### contribute to a consistent application of community legislation , in particular by contributing to a common supervisory culture , ensuring consistent , efficient and effective application of the legislation referred to in article 1 , preventing regulatory arbitrage , mediating and settling disagreements between national supervisory authorities , promoting a coherent functioning of colleges of supervisors and taking actions in emergency situations ; ### contribute to a consistent application of union legislation , in particular by contributing to a common supervisory culture , ensuring consistent , efficient and effective application of the legislation referred to in article 1 , preventing regulatory arbitrage , mediating and settling disagreements between competent authorities , ensuring effective and consistent supervision of financial institutions with a union dimension and a coherent functioning of colleges of supervisors and taking actions , inter alia , in emergency situations ;


### in its notification , the member state shall justify why and clearly demonstrate how the decision impinges on its fiscal responsibilities . ### in its notification , the member state shall justify why and provide an impact assessment on how much the decision impinges on its fiscal responsibilities .


### the authority shall ensure adequate secretarial support for the insurance , reinsurance and occupational pension funds stakeholder group . ### the authority shall ensure adequate secretarial support for the insurance , reinsurance and occupational pension funds stakeholder group . adequate financial compensation shall be established for members of the stakeholder group representing non - profit organisations .


### where the national authority does not comply with the recommendation , the commission should be empowered to address a decision to the national supervisory authority concerned in order to ensure compliance with community law , creating direct legal effects which can be invoked before national courts and authorities and enforced under article 226 of the treaty . ### where the national authority does not comply with the recommendation within a deadline fixed by the authority , the authority should address a decision without delay to the national supervisory authority concerned in order to ensure compliance with union law , creating direct legal effects which can be invoked before national courts and authorities and enforced under article 258 of the treaty .


### where appropriate , the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . for reasons of efficiency , an insurance , reinsurance and occupational pension funds stakeholder group should be established for that purpose , representing in balanced proportions community insurance and reinsurance firms as well as occupational pension funds , their employees and consumers and other retail users of the insurance , reinsurance and occupational pension services , including smes . the insurance , reinsurance and occupational pension funds stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or community legislation . ### the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . before adopting draft technical standards , guidelines and recommendations the authority should carry out an impact assessment with a view to ensuring that the best practices for high - quality regulation are met . to provide effective external assistance , an insurance , reinsurance and occupational pension funds stakeholder group should be established , representing in balanced proportions union insurance and reinsurance firms and insurance intermediaries as well as occupational pension funds , trade unions , academics and consumers and other retail users of the insurance , reinsurance and occupational pension services , including smes . the insurance , reinsurance and occupational pension funds stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or by eu legislation .


### in order to ensure efficient and effective supervision and a balanced consideration of the positions of the national supervisory authorities in different member states , the authority should be able to settle disagreements between those authorities with binding effect , including within colleges of supervisors . a conciliation phase should be provided for , during which the national supervisory authorities may reach an agreement . the authority ' s competence should cover disagreements on procedural obligations in the cooperation process as well as on the interpretation and application of community law in supervisory decisions . existing conciliation mechanisms provided for in sectoral legislation have to be respected . in the event of inaction by the national supervisory authorities concerned , the authority should be empowered to adopt , as a last resort , decisions directly addressed to financial institutions in areas of community law directly applicable to them . ### in order to ensure efficient and effective supervision and a balanced consideration of the positions of the national supervisory authorities in different member states , the authority should be able to settle disagreements between those authorities with binding effect , including within colleges of supervisors . a conciliation phase should be provided for , during which the national supervisory authorities may reach an agreement . the authority ' s competence should cover disagreements on procedural obligations in the cooperation process as well as on the interpretation and application of union law in supervisory decisions . existing conciliation mechanisms provided for in sectoral legislation have to be respected . in the event of inaction by the national supervisory authorities concerned , the authority should be empowered to adopt , as a last resort , decisions directly addressed to financial institutions in areas of union law directly applicable to them . this also applies to disagreements within a college of supervisors .


### the european system of financial supervisors should be a network of national and community supervisory authorities , leaving day - to - day supervision of financial institutions at the national level , and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and the coherent application of rules for financial institutions and markets across the community should also be achieved . a european insurance and occupational pensions authority should be established , along with a european banking authority and a european securities and markets authority . ### the european system of financial supervisors should be a network of national and union supervisory authorities , leaving day - to - day supervision of financial institutions that do not have a union dimension to the national level . colleges of supervisors should exert supervision over cross - border institutions that do not have a union dimension . the european insurance and occupational pensions authority should gradually take over supervision of institutions with a union dimension . greater harmonisation and the coherent application of rules for financial institutions and markets across the union should also be achieved . in addition to the authority , a european supervisory authority and a european supervisory authority as well as a european supervisory authority should be established . the european systemic risk board shall form part of a european system of financial supervision .


### the insurance , reinsurance and occupational pension funds stakeholder group may submit opinions and advice to the authority on any issue related to the tasks of the authority specified in articles 7 and 8 . ### the insurance , reinsurance and occupational pension funds stakeholder group shall submit opinions and advice to the authority on any issue . any conflict of interest of members of the insurance , reinsurance and occupational pension funds stakeholder group has to be disclosed whenever the stakeholder group issues opinions and advice .


### before submitting them to the commission , the authority shall , where appropriate , conduct open public consultations on technical standards and analyse the potential related costs and benefits . ### the authority shall conduct open public consultations with all stakeholders before issuing guidelines and recommendations and shall analyse the potential related costs and benefits before adopting draft technical standards , in line with established best practices among national authorities . the authority shall request an opinion or advice from the insurance , reinsurance and occupational pension funds stakeholder group as referred to in article 22 .


### within three months of receipt of the draft standards , the commission shall decide whether to endorse the draft standards . the commission may extend that period by one month . the commission may endorse the draft standards only in part or with amendments where the community interest so requires . ### within three months of receipt of the draft standards , the commission shall decide whether to endorse , reject or amend the draft standards . the commission may extend that period by one month . the commission shall inform the european parliament and the council of its decision , stating the reasons .


### the commission shall take such a decision no later than three months from the adoption of the recommendation . the commission may extend this period by one month . ### the commission shall take such a decision no later than one month from the adoption of the recommendation .


### the process for the development of technical standards in this regulation is without prejudice to the commission ' s powers to adopt on its own initiative implementing measures under comitology procedures at level 2 of the lamfalussy structure as laid out in the relevant community legislation . the matters concerned by the technical standards do not involve policy decisions , and their content is framed by the community acts adopted at level 1 . development of the draft standards by the authority ensures that they fully benefit from the specialised expertise of national supervisory authorities . ### the commission should endorse those draft technical standards in order to give them binding legal effect . they will be subject to amendment if , for example , they are incompatible with union law , do not respect the principle of proportionality or run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of european union financial services legislation . to ensure a smooth and expeditious adoption process for those standards , the commission should be subject to a time limit for its decision on the endorsement .


