and transparent selection procedure. In making its decision, the Board of Supervisors shall, to
the extent possible, ensure an appropriate reflection of diversity of the securities and markets sector, geographical
and gender balance and representation of stakeholders across the Union. Members of the Securities and Markets
Stakeholder Group shall be selected according to their qualifications, skills, relevant knowledge and proven expertise.’;
‘3a. Members of the Securities and Markets Stakeholder Group shall elect a Chair from among its members. The
position of Chair shall be held for a period of two years.
The European Parliament may invite the Chair of the Securities and Markets Stakeholder Group to make a statement
before it and answer any questions from its members whenever so requested.’;
(c) in paragraph 4, the first subparagraph is replaced by the following:
‘4. The Authority shall provide all necessary information, subject to professional secrecy, as set out in Article 70 of
this Regulation, and ensure adequate secretarial support for the Securities and Markets Stakeholder Group. Adequate
compensation shall be provided to members of the Securities and Markets Stakeholder Group representing non-
profit organisations, excluding industry representatives. This compensation shall take into account the members’
preparatory and follow-up work and shall be at least equivalent to the reimbursement rates of officials pursuant
to Title V, Chapter 1, Section 2 of the Staff Regulations of Officials of the European Union and the Conditions of
Employment of Other Servants of the European Union, laid down in Council Regulation (EEC, Euratom, ECSC)
No 259/68 (*) (the Staff Regulations). The Securities and Markets Stakeholder Group may establish working groups
on technical issues. Members of the Securities and Markets Stakeholder Group shall serve for a period of four years,
following which a new selection procedure shall take place.
(*) OJ L 56, 4.3.1968, p. 1.’;
‘5. The Securities and Markets Stakeholder Group may submit advice to the Authority on any issue related to the
tasks of the Authority with particular focus on the tasks set out in Articles 10 to 16, 29, 30 and 32.
Where members of the Securities and Markets Stakeholder Group cannot agree on advice, one third of its members
or the members representing one group of stakeholders shall be permitted to issue separate advice.
The Securities and Markets Stakeholder Group, the Banking Stakeholder Group, the Insurance and Reinsurance
Stakeholder Group, and the Occupational Pensions Stakeholder Group may issue a joint advice on issues related to
‘7. The Authority shall make public the advice of the Securities and Markets Stakeholder Group, the separate advice
of its members, and the results of its consultations as well as information on how advice and results of consultations
have been taken into account.’;
‘Article 39
intervals.
disclose the identity of the competent authority or financial market participant concerned and the main content of the
decision, unless such publication is in conflict with the legitimate interest of those financial market participants, or with
the protection of their business secrets, or could seriously jeopardise the orderly functioning and integrity of financial
markets or the stability of the whole or part of the financial system of the Union.’;
(33) Article 40 is amended as follows
‘Article 41
Internal committees
1. The Board of Supervisors on its own initiative or at the request of the Chairperson may establish internal committees
six other members shall not be representatives of the competent authority alleged to have breached Union law and shall
not have any interest in the matter or direct links to the competent authority concerned.
3. For the purposes of Article 19 the Chairperson shall propose a decision to convene an independent panel, to be
six other members shall not be representatives of the competent authorities party to the disagreement and shall not have
any interest in the conflict or direct links to the competent authorities concerned.
of Supervisor. The independent panel shall consist of the Chairperson and six other members, to be proposed by the
or Article 19, for final adoption by the Board of Supervisors. A panel referred to in paragraph 4 of this Article shall present
the outcome of the inquiry conducted pursuant to the first subparagraph of Article 22(4) to the Board of Supervisors.
Article 42
2. Member States, Union institutions or bodies and any other public or private body, shall not seek to influence the
(c) paragraph 5 is replaced by the following
‘Article 43a
Notwithstanding Article 70, within six weeks of each meeting of the Board of Supervisors, the Authority shall, at least,
discussions within the Board of Supervisors relating to individual financial market participants, unless otherwise provided
for in Article 75(3) or in the legislative acts referred to in Article 1(2).’;
the third subparagraph of Article 9(5) of this Regulation, and Chapter VI of this Regulation and, by way of derogation
majority of its members, as defined in Article 16(4) TEU and in Article 3 of the Protocol No 36 on transitional
provisions
peer review committee referred to in Article 30(2), the Board of Supervisors, when considering the proposals by the
this paragraph, the Board of Supervisors shall take decisions on the basis of a simple majority of its voting members.’;
‘4. With regard to the decisions in accordance with Articles 17, 19 and 30, the Board of Supervisors shall vote on
the proposed decisions using a written procedure. The voting members of the Board of Supervisors shall have eight
unless a simple majority of voting members of the Board of Supervisors objects. Abstentions shall not be counted
as approvals or as objections, and shall not be considered when calculating the number of votes cast. If three voting
members of the Board of Supervisors object to the written procedure, the draft decision shall be discussed and decided
on by the Board of Supervisors in accordance with the procedure set out in paragraph 1 of this Article.
The non-voting members and the observers, with the exception of the Executive Director, shall not attend any
discussions within the Board of Supervisors relating to individual financial market participants, unless otherwise
provided for in Article 75(3) or in the legislative acts referred to in Article 1(2).’;
‘5. The Authority’s Chairperson shall have the prerogative to call a vote at any time. Without prejudice to that power
and to the effectiveness of the Authority’s decision-making procedures, the Board of Supervisors of the Authority
shall strive for consensus when taking its decisions.’;
‘Article 45
Composition
Other than the Chairperson, each member of the Management Board shall have an alternate, who may replace him or her
if he or she is prevented from attending.
2. The term of office of the members elected by the Board of Supervisors shall be two-and-a-half years. That term may
be extended once. The composition of the Management Board shall be gender balanced and proportionate and shall reflect
the Union as a whole. Mandates shall be overlapping and an appropriate rotating arrangement shall apply
Board relating to individual financial market participants.’;
‘Article 45a
Decision-making
in Article 63.
Article 45b
Coordination Groups
of Supervisors.
‘Article 46
‘3a. The Management Board may examine, give an opinion on, and make proposals on all matters to be decided
by the Board of Supervisors after discussion at the relevant internal committee, save for peer reviews according to
Article 30.’;
Article 45b.’;
‘2. The Chairperson shall be selected on the basis of merit, skills, knowledge of financial market participants and of
markets, and of experience relevant to financial supervision and regulation, following an open selection procedure
which shall respect the principle of gender balance and shall be published in the Official Journal of the European Union.
The Board of Supervisors shall draw up a shortlist of qualified candidates for the position of the Chairperson, with the
assistance of the Commission. Based on the shortlist the Council shall adopt a decision to appoint the Chairperson,
‘Article 49a
Expenses
Authority (European Banking Authority) and the European Supervisory Authority (European Insurance and
Occupational Pensions Authority), in particular regarding:’;
(iii) the fifth indent is replaced by the following:
‘— cybersecurity,’;
(iv) the sixth indent is replaced by the following:
‘— information and best practice exchange with the ESRB and the other ESAs,’;
(v) the following indents are added:
‘— retail financial services and consumer and investor protection issues;

and procedures for ensuring secure and efficient inter-connection of the centralised automated mechanisms pursuant
‘Article 56
Within the scope of its tasks set out in Chapter II of this Regulation, and, in particular with respect to the implementation
of Directive 2002/87/EC, where relevant, the Authority shall reach joint positions by consensus with, as appropriate,
the European Supervisory Authority (European Insurance and Occupational Pensions Authority) and with the European
Supervisory Authority (European Banking Authority).
(European Banking Authority) or the European Supervisory Authority (European Insurance and Occupational Pensions
Authority) shall be adopted, in parallel, by, as appropriate, the Authority, the European Supervisory Authority (European
Banking Authority) and the European Supervisory Authority (European Insurance and Occupational Pensions Authority),.
Article 57
Sub-Committees
1. The Joint Committee may establish sub-committees for the purposes of preparing draft joint positions and common
3. Each sub-committee shall elect a chairperson from among the representatives of the relevant competent authorities,
5. The Joint Committee shall make public on its website all established sub-committees including their mandates and a
list of their members with their respective functions in the sub-committee.’;
bodies involved in the activities of the Authority and members of the Securities and Markets Stakeholder Group.
Members and alternates shall be nationals of a Member State and shall have a thorough knowledge of at least two
official languages of the Union. The Board of Appeal shall have sufficient legal expertise to provide expert legal advice
on the legality, including proportionality, of the Authority’s exercise of its powers.’;
‘Article 60a
No 966/2012 (OJ L 193, 30.7.2018, p. 1).’;
‘Any voluntary contribution from Member States or observers referred to in point d of the first sub-paragraph shall
‘Article 63
and the Council shall be required for any project which may have significant financial or long- term implications for the
Article 64
the Court of Auditors any information requested by the Court that is within its competence.
accounting officer.
Court of Auditors.
financial year N.
Article 65
Financial rules
(OJ L 248, 18.9.2013, p. 1).’;
‘2a. The Management Board and the Board of Supervisors shall ensure that individuals who provide any service,
Management Board, and the Board of Supervisors and who take part in the activities of the Authority.’;
in accordance with this Regulation and with other Union legislation applicable to financial market participants.
‘Article 71
Data protection
(OJ L 295, 21.11.2018, p. 39).’;
Board.’;
‘Article 76
Relationship with the Committee of European Securities Regulators
The Authority shall be considered the legal successor of the Committee of European Securities Regulators (CESR). By the
date of establishment of the Authority, all assets and liabilities and all pending operations of CESR shall be automatically
transferred to the Authority. CESR shall establish a statement showing its closing asset and liability situation as of the date
of that transfer. That statement shall be audited and approved by CESR and by the Commission.’;
(ii) in point (a), the introductory sentence, and point (i)are replaced by the following:
governance;’;
(iii) the following point is added:
‘(g) the functioning of the Joint Committee.’;
all relevant authorities and stakeholders, conduct a comprehensive assessment of the application of Article 9a.
2b. As part of the general report referred to in paragraph 1, the Commission shall, after consulting all relevant
authorities and stakeholders, conduct a comprehensive assessment of the potential supervision of third-country
trading venues by the Authority exploring aspects such as recognition based on systemic importance, organisational
requirements, ongoing compliance, fines and periodic penalty payments as well as staff and resources. In its
assessment, the Commission shall take into account the effects on liquidity, including the availability of best price
for investors, best execution for EU clients, access barriers and economic benefits for EU counterparties to trade
globally as well as the development of the capital markets union.
2c. As part of the general report referred to in paragraph 1, the Commission shall, after consulting all relevant
authorities and stakeholders, conduct a comprehensive assessment of the potential supervision of third-country
central securities depositories (CSDs) by the Authority exploring aspects such as recognition based on systemic
importance, organisational requirements, ongoing compliance, fines and periodic penalty payments as well as staff
and resources.
2d. The Commission shall submit the assessments referred to in paragraphs 2b and 2c, together with any legislative
proposal, if appropriate, to the European Parliament and to the Council by 30 June 2021.’.
Article 4
(1) in Article 1(1), the following point is added:
‘(g) the authorisation and supervision of data reporting services providers.’;
(i) point (18) is replaced by the following:
‘(18) “competent authority” means a competent authority as defined in point (26) of Article 4(1) of

Directive 2014/65/EU and, for the authorisation and supervision of data reporting services providers,
ESMA, with the exception of those approved reporting mechanisms (ARMs) and approved publication
arrangements (APAs) with a derogation in accordance with paragraph 3 of this Article;’;
‘(22a) “senior management” means senior management as defined in point (37) of Article 4(1) of