### contribute to a consistent application of community legislation , in particular by contributing to a common supervisory culture , ensuring consistent , efficient and effective application of the legislation referred to in article 1 , preventing regulatory arbitrage , mediating and settling disagreements between national supervisory authorities , promoting a coherent functioning of colleges of supervisors and taking actions in emergency situations ; ### contribute to a consistent application of eu legislation , in particular by contributing to a common supervisory culture , ensuring consistent , efficient and effective application of the legislation referred to in article 1 , preventing regulatory arbitrage , mediating and settling disagreements between national supervisory authorities , ensuring a coherent functioning of colleges of supervisors and taking actions , inter alia , in emergency situations ;


### two members of the board of appeal and two alternates shall be appointed by the management board of the authority from a short - list proposed by the commission , following a public call for expression of interest published in the official journal of the european union , and after consultation of the board of supervisors . ### the members of the board of appeal and their alternates shall be appointed by the european parliament from a short - list proposed by the commission , following a public call for expression of interest published in the official journal of the european union , and after consultation of the board of supervisors . it shall include at least one member representing a consumer organisation , one member representing smes and one member representing the research community . the latter as well as his alternate shall be appointed by the insurance , reinsurance and occupational pensions stakeholder group .


### where the authority maintains its decision , the council , acting by qualified majority as defined in article 205 of the treaty , shall , within two months , decide whether the authority ' s decision is maintained or revoked . ### where the authority maintains its decision , the council shall take a decision whether the authority ' s decision is maintained or revoked on the basis of a qualified majority of its member not taking into account the vote of the member of the council representing the member state concerned no later than two months after the authority has informed the member state as set out in the fourth subparagraph . a qualified majority shall be defined as at least 55% of the members of the council excluding the member state concerned , comprising at least fourteen of them representing member states comprising at least 65% of the population of the union excluding the population of the member state concerned .


### where the national supervisory authority has not complied with community law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the national supervisory authority to take the action necessary to comply with community law . ### where the national supervisory authority has not complied with union law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority , take a decision requiring the national supervisory authority to take the action necessary to comply with union law .


### the authority shall ensure adequate secretarial support for the insurance , reinsurance and occupational pension funds stakeholder group . ### the authority shall ensure adequate secretarial support for the stakeholder groups .


### without prejudice to the powers of the commission under article 226 of the treaty , where a national supervisory authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non compliance by the national supervisory authority 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 legislation referred to in article 1 are directly applicable to financial institutions , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under community law including the cessation of any practice . ### without prejudice to the powers of the commission under article 258 of the treaty , where a national supervisory authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non compliance by the national supervisory authority 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 shall , pursuant to the legislation referred to in article 1 , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under union law including the cessation of any practice .


### consistent application of community rules where a national supervisory authority has not correctly applied the legislation referred to in article 1 , in particular by failing to ensure that a financial institution satisfies the requirements laid down in that legislation , the authority shall have the powers set out in paragraphs 2 , 3 and 6 of this article . 2 . upon request from one or more national supervisory authorities , from the commission or on its own initiative and after having informed the national supervisory authority concerned , the authority may investigate the alleged incorrect application of community law . without prejudice to the powers laid down in article 20 , the national supervisory authority shall provide the authority with all information which the authority considers necessary for its investigation without delay . 3 . the authority may , at the latest within two months from initiating its investigation , address to the national supervisory authority concerned a recommendation setting out the action necessary to comply with community law . the national supervisory authority shall , within ten working days of the receipt of the recommendation , inform the authority of the steps it has taken or intends to take to ensure compliance with community law . 4 . where the national supervisory authority has not complied with community law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the national supervisory authority to take the action necessary to comply with community law . the commission shall take such a decision no later than three months from the adoption of the recommendation . the commission may extend this period by one month . the commission shall ensure that the right to be heard of the addressees of the decision is respected . the authority and the national supervisory authorities shall provide the commission with all necessary information . 5 . the national supervisory authority shall , within ten working days of receipt of the decision referred to in paragraph 4 , inform the commission and the authority of the steps it has taken or intends to take to implement the commission ' s decision . 6 . without prejudice to the powers of the commission under article 226 of the treaty , where a national supervisory authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non compliance by the national supervisory authority 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 legislation referred to in article 1 are directly applicable to financial institutions , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under community law including the cessation of any practice . the decision of the authority shall be in conformity with the decision adopted by the commission pursuant to paragraph 4 . 7 . decisions adopted under paragraph 6 shall prevail over any previous decision adopted by the national supervisory authorities on the same matter . any action by the national supervisory authorities in relation to facts which are subject to a decision pursuant to paragraph 4 or 6 shall be compatible with those decisions . ### non - application of union law where a competent authority has not applied the legislation referred to in article 1 , in particular by failing to ensure that a financial market participant satisfies the requirements laid down in that legislation , the authority shall have the powers set out in paragraphs 2 , 3 and 6 of this article . 2 . upon request from one or more competent authorities , from the european , parliament , the council or the commission , or on its own initiative , and after having informed the competent authority concerned , the authority may investigate the alleged non - application of union law . without prejudice to the powers laid down in article 20 , the competent authority shall provide the authority with all information which the authority considers necessary for its investigation without delay . 3 . the authority may , at the latest within two months from initiating its investigation , address to the competent authority concerned a recommendation setting out the action necessary to comply with union law . the competent authority shall , within ten working days of the receipt of the recommendation , inform the authority of the steps it has taken or intends to take to ensure compliance with union law . 4 . where the competent authority has not complied with union law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the competent authority to take the action necessary to comply with union law . the commission shall take such a decision no later than three months from the adoption of the recommendation . the commission may extend this period by one month . the commission shall ensure that the right to be heard of the addressees of the decision is respected . the authority and the competent authorities shall provide the commission with all necessary information . 5 . the competent authority shall , within ten working days of receipt of the decision referred to in paragraph 4 , inform the commission and the authority of the steps it has taken or intends to take to implement the commission ' s decision . 6 . without prejudice to the powers of the commission under article 258 of the treaty on the functioning of the european union , where a competent authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non - compliance by the competent authority in order to maintain or restore neutral conditions of competition in the internal market or ensure the orderly functioning and integrity of the financial system in cross - border activities , the authority may , where the relevant requirements of the legislation referred to in article 1 are directly applicable to financial market participants , adopt an individual decision addressed to a financial market participant requiring the necessary action to comply with its obligations under union law including the cessation of any practice . before adopting an individual decision , the authority shall inform the commission thereof . the commission shall ensure that the right to be heard of the addressees of the decision is respected . the authority and the competent authorities shall provide the commission with all necessary information . the commission shall decide whether to endorse the authority ' s draft decision within two weeks of receipt . the commission shall not extend that period . the commission may endorse the draft decision only in part or with amendments , where the union interest so requires . where the commission does not endorse the draft decision or endorses it in part or with amendments , it shall inform the authority without delay in the form of a formal opinion . within one week of receipt of that formal opinion , the authority shall review and adapt its decision to the commission ' s formal opinion and transmit it without delay to the commission . within one week of receipt of the amended decision of the authority , the commission shall decide whether to endorse it or reject it . if the amended decision is rejected by the commission , the decision shall be deemed not to have been adopted . the decision of the authority shall be in conformity with the decision adopted by the commission pursuant to paragraph 4 . any action by the competent authorities in relation to facts which are subject to a decision pursuant to paragraph 4 or 6 shall be compatible with those decisions .


### the authority and the national supervisory authorities shall provide the commission with all necessary information . ### the national supervisory authorities shall provide the authority with all necessary information .