Directive 2014/65/EU;’;
(iii) points (34), (35) and (36) are replaced by the following:
‘(34) “approved publication arrangement” or “APA” means a person authorised under this Regulation to
provide the service of publishing trade reports on behalf of investment firms pursuant to Articles 20
and 21;
(35) “consolidated tape provider” or “CTP” means a person authorised under this Regulation to provide
the service of collecting trade reports for financial instruments listed in Articles 6, 7, 10, 12 and 13,
20 and 21 from regulated markets, MTFs, OTFs and APAs and consolidating them into a continuous
electronic live data stream providing price and volume data per financial instrument;
(36) “approved reporting mechanism” or “ARM” means a person authorised under this Regulation to
provide the service of reporting details of transactions to competent authorities or to ESMA on behalf
of investment firms;’;
(iv) the following point is inserted:
‘(36a) “data reporting services provider” means a person referred to in points (34) to (36) and a person referred
to in Article 27b(2);’;
‘3. The Commission is empowered to adopt delegated acts in accordance with Article 50, specifying criteria to
identify those ARMs and APAs that, by way of derogation from this Regulation on account of their limited relevance
for the internal market, are subject to authorisation and supervision by a competent authority of a Member State as
defined in point (26) of Article 4(1) of Directive 2014/65/EU.
When adopting the delegated act, the Commission shall take into account one or more of the following elements:
(a) the extent to which the services are provided to investment firms authorised in one Member State only;
(b) the number of trade reports or transactions;
(c) whether the ARM or APA is part of a group of financial market participants operating cross border.
Where an entity is supervised by ESMA for any services provided in its capacity as a data reporting services provider
under this Regulation, none of its activities as an ARM or APA shall be excluded from ESMA supervision under any
delegated act adopted pursuant to this paragraph.’;
‘Article 22
Providing information for the purposes of transparency and other calculations
1. In order to carry out calculations for determining the requirements for the pre- and post-trade transparency and
the trading obligation regimes referred to in Articles 3 to 11, Articles 14 to 21 and Article 32, which are applicable to
financial instruments and for determining whether an investment firm is a systematic internaliser, ESMA and competent
authorities may require information from:
(a) trading venues;
(b) APAs; and
(c) CTPs.
2. Trading venues, APAs and CTPs shall store the necessary data for a sufficient period.
3. ESMA shall develop draft regulatory technical standards to specify the content and frequency of data requests and
the formats and the timeframe in which trading venues, APAs and CTPs are to respond to data requests referred to in
paragraph 1, the type of data that is to be stored, and the minimum period for which trading venues, APAs and CTPs are
to store data in order to be able to respond to data requests in accordance with paragraph 2.
referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.’;
(4) in Article 26(1), the third subparagraph is replaced by the following:
‘The competent authorities shall without undue delay make available to ESMA any information reported in accordance
with this Article.’;
‘Article 27
Obligation to supply financial instrument reference data
1. With regard to financial instruments admitted to trading on regulated markets or traded on MTFs or OTFs, trading
venues shall provide ESMA with identifying reference data for the purpose of transaction reporting under Article 26.
With regard to other financial instruments covered by Article 26(2) traded on its system, each systematic internaliser shall
provide ESMA with reference data relating to those financial instruments.
Identifying reference data shall be made ready for submission to ESMA in an electronic and standardised format before
trading commences in the financial instrument that it refers to. The financial instrument reference data shall be updated
whenever there are changes to the data with respect to a financial instrument. ESMA shall publish those reference data
immediately on its website. ESMA shall give competent authorities access without undue delay to those reference data.
2. In order to allow competent authorities to monitor, pursuant to Article 26, the activities of investment firms to ensure
that they act honestly, fairly and professionally and in a manner which promotes the integrity of the market, ESMA shall,
after consulting the competent authorities, establish the necessary arrangements in order to ensure that:
(a) ESMA effectively receives the financial instrument reference data pursuant to paragraph 1 of this Article;
(b) the quality of the financial instrument reference data received pursuant to paragraph 1 of this Article is appropriate
for the purpose of transaction reporting under Article 26;
(c) the financial instrument reference data received pursuant to paragraph 1 of this Article is efficiently and without
undue delay transmitted to the relevant competent authorities;
(d) there are effective mechanisms in place between ESMA and the competent authorities to resolve data delivery or data
quality issues.
3. ESMA shall develop draft regulatory technical standards to specify:
(a) data standards and formats for the financial instrument reference data in accordance with paragraph 1, including the
methods and arrangements for supplying the data and any update thereto to ESMA and transmitting it to competent
authorities in accordance with paragraph 1, and the form and content of such data;
(b) the technical measures that are necessary in relation to the arrangements to be made by ESMA and the competent
authorities pursuant to paragraph 2.
referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.
4. ESMA may suspend the reporting obligations specified in paragraph 1 for certain or all financial instruments where
all of the following conditions are met:
(a) the suspension is necessary in order to preserve the integrity and quality of the reference data subject to reporting
obligation as specified in paragraph 1 which may be put at risk by any of the following:
(i) serious incompleteness, inaccuracy or corruption of the submitted data, or
(ii) unavailability in a timely manner, disruption or damage of the functioning of systems used for the submitting,
collecting, processing or storing the respective reference data by ESMA, national competent authorities, market
infrastructures, clearing and settlement systems, and important market participants;
(b) the existing Union regulatory requirements that are applicable do not address the threat;
(c) the suspension does not have any detrimental effect on the efficiency of financial markets or investors that is
disproportionate to the benefits of the action;
(d) the suspension does not create any regulatory arbitrage.
When taking the measure referred to in the first subparagraph of this paragraph, ESMA shall take into account the extent to
which the measure ensures the accuracy and completeness of the reported data for the purposes specified in paragraph 2.
Before deciding to take the measure referred to in the first subparagraph, ESMA shall notify the relevant competent
authorities.
The Commission is empowered to adopt delegated acts in accordance with Article 50 in order to supplement this
Regulation by specifying the conditions referred to in the first subparagraph and the circumstances under which the
suspension referred to in that subparagraph ceases to apply.’;
(6) the following Title is inserted:
‘TITLE IVa
DATA REPORTING SERVICES
CHAPTER 1
Authorisation of data reporting services providers
Article 27a
For the purposes of this Title, a national competent authority means a competent authority as defined in point (26) of
Article 4(1) of Directive 2014/65/EU.
Article 27b
Requirement for authorisation
1. The operation of an APA, a CTP or an ARM as a regular occupation or business shall be subject to prior authorisation
by ESMA in accordance with this Title.
By way of derogation from the first subparagraph of this paragraph, an APA or ARM identified in accordance with the
delegated act referred to in Article 2(3) shall be subject to prior authorisation and supervision by the relevant national
competent authority in accordance with this Title.
2. An investment firm or a market operator operating a trading venue may also provide the services of an APA, a CTP or
an ARM, subject to the prior verification by ESMA or the relevant national competent authority that the investment firm
or the market operator complies with this Title. The provision of those services shall be included in their authorisation.
3. ESMA shall establish a register of all data reporting services providers in the Union. The register shall be publicly
available and shall contain information on the services for which the data reporting services provider is authorised and
it shall be updated on a regular basis.
Where ESMA, or a national competent authority where relevant, has withdrawn an authorisation in accordance with
Article 27e, that withdrawal shall be published in the register for a period of five years.
4. Data reporting services providers shall provide their services under the supervision of ESMA or the national competent
authority where relevant. ESMA, or the national competent authority where relevant, shall regularly review the compliance
of data reporting services providers with this Title. ESMA, or the national competent authority where relevant, shall
monitor that data reporting services providers comply at all times with the conditions for initial authorisation established
under this Title.
Article 27c
Authorisation of data reporting services providers
1. Data reporting services providers shall be authorised by ESMA, or the national competent authority where relevant,
for the purposes of this Title where:
(a) the data reporting services provider is a legal person established in the Union; and
(b) the data reporting services provider meets the requirements laid down in this Title.
2. The authorisation referred to in paragraph 1 shall specify the data reporting service which the data reporting services
provider is authorised to provide. Where an authorised data reporting services provider seeks to extend its business to
additional data reporting services, it shall submit a request to ESMA, or the national competent authority where relevant,
for extension of that authorisation.
3. An authorised data reporting services provider shall comply at all times with the conditions for authorisation referred
to in this Title. An authorised data reporting services provider shall, without undue delay, notify ESMA, or the national
competent authority where relevant, of any material changes to the conditions for authorisation.
4. The authorisation referred to in paragraph 1 shall be effective and valid for the entire territory of the Union, and shall
allow the data reporting services provider to provide the services for which it has been authorised throughout the Union.
Article 27d
Procedures for granting and refusing applications for authorisation
1. The applicant data reporting services provider shall submit an application providing all information necessary to
enable ESMA, or the national competent authority where relevant, to confirm that the data reporting services provider
has established, at the time of initial authorisation, all the necessary arrangements to meet its obligations under the
provisions of this Title, including a programme of operations setting out, inter alia, the types of services envisaged and the
organisational structure.
2. ESMA, or the national competent authority where relevant, shall assess whether the application for authorisation is
complete within 20 working days of receipt of the application.
Where the application is not complete, ESMA, or the national competent authority where relevant, shall set a deadline by
which the data reporting services provider is to provide additional information.
After assessing an application as complete, ESMA, or the national competent authority where relevant, shall notify the
data reporting services provider accordingly.
3. ESMA, or the national competent authority where relevant, shall, within six months from the receipt of a complete
application, assess the compliance of the data reporting services provider with this Title. It shall adopt a fully reasoned
decision granting or refusing authorisation and shall notify the applicant data service provider accordingly within five
working days.
4. ESMA shall develop draft regulatory technical standards to determine:
(a) the information to be provided under paragraph 1, including the programme of operations;
(b) the information included in the notifications under Article 27f(2).
5. ESMA shall develop draft implementing technical standards to determine standard forms, templates and procedures
for the notification or provision of information provided for in paragraph 1 of this Article and in Article 27f(2).
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.
Article 27e
Withdrawal of authorisation
1. ESMA, or the national competent authority where relevant, may withdraw the authorisation of a data reporting
services provider where the latter:
(a) does not make use of the authorisation within 12 months, expressly renounces the authorisation or has provided
no services for the preceding six months;
(b) obtained the authorisation by making false statements or by any other irregular means;
(c) no longer meets the conditions under which it was authorised;
(d) has seriously and systematically infringed this Regulation.
2. ESMA shall, where relevant, without undue delay, notify the national competent authority in the Member State where
the data reporting services provider is established of a decision to withdraw the authorisation of a data reporting services
provider.
Article 27f
Requirements for the management body of a data reporting services provider
1. The management body of a data reporting services provider shall at all times be of sufficiently good repute, possess
sufficient knowledge, skills and experience and commit sufficient time to perform their duties.
The management body shall possess adequate collective knowledge, skills and experience to be able to understand the
activities of the data reporting services provider. Each member of the management body shall act with honesty, integrity and
independence of mind to effectively challenge the decisions of the senior management where necessary and to effectively
oversee and monitor management decision-making where necessary.
Where a market operator seeks authorisation to operate an APA, a CTP or an ARM pursuant to Article 27d and the
members of the management body of the APA, the CTP or the ARM are the same as the members of the management body
of the regulated market, those persons are deemed to comply with the requirements laid down in the first subparagraph.
2. A data reporting services provider shall notify to ESMA, or the national competent authority where relevant, the
names of all members of its management body and any changes to its membership, along with all information needed to
assess whether the entity complies with paragraph 1.
3. The management body of a data reporting services provider shall define and oversee the implementation of the
governance arrangements that ensure effective and prudent management of an organisation, including the segregation
of duties in the organisation and the prevention of conflicts of interest, and in a manner that promotes the integrity of
the market and the interest of its clients.
4. ESMA, or the national competent authority where relevant, shall refuse authorisation if it is not satisfied that the person
or persons who effectively direct the business of the data reporting services provider are of sufficiently good repute, or if
there are objective and demonstrable grounds for believing that proposed changes to the management body of the data
reporting services provider pose a threat to its sound and prudent management and to the adequate consideration of the
interest of its clients and the integrity of the market.
5. ESMA shall develop draft regulatory technical standards by 1 January 2021 for the assessment of the suitability of
the members of the management body described in paragraph 1, taking into account different roles and functions carried
out by them and the need to avoid conflicts of interest between members of the management body and users of the APA,
CTP or ARM.
CHAPTER 2
Conditions for APAs, CTPs and ARMs
Article 27g
Organisational requirements for APAs
1. An APA shall have adequate policies and arrangements in place to make public the information required under
Articles 20 and 21 as close to real time as is technically possible, on a reasonable commercial basis. The information shall
be made available free of charge 15 minutes after the APA has published it. The APA shall efficiently and consistently
disseminate such information in a way that ensures fast access to the information, on a non-discriminatory basis and in a
format that facilitates the consolidation of the information with similar data from other sources.
2. The information made public by an APA in accordance with paragraph 1 shall include, at least, the following details:
(a) the identifier of the financial instrument;
(b) the price at which the transaction was concluded;
(c) the volume of the transaction;
(d) the time of the transaction;
(e) the time the transaction was reported;
(f) the price notation of the transaction;
(g) the code for the trading venue the transaction was executed on, or where the transaction was executed via a systematic
internaliser the code “SI” or otherwise the code “OTC”;
(h) if applicable, an indicator that the transaction was subject to specific conditions.
3. An APA shall operate and maintain effective administrative arrangements designed to prevent conflicts of interest with
its clients. In particular, an APA who is also a market operator or investment firm shall treat all information collected in a
non-discriminatory way and shall operate and maintain appropriate arrangements to separate different business functions.
4. An APA shall have sound security mechanisms in place designed to guarantee the security of the means of transfer
of information, minimise the risk of data corruption and unauthorised access and to prevent information leakage before
publication. The APA shall maintain adequate resources and have back-up facilities in place in order to offer and maintain
its services at all times.
5. The APA shall have systems in place that can effectively check trade reports for completeness, identify omissions and
obvious errors, and request re-transmission of any such erroneous reports.
6. ESMA shall develop draft regulatory technical standards to determine common formats, data standards and technical
arrangements facilitating the consolidation of information as referred to in paragraph 1.
7. The Commission is empowered to adopt delegated acts in accordance with Article 50 in order to supplement this
Regulation by specifying what constitutes a reasonable commercial basis to make information public as referred to in
paragraph 1 of this Article.
8. ESMA shall develop draft regulatory technical standards specifying:
(a) the means by which an APA may comply with the information obligation referred to in paragraph 1;
(b) the content of the information published under paragraph 1, including at least the information referred to in
paragraph 2 in such a way as to enable the publication of information required under this Article;
(c) the concrete organisational requirements laid down in paragraphs 3, 4 and 5.
Article 27h
Organisational requirements for CTPs
1. A CTP shall have adequate policies and arrangements in place to collect the information made public in accordance
with Articles 6 and 20, consolidate it into a continuous electronic data stream, and make the information available to the
public as close to real time as is technically possible, on a reasonable commercial basis.
That information shall include, at least, the following details:
(a) the identifier of the financial instrument;
(h) where applicable, the fact that a computer algorithm within the investment firm was responsible for the investment
decision and the execution of the transaction;
(i) if applicable, an indicator that the transaction was subject to specific conditions;
(j) if the obligation to make public the information referred to in Article 3(1) was waived in accordance with point (a)
or (b) of Article 4(1), a flag to indicate which of those waivers the transaction was subject to.
The information shall be made available free of charge 15 minutes after the CTP has published it. The CTP shall be able to
efficiently and consistently disseminate such information in a way that ensures fast access to the information, on a non-
discriminatory basis and in formats that are easily accessible and utilisable for market participants.
2. A CTP shall have adequate policies and arrangements in place to collect the information made public in accordance
with Article 10 and Article 21, consolidate it into a continuous electronic data stream, and make information available to
the public as close to real time as is technically possible, on a reasonable commercial basis including, at least, the following
details:
(a) the identifier or identifying features of the financial instrument;
(h) if applicable, an indicator that the transaction was subject to specific conditions.
The information shall be made available free of charge 15 minutes after the CTP has published it. The CTP shall be able
to efficiently and consistently disseminate such information in a way that ensures fast access to the information, on a
non-discriminatory basis, and in generally accepted formats that are interoperable and easily accessible and utilisable for
market participants.
3. The CTP shall ensure that the data provided is consolidated from all the regulated markets, MTFs, OTFs and APAs and
for the financial instruments specified by regulatory technical standards under point (c) of paragraph 8.
4. The CTP shall operate and maintain effective administrative arrangements designed to prevent conflicts of interest. In
particular, a market operator, or an APA, who also operates a consolidated tape, shall treat all information collected in a
non-discriminatory way and shall operate and maintain appropriate arrangements to separate different business functions.
5. The CTP shall have sound security mechanisms in place designed to guarantee the security of the means of transfer
of information and to minimise the risk of data corruption and unauthorised access. The CTP shall maintain adequate
resources and have back-up facilities in place in order to offer and maintain its services at all times.
6. ESMA shall develop draft regulatory technical standards to determine data standards and formats for the information
to be published in accordance with Articles 6, 10, 20 and 21, including financial instrument identifier, price, quantity, time,
price notation, venue identifier and indicators for specific conditions the transactions was subject to as well as technical
arrangements promoting an efficient and consistent dissemination of information in a way ensuring for it to be easily
accessible and utilisable for market participants as referred to in paragraphs 1 and 2 of this Article, including identifying
additional services the CTP could perform which increase the efficiency of the market.
7. The Commission shall adopt delegated acts in accordance with Article 50 in order to supplement this Regulation by
clarifying what constitutes a reasonable commercial basis to provide access to data streams as referred to in paragraphs 1
and 2 of this Article.
(a) the means by which the CTP may comply with the information obligation referred to in paragraphs 1 and 2;
(b) the content of the information published under paragraphs 1 and 2;
(c) the financial instruments data of which must be provided in the data stream and for non-equity instruments the
trading venues and APAs which need to be included;
(d) other means to ensure that the data published by different CTPs is consistent and allows for comprehensive mapping
and cross-referencing against similar data from other sources, and is capable of being aggregated at Union level;
(e) the concrete organisational requirements laid down in paragraphs 4 and 5.
Article 27i
Organisational requirements for ARMs
1. An ARM shall have adequate policies and arrangements in place to report the information required under Article 26 as
quickly as possible, and no later than the close of the working day following the day upon which the transaction took place.
2. The ARM shall operate and maintain effective administrative arrangements designed to prevent conflicts of interest
with its clients. In particular, an ARM that is also a market operator or investment firm shall treat all information collected
in a non-discriminatory fashion and shall operate and maintain appropriate arrangements to separate different business
functions.
3. The ARM shall have sound security mechanisms in place designed to guarantee the security and authentication of the
means of transfer of information, minimise the risk of data corruption and unauthorised access and to prevent information
leakage, maintaining the confidentiality of the data at all times. The ARM shall maintain adequate resources and have
back-up facilities in place in order to offer and maintain its services at all times.
4. The ARM shall have systems in place that can effectively check transaction reports for completeness, identify omissions
and obvious errors caused by the investment firm, and where such error or omission occurs, to communicate details of
the error or omission to the investment firm and request re-transmission of any such erroneous reports.
The ARM shall have systems in place to enable the ARM to detect errors or omissions caused by the ARM itself and to
enable the ARM to correct and transmit, or re-transmit as the case may be, correct and complete transaction reports to
the competent authority.
(a) the means by which the ARM may comply with the information obligation referred to in paragraph 1; and
(b) the concrete organisational requirements laid down in paragraphs 2, 3 and 4.
(7) the following Title is inserted:
‘TITLE VIa
ESMA POWERS AND COMPETENCES
CHAPTER 1
Competences and procedures
Article 38a
Exercise of ESMA’s powers
The powers conferred on ESMA or any official of or other person authorised by ESMA by Articles 38b to 38e shall not be
used to require the disclosure of information or documents which are subject to legal privilege.
Article 38b
Request for information
1. ESMA may by simple request or by decision require the following persons to provide all information to enable ESMA
to carry out its duties under this Regulation:
(a) an APA, a CTP, an ARM, where they are supervised by ESMA, and an investment firm or a market operator operating
a trading venue to operate the data reporting services of an APA, a CTP or an ARM, and the persons that control
them or are controlled by them;
(b) the managers of the persons referred to in point (a);
(c) the auditors and advisors of the persons referred to in point (a);
2. Any simple request for information referred to in paragraph 1 shall:
(a) refer to this Article as the legal basis of that request;
(b) state the purpose of the request;
(c) specify the information required;
(d) include a time limit within which the information is to be provided;
(e) include a statement that there is no obligation on the person from whom the information is requested to provide that
information but that in the event of a voluntary reply to the request, the information provided must not be incorrect
or misleading;
(f) indicate the amount of the fine to be imposed in accordance with Article 38h where the information provided is
incorrect or misleading.
3. When requiring to supply information under paragraph 1 by decision, ESMA shall:
(b) state the purpose of the request;
(c) specify the information required;
(d) set a time limit within which the information is to be provided;
(e) indicate the periodic penalty payments provided for in Article 38i where the production of the required information
is incomplete;
(f) indicate the fine provided for in Article 38h, where the answers to questions asked are incorrect or misleading;
(g) indicate the right to appeal the decision before ESMA’s Board of Appeal and to have the decision reviewed by the
Court of Justice of the European Union (Court of Justice) in accordance with Articles 60 and 61 of Regulation (EU)
No 1095/2010.
4. The persons referred to in paragraph 1 or their representatives and, in the case of legal persons or associations having
no legal personality, the persons authorised to represent them by law or by their statutes shall supply the information
requested. Lawyers duly authorised to act may supply the information on behalf of their clients. The latter shall remain
fully responsible if the information supplied is incomplete, incorrect or misleading.
5. ESMA shall, without undue delay, send a copy of the simple request or of its decision to the competent authority of
the Member State of the persons referred to in paragraph 1.
Article 38c
General investigations
1. In order to carry out its duties under this Regulation, ESMA may conduct necessary investigations of persons referred
to in Article 38b(1). To that end, the officials and other persons authorised by ESMA shall be empowered to:
(a) examine any records, data, procedures and any other material relevant to the execution of its tasks irrespective of
the medium on which they are stored;
(b) take or obtain certified copies of or extracts from such records, data, procedures and other material;
(c) summon and ask any person referred to in Article 38b(1) or their representatives or staff for oral or written
explanations on facts or documents relating to the subject matter and purpose of the inspection and to record the
answers;
(d) interview any other natural or legal person who consents to be interviewed for the purpose of collecting information
relating to the subject matter of an investigation;
(e) request records of telephone and data traffic.
2. The officials and other persons authorised by ESMA for the purposes of the investigations referred to in paragraph 1
shall exercise their powers upon production of a written authorisation specifying the subject matter and purpose of the
investigation. That authorisation shall also indicate the periodic penalty payments provided for in Article 38i where the
production of the required records, data, procedures or any other material, or the answers to questions asked to persons
referred to in Article 38b(1) are not provided or are incomplete, and the fines provided for in Article 38h, where the answers
to questions asked to persons referred to in Article 38b(1) are incorrect or misleading.
3. The persons referred to in Article 38b(1) are required to submit to investigations launched on the basis of a decision
of ESMA. The decision shall specify the subject matter and purpose of the investigation, the periodic penalty payments
provided for in Article 38i, the legal remedies available under Regulation (EU) No 1095/2010 and the right to have the
decision reviewed by the Court of Justice.
4. In good time before an investigation referred to in paragraph 1, ESMA shall inform the competent authority of the
Member State where the investigation is to be carried out of the investigation and of the identity of the authorised persons.
Officials of the competent authority concerned shall, upon the request of ESMA, assist those authorised persons in carrying
out their duties. Officials of the competent authority concerned may also attend the investigations upon request.
5. If a request for records of telephone or data traffic referred to in point (e) of paragraph 1 requires authorisation from
a judicial authority according to applicable national law, such authorisation shall be applied for. Such authorisation may
also be applied for as a precautionary measure.
6. Where a national judicial authority receives an application for the authorisation of a request for records of telephone
or data traffic referred to in point (e) of paragraph 1, that authority shall verify the following:
(a) the decision adopted by ESMA referred to in paragraph 3 is authentic;
(b) any measures to be taken are proportionate and not arbitrary or excessive.
For the purposes of point (b), the national judicial authority may ask ESMA for detailed explanations, in particular relating
to the grounds ESMA has for suspecting that an infringement of this Regulation has taken place and the seriousness of
the suspected infringement and the nature of the involvement of the person subject to the coercive measures. However,
the national judicial authority shall not review the necessity for the investigation or demand that it be provided with the
information on ESMA’s file. The lawfulness of ESMA’s decision shall be subject to review only by the Court of Justice
following the procedure set out in Regulation (EU) No 1095/2010.
Article 38d
On-site inspections
1. In order to carry out its duties under this Regulation, ESMA may conduct all necessary on-site inspections at any
business premises of the persons referred to in Article 38b(1).
2. The officials and other persons authorised by ESMA to conduct an on-site inspection may enter any business
premises of the persons subject to an investigation decision adopted by ESMA and shall have all the powers stipulated in
Article 38b(1). They shall also have the power to seal any business premises and books or records for the period of, and
to the extent necessary for, the inspection.
3. In sufficient time before the inspection, ESMA shall give notice of the inspection to the competent authority of the
Member State where the inspection is to be conducted. Where the proper conduct and efficiency of the inspection so
require, ESMA, after informing the relevant competent authority, may carry out the on-site inspection without prior
notice. Inspections in accordance with this Article shall be conducted provided that the relevant competent authority has
confirmed that it does not object to those inspections.
4. The officials and other persons authorised by ESMA to conduct an on-site inspection shall exercise their powers upon
production of a written authorisation specifying the subject matter and purpose of the inspection and the periodic penalty
payments provided for in Article 38i where the persons concerned do not submit to the inspection.
5. The persons referred to in Article 38b(1) shall submit to on-site inspections ordered by decision of ESMA. The decision
shall specify the subject matter and purpose of the inspection, appoint the date on which it is to begin and indicate the
periodic penalty payments provided for in Article 38i, the legal remedies available under Regulation (EU) No 1095/2010
as well as the right to have the decision reviewed by the Court of Justice.
6. Officials of, as well as those authorised or appointed by, the competent authority of the Member State where the
inspection is to be conducted shall, at the request of ESMA, actively assist the officials and other persons authorised by
ESMA. Officials of the competent authority of the Member State concerned may also attend the on-site inspections.
7. ESMA may also require competent authorities to carry out specific investigatory tasks and on-site inspections as
provided for in this Article and in Article 38b(1) on its behalf.
8. Where the officials and other accompanying persons authorised by ESMA find that a person opposes an inspection
ordered pursuant to this Article, the competent authority of the Member State concerned shall afford them the necessary
assistance, requesting, where appropriate, the assistance of the police or of an equivalent enforcement authority, so as to
enable them to conduct their on-site inspection.
9. If the on-site inspection provided for in paragraph 1 or the assistance provided for in paragraph 7 requires authorisation
by a judicial authority according to national law, such authorisation shall be applied for. Such authorisation may also be
applied for as a precautionary measure.
10. Where a national judicial authority receives an application for the authorisation of an on-site inspection provided
for in paragraph 1 or the assistance provided for in paragraph 7, that authority shall verify the following:
following the procedure set out in Regulation (EU) No 1095/2010.
Article 38e
Exchange of information
ESMA and the competent authorities shall, without undue delay, provide each other with the information required for the
purposes of carrying out their duties under this Regulation.
Article 38f
Professional secrecy
The obligation of professional secrecy referred to in Article 76 of Directive 2014/65/EU shall apply to ESMA and all
persons who work or who have worked for ESMA or for any other person to whom ESMA has delegated tasks, including
auditors and experts contracted by ESMA.
Article 38g
Supervisory measures by ESMA
1. Where ESMA finds that a person listed in point (a) of Article 38b(1) has committed one of the infringements of
requirements provided for in Title IVa, it shall take one or more of the following actions:
(a) adopt a decision requiring the person to bring the infringement to an end;
(b) adopt a decision imposing fines or periodic penalty payments pursuant to Articles 38h and 38i;
(c) issue public notices.
2. When taking the actions referred to in paragraph 1, ESMA shall take into account the nature and seriousness of the
infringement, having regard to the following criteria:
(a) the duration and frequency of the infringement;
(b) whether financial crime has been occasioned, facilitated or otherwise attributable to the infringement;
(c) whether the infringement has been committed intentionally or negligently;
(d) the degree of responsibility of the person responsible for the infringement;
(e) the financial strength of the person responsible for the infringement, as indicated by the total turnover of the
responsible legal person or the annual income and net assets of the responsible natural person;
(f) the impact of the infringement on investors’ interests;
(g) the importance of the profits gained, losses avoided by the person responsible for the infringement or the losses for
third parties derived from the infringement, insofar as they can be determined;
(h) the level of cooperation of the person responsible for the infringement with ESMA, without prejudice to the need to
ensure disgorgement of profits gained or losses avoided by that person;
(i) previous infringements by the person responsible for the infringement;
(j) measures taken after the infringement by the person responsible for the infringement to prevent its repetition.
3. Without undue delay, ESMA shall notify any action taken pursuant to paragraph 1 to the person responsible for the
infringement, and shall communicate it to the competent authorities of the Member States and to the Commission. It shall
publicly disclose any such action on its website within 10 working days from the date when it was taken.
The disclosure to the public referred to in the first subparagraph shall include the following:
(a) a statement affirming the right of the person responsible for the infringement to appeal the decision;
(b) where relevant, a statement affirming that an appeal has been lodged and specifying that such an appeal does not
have suspensive effect;
(c) a statement asserting that it is possible for ESMA’s Board of Appeal to suspend the application of the contested
decision in accordance with Article 60(3) of Regulation (EU) No 1095/2010.
CHAPTER 2
Administrative sanctions and other administrative measures
Article 38h
Fines
1. Where in accordance with Article 38k(5), ESMA finds that any person has, intentionally or negligently, committed one
of the infringements of the requirements provided for in Title IVa, it shall adopt a decision imposing a fine in accordance
with paragraph 2 of this Article.
An infringement shall be considered to have been committed intentionally if ESMA finds objective factors which
demonstrate that a person acted deliberately to commit the infringement.
2. The maximum amount of the fine referred to in paragraph 1 shall be EUR 200 000 or, in the Member States whose
currency is not the euro, the corresponding value in the national currency.
3. When determining the level of a fine pursuant to paragraph 1, ESMA shall take into account the criteria set out in
Article 38g(2).
Article 38i
Periodic penalty payments
1. ESMA shall, by decision, impose periodic penalty payments in order to compel:
(a) a person to put an end to an infringement in accordance with a decision taken pursuant to point (a) of Article 38g(1);
(b) a person referred to in Article 38b(1):
(i) to supply complete information which has been requested by a decision pursuant to Article 38b;
(ii) to submit to an investigation and in particular to produce complete records, data, procedures or any other
material required and to complete and correct other information provided in an investigation launched by a
decision pursuant to Article 38c;
(iii) to submit to an on-site inspection ordered by a decision taken pursuant to Article 38d.
2. A periodic penalty payment shall be effective and proportionate. The periodic penalty payment shall be imposed for
each day of delay.
3. Notwithstanding paragraph 2, the amount of the periodic penalty payments shall be 3 % of the average daily
turnover in the preceding business year, or, in the case of natural persons, 2 % of the average daily income in the preceding
calendar year. It shall be calculated from the date stipulated in the decision imposing the periodic penalty payment.
4. A periodic penalty payment shall be imposed for a maximum period of six months following the notification of
ESMA’s decision. Following the end of the period, ESMA shall review the measure.
Article 38j
Disclosure, nature, enforcement and allocation of fines and periodic penalty payments
1. ESMA shall disclose to the public every fine and periodic penalty payment that has been imposed pursuant to
Articles 38h and 38i unless such disclosure to the public would seriously jeopardise the financial markets or cause
disproportionate damage to the parties involved. Such disclosure shall not contain personal data within the meaning of
Regulation (EU) 2018/1725 of the European Parliament and of the Council (*).
2. Fines and periodic penalty payments imposed pursuant to Articles 38h and 38i shall be of an administrative nature.
3. Where ESMA decides to impose no fines or penalty payments, it shall inform the European Parliament, the Council,
the Commission, and the competent authorities of the Member State concerned accordingly and shall set out the reasons
for its decision.
4. Fines and periodic penalty payments imposed pursuant to Articles 38h and 38i shall be enforceable.
Enforcement shall be governed by the rules of procedure in force in the Member State in the territory of which it is carried
out.
5. The amounts of the fines and periodic penalty payments shall be allocated to the general budget of the European Union.
Article 38k
Procedural rules for taking supervisory measures and imposing fines
1. Where, in carrying out its duties under this Regulation, ESMA finds that there are serious indications of the possible
existence of facts liable to constitute one or more of the infringements of the requirements provided for in Title IVa, ESMA
shall appoint an independent investigation officer within ESMA to investigate the matter. The appointed officer shall not be
involved or have been directly or indirectly involved in the supervision or the authorisation process of the data reporting
services provider concerned and shall perform its functions independently from ESMA.
2. The investigation officer referred to in paragraph 1 shall investigate the alleged infringements, taking into account
any comments submitted by the persons who are subject to the investigations, and shall submit a complete file with his
or her findings to ESMA.
3. In order to carry out his or her tasks, the investigation officer may exercise the power to request information in
accordance with Article 38b and to conduct investigations and on-site inspections in accordance with Articles 38c and 38d.
4. Where carrying out his or her tasks, the investigation officer shall have access to all documents and information
gathered by ESMA in its supervisory activities.
5. Upon completion of his or her investigation and before submitting the file with his or her findings to ESMA, the
investigation officer shall give the persons subject to the investigations the opportunity to be heard on the matters being
investigated. The investigation officer shall base his or her findings only on facts on which the persons concerned have
had the opportunity to comment.
6. The rights of the defence of the persons subject to the investigation shall be fully respected during investigations
under this Article.
7. When submitting the file with his or her findings to ESMA, the investigation officer shall notify the persons who are
subject to the investigation. The persons subject to the investigations shall be entitled to have access to the file, subject to
the legitimate interest of other persons in the protection of their business secrets. The right of access to the file shall not
extend to confidential information affecting third parties.
8. On the basis of the file containing the investigation officer’s findings and, when requested by the persons subject to
the investigation, after having heard those persons in accordance with Article 38l, ESMA shall decide if one or more of the
infringements of the requirements provided for in Title IVa have been committed by the persons subject to the investigation
and, in such a case, shall take a supervisory measure in accordance with Article 38g.
9. The investigation officer shall not participate in ESMA’s deliberations or in any other way intervene in ESMA’s decision-
making process.
10. The Commission shall adopt delegated acts in accordance with Article 50 by 1 October 2021 to further specify the
rules of procedure for the exercise of the power to impose fines or periodic penalty payments, including provisions on
the rights of the defence, temporal provisions, and the collection of fines or periodic penalty payments, and the limitation
periods for the imposition and enforcement of fines and periodic penalty payments.
11. ESMA shall refer matters for criminal prosecution to the relevant national authorities where, in carrying out its
duties under this Regulation, it finds that there are serious indications of the possible existence of facts liable to constitute
a criminal offence. In addition, ESMA shall refrain from imposing fines or periodic penalty payments where a prior
acquittal or conviction arising from identical fact or facts which are substantially the same has already acquired the force
of res judicata as the result of criminal proceedings under national law.
Article 38l
Hearing of the persons concerned
1. Before taking any decision pursuant to Articles 38g, 38h and 38i, ESMA shall give the persons subject to the
proceedings the opportunity to be heard on its findings. ESMA shall base its decisions only on findings on which the
persons subject to the proceedings have had an opportunity to comment.
The first subparagraph shall not apply if urgent action is needed in order to prevent significant and imminent damage to the
financial system. In such a case ESMA may adopt an interim decision and shall give the persons concerned the opportunity
to be heard as soon as possible after taking its decision.
2. The rights of the defence of the persons subject to investigations shall be fully respected in the proceedings. They
shall be entitled to have access to ESMA’s file, subject to the legitimate interest of other persons in the protection of their
business secrets. The right of access to the file shall not extend to confidential information or ESMA’s internal preparatory
documents.
Article 38m
Review by the Court of Justice
The Court of Justice shall have unlimited jurisdiction to review decisions whereby ESMA has imposed a fine or a periodic
penalty payment. It may annul, reduce or increase the fine or periodic penalty payment imposed.
Article 38n
Authorisation and supervisory fees
1. ESMA shall charge fees to the data reporting services providers in accordance with this Regulation and in accordance
with the delegated acts adopted pursuant to paragraph 3 of this Article. Those fees shall fully cover ESMA’s necessary
expenditure relating to the authorisation and supervision of data reporting services providers and the reimbursement of
any costs that the competent authorities may incur carrying out work pursuant to this Regulation, in particular as a result
of any delegation of tasks in accordance with Article 38o.
2. The amount of an individual fee charged to a particular data reporting services provider shall cover all administrative
costs incurred by ESMA for the authorisation and supervisory activities relating to that provider. It shall be proportionate
to the turnover of the data reporting services provider.
3. The Commission shall adopt a delegated act in accordance with Article 50 supplementing this Regulation
by 1 October 2021 to specify the type of fees, the matters for which fees are due, the amount of the fees and the manner
in which they are to be paid.
Article 38o
Delegation of tasks by ESMA to competent authorities
1. Where necessary for the proper performance of a supervisory task, ESMA may delegate specific supervisory tasks to
the competent authority of a Member State in accordance with the guidelines issued by ESMA pursuant to Article 16 of
Regulation (EU) No 1095/2010. Such specific supervisory tasks may, in particular, include the power to carry out requests
for information in accordance with Article 38b and to conduct investigations and on-site inspections in accordance with
Article 38c and Article 38d.
2. Prior to delegation of a task, ESMA shall consult the relevant competent authority about:
(a) the scope of the task to be delegated;
(b) the timetable for the performance of the task; and
(c) the transmission of necessary information by and to ESMA.
3. In accordance with the delegated act adopted pursuant to Article 38n(3), ESMA shall reimburse a competent authority
for costs incurred as a result of carrying out delegated tasks.
4. ESMA shall review the decision referred to in paragraph 1 at appropriate intervals. A delegation may be revoked at
any time.
5. A delegation of tasks shall not affect the responsibility of ESMA nor limit ESMA’s ability to conduct and oversee the
delegated activity.
(OJ L 295, 21.11.2018, p. 39).’;
‘6. ESMA shall review a prohibition or restriction imposed under paragraph 1 at appropriate intervals, and at least every
six months. Following at least two consecutive renewals and based on proper analysis in order to assess the impact on the
consumer, ESMA may decide on the annual renewal of the prohibition or restriction.’;
‘6. EBA shall review a prohibition or restriction imposed under paragraph 1 at appropriate intervals, and at least every
six months. Following at least two consecutive renewals and based on proper analysis in order to assess the impact on the
consumer, EBA may decide on the annual renewal of the prohibition or restriction.’;
‘2. The power to adopt delegated acts referred to in Article 1(9), Article 2(2) and (3), Article 13(2), Article 15(5),
Article 17(3), Article 19(2) and (3), Article 27(4), Article 27g(7), Article 27h(7), Article 31(4), Article 38k(10),
Article 38n(3), Article 40(8), Article 41(8), Article 42(7), Article 45(10) and Article 52(10), (12) and (14) shall be
conferred for an indeterminate period from 2 July 2014.’;
(b) in paragraph 3, the first sentence is replaced by the following:
‘The delegation of power referred to in Article 1(9), Article 2(2) and (3), Article 13(2), Article 15(5), Article 17(3),
Article 19(2) and (3), Article 27(4), Article 27g(7), Article 27h(7), Article 31(4), Article 38k(10), Article 38n(3),
Article 40(8), Article 41(8), Article 42(7), Article 45(10) and Article 52(10), (12) and (14) may be revoked at any
time by the European Parliament or by the Council.’;
(c) in paragraph 5, the first sentence is replaced by the following:
‘A delegated act adopted pursuant to Article 1(9), Article 2(2) and (3), Article 13(2), Article 15(5), Article 17(3),
Article 19(2) and (3), Article 27(4), Article 27g(7), Article 27h(7), Article 31(4), Article 38k(10), Article 38n(3),
Article 40(8), Article 41(8), Article 42(7), Article 45(10) and Article 52(10), (12) and (14) shall enter into force only if
no objection has been expressed either by the European Parliament or by the Council within a period of three months
of notification of that act to the European Parliament and to the Council or if, before the expiry of that period, the
European Parliament and the Council have both informed the Commission that they will not object.’;
(11) in Article 52, the following paragraphs are added:
‘13. The Commission shall, after consulting ESMA, present reports to the European Parliament and to the Council on
the functioning of the consolidated tape established in accordance with Title IVa. The report relating to Article 27h(1)
shall be presented by 3 September 2019. The report relating to Article 27h(2) shall be presented by 3 September 2021.
The reports referred to in the first subparagraph shall assess the functioning of the consolidated tape against the following
criteria:
(a) the availability and timeliness of post trade information in a consolidated format capturing all transactions irrespective
of whether they are carried out on trading venues or not;
(b) the availability and timeliness of full and partial post trade information that is of a high quality, in formats that are
easily accessible and usable for market participants and available on a reasonable commercial basis.
Where the Commission concludes that the CTPs have failed to provide information in a way that meets the criteria set out
in the second subparagraph, the Commission shall attach a request to its report for ESMA to launch a negotiated procedure
for the appointment though a public procurement process run by ESMA of a commercial entity operating a consolidated
tape. ESMA shall launch the procedure after receiving the request from the Commission on the conditions specified in
the Commission’s request and in accordance with Regulation (EU, Euratom) 2018/1046 of the European Parliament and
of the Council (*).
14. Where the procedure outlined in paragraph 13 of this Article has been initiated, the Commission is empowered
to adopt delegated acts in accordance with Article 50 in order to supplement this Regulation, by specifying measures in
order to:
(a) provide for the contract duration of the commercial entity operating a consolidated tape and the process and
conditions for renewing the contract and the launching of new public procurement;
(b) provide that the commercial entity operating a consolidated tape shall do so on an exclusive basis and that no other
entity shall be authorised as a CTP in accordance with Article 27b;
(c) empower ESMA to ensure adherence with tender conditions by the commercial entity operating a consolidated tape
appointed through a public procurement;
(d) ensure that the post-trade information provided by the commercial entity operating a consolidated tape is of a high
quality, in formats that are easily accessible and usable for market participants and in a consolidated format capturing
the entire market;
(e) ensure that the post trade information is provided on a reasonable commercial basis, on both a consolidated and
unconsolidated basis, and meets the needs of the users of that information across the Union;
(f) ensure that trading venues and APAs shall make their trade data available to the commercial entity operating a
consolidated tape appointed through a public procurement process run by ESMA at a reasonable cost;
(g) specify arrangements applicable where the commercial entity operating a consolidated tape appointed through a
public procurement fails to fulfil the tender conditions;
(h) specify arrangements under which CTPs authorised under Article 27b may continue to operate a consolidated tape
where the empowerment provided for in point (b) of this paragraph is not used or, where no entity is appointed
through the public procurement, until such time as a new public procurement is completed and a commercial entity
is appointed to operate a consolidated tape.
(*) Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial
rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013,
(EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU)
No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193,
30.7.2018, p. 1).’;
‘Article 54a
Transitional measures related to ESMA
1. All competences and duties related to the supervisory and enforcement activity in the field of data reporting services
providers shall be transferred to ESMA on 1 January 2022, except for competences and duties related to APAs and ARMs
subject to derogation referred to in Article 2(3). Those transferred competences and duties shall be taken-up by ESMA on
the same date.
2. Any files and working documents related to the supervisory and enforcement activity in the field of data reporting
services providers, including any ongoing examinations and enforcement actions, or certified copies thereof, shall be taken
over by ESMA on the date referred to in paragraph 1.
However, an application for authorisation that has been received by competent authorities before 1 October 2021 shall not
be transferred to ESMA, and the decision to register or refuse registration shall be taken by the relevant competent authority.
3. The competent authorities referred to in paragraph 1 shall ensure that any existing records and working papers,
or certified copies thereof, shall be transferred to ESMA as soon as possible and in any event by 1 January 2022. Those
competent authorities shall also render all necessary assistance and advice to ESMA to facilitate effective and efficient
transfer and taking-up of supervisory and enforcement activity in the field of data reporting services providers.
4. ESMA shall act as the legal successor to the competent authorities referred to in paragraph 1 in any administrative
or judicial proceedings that result from supervisory and enforcement activity pursued by those competent authorities in
relation to matters that fall under this Regulation.
5. Any authorisation of a data reporting services provider granted by a competent authority as defined in point 26 of
Article 4(1) of Directive 2014/65/EU shall remain valid after the transfer of competences to ESMA.
Article 54b
Relations with auditors
1. Any person authorised within the meaning of Directive 2006/43/EC of the European Parliament and of the
Council (*), performing in a data reporting services provider the task described in Article 34 of Directive 2013/34/EU of
the European Parliament and of the Council (**) or Article 73 of Directive 2009/65/EC or any other task prescribed by
law, shall have a duty to report promptly to ESMA any fact or decision concerning that data reporting services provider
of which that person has become aware while carrying out that task and which is liable to:
(a) constitute a material infringement of the laws, regulations or administrative provisions which lay down the conditions
governing authorisation or which specifically govern pursuit of the activities of data reporting services provider;
(b) affect the continuous functioning of the data reporting services provider;
(c) lead to refusal to certify the accounts or to the expression of reservations.
That person shall also have a duty to report any facts and decisions of which the person becomes aware in the course
of carrying out one of the tasks referred to in the first subparagraph in an undertaking having close links with the data
reporting services provider within which he or she is carrying out that task.
2. The disclosure in good faith to the competent authorities, by persons authorised within the meaning of
Directive 2006/43/EC, of any fact or decision referred to in paragraph 1 shall not constitute a breach of any contractual
or legal restriction on disclosure of information and shall not involve such persons in liability of any kind.
(*) Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual
accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council
Directive 84/253/EEC (OJ L 157, 9.6.2006, p. 87).
(**) Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial
statements, consolidated financial statements and related reports of certain types of undertakings, amending
Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC
and 83/349/EEC (OJ L 182, 29.6.2013, p. 19).’.
Article 5
Amendments to Regulation (EU) 2016/1011
Regulation (EU) 2016/1011 is amended as follows:
(1) in Article 3(1), point (24)(a) is amended as follows:
‘(a) input data contributed entirely from:’;