### the insurance , reinsurance and occupational pension funds stakeholder group shall be composed of 30 members , representing in balanced proportions community insurance and reinsurance firms as well as occupational pension funds , their employees as well as consumers and users of the insurance , reinsurance and occupational pension services . ### the insurance and reinsurance stakeholder group shall be composed of 30 members , representing in balanced proportions european union insurance and reinsurance firms as well as consumers and users of the insurance and reinsurance services . the occupational retirement provision stakeholder group shall be composed of 30 members , representing in balanced proportions european union occupational pension institutions , their members and beneficiaries as well as sponsoring undertakings .


### the european insurance and occupational pensions authority should act with a view to improving the functioning of the internal market , including in particular by ensuring a high , effective and consistent level of regulation and supervision taking account of the varying interests of all member states , to protect policyholders and other beneficiaries , to ensure the integrity , efficiency and orderly functioning of financial markets , to safeguard the stability of the financial system , and to strengthen international supervisory coordination , for the benefit of the economy at large , including financial institutions and other stakeholders , consumers and employees . in order to be able to fulfil its objectives , it is necessary and appropriate that the authority should be a community body having legal personality and it should have legal , administrative and financial autonomy . ### the authority should act with a view to improving the functioning of the internal market , including in particular by ensuring a high , effective and consistent level of regulation and supervision taking account of the varying interests of all member states , to prevent regulatory arbitrage and guarantee a level playing field , to protect policyholders and other beneficiaries , to ensure the integrity , efficiency and orderly functioning of financial markets , to safeguard the stability of the financial system , and to strengthen international supervisory coordination while taking account of the need to enhance competition and innovation within the internal market and to ensure global competitiveness , for the benefit of the economy at large , including financial institutions and other stakeholders , consumers and employees . in order to be able to fulfil its objectives , it is necessary and appropriate that the authority should be a union body having legal personality and it should have legal , administrative and financial autonomy .


### the members of the insurance , reinsurance and occupational pension funds stakeholder group shall be appointed by the board of supervisors of the authority , following proposals from the relevant stakeholders . ### the members of the stakeholder groups shall be appointed by the board of supervisors of the authority , following proposals from the relevant stakeholders .


### where the national authority does not comply with the recommendation , the commission should be empowered to address a decision to the national supervisory authority concerned in order to ensure compliance with community law , creating direct legal effects which can be invoked before national courts and authorities and enforced under article 226 of the treaty . ### where the national authority does not comply with the recommendation within a deadline fixed by the authority , the authority should address a decision without delay to the national supervisory authority concerned in order to ensure compliance with union law , creating direct legal effects which can be invoked before national courts and authorities and enforced under article 258 of the treaty .


### without prejudice to the powers of the commission under article 226 of the treaty , where a national supervisory authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non compliance by the national supervisory authority 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 legislation referred to in article 1 are directly applicable to financial institutions , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under community law including the cessation of any practice . ### without prejudice to the powers of the commission under article 258 of the treaty , where a national supervisory authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non compliance by the national supervisory authority 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 legislation referred to in article 1 are directly applicable to financial institutions , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under eu law including the cessation of any practice .


### the decision of the authority shall be in conformity with the decision adopted by the commission pursuant to paragraph 4 . ### the decision of the authority shall be in conformity with the decision adopted pursuant to paragraph 4 .


### a joint committee of the european supervisory authorities is hereby established . ### the european supervisory authorities is hereby established and shall have its headquarters in brussels .


### where appropriate , the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . for reasons of efficiency , an insurance , reinsurance and occupational pension funds stakeholder group should be established for that purpose , representing in balanced proportions community insurance and reinsurance firms as well as occupational pension funds , their employees and consumers and other retail users of the insurance , reinsurance and occupational pension services , including smes . the insurance , reinsurance and occupational pension funds stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or community legislation . ### where appropriate , the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . to this end the authority should put transparent procedures in place . for reasons of efficiency , two stakeholders groups should be established for that purpose – one for insurance and reinsurance and one for occupational retirement provision – representing in balanced proportions union insurance and reinsurance firms as well as institutions providing occupational retirement provision , their employees and consumers and other retail users of the insurance , reinsurance and occupational pension services , including smes . those stakeholder groups should actively work as an interface with other user groups in the financial services area established by the commission or union legislation . the stakeholder groups should coordinate their work , where appropriate .


### the authority should actively promote a coordinated community supervisory response , in particular where adverse developments could potentially jeopardise the orderly functioning and integrity of financial markets or the stability of the financial system in the community . in addition to its powers for action in emergency situations , it should therefore be entrusted with a general coordination function within the european system of financial supervisors . the smooth flow of all relevant information between national supervisory authorities should be a particular focus of the authority ' s actions . ### the authority should actively promote a coordinated union supervisory response , in particular to ensure the orderly functioning and integrity of financial markets or the stability of the financial system in the union . in addition to its powers for action in emergency situations , it should therefore be entrusted with a general coordination function within the european system of financial supervision . the smooth flow of all relevant information between national supervisory authorities should be a particular focus of the authority ' s actions .


### where the national supervisory authority has not complied with community law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the national supervisory authority to take the action necessary to comply with community law . ### where the national supervisory authority has not complied with union law within ten working days of receipt of the authority ' s recommendation in accordance with paragraph 3 , the authority shall take a decision requiring the competent authority to take the action necessary to comply with union law .


### the delegation of tasks and responsibilities can be a useful instrument in the functioning of the network of supervisors in order to reduce the duplication of supervisory tasks , foster cooperation and thereby streamline the supervisory process as well as reduce the burden imposed on financial institutions . the regulation should therefore provide a clear legal basis for such delegation . delegation of tasks means that tasks are carried out by another supervisory authority instead of the responsible authority , while the responsibility for supervisory decisions remains with the delegating authority . by delegation of responsibilities one national supervisory authority , the delegatee , shall be able to decide upon a certain supervisory matter in its name in lieu of another national supervisory authority . delegations should be governed by the principle of allocating supervisory competence to a supervisor which is well placed to take action in the subject matter . a reallocation of responsibilities can be appropriate for example for reasons of economies of scale or scope , of coherence in group supervision , and of optimal use of technical expertise among national supervisory authorities . relevant community legislation may further specify the principles for reallocation of responsibilities upon agreement . the authority should facilitate delegation agreements between national supervisory authorities by all appropriate means . it should be informed in advance of intended delegation agreements to be able to express an opinion where appropriate . it should centralise the publication of such agreements to ensure timely , transparent and easily accessible information about agreements for all parties concerned . ### the delegation of tasks and responsibilities can be a useful instrument in the functioning of the network of supervisors in order to reduce the duplication of supervisory tasks , foster cooperation and thereby streamline the supervisory process as well as reduce the burden imposed on financial institutions . the regulation should therefore provide a clear legal basis for such delegation . delegation of tasks means that tasks are carried out by another supervisory authority instead of the responsible authority , while the responsibility for supervisory decisions remains with the delegating authority . by delegation of responsibilities one national supervisory authority , the delegatee , shall be able to decide upon a certain supervisory matter in its name in lieu of another national supervisory authority . delegations should be governed by the principle of allocating supervisory competence to a supervisor which is well placed to take action in the subject matter . a reallocation of responsibilities can be appropriate for example for reasons of economies of scale or scope , of coherence in group supervision , and of optimal use of technical expertise among national supervisory authorities . relevant eu legislation may further specify the principles for reallocation of responsibilities upon agreement . the authority should facilitate and monitor delegation agreements between national supervisory authorities by all appropriate means . it should be informed in advance of intended delegation agreements to be able to express an opinion where appropriate . it should centralise the publication of such agreements to ensure timely , transparent and easily accessible information about agreements for all parties concerned . it should identify and promulgate best practices regarding delegation and delegation agreements .