(b) point (vii) is replaced by the following:
‘(vii) a service provider to which the benchmark administrator has outsourced the data collection in accordance with
Article 10, with the exception of point (f) of Article 10(3), provided that the service provider receives the data
entirely from an entity referred to in points (i) to (vi) of this point;’;
‘9. ESMA shall develop draft regulatory technical standards to specify the requirements to ensure that the governance
arrangements referred to in paragraph 1 are sufficiently robust.
ESMA shall submit those draft regulatory technical standards to the Commission by 1 October 2020.
‘4. ESMA shall develop draft regulatory technical standards to specify the conditions to ensure that the methodology
referred to in paragraph 1 complies with points (a) to (e) of that paragraph.
‘4. ESMA shall develop draft regulatory technical standards to specify the characteristics of the systems and controls
referred to in paragraph 1.
(5) in Article 20, the following paragraph is inserted:
‘1a. Where ESMA considers that a benchmark fulfils all of the criteria set out in point (c) of paragraph 1, it shall submit
a documented request to the Commission to recognise that benchmark as critical.
After receiving that documented request, the Commission shall adopt an implementing act in accordance with paragraph 1.
ESMA shall review its assessment of the criticality of the benchmark at least every two years and shall notify and transmit
the assessment to the Commission.’;
‘2. Upon receipt of the assessment by the administrator referred to in paragraph 1, the competent authority shall:
(a) inform ESMA and the college established under Article 46;
(b) within four weeks following the receipt of that assessment, make its own assessment of how the benchmark
is to be transitioned to a new administrator or be ceased to be provided, taking into account the procedure
established in accordance with Article 28(1).
During the period referred to in point (b) of the first subparagraph, the administrator shall not cease the provision
of the benchmark without the written consent of ESMA or the competent authority, where relevant.’;
(b) paragraph 5 is added:
‘5. ESMA shall develop draft regulatory technical standards to specify the criteria on which the assessment referred
to in point (b) of paragraph 2 is to be based.
(7) in Article 23, paragraphs 3 and 4 are replaced by the following:
‘3. A supervised contributor to a critical benchmark that intends to cease contributing input data shall promptly notify the
administrator thereof in writing. The administrator shall thereupon inform without undue delay its competent authority.
The competent authority of the critical benchmark administrator shall inform the competent authority of that supervised
contributor, and where applicable ESMA, thereof without undue delay. The administrator shall submit to its competent
authority an assessment of the implications on the capability of the critical benchmark to measure the underlying market
or economic reality, as soon as possible but no later than 14 days after the notification made by the supervised contributor.
4. Upon receipt of the assessment referred to in paragraphs 2 and 3 of this Article, the competent authority of the
administrator shall, where applicable, promptly inform ESMA or the college established under Article 46 and shall on the
basis of that assessment make its own assessment of the capability of the benchmark to measure the underlying market
and economic reality, taking into account the administrator’s procedure for cessation of the benchmark established in
accordance with Article 28(1).’;
‘6. ESMA shall develop draft regulatory technical standards to specify the criteria under which competent authorities
may require changes to the compliance statement as referred to in paragraph 4.
(a) in paragraph 2, the following subparagraph is inserted after point (b):
‘The Commission may subject the application of the implementing decision referred to in the first subparagraph to the
effective fulfilment by that third country of any condition, aiming at ensuring equivalent supervisory and regulatory
standards, set out in that implementing decision on an ongoing basis and to the ability of ESMA to effectively exercise
the monitoring responsibilities referred to in Article 33 of Regulation (EU) No 1095/2010.’;
(b) the following paragraph 2a is inserted:
‘2a. The Commission may adopt a delegated act in accordance with Article 49 to specify the conditions referred
to in points (a) and (b) of the first subparagraph of paragraph 2 of this Article.’;
(c) in paragraph 3, the following subparagraph is inserted after point (b):
‘The Commission may subject the application of the implementing decision referred to in the first subparagraph to the
effective fulfilment by that third country of any condition, aiming at ensuring equivalent supervisory and regulatory
standards, set out in that implementing decision on an ongoing basis and to the ability of ESMA to effectively exercise
the monitoring responsibilities referred to in Article 33 of Regulation (EU) No 1095/2010.’;
‘3a. The Commission may adopt a delegated act in accordance with Article 49 to specify the conditions referred
to in points (a) and (b) of the first subparagraph of paragraph 3 of this Article.’;
(e) the introductory part of paragraph 4 is replaced by the following:
‘4. ESMA shall establish cooperation arrangements with the competent authorities of third countries whose
legal framework and supervisory practices have been recognised as equivalent in accordance with paragraph 2
or 3 of this Article. When establishing those arrangements, ESMA shall take into account whether a third country
in question is, in accordance with a delegated act adopted pursuant to Article 9 of Directive (EU) 2015/849 of the
European Parliament and of the Council (*), on the list of jurisdictions which have strategic deficiencies in their
national anti-money laundering and countering the financing of terrorism regimes that pose significant threats to
the financial system of the Union. Such arrangements shall specify at least:
(*) Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of
the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation
(EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the
European Parliament and of the Council and Commission Directive 2006/70/EC (OJ L 141, 5.6.2015, p. 73).’;
‘1. Until such time as an equivalence decision is adopted in accordance with Article 30(2) and (3), a benchmark
provided by an administrator located in a third country may be used by supervised entities in the Union, provided
that that administrator acquires prior recognition by ESMA in accordance with this Article.’;
(b) the second subparagraph of paragraph 2 is replaced by the following:
‘To determine whether the condition referred to in the first subparagraph is fulfilled and to assess compliance with
the IOSCO principles for financial benchmarks or the IOSCO principles for PRAs, as applicable, ESMA may take into
account an assessment by an independent external auditor or, a certification provided by the competent authority
of the administrator in the third country where the administrator is located.’;
‘An administrator located in a third country intending to obtain prior recognition as referred to in paragraph 1 shall
have a legal representative. The legal representative shall be a natural or legal person located in the Union and expressly
appointed by that administrator to act on behalf of that administrator with regard to the administrator’s obligations
under this Regulation. The legal representative shall, together with the administrator, perform the oversight function
relating to the provision of benchmarks performed by the administrator under this Regulation and, in that respect,
be accountable to ESMA.’;
(d) paragraph 4 is deleted;
‘5. An administrator located in a third country intending to obtain prior recognition as referred to in paragraph 1
shall apply for recognition with ESMA. The applicant administrator shall provide all information necessary to satisfy
ESMA that it has established, at the time of recognition, all the necessary arrangements to meet the requirements
referred to in paragraph 2 and shall provide the list of its actual or prospective benchmarks which are intended for
use in the Union and shall, where applicable, indicate the competent authority in the third country responsible for
its supervision.
Within 90 working days of receipt of the application referred to in the first subparagraph of this paragraph, ESMA
shall verify that the conditions laid down in paragraphs 2 and 3 are fulfilled.
Where ESMA considers that the conditions laid down in paragraphs 2 and 3 are not fulfilled, it shall refuse the
recognition request and set out the reasons for that refusal. In addition, no recognition shall be granted unless the
following additional conditions are fulfilled:
(a) where an administrator located in a third country is subject to supervision, an appropriate cooperation
arrangement is in place between ESMA and the competent authority of the third country where the administrator
is located, in compliance with the regulatory technical standards adopted pursuant to Article 30(5), to ensure
an efficient exchange of information that enables the competent authority of that third country to carry out its
duties in accordance with this Regulation;
(b) the effective exercise by ESMA of its supervisory functions under this Regulation is neither prevented by the
laws, regulations or administrative provisions of the third country where the administrator is located, nor,
where applicable, by limitations in the supervisory and investigatory powers of that third country’s competent
authority.’;
(f) paragraphs 6 and 7 are deleted;
(g) paragraph 8 is replaced by the following:
‘8. ESMA shall suspend or, where appropriate, withdraw the recognition granted in accordance with paragraph 5
where it has well-founded reasons, based on documented evidence, to consider that the administrator:
(a) is acting in a manner which is clearly prejudicial to the interests of users of its benchmarks or to the orderly
functioning of markets;
(b) has seriously infringed the relevant requirements set out in this Regulation;
(c) made false statements or used any other irregular means to obtain the recognition.’;
(11) in Article 34, the following paragraph is inserted:
‘1a. Where one or more of the indices provided by the person referred to in paragraph 1 would qualify as critical
benchmarks as referred to in points (a) and (c) of Article 20(1), the application shall be addressed to ESMA.’;
‘Article 40
Competent authorities
1. For the purposes of this Regulation, ESMA shall be the competent authority for:
(a) administrators of critical benchmarks as referred to in points (a) and (c) of Article 20(1);
(b) administrators of the benchmarks referred to in Article 32.
2. Each Member State shall designate the relevant competent authority responsible for carrying out the duties under this
Regulation and shall inform the Commission and ESMA thereof.
3. A Member State that designates more than one competent authority in accordance with paragraph 2 shall clearly
determine the respective roles of those competent authorities and shall designate a single authority to be responsible for
coordinating the cooperation and the exchange of information with the Commission, ESMA and other Member States’
competent authorities.
4. ESMA shall publish on its website a list of the competent authorities designated in accordance with paragraphs 2
and 3.’;
(a) in paragraph 1, the introductory part is replaced by the following:
‘1. In order to fulfil their duties under this Regulation, competent authorities referred to in Article 40(2) shall have,
in conformity with national law, at least the following supervisory and investigatory powers:’;
(b) in paragraph 2, the introductory part is replaced by the following:
‘2. The competent authorities referred to in Article 40(2) shall exercise their functions and powers referred to in
paragraph 1 of this Article and the powers to impose sanctions referred to in Article 42 in accordance with their
national legal frameworks, in any of the following ways:’;
(14) in Article 43(1), the introductory part is replaced by the following:
‘1. Member States shall ensure that, when determining the type and level of administrative sanctions and other
administrative measures, competent authorities that they have designated in accordance with Article 40(2) take into
account all relevant circumstances, including where appropriate:’;
‘Article 44
Obligation to cooperate
1. Member States that have chosen to lay down criminal sanctions for infringements of the provisions referred to in
Article 42 shall ensure that appropriate measures are in place so that the competent authorities designated in accordance
with Article 40(2) and (3) have all the necessary powers to liaise with judicial authorities within their jurisdiction to
receive specific information relating to criminal investigations or proceedings commenced for possible infringements of
this Regulation. Those competent authorities shall provide that information to other competent authorities and to ESMA.
2. Competent authorities designated in accordance with Article 40(2) and (3) shall assist other competent authorities
and ESMA. In particular, they shall exchange information and cooperate in any investigation or supervisory activities.
Competent authorities may also cooperate with other competent authorities to facilitate the recovery of pecuniary
sanctions.’;
(16) in Article 45(5), the first subparagraph is replaced by the following:
‘5. Member States shall provide ESMA with aggregated information regarding all administrative sanctions and other
administrative measures imposed pursuant to Article 42 on an annual basis. That obligation shall not apply to measures
of an investigatory nature. ESMA shall publish that information in an annual report, together with aggregated information
on all administrative sanctions and other administrative measures it has imposed pursuant to Article 48f.’;
‘1. Within 30 working days from the inclusion of a benchmark referred to in points (a) and (c) of Article 20(1) in the list
of critical benchmarks, with the exception of benchmarks where the majority of contributors are non-supervised entities,
the competent authority of the administrator shall establish a college and lead the college.
2. The college shall comprise representatives of the competent authority of the administrator, ESMA, unless it is the
competent authority of the administrator, and the competent authorities of supervised contributors.’;
‘1. The competent authorities referred to in Article 40(2) shall cooperate with ESMA for the purposes of this Regulation,
in accordance with Regulation (EU) No 1095/2010.
2. The competent authorities referred to in Article 40(2) shall, without undue delay, provide ESMA with all information
necessary to carry out its duties, in accordance with Article 35 of Regulation (EU) No 1095/2010.’;
(19) in Title VI, the following Chapter is added:
‘CHAPTER 4
ESMA powers and competences
Section 1
Competences and procedures
Article 48a
Exercise of the powers by ESMA
The powers conferred on ESMA, on any official of ESMA or on any other person authorised by ESMA by Articles 48b
to 48d shall not be used to require the disclosure of information or documents that are subject to legal privilege.
Article 48b
Request for information
1. ESMA may by simple request or by decision require the following persons to provide all necessary information to
enable ESMA to carry out its duties under this Regulation:
(a) persons involved in the provision of benchmarks, as referred to in Article 40(1);

(b) third parties to whom the persons referred to in point (a) have outsourced functions or activities in accordance with
Article 10;
(c) persons otherwise closely and substantially related or connected to the persons referred to in point (a).
In accordance with Article 35 of Regulation (EU) No 1095/2010 and at the request of ESMA, competent authorities shall
submit that request for information to contributors to critical benchmarks referred to in points (a) and (c) of Article 20(1)
of this Regulation and shall share the information received without undue delay with ESMA.
2. Any simple request for information as referred to paragraph 1 shall:
(b) state the purpose of that request;
(c) specify what information is required;
(d) include a time limit within which the information is to be provided;
(e) include a statement that there is no obligation on the person from whom the information is requested to provide that
information but that in the event of a voluntary reply to the request, the information provided must not be incorrect
or misleading;
(f) indicate the amount of the fine to be imposed in accordance with Article 48f where information provided is incorrect
or misleading.
3. When requiring to supply information under paragraph 1 by decision, ESMA shall:
(b) state the purpose of that request;
(c) specify what information is required;
(d) set a time limit within which the information is to be provided;
(e) indicate the periodic penalty payments provided for in Article 48g where the required information is incomplete;
(f) indicate the fine provided for in Article 48f, where the answers to the questions asked are incorrect or misleading;
(g) indicate the right to appeal the decision before ESMA’s Board of Appeal and to have the decision reviewed by the Court
of Justice of the European Union (Court of Justice) in accordance with Article 48k of this Regulation and Articles 60
and 61 of Regulation (EU) No 1095/2010.
4. The persons referred to in paragraph 1 or their representatives and, in the case of legal persons or associations having
no legal personality, the persons authorised to represent them by law or by their constitution, shall supply the information
requested. Lawyers duly authorised to act may supply the information on behalf of their clients. The latter shall remain
fully responsible if the information supplied is incomplete, incorrect or misleading.
5. ESMA shall, without undue delay, send a copy of the simple request or of its decision to the competent authority of
the Member State of the persons referred to in paragraph 1.
Article 48c
General investigations
1. In order to carry out its duties under this Regulation, ESMA may conduct necessary investigations of the persons
referred to in Article 48b(1). To that end, the officials and other persons authorised by ESMA shall be empowered to:
(a) examine any records, data, procedures and any other material relevant to the execution of its tasks, irrespective of
the medium on which they are stored;
(b) take or obtain certified copies of or extracts from such records, data, procedures and other material;
(c) summon and ask any of those persons or their representatives, or staff, for oral or written explanations on facts or
documents relating to the subject matter and purpose of the inspection, and to record the answers;
(d) interview any other natural or legal person who consents to be interviewed for the purpose of collecting information
relating to the subject matter of an investigation;
(e) request records of telephone and data traffic.
2. The officials and other persons authorised by ESMA for the purposes of the investigations referred to in paragraph 1
shall exercise their powers upon production of a written authorisation specifying the subject matter and purpose of
the investigation. That authorisation shall indicate the periodic penalty payments provided for in Article 48g where
the production of the required records, data, procedures or any other material, or the answers to questions asked to the
persons referred to in Article 48b(1) are not provided or are incomplete, and the fines provided for in Article 48f, where
the answers to questions asked to those persons are incorrect or misleading.
3. The persons referred to in Article 48b(1) are required to submit to investigations launched on the basis of a decision
of ESMA. The decision shall specify the subject matter and purpose of the investigation, the periodic penalty payments
provided for in Article 48g, the legal remedies available under Regulation (EU) No 1095/2010 and the right to have the
decision reviewed by the Court of Justice.
4. In good time before an investigation referred to in paragraph 1, ESMA shall inform the competent authority of the
Member State where the investigation is to be carried out of the investigation and of the identity of the authorised persons.
Officials of the competent authority concerned shall, at the request of ESMA, assist those authorised persons in carrying
out their duties. Officials of the competent authority concerned may attend the investigations upon request.
5. If a request for records of telephone or data traffic referred to in point (e) of paragraph 1 requires authorisation from a
national judicial authority according to applicable national law, such authorisation shall be applied for. Such authorisation
may also be applied for as a precautionary measure.
6. Where a national judicial authority receives an application for the authorisation of a request for records of telephone
or data traffic referred to in point (e) of paragraph 1 that authority shall verify the following:
(a) the decision referred to in paragraph 3 is authentic;
following the procedure set out in Article 61 of Regulation (EU) No 1095/2010.
Article 48d
On-site inspections
1. In order to carry out its duties under this Regulation, ESMA may conduct all necessary on-site inspections at any
business premises of the persons referred to in Article 48b(1).
2. The officials and other persons authorised by ESMA to conduct an on-site inspection may enter any business
premises of the persons subject to an investigation decision adopted by ESMA and shall have all the powers stipulated in
Article 48c(1). They shall have the power to seal any business premises and books or records for the period of, and to the
extent necessary for, the inspection.
3. In sufficient time before the inspection, ESMA shall give notice of the inspection to the competent authority of the
Member State where the inspection is to be conducted. Where the proper conduct and efficiency of the inspection so
require, ESMA, after informing the relevant competent authority, may carry out the on-site inspection without prior
notice. Inspections in accordance with this Article shall be conducted provided that the relevant authority has confirmed
that it does not object to those inspections.
4. The officials and other persons authorised by ESMA to conduct an on-site inspection shall exercise their powers upon
production of a written authorisation, specifying the subject matter and purpose of the inspection and the periodic penalty
payments provided for in Article 48g where the persons concerned do not submit to the inspection.
5. The persons referred to in Article 48b(1) shall submit to on-site inspections ordered by a decision of ESMA. That
decision shall specify the subject matter and purpose of the inspection, the date on which it is to begin and indicate the
periodic penalty payments provided for in Article 48g, the legal remedies available under Regulation (EU) No 1095/2010
as well as the right to have the decision reviewed by the Court of Justice.
6. Officials of, as well as those authorised or appointed by, the competent authority of the Member State where the
inspection is to be conducted, shall, at the request of ESMA, actively assist the officials and other persons authorised by
ESMA. Officials of that competent authority may also attend the on-site inspections upon request.
7. ESMA may also require competent authorities to carry out specific investigatory tasks and on-site inspections as
provided for in this Article and in Article 48c(1) on its behalf. To that end, competent authorities shall enjoy the same
powers as ESMA as set out in this Article and in Article 48c(1).
8. Where the officials and other accompanying persons authorised by ESMA find that a person opposes an inspection
ordered pursuant to this Article, the competent authority of the Member State concerned shall afford them the necessary
assistance, requesting, where appropriate, the assistance of the police or of an equivalent enforcement authority, to enable
them to conduct their on-site inspection.
9. If the on-site inspection provided for in paragraph 1 or the assistance provided for in paragraph 7 requires authorisation
by a national judicial authority according to the applicable national law, such authorisation shall be applied for. Such
authorisation may also be applied for as a precautionary measure.
10. Where a national judicial authority receives an application for the authorisation of an on-site inspection provided
for in paragraph 1 or the assistance provided for in paragraph 7, that authority shall verify the following:
the national judicial authority shall not review the necessity of the investigation or demand that it be provided with the
following the procedure set out in Article 61 Regulation (EU) No 1095/2010.
Section 2
Administrative sanctions and other administrative measures
Article 48e
Supervisory measures by ESMA
1. Where, in accordance with Article 48i(5), ESMA finds that a person has committed one of the infringements listed
in point (a) of Article 42(1), it shall take one or more of the following actions:
(a) adopt a decision requiring the person to bring the infringement to an end;
(b) adopt a decision imposing fines pursuant to Article 48f;
(c) issue public notices.