### the european system of financial supervisors should be a network of national and community supervisory authorities , leaving day - to - day supervision of financial institutions at the national level , and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and the coherent application of rules for financial institutions and markets across the community should also be achieved . a european insurance and occupational pensions authority should be established , along with a european banking authority and a european securities and markets authority . ### the european system of financial supervision should be a network of national and union supervisory authorities , leaving day - to - day supervision of financial institutions at the national level and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and the coherent application of rules for financial institutions and markets across the union should also be achieved . a european supervisory authority should be established , along with a european supervisory authority and a european supervisory authority as well as a european supervisory authority .


### a joint committee of the european supervisory authorities is hereby established . ### the european supervisory authorities is hereby established and shall have its headquarters in frankfurt .


### before submitting them to the commission , the authority shall , where appropriate , conduct open public consultations on technical standards and analyse the potential related costs and benefits . ### the authority shall conduct open public consultations with all stakeholders before issuing guidelines and recommendations and shall analyse the potential related costs and benefits before adopting draft technical standards , in line with established best practices among national authorities . the authority shall request an opinion or advice from the insurance , reinsurance and occupational pension funds stakeholder group as referred to in article 22 .


### the chairperson shall be appointed by the board of supervisors on the basis of merit , skills , knowledge of financial institutions and markets , and experience relevant to financial supervision and regulation , following an open selection procedure . before appointment , the candidate selected by the board of supervisors shall be subject to confirmation by the european parliament . the board of supervisors shall also elect from among its members an alternate who shall carry out the functions of the chairperson in his absence . ### the chairperson shall be appointed by the european parliament on the basis of merit , skills , knowledge of financial institutions and markets , and experience relevant to financial supervision and regulation , following an open selection procedure managed by the board of supervisors who shall select the three strongest candidates for consideration by the european parliament . before appointment , the three candidates selected by the board of supervisors shall be subject to confirmation by the european parliament , who shall appoint one of them as chairperson . the board of supervisors shall also elect from among its members an alternate who shall carry out the functions of the chairperson in his absence .


### the management board shall , after consulting the board of supervisors , adopt the annual report on the activities of the authority on the basis of the draft report referred to in article 38 and shall transmit that report to the european parliament , the council , the commission , the court of auditors , the european economic and social committee by 15 june . the report shall be made public . ### the management board shall , after consulting the board of supervisors , adopt a report on the activities of the authority on the basis of the draft report referred to in article 38 and shall transmit the report to the european parliament , the council , the commission , the court of auditors , the european economic and social committee by 15 june . the report shall be made public .


### where the authority maintains its decision , the council , acting by qualified majority as defined in article 205 of the treaty , shall , within two months , decide whether the authority ' s decision is maintained or revoked . ### where the authority maintains its decision , the council shall take a decision whether the authority ' s decision is maintained or revoked on the basis of a qualified majority of its member not taking into account the vote of the member of the council representing the member state concerned no later than two months after the authority has informed the member state as set out in the fourth subparagraph . a qualified majority shall be defined as at least 55% of the members of the council excluding the member state concerned , comprising at least fourteen of them representing member states comprising at least 65% of the population of the union excluding the population of the member state concerned .


### the commission shall take such a decision no later than three months from the adoption of the recommendation . the commission may extend this period by one month . ### the commission shall take such a decision no later than one month from the adoption of the recommendation .


### two members of the board of appeal and two alternates shall be appointed by the management board of the authority from a short - list proposed by the commission , following a public call for expression of interest published in the official journal of the european union , and after consultation of the board of supervisors . ### the members of the board of appeal and their alternates shall be appointed by the european parliament from a short - list proposed by the commission , following a public call for expression of interest published in the official journal of the european union , and after consultation of the board of supervisors .


### on the basis of the peer review the authority may issue recommendations to the national supervisory authorities concerned . ### on the basis of the peer review the authority may issue guidelines and recommendations pursuant to article 8 to the competent authorities concerned , or adopt a decision addressed to competent authorities or adopt draft technical standards in accordance with articles 7 to 7d .


### the european system of financial supervisors should be a network of national and community supervisory authorities , leaving day - to - day supervision of financial institutions at the national level , and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and the coherent application of rules for financial institutions and markets across the community should also be achieved . a european banking authority should be established , along with a european insurance and occupational pensions authority and a european securities and markets authority . ### the european system of financial supervisors should be a network of national and community supervisory authorities , leaving day - to - day supervision of financial institutions that do not have a union dimension to the national level . colleges of supervisors should exert supervision over cross - border institutions that do not have a union dimension . the european supervisory authority should gradually take over supervision of financial institutions with a union dimension . greater harmonisation and the coherent application of rules for financial institutions and markets across the union should also be achieved . a european supervisory authority should be established , along with a european supervisory authority and a european supervisory authority . the european systemic risk board should form part of a european system of financial supervision .


### for the purposes of article 11 , the board of supervisors shall convoke a panel to facilitate the settlement of the disagreement , consisting of the chairperson and two of its members , who are not representatives of the national supervisory authorities which are parties to the disagreement . ### for the purposes of article 11 , the board of supervisors shall convoke an independent panel to facilitate an impartial settlement of the disagreement , consisting of the chairperson , two members of the board of supervisors and four people drawn from an expert list that the chairperson shall maintain . no member of the panel from the board of supervisors shall be drawn from a national supervisory authority to the disagreement , nor shall they have any interest in the conflict . the panel shall reach a decision by simple majority .


### the authority and the national supervisory authorities shall provide the commission with all necessary information . ### the national supervisory authorities shall provide the authority with all necessary information .


### the authority shall make public the opinions and advice of the insurance , reinsurance and occupational pension funds stakeholder group and the results of its consultations . ### the authority shall make public the opinions and advice of the insurance and reinsurance stakeholder group and occupational pension funds stakeholder group and the results of their consultations .


### the insurance , reinsurance and occupational pension funds stakeholder group may submit opinions and advice to the authority on any issue related to the tasks of the authority specified in articles 7 and 8 . ### the stakeholder groups may submit opinions and advice to the authority on any issue related to the tasks of the authority .


### in areas not covered by technical standards , the authority should have the power to issue non - binding guidelines and recommendations on the application of community legislation . in order to ensure transparency and strengthen compliance by national supervisory authorities with those guidelines and recommendations , national authorities should be obliged to state their reasons where they do not comply with those guidelines and recommendations . ### in areas not covered by technical standards , the authority should have the power to issue non - binding guidelines and recommendations on the application of eu legislation . in order to ensure transparency and strengthen compliance by national supervisory authorities with those guidelines and recommendations , national authorities should be obliged to state their reasons where they do not comply with those guidelines and recommendations publicly in order to be fully transparent with market participants . in areas not covered by technical standards , the authority should establish and promulgate best practices .


### without prejudice to the powers laid down in article 9 , where a national supervisory authority disagrees on the procedure or content of an action or inaction by another national supervisory authority in areas where the legislation referred to in article 1 requires cooperation , coordination or joint decision making by national supervisory authorities from more than one member state , the authority , at the request of one or more of the national supervisory authorities concerned , may assist the authorities in reaching an agreement in accordance with the procedure set out in ### without prejudice to the powers laid down in article 9 , where a national supervisory authority disagrees on the procedure or content of an action or inaction by another national supervisory authority in areas where the legislation referred to in article 1 requires cooperation , coordination or joint decision making by national supervisory authorities from more than one member state , and does not assign ultimate responsibility to the group supervisor , the authority , at the request of one or more of the national supervisory authorities concerned , may assist the authorities in reaching an agreement in accordance with the procedure set out in paragraph 2 .


### where the national authority does not comply with the recommendation , the commission should be empowered to address a decision to the national supervisory authority concerned in order to ensure compliance with community law , creating direct legal effects which can be invoked before national courts and authorities and enforced under article 226 of the treaty . ### where the national authority does not comply with the recommendation within one month of receiving it , the commission should be able to address a decision to the national supervisory authority concerned in order to ensure compliance with union law , creating direct legal effects which can be invoked before national courts and authorities and enforced under article 258 of the treaty .


### the insurance , reinsurance and occupational pension funds stakeholder group shall be composed of 30 members , representing in balanced proportions community insurance and reinsurance firms as well as occupational pension funds , their employees as well as consumers and users of the insurance , reinsurance and occupational pension services . ### the insurance and reinsurance stakeholder group shall be composed of 30 members , representing in balanced proportions european union insurance and reinsurance firms as well as consumers and users of the insurance and reinsurance services . the occupational retirement provision stakeholder group shall be composed of 30 members , representing in balanced proportions european union occupational pension institutions , their members and beneficiaries as well as sponsoring undertakings .


### the board of supervisors shall act on the basis of qualified majority of its members , as defined in article 205 of the treaty , for acts specified in articles 7 , 8 and all measures and decisions adopted under chapter vi . ### the board of supervisors shall act on the basis of qualified majority of its members , as defined in article 16 of the eu treaty , for acts specified in articles 7 , 8 and all measures and decisions adopted under chapter vi .


### the council , acting by qualified majority as defined in article 205 of the treaty , shall , within ten working days , decide whether the authority ' s decision is maintained or revoked . ### the council , acting by qualified majority as defined in paragraph 2 subparagraph 5 , shall , within ten working days , decide whether the authority ' s decision is maintained or revoked .


### this regulation establishes a european insurance and occupational pensions authority . ### this regulation establishes a european supervisory authority .


### the process for the development of technical standards in this regulation is without prejudice to the commission ' s powers to adopt on its own initiative implementing measures under comitology procedures at level 2 of the lamfalussy structure as laid out in the relevant community legislation . the matters concerned by the technical standards do not involve policy decisions , and their content is framed by the community acts adopted at level 1 . development of the draft standards by the authority ensures that they fully benefit from the specialised expertise of national supervisory authorities . ### the commission should endorse those draft technical standards in order to give them binding legal effect . they will be subject to amendment if , for example , they are incompatible with union law , do not respect the principle of proportionality or run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of european union financial services legislation . to ensure a smooth and expeditious adoption process for those standards , the commission should be subject to a time limit for its decision on the endorsement .


### the insurance , reinsurance and occupational pension funds stakeholder group may submit opinions and advice to the authority on any issue related to the tasks of the authority specified in articles 7 and 8 . ### the insurance , reinsurance and occupational pension funds stakeholder group shall submit opinions and advice to the authority on any issue . any conflict of interest of members of the insurance , reinsurance and occupational pension funds stakeholder group has to be disclosed whenever the stakeholder group issues opinions and advice .


### without prejudice to the powers laid down in article 9 , where a national supervisory authority disagrees on the procedure or content of an action or inaction by another national supervisory authority in areas where the legislation referred to in article 1 requires cooperation , coordination or joint decision making by national supervisory authorities from more than one member state , the authority , at the request of one or more of the national supervisory authorities concerned , may assist the authorities in reaching an agreement in accordance with the procedure set out in paragraph 2 . ### without prejudice to the powers laid down in article 9 , where a national supervisory authority disagrees on the procedure or content of an action or inaction by another national supervisory authority in areas where the legislation referred to in article 1 requires cooperation , coordination or joint decision making by national supervisory authorities from more than one member state , the authority , on its own initiative or at the request of one or more of the national supervisory authorities concerned , may take the lead in assisting the authorities in reaching an agreement in accordance with the procedure set out in paragraph 2 .


### without prejudice to the powers laid down in article 9 , where a national supervisory authority disagrees on the procedure or content of an action or inaction by another national supervisory authority in areas where the legislation referred to in article 1 requires cooperation , coordination or joint decision making by national supervisory authorities from more than one member state , the authority , at the request of one or more of the national supervisory authorities concerned , may assist the authorities in reaching an agreement in accordance with the procedure set out in paragraph 2 . ### without prejudice to the powers laid down in article 9 , where a national supervisory authority disagrees on the procedure or content of an action or inaction by another national supervisory authority in areas where the legislation referred to in article 1 requires cooperation , coordination or joint decision making by national supervisory authorities from more than one member state , the authority , on its own initiative or at the request of one or more of the national supervisory authorities concerned , shall take the lead in assisting the authorities in reaching an agreement in accordance with the procedure set out in paragraphs 2 to 4 .


### the chairperson shall be appointed by the board of supervisors on the basis of merit , skills , knowledge of financial institutions and markets , and experience relevant to financial supervision and regulation , following an open selection procedure . before appointment , the candidate selected by the board of supervisors shall be subject to confirmation by the european parliament . the board of supervisors shall also elect from among its members an alternate who shall carry out the functions of the chairperson in his absence . ### the chairperson shall be appointed by the european parliament on the basis of merit , skills , knowledge of financial institutions and markets , and experience relevant to financial supervision and regulation , following an open selection procedure managed by the board of supervisors who shall select the three strongest candidates for consideration by the european parliament . before appointment , the three candidates selected by the board of supervisors shall be subject to confirmation by the european parliament , who shall appoint one of them as chairperson . the board of supervisors shall also elect from among its members an alternate who shall carry out the functions of the chairperson in his absence .


### where the national supervisory authority has not complied with community law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the national supervisory authority to take the action necessary to comply with community law . ### where the national supervisory authority has not complied with union law within ten working days of receipt of the authority ' s recommendation in accordance with paragraph 3 , the authority shall take a decision requiring the competent authority to take the action necessary to comply with union law .


### the financial crisis in 2007 / 2008 exposed important shortcomings in financial supervision , both in particular cases and in relation to the financial system as a whole . nationally - based supervisory models have lagged behind the integrated and interconnected reality of european financial markets , in which many financial firms operate across borders . the crisis exposed shortcomings in the area of cooperation , coordination , consistent application of community law and trust between national supervisors . ### the financial crisis in 2007 / 2008 exposed important shortcomings in financial supervision , both in particular cases and in relation to the financial system as a whole . nationally - based supervisory models have lagged behind the integrated and interconnected reality of european financial markets , in which many financial firms operate across borders . the crisis exposed shortcomings in the area of cooperation , coordination , consistent application of union law and trust between national supervisors .


### without prejudice to the powers of the commission under article 226 of the treaty , where a national supervisory authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non compliance by the national supervisory authority 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 legislation referred to in article 1 are directly applicable to financial institutions , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under community law including the cessation of any practice . ### without prejudice to the powers of the commission under article 258 of the treaty , where a national supervisory authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non compliance by the national supervisory authority 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 shall , pursuant to the legislation referred to in article 1 , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under union law including the cessation of any practice .


### two members of the board of appeal and two alternates shall be appointed by the management board of the authority from a short - list proposed by the commission , following a public call for expression of interest published in the official journal of the european union , and after consultation of the board of supervisors . ### the members of the board of appeal and their alternates shall be appointed by the european parliament from a short - list proposed by the commission , following a public call for expression of interest published in the official journal of the european union , and after consultation of the board of supervisors .


### the european insurance and occupational pensions authority should act with a view to improving the functioning of the internal market , including in particular by ensuring a high , effective and consistent level of regulation and supervision taking account of the varying interests of all member states , to protect policyholders and other beneficiaries , to ensure the integrity , efficiency and orderly functioning of financial markets , to safeguard the stability of the financial system , and to strengthen international supervisory coordination , for the benefit of the economy at large , including financial institutions and other stakeholders , consumers and employees . in order to be able to fulfil its objectives , it is necessary and appropriate that the authority should be a community body having legal personality and it should have legal , administrative and financial autonomy . ### the authority should act with a view to improving the functioning of the internal market , including in particular by ensuring a high , effective and consistent level of regulation and supervision taking account of the varying interests of all member states , to prevent regulatory arbitrage and guarantee a level playing field , to protect policyholders and other beneficiaries , to ensure the integrity , efficiency and orderly functioning of financial markets , to safeguard the stability of the financial system , and to strengthen international supervisory coordination while taking account of the need to enhance competition and innovation within the internal market and to ensure global competitiveness , for the benefit of the economy at large , including financial institutions and other stakeholders , consumers and employees . in order to be able to fulfil its objectives , it is necessary and appropriate that the authority should be a union body having legal personality and it should have legal , administrative and financial autonomy .


### the insurance , reinsurance and occupational pension funds stakeholder group shall adopt its rules of procedure ### the insurance and reinsurance stakeholder group and occupational pension funds stakeholder group shall adopt their rules of procedure


### the authority should actively promote a coordinated community supervisory response , in particular where adverse developments could potentially jeopardise the orderly functioning and integrity of financial markets or the stability of the financial system in the community . in addition to its powers for action in emergency situations , it should therefore be entrusted with a general coordination function within the european system of financial supervisors . the smooth flow of all relevant information between national supervisory authorities should be a particular focus of the authority ' s actions . ### the authority should actively promote a coordinated union supervisory response , in particular to ensure the orderly functioning and integrity of financial markets or the stability of the financial system in the union . in addition to its powers for action in emergency situations , it should therefore be entrusted with a general coordination function within the european system of financial supervision . the smooth flow of all relevant information between national supervisory authorities should be a particular focus of the authority ' s actions .


### the commission shall take such a decision no later than three months from the adoption of the recommendation . the commission may extend this period by one month . ### the authority shall take such a decision no later than one month from the adoption of the recommendation .


### where the national authority does not comply with the recommendation , the commission should be empowered to address a decision to the national supervisory authority concerned in order to ensure compliance with community law , creating direct legal effects which can be invoked before national courts and authorities and enforced under article 226 of the treaty . ### where the national authority does not comply with the recommendation within a deadline fixed by the authority , the authority should address a decision without delay to the national supervisory authority concerned in order to ensure compliance with union law , creating direct legal effects which can be invoked before national courts and authorities and enforced under article 258 of the treaty .


### contribute to a consistent application of community legislation , in particular by contributing to a common supervisory culture , ensuring consistent , efficient and effective application of the legislation referred to in article 1 , preventing regulatory arbitrage , mediating and settling disagreements between national supervisory authorities , promoting a coherent functioning of colleges of supervisors and taking actions in emergency situations ; ### contribute to a consistent application of union legislation , in particular by contributing to a common supervisory culture , ensuring consistent , efficient and effective application of the legislation referred to in article 1 , preventing regulatory arbitrage , mediating and settling disagreements between competent authorities , ensuring effective and consistent supervision of financial institutions with a union dimension and a coherent functioning of colleges of supervisors and taking actions , inter alia , in emergency situations ;


### for the purpose of consultation with stakeholders in areas relevant to the tasks of the authority , an insurance , reinsurance and occupational pension funds stakeholder group shall be established . ### the authority shall establish two stakeholder groups , namely one insurance and reinsurance stakeholder group and one occupational retirement provision stakeholder group , hereinafter referred to as the stakeholder groups , for the purpose of consultation with stakeholders in areas relevant to the tasks of the authority .


### the board of supervisors shall act on the basis of qualified majority of its members , as defined in article 205 of the treaty , for acts specified in articles 7 , 8 and all measures and decisions adopted under chapter vi . all other decisions of the board of supervisors shall be taken by simple majority of members . ### decisions of the board of supervisors shall be taken by simple majority of its members , according to the principle where each member has one vote .


### the process for the development of technical standards in this regulation is without prejudice to the commission ' s powers to adopt on its own initiative implementing measures under comitology procedures at level 2 of the lamfalussy structure as laid out in the relevant community legislation . the matters concerned by the technical standards do not involve policy decisions , and their content is framed by the community acts adopted at level 1 . development of the draft standards by the authority ensures that they fully benefit from the specialised expertise of national supervisory authorities . ### the commission should endorse those draft technical standards in order to give them binding legal effect . they will be subject to amendment if , for example , they are incompatible with union law , do not respect the principle of proportionality or run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of european union financial services legislation . to ensure a smooth and expeditious adoption process for those standards , the commission should be subject to a time limit for its decision on the endorsement .


### the commission shall ensure that the right to be heard of the addressees of the decision is respected . ### the authority shall ensure that the right to be heard of the addressees of the decision is respected .


### where appropriate , the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . for reasons of efficiency , an insurance , reinsurance and occupational pension funds stakeholder group should be established for that purpose , representing in balanced proportions community insurance and reinsurance firms as well as occupational pension funds , their employees and consumers and other retail users of the insurance , reinsurance and occupational pension services , including smes . the insurance , reinsurance and occupational pension funds stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or community legislation . ### where appropriate , the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . to this end the authority should put transparent procedures in place . for reasons of efficiency , two stakeholders groups should be established for that purpose – one for insurance and reinsurance and one for occupational retirement provision – representing in balanced proportions union insurance and reinsurance firms as well as institutions providing occupational retirement provision , their employees and consumers and other retail users of the insurance , reinsurance and occupational pension services , including smes . those stakeholder groups should actively work as an interface with other user groups in the financial services area established by the commission or union legislation . the stakeholder groups should coordinate their work , where appropriate .


### the delegation of tasks and responsibilities can be a useful instrument in the functioning of the network of supervisors in order to reduce the duplication of supervisory tasks , foster cooperation and thereby streamline the supervisory process as well as reduce the burden imposed on financial institutions . the regulation should therefore provide a clear legal basis for such delegation . delegation of tasks means that tasks are carried out by another supervisory authority instead of the responsible authority , while the responsibility for supervisory decisions remains with the delegating authority . by delegation of responsibilities one national supervisory authority , the delegatee , shall be able to decide upon a certain supervisory matter in its name in lieu of another national supervisory authority . delegations should be governed by the principle of allocating supervisory competence to a supervisor which is well placed to take action in the subject matter . a reallocation of responsibilities can be appropriate for example for reasons of economies of scale or scope , of coherence in group supervision , and of optimal use of technical expertise among national supervisory authorities . relevant community legislation may further specify the principles for reallocation of responsibilities upon agreement . the authority should facilitate delegation agreements between national supervisory authorities by all appropriate means . it should be informed in advance of intended delegation agreements to be able to express an opinion where appropriate . it should centralise the publication of such agreements to ensure timely , transparent and easily accessible information about agreements for all parties concerned . ### the delegation of tasks and responsibilities can be a useful instrument in the functioning of the network of supervisors in order to reduce the duplication of supervisory tasks , foster cooperation and thereby streamline the supervisory process as well as reduce the burden imposed on financial institutions . the regulation should therefore provide a clear legal basis for such delegation . a member state may restrict the powers of the national supervisory authority to delegate its tasks . delegation of tasks means that tasks are carried out by another supervisory authority instead of the responsible authority , while the responsibility for supervisory decisions remains with the delegating authority . by delegation of responsibilities one national supervisory authority , the delegatee , should be able to decide upon a certain supervisory matter in its name in lieu of another national supervisory authority . delegations should be governed by the principle of allocating supervisory competence to a supervisor which is well placed to take action in the subject matter . a reallocation of responsibilities can be appropriate for example for reasons of economies of scale or scope , of coherence in group supervision , and of optimal use of technical expertise among national supervisory authorities . relevant union legislation may further specify the principles for reallocation of responsibilities upon agreement . the authority should facilitate delegation agreements between national supervisory authorities by all appropriate means . it should be informed in advance of intended delegation agreements to be able to express an opinion where appropriate . it should centralise the publication of such agreements to ensure timely , transparent and easily accessible information about agreements for all parties concerned .


### the european system of financial supervisors should be a network of national and community supervisory authorities , leaving day - to - day supervision of financial institutions at the national level , and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and the coherent application of rules for financial institutions and markets across the community should also be achieved . a european insurance and occupational pensions authority should be established , along with a european banking authority and a european securities and markets authority . ### the european system of financial supervisors should be a network of national and union supervisory authorities , leaving day - to - day supervision of financial institutions that do not have a union dimension to the national level . colleges of supervisors should exert supervision over cross - border institutions that do not have a union dimension . the european insurance and occupational pensions authority should gradually take over supervision of institutions with a union dimension . greater harmonisation and the coherent application of rules for financial institutions and markets across the union should also be achieved . in addition to the authority , a european supervisory authority and a european supervisory authority as well as a european supervisory authority should be established . the european systemic risk board shall form part of a european system of financial supervision .


### in areas not covered by technical standards , the authority should have the power to issue non - binding guidelines and recommendations on the application of community legislation . in order to ensure transparency and strengthen compliance by national supervisory authorities with those guidelines and recommendations , national authorities should be obliged to state their reasons where they do not comply with those guidelines and recommendations . ### in areas not covered by technical standards , the authority should have the power to issue guidelines and recommendations on the application of union legislation . in order to ensure transparency and strengthen compliance by national supervisory authorities with those guidelines and recommendations , national authorities should be obliged to state their reasons where they do not comply with those guidelines and recommendations publicly in order to be fully transparent with market participants . in areas not covered by technical standards , the authority should establish and promulgate best practices .


### the national supervisory authority shall , within ten working days of receipt of the decision referred to in paragraph 4 , inform the commission and the authority of the steps it has taken or intends to take to implement the commission ' s decision . ### the national supervisory authority shall , within ten working days of receipt of the decision referred to in paragraph 4 , inform the commission and the authority of the steps it has taken or intends to take to implement the authority ' s decision .


### without prejudice to the powers of the commission under article 226 of the treaty , where a national supervisory authority does not comply with the decision of the authority referred to in paragraph 2 within the period laid down therein , the authority may , where the relevant requirements laid down in the legislation referred to in article 1 are directly applicable to financial institutions , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under that legislation , including the cessation of any practice . ### without prejudice to the powers of the commission under article 258 of the treaty , where a national supervisory authority does not comply with the decision of the authority referred to in paragraph 2 within the period laid down therein , the authority shall , pursuant to the relevant requirements laid down in the legislation referred to in article 1 , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under that legislation , including the cessation of any practice .


### in the case of 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 community , the commission , upon its own initiative or following a request by the authority , the council , or the esrb , may adopt a decision addressed to the authority , determining the existence of an emergency situation for the purposes of this regulation . ### in the case of 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 , the esrb , upon its own initiative or following a request by the authority , the council , the european parliament or the commission , may issue a warning declaring the existence of an emergency situation in order to enable the authority without further requirements to adopt the individual decisions referred to in paragraph 3 .


### where the commission has adopted a decision pursuant to paragraph 1 , the authority may adopt individual decisions requiring national supervisory authorities to take the necessary action in accordance with the legislation referred to in article 1 to address any risks that may jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system by ensuring that financial institutions and national supervisory authorities satisfy the requirements laid down in that legislation . ### where the existence of an emergency situation is declared pursuant to paragraph 1 , the authority shall adopt individual decisions necessary to ensure that national supervisory authorities take the necessary action in accordance with the legislation referred to in article 1 to address any risks that may jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system by ensuring that financial institutions and national supervisory authorities satisfy the requirements laid down in that legislation .


### without prejudice to the powers of the commission under article 226 of the treaty , where a national supervisory authority does not comply with the decision of the authority referred to in paragraph 2 within the period laid down therein , the authority may , where the relevant requirements laid down in the legislation referred to in article 1 are directly applicable to financial institutions , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under that legislation , including the cessation of any practice . ### without prejudice to the powers of the commission under article 258 of the treaty on the functioning of the european union , where a competent authority does not comply with the decision of the authority referred to in paragraph 2 within the period laid down therein , the authority shall , pursuant to the relevant requirements laid down in the legislation referred to in article 1 , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under that legislation , including the cessation of any practice .


### without prejudice to the powers of the commission under article 226 of the treaty , where a national supervisory authority does not comply with the decision of the authority referred to in paragraph 2 within the period laid down therein , the authority may , where the relevant requirements laid down in the legislation referred to in article 1 are directly applicable to financial institutions , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under that legislation , including the cessation of any practice . ### without prejudice to the powers of the commission under article 258 of the treaty , where a national supervisory authority does not comply with the decision of the authority referred to in paragraph 2 within the period laid down therein , the authority may , where the relevant requirements laid down in the legislation referred to in article 1 are directly applicable to financial institutions , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under that legislation , including the cessation of any practice .


### in the case of 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 community , the commission , upon its own initiative or following a request by the authority , the council , or the esrb , may adopt a decision addressed to the authority , determining the existence of an emergency situation for the purposes of this regulation . ### in the case of 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 , the commission , following a recommendation from the esrb , may adopt a decision addressed to the authority , determining the existence of an emergency situation for the purposes of this regulation .


### projects of common interest falling under the categories set out in points 1 , 2 and 4 of annex ii are eligible for union financial support in the form of grants for studies and financial instruments in accordance with the provisions of [ regulation of the european parliament and the council establishing the connecting europe facility ] . ### projects of common interest falling under the categories set out in points 1 , 2 and 4 of annex ii are eligible for union financial support in the form of grants for studies and financial instruments in accordance with the provisions of regulation no &#8230 ; / . . . of the european parliament and the council establishing the connecting europe facility , taking into consideration that private financing , or financing by the economic operators concerned , will be the main source of financing .


### member states shall take the necessary measures to ensure that the confidentiality rules imposed by national law on certain professionals called upon to work in contact with children do not constitute an obstacle to the possibility , for those professionals , of their reporting to the services responsible for child protection any situation where they have reasonable grounds for believing that a child is the victim of offences referred to in articles 3 to 7 . ### member states shall take the necessary measures to ensure that the confidentiality rules imposed by national law on certain professionals whose primary task is to work in contact with children do not constitute an obstacle to the possibility , for those professionals , of their reporting to the services responsible for child protection any situation where they have reasonable grounds for believing that the life of a child is in danger or that a child is at risk of serious violence or serious harm .


### member states shall take the necessary measures to ensure that the following intentional conduct is punishable : ### member states shall take the necessary measures to prevent or prohibit the following :


### investigating offences and bringing charges in criminal proceedings should be facilitated , to take into account the difficulty for child victims of denouncing abuse and the anonymity of offenders in cyberspace . to ensure successful investigations and prosecutions of the offences referred to in this directive , effective investigation tools should be made available to those responsible for the investigation and prosecutions of such offences . these tools may include covert operations , interception of communications , covert surveillance including electronic surveillance , monitoring of bank accounts or other financial investigations . ### investigating offences and bringing charges in criminal proceedings should be facilitated , to take into account the difficulty for child victims of denouncing abuse and the anonymity of offenders in cyberspace . to ensure successful investigations and prosecutions of the offences referred to in this directive , effective investigation tools , including the activation of early warning systems , should be made available to those responsible for the investigation and prosecutions of such offences . these tools may include covert operations , interception of communications , covert surveillance including electronic surveillance , monitoring of bank accounts or other financial investigations . these investigations should be subject to prior authorisation by the relevant judicial authority in the member state concerned and should be carried out under the supervision of that authority .


### acquisition or possession of child pornography shall be punishable by a maximum term of imprisonment of at least one year . ### acquisition or possession of child pornography shall be punishable by a maximum term of imprisonment of at least one year . this shall not apply to child pornography within the meaning of article 2 .


### the promotion of initiatives and actions of union or mutual interest in areas such as climate change , environmental matters including biodiversity , resource efficiency , raw materials , energy , transport , science , research and innovation , employment and social policy , sustainable development , including promotion of decent work , and corporate social responsibility , south - south trade and cooperation , education , culture , tourism , information and communication technologies , health , justice , customs , taxation , financial , statistics and any other matter pertaining to the union’s specific interests or of mutual interest between the union and third countries ; ### the promotion of initiatives and actions of union or mutual interest in areas such as climate change , environmental matters including biodiversity , resource efficiency , raw materials , energy , transport , science , research and innovation , consolidation of regional and local authorities and civil society , employment and social policy , sustainable development , including promotion of decent work , and corporate social responsibility , south - south and north - south trade and cooperation , education , vocational training , culture , tourism , local development , information and communication technologies , health , justice , customs , intellectual property rights , data protection , taxation , financial and statistics matters pertaining to the union’s specific interests or of mutual interest between the union and third countries ;


### the promotion of policy and sectoral dialogues involving union and non - union political , economic , regulatory , environmental , social , research and cultural actors and non - governmental organisations ; ### the promotion of policy and sectoral dialogues involving union and non - union political , economic , regulatory , environmental , social , research and cultural actors and non - governmental organisations and regional and local authorities and associations thereof ;


### member states shall have in place numerical fiscal rules on the budget balance that implement in the national budgetary processes their medium - term budgetary objective as defined in article 2a of regulation no 1466 / 97 . such rules shall cover the general government as a whole and be of binding , preferably constitutional , nature . ### member states shall have in place numerical fiscal rules on the budget balance that implement in the national budgetary processes their medium - term budgetary objective as defined in article 2a of regulation no 1466 / 97 . such rules shall cover the general government as a whole and be of binding , preferably constitutional , nature . member states may deviate temporarily from the medium - term objective or the adjustment path towards it in exceptional circumstances , provided that such deviation does not endanger fiscal sustainability in the medium term .


### as demonstrated by the sovereign debt crisis , and in particular by the need to put in place common financial backstops , member states whose currency is the euro share enhanced spillovers from their budgetary policy . each of the member states whose currency is the euro should consult the commission and other member states whose currency is the euro before the adoption of any major fiscal policy reform plans with potential spillover effects , so as to give the possibility for an assessment of possible impact for the euro area as a whole . they should consider their budgetary plans to be of common concern and submit them to the commission for monitoring purposes in advance of the plans becoming binding . the commission should be in a position , if necessary , to adopt an opinion on the draft budgetary plan , that the member state and in particular budgetary authorities should be invited to take into account in the process of the budget law adoption . such an opinion should ensure that union ' s policy guidance in the budgetary area is appropriately integrated in the national budgetary preparations . in particular , this opinion should include an assessment of whether or not the budgetary plans appropriately address the recommendations issued in the context of the european semester in the budgetary area . the commission should stand ready to present this opinion to the parliament of the member state concerned at its request . the extent to which this opinion has been taken into account should be part of the assessment , if and when the conditions are met , leading to the decision to place the concerned member state in excessive deficit procedure , where no follow - up to the early guidance from the commission should be considered as an aggravating factor . also , based on an overall assessment of the plans by the commission , the eurogroup should discuss the budgetary situation and prospects for the euro area . ### as demonstrated by the sovereign debt crisis , and in particular by the need to put in place common financial backstops , member states whose currency is the euro share enhanced spill - overs from their budgetary policy . each of the member states whose currency is the euro should consult the commission and other member states before the adoption of any major fiscal policy reform plans with potential spill - over effects , so as to give the possibility for an assessment of possible impact for all member states . they should consider their budgetary plans to be of common concern and submit them to the commission for monitoring purposes in advance of the plans becoming binding . the commission should be in a position , if necessary , to adopt an opinion on the draft budgetary plan , that the member state and in particular budgetary authorities should be invited to take into account in the process of the budget law adoption . such an opinion should ensure that union ' s policy guidance in the budgetary area is appropriately integrated in the national budgetary preparations . in particular , this opinion should include an assessment of whether or not the budgetary plans appropriately address the recommendations issued in the context of the european semester in the budgetary area . the commission should stand ready to present this opinion to the parliament of the member state concerned at its request . the extent to which this opinion has been taken into account should be part of the assessment , if and when the conditions are met , leading to the decision to place the concerned member state in excessive deficit procedure , where no follow - up to the early guidance from the commission should be considered as an aggravating factor . also , based on an overall assessment of the plans by the commission , the eurogroup should discuss the budgetary situation and prospects for the euro area .