2. When taking the actions referred to in paragraph 1, ESMA shall take into account the nature and seriousness of the
infringement, having regard to the following criteria:
(a) the duration and frequency of the infringement;
(b) whether financial crime has been occasioned, facilitated or otherwise attributable to the infringement;
(c) whether the infringement has been committed intentionally or negligently;
(d) the degree of responsibility of the person responsible for the infringement;
(e) the financial strength of the person responsible for the infringement, as indicated by the total turnover of the
responsible legal person or the annual income and net assets of the responsible natural person;
(f) the impact of the infringement on retail investors’ interests;
(g) the importance of the profits gained, losses avoided by the person responsible for the infringement or the losses for
third parties derived from the infringement, insofar as they can be determined;
(h) the level of cooperation of the person responsible for the infringement with ESMA, without prejudice to the need to
ensure disgorgement of profits gained or losses avoided by that person;
(i) previous infringements by the person responsible for the infringement;
(j) measures taken after the infringement by the person responsible for the infringement to prevent its repetition.
3. Without undue delay, ESMA shall notify any action taken pursuant to paragraph 1 to the person responsible for the
infringement, and shall communicate it to the competent authorities of the Member States and to the Commission. It shall
publicly disclose any such action on its website within 10 working days from the date when it was adopted.
The disclosure to the public referred to in the first subparagraph shall include the following:
(a) a statement affirming the right of the person responsible for the infringement to appeal the decision;
(b) where relevant, a statement affirming that an appeal has been lodged and specifying that such an appeal does not
have suspensive effect;
(c) a statement asserting that it is possible for ESMA’s Board of Appeal to suspend the application of the contested
decision in accordance with Article 60(3) of Regulation (EU) No 1095/2010.
Article 48f
Fines
1. Where, in accordance with Article 48i(5), ESMA finds that any person has, intentionally or negligently, committed
one or more of the infringements listed in point (a) of Article 42(1), it shall adopt a decision imposing a fine in accordance
with paragraph 2 of this Article.
An infringement shall be considered to have been committed intentionally if ESMA finds objective factors which
demonstrate that a person acted deliberately to commit the infringement.
2. The maximum amount of the fine referred to in paragraph 1 shall be:
(a) in the case of a legal person, EUR 1 000 000, or, in the Member States whose currency is not the euro, the
corresponding value in the national currency on 30 June 2016, or 10 % of the total annual turnover of that legal
person according to the last available financial statements approved by the management body, whichever is the
higher;
(b) in the case of a natural person, EUR 500 000, or, in the Member States whose currency is not the euro, the
corresponding value in the national currency on 30 June 2016.
Notwithstanding the first subparagraph, the maximum amount of the fine for infringements of point (d) of Article 11(1) or
of Article 11(4) shall be EUR 250 000 or, in the Member States whose official currency is not the euro, the corresponding
value in the national currency on 30 June 2016 or 2 % of the total annual turnover of that legal person according to the
last available financial statements approved by the management body, whichever is the higher for legal persons, and
EUR 100 000 or, in the Member States whose official currency is not the euro, the corresponding value in the national
currency on 30 June 2016 for natural persons.
For the purposes of point (a), where the legal person is a parent undertaking or a subsidiary of a parent undertaking which
is required to prepare consolidated financial accounts in accordance with Directive 2013/34/EU, the relevant total annual
turnover shall be the total annual turnover or the corresponding type of income in accordance with the relevant Union
law in the area of accounting according to the last available consolidated accounts approved by the management body of
the ultimate parent undertaking.
3. When determining the level of a fine pursuant to paragraph 1, ESMA shall take into account the criteria set out in
Article 48e(2).
4. Notwithstanding paragraph 3, where the legal person has directly or indirectly benefited financially from the
infringement, the amount of the fine shall be at least equal to that benefit.
5. Where an act or omission of a person constitutes more than one infringement listed in point (a) of Article 42(1),
only the higher fine calculated in accordance with paragraph 2 of this Article and relating to one of those infringements
shall apply.
Article 48g
Periodic penalty payments
1. ESMA shall, by decision, impose periodic penalty payments to compel:
(a) a person to put an end to an infringement in accordance with a decision taken pursuant to point (a) of Article 48e(1);
(b) persons referred to in Article 48b(1):
(i) to supply complete information which has been requested by a decision pursuant to Article 48b;
(ii) to submit to an investigation and in particular to produce complete records, data, procedures or any other
material required and to complete and correct other information provided in an investigation launched by a
decision pursuant to Article 48c;
(iii) to submit to an on-site inspection ordered by a decision taken pursuant to Article 48d.
2. A periodic penalty payment shall be effective and proportionate. The periodic penalty payment shall be imposed for
each day of delay.
3. Notwithstanding paragraph 2, the amount of the periodic penalty payments shall be 3 % of the average daily
turnover in the preceding business year, or, in the case of natural persons, 2 % of the average daily income in the preceding
calendar year. It shall be calculated from the date stipulated in the decision imposing the periodic penalty payment.
4. A periodic penalty payment shall be imposed for a maximum period of six months following the notification of
ESMA’s decision. Following the end of the period, ESMA shall review the measure.
Article 48h
Disclosure, nature, enforcement and allocation of fines and periodic penalty payments
1. ESMA shall disclose to the public every fine and every periodic penalty payment that has been imposed pursuant
to Articles 48f and 48g, unless such disclosure to the public would seriously jeopardise the financial markets or cause
disproportionate damage to the parties involved. Such disclosure shall not contain personal data within the meaning of
Regulation (EU) 2018/1725 of the European Parliament and of the Council (*).
2. Fines and periodic penalty payments imposed pursuant to Articles 48f and 48g shall be of an administrative nature.
3. Where ESMA decides not to impose any fines or penalty payments, it shall inform the European Parliament, the
Council, the Commission and the competent authorities of the Member State concerned thereof and shall set out the
reasons for its decision.
4. Fines and periodic penalty payments imposed pursuant to Articles 48f and 48g shall be enforceable.
Enforcement shall be governed by the rules of procedure in force in the Member State or third country in which it is
carried out.
5. The amounts of the fines and the periodic penalty payments shall be allocated to the general budget of the
European Union.
Section 3
Procedures and review
Article 48i
Procedural rules for taking supervisory measures and imposing fines
1. Where, in carrying out its duties under this Regulation, ESMA finds that there are serious indications of the possible
existence of facts liable to constitute one or more of the infringements listed in point (a) of Article 42(1), ESMA shall
appoint an independent investigation officer within ESMA to investigate the matter. The appointed officer shall not be
involved or have been directly or indirectly involved in the supervision of the benchmarks to which the infringement relates
and shall perform his or her functions independently from ESMA’s Board of Supervisors.
2. The investigation officer referred to in paragraph 1 shall investigate the alleged infringements, take into account any
comments submitted by the persons who are subject to the investigation, and shall submit a complete file with his or her
findings to ESMA’s Board of Supervisors.
3. In order to carry out his or her tasks, the investigation officer shall have the power to request information in accordance
with Article 48b and to conduct investigations and on-site inspections in accordance with Articles 48c and 48d.
4. Where carrying out those tasks, the investigation officer shall have access to all documents and information that have
been gathered by ESMA in its supervisory activities.
5. Upon completion of his or her investigation and before submitting the file with his or her findings to ESMA’s Board
of Supervisors, the investigation officer shall give the persons subject to the investigation the opportunity to be heard on
the matters being investigated. The investigation officer shall base his or her findings only on facts on which the persons
concerned have had the opportunity to comment.
6. The rights of the defence of the persons subject to the investigation shall be fully respected during investigations
under this Article.
7. Upon submission of the file with his or her findings to ESMA’s Board of Supervisors, the investigation officer shall
notify the persons who are subject to the investigation. The persons subject to the investigation shall be entitled to have
access to the file, subject to the legitimate interest of other persons in the protection of their business secrets. The right of
access to the file shall not extend to confidential information affecting third parties.
8. On the basis of the file containing the investigation officer’s findings and, when requested by the persons concerned,
after having heard those persons in accordance with Article 48j, ESMA shall decide if one or more of the infringements
listed in point (a) of Article 42(1) has been committed by the persons subject to the investigation and, in such case, shall
take a supervisory measure in accordance with Article 48e and impose a fine in accordance with Article 48f.
9. The investigation officer shall not participate in the deliberations of ESMA’s Board of Supervisors or in any other way
intervene in the decision-making process of ESMA’s Board of Supervisors.
10. By 1 October 2021, the Commission shall adopt delegated acts in accordance with Article 49 to specify the rules of
procedure for the exercise of the power to impose fines or periodic penalty payments, including provisions on rights of
defence, temporal provisions, and the collection of fines or periodic penalty payments, and the limitation periods for the
imposition and enforcement of fines and periodic penalty payments.
11. ESMA shall refer matters for criminal prosecution to the relevant national authorities where, in carrying out its
tasks under this Regulation, it finds that there are serious indications of the possible existence of facts liable to constitute
criminal offences. In addition, ESMA shall refrain from imposing fines or periodic penalty payments where a prior acquittal
or conviction arising from an identical fact or facts which are substantially the same has already acquired the force of res
judicata as the result of criminal proceedings under national law.
Article 48j
Hearing of the persons subject to investigations
1. Before taking any decision pursuant to Articles 48f, 48g and 48e, ESMA shall give the persons subject to the
proceedings the opportunity to be heard on its findings. ESMA shall base its decisions only on findings on which the
persons subject to the proceedings have had an opportunity to comment.
The first subparagraph shall not apply if urgent action pursuant to Article 48e is needed in order to prevent significant and
imminent damage to the financial system. In such a case ESMA may adopt an interim decision and shall give the persons
concerned the opportunity to be heard as soon as possible after taking its decision.
2. The rights of the defence of the persons subject to the proceedings shall be fully respected in the investigations. They
shall be entitled to have access to ESMA’s file, subject to the legitimate interest of other persons in the protection of their
business secrets. The right of access to the file shall not extend to confidential information or ESMA’s internal preparatory
documents.
Article 48k
Review by the Court of Justice
The Court of Justice shall have unlimited jurisdiction to review decisions whereby ESMA has imposed a fine or a periodic
penalty payment. It may annul, reduce or increase the fine or periodic penalty payment imposed.
Section 4
Fees and delegation
Article 48l
Supervisory fees
1. ESMA shall charge fees to the administrators referred to in Article 40(1), in accordance with the delegated acts adopted
pursuant to paragraph 3 of this Article. Those fees shall fully cover ESMA’s necessary expenditure relating to the supervision
of administrators and the reimbursement of any costs that the competent authorities may incur carrying out work pursuant
to this Regulation in particular as a result of any delegation of tasks in accordance with Article 48m.
2. The amount of an individual fee charged to an administrator shall cover all administrative costs incurred by ESMA for
its activities in relation to the supervision and it shall be proportionate to the turnover of the administrator.
3. By 1 October 2021, the Commission shall adopt delegated acts in accordance with Article 49 in order to supplement
this Regulation by specifying the type of fees, the matters for which fees are due, the amount of the fees and the manner
in which they are to be paid.
Article 48m
Delegation of tasks by ESMA to competent authorities
1. Where necessary for the proper performance of a supervisory task, ESMA may delegate specific supervisory tasks to
the competent authority of a Member State in accordance with the guidelines issued by ESMA pursuant to Article 16 of
Regulation (EU) No 1095/2010. Such specific supervisory tasks may, in particular, include the power to carry out requests
for information in accordance with Article 48b and to conduct investigations and on-site inspections in accordance with
Article 48c and Article 48d.
By way of derogation from the first subparagraph, the authorisation of critical benchmarks shall not be delegated.
2. Prior to the delegation of a task in accordance with paragraph 1, ESMA shall consult the relevant competent authority
about:
(a) the scope of the task to be delegated;
(b) the timetable for the performance of the task; and
(c) the transmission of necessary information by and to ESMA.
3. In accordance with the delegated act adopted pursuant to Article 48l(3), ESMA shall reimburse a competent authority
for costs incurred as a result of carrying out delegated tasks.
4. ESMA shall review any delegation made in accordance with paragraph 1 at appropriate intervals. A delegation may
be revoked at any time.
5. A delegation of tasks shall not affect the responsibility of ESMA nor limit ESMA’s ability to conduct and oversee the
delegated activity.
Article 48n
Transition measures related to ESMA
1. All competences and duties related to the supervisory and enforcement activity regarding administrators as referred
to in Article 40(1) that are conferred on competent authorities as referred to in Article 40(2) shall be terminated
on 1 January 2022. Those competences and duties shall be taken-up by ESMA on the same date.
2. Any files and working documents related to the supervisory and enforcement activity regarding administrators as
referred to in Article 40(1), including any ongoing examinations and enforcement actions, or certified copies thereof, shall
be taken over by ESMA on the date referred to in paragraph 1 of this Article.
However, applications for authorisation by administrators of a critical benchmark referred to in points (a) and (c) of
Article 20(1) and applications for recognition in accordance with Article 32 that have been received by competent
authorities before 1 October 2021 shall not be transferred to ESMA, and the decision to authorise or recognise shall be
taken by the relevant competent authority.
3. Competent authorities shall ensure that any existing records and working papers, or certified copies thereof, shall be
transferred to ESMA as soon as possible and in any event by 1 January 2022. Those competent authorities shall also render
all necessary assistance and advice to ESMA to facilitate effective and efficient transfer and taking-up of supervisory and
enforcement activity regarding administrators as referred to in Article 40(1).
4. ESMA shall act as the legal successor to the competent authorities referred to in paragraph 1 in any administrative
or judicial proceedings that result from supervisory and enforcement activity pursued by those competent authorities in
relation to matters that fall within the scope this Regulation.
5. Any authorisation of administrators of a critical benchmark as referred to in points (a) and (c) of Article 20(1) and
recognition in accordance with Article 32 granted by a competent authority referred to in paragraph 1 of this Article shall
remain valid after the transfer of competences to ESMA.
(OJ L 295, 21.11.2018, p. 39).’;
‘2a. The power to adopt delegated acts referred to in Articles 30(2a), 30(3a), 48i(10) and 48l(3) shall be conferred
on the Commission for an indeterminate period of time from 30 December 2019.’;
‘3. The delegation of power referred to in Articles 3(2), 13(2a), 19a(2), 19c(1), 20(6), 24(2), 27(2b), 30(2a), 30(3a),
33(7), 48i(10), 48l(3), 51(6) and 54(3) may be revoked at any time by the European Parliament or by the Council. A
decision to revoke shall put an end to the delegation of power specified in that decision. It shall take effect on the day
following the publication of the decision in the Official Journal of the European Union or on a later date specified therein.
It shall not affect the validity of any delegated acts already in force.’;
‘6. A delegated act adopted pursuant to Article 3(2), 13(2a), 19a(2), 19c(1), 20(6), 24(2), 27(2b), 30(2a),
30(3a), 33(7), 48i(10), 48l(3), 51(6) or 54(3) shall enter into force only if no objection has been expressed either
by the European Parliament or by the Council within a period of three months of notification of that act to the
European Parliament and to the Council or if, before the expiry of that period, the European Parliament and the
Council have both informed the Commission that they will not object. That period shall be extended by three months
at the initiative of the European Parliament or of the Council.’;
(21) Article 53 is replaced as follows:
‘Article 53
ESMA reviews
1. ESMA shall seek to build a common European supervisory culture and consistent supervisory practices and
ensure consistent approaches among competent authorities in relation to the application of Article 33. To that end, the
endorsements authorised in accordance with Article 33 shall be reviewed by ESMA every two years.
ESMA shall issue an opinion to each competent authority that has endorsed a third-country benchmark assessing how
that competent authority applies the relevant requirements of Article 33 and the requirements of any relevant delegated
act and regulatory or implementing technical standards based on this Regulation.
2. ESMA shall have the power to require the documented evidence from a competent authority for any of the decisions
adopted in accordance with the first subparagraph of Article 51(2) and Article 25(2), as well as for actions taken with
regard to the enforcement of Article 24(1).’.
Article 6
Amendments to Regulation (EU) 2015/847
Regulation (EU) 2015/847 is amended as follows:
(1) in Article 15, paragraph 1 is replaced by the following
‘1. The processing of personal data under this Regulation is subject to Regulation (EU) 2016/679 of the European Parliament
and of the Council (*). Personal data that is processed pursuant to this Regulation by the Commission or EBA is subject to
Regulation (EU) 2018/1725 of the European Parliament and of the Council (**).
(*) Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of
natural persons with regard to the processing of personal data and on the free movement of such data, and repealing
Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1).
(**) Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the protection of
(OJ L 295, 21.11.2018, p. 39).’;

‘3. By 26 June 2017, Member States shall notify the rules referred to in paragraph 1 to the Commission and to the Joint
Committee of the ESAs. Member States shall notify the Commission and EBA without undue delay of any subsequent
amendments thereto.’;
‘2. Following a notification in accordance with Article 17(3), the Commission shall submit a report to the
European Parliament and to the Council on the application of Chapter IV, with particular regard to cross-border cases.’;
‘Article 25
Guidelines
By 26 June 2017, the ESAs shall issue guidelines addressed to the competent authorities and the payment service
providers in accordance with Article 16 of Regulation (EU) No 1093/2010 on measures to be taken in accordance with
this Regulation, in particular as regards the implementation of Articles 7, 8, 11 and 12 thereof. From 1 January 2020,
EBA shall, where appropriate, issue such guidelines.’.
Article 7
Entry into force and entry into application
This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Union.
Articles 1, 2, 3 and 6 shall apply from 1 January 2020. Articles 4 and 5 shall apply from 1 January 2022.
This Regulation shall be binding in its entirety and directly applicable in the Member States in
accordance with the Treaties.
Done at Strasbourg, 18 December 2019.
For the European Parliament For the Council

The President The President
D. M. SASSOLI T. TUPPURAINEN

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27.12.

2019 EN Official Journal of the European Union L 334/1

REGULATION (EU) 2019/2175 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

amending Regulation (EU) No 1093/2010 establishing a European Supervisory Authority (European

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinions of the European Central Bank (1),

Acting in accordance with the ordinary legislative procedure (3),

(1) OJ C 255, 20.7.2018, p. 2 and OJ C 37, 30.1.2019, p. 1.

HAVE ADOPTED THIS REGULATION:

Amendments to Regulation (EU) No 1093/2010

Regulation (EU) No 1093/2010 is amended as follows:

(1) Article 1 is amended as follows:

(a) paragraphs 2 and 3 are replaced by the following:

(*) Directive 2008/48/EC of the European Parliament and of the Council of 23 April 2008 on credit

(b) paragraph 5 is amended as follows:

(i) the first subparagraph is amended as follows:

— the introductory part is replaced by the following:

— points (e) and (f) are replaced by the following:

(f) enhancing customer and consumer protection;’;

— the following points are added:

‘(g) enhancing supervisory convergence across the internal market;

(ii) the second subparagraph is replaced by the following:

(iii) the fourth subparagraph is replaced by the following:

(iv) the following subparagraph is added:

(c) the following paragraph is added:

(2) Article 2 is amended as follows:

(a) paragraph 1 is replaced by the following:

(b) paragraph 4 is replaced by the following:

(c) in paragraph 5, the following subparagraph is added:

(3) Article 3 is replaced by the following:

Accountability of the Authorities

(4) Article 4 is amended as follows:

(a) point (1) is replaced by the following:

(b) the following point is inserted:

(c) point (2) is replaced by the following:

‘(2) “competent authorities” means:

(vi) “competent authorities” as referred to in Directive 2014/17/EU of the European Parliament and of the

(vii) “bodies and authorities” as referred to in Article 20 of Directive 2008/48/EC.

(*) Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a

(5) Article 8 is amended as follows:

(a) paragraph 1 is amended as follows:

(i) point (a) is replaced by the following:

(ii) point (aa) is replaced by the following:

(iii) the following point is inserted:

(iv) point (b) is replaced by the following:

(v) points (e) to (h) are replaced by the following:

(vi) the following point is inserted:

‘(ia) to contribute to the establishment of a common Union financial data strategy;’;

(vii) the following point is inserted:

(viii) the following point is added:

(b) in paragraph 1a, point (b) is replaced by the following:

(c) in paragraph 1a, the following point is added:

(d) paragraph 2 is amended as follows:

(i) the following point is inserted:

amending Regulation (EU) No 1093/2010 establishing a European Supervisory Authority (European

(1) OJ C 255, 20.7.2018, p. 2 and OJ C 37, 30.1.2019, p. 1.

Amendments to Regulation (EU) No 1093/2010

Regulation (EU) No 1093/2010 is amended as follows:

(1) Article 1 is amended as follows:

(a) paragraphs 2 and 3 are replaced by the following:

(b) paragraph 5 is amended as follows:

(i) the first subparagraph is amended as follows:

— points (e) and (f) are replaced by the following:

— the following points are added:

(ii) the second subparagraph is replaced by the following:

(iii) the fourth subparagraph is replaced by the following:

(iv) the following subparagraph is added:

(c) the following paragraph is added:

(2) Article 2 is amended as follows:

(a) paragraph 1 is replaced by the following:

(b) paragraph 4 is replaced by the following:

(c) in paragraph 5, the following subparagraph is added:

(3) Article 3 is replaced by the following:

(4) Article 4 is amended as follows:

(a) point (1) is replaced by the following:

(b) the following point is inserted:

(c) point (2) is replaced by the following:

(vii) “bodies and authorities” as referred to in Article 20 of Directive 2008/48/EC.

(5) Article 8 is amended as follows:

(a) paragraph 1 is amended as follows:

(i) point (a) is replaced by the following:

(ii) point (aa) is replaced by the following:

(iii) the following point is inserted:

(iv) point (b) is replaced by the following:

(v) points (e) to (h) are replaced by the following:

(vi) the following point is inserted:

(vii) the following point is inserted:

(viii) the following point is added:

(b) in paragraph 1a, point (b) is replaced by the following:

(c) in paragraph 1a, the following point is added:

(d) paragraph 2 is amended as follows:

(i) the following point is inserted:

‘(ca) issue recommendations, as laid down in Article 29a;’;

(ii) the following point is inserted:

‘(da) issue warnings in accordance with Article 9(3);’;

(iii) point (g) is replaced by the following:

(iv) the following points are inserted:

‘(ga) issue answers to questions, as laid down in Article 16b;

(gb) take action in accordance with Article 9c;’;

(e) paragraph 2a is replaced by the following:

(6) Article 9 is amended as follows:

(a) paragraph 1 is amended as follows:

(i) point (a) is replaced by the following:

(ii) the following points are inserted:

(iii) the following points are added:

(b) paragraph 2 is replaced by the following:

(c) paragraphs 4 and 5 are replaced by the following:

(7) the following articles are inserted:

(8) Article 10 is amended as follows:

(a) paragraph 1 is amended as follows:

(i) the first subparagraph is replaced by the following:

(ii) the third subparagraph is replaced by the following:

(iii) the fourth subparagraph is deleted;

(b) paragraph 2 is replaced by the following:

(c) in paragraph 3, the second subparagraph is replaced by the following:

(d) paragraph 4 is replaced by the following:

(9) in Article 13(1), the second subparagraph is deleted;

(10) Article 15 is amended as follows:

(a) paragraphs 1 and 2 are replaced by the following:

(b) in paragraph 3, the second subparagraph is replaced by the following:

(c) paragraph 4 is replaced by the following:

(11) Article 16 is amended as follows:

(a) paragraphs 1 and 2 are replaced by the following:

(b) the following paragraph is inserted:

(c) paragraph 4 is replaced by the following:

(12) the following articles are inserted:

(13) Article 17 is amended as follows:

(a) paragraph 2 is amended as follows:

(i) the first subparagraph is replaced by the following:

(ii) the following subparagraphs are added:

(b) the following paragraph is inserted:

(c) paragraphs 6 and 7 are replaced by the following:

(14) the following article is inserted:

(15) in Article 18, paragraph 3 is replaced by the following: