### union fishing vessels shall only catch surplus of the allowable catch determined by the third country as referred to in article 62 of the united nations convention on the law of the sea , and identified on the basis of the best available scientific advice and relevant information exchanged between the union and the third country concerned about the total fishing effort on the affected stocks , in order to ensure that fishery resources remain above levels capable of producing maximum sustainable yield . ### union fishing vessels shall only catch surplus of the allowable catch determined by the third country as referred to in article 62 of the united nations convention on the law of the sea , and identified on the basis of the best available scientific advice and relevant information exchanged between the union and the third country concerned about the total fishing effort on the affected stocks , in order to ensure that fishery resources remain above levels capable of producing maximum sustainable yield and that the level of fishing activities conducted by union fishing vessels does not restrict the fishing possibilities for local fishermen in third countries . 2a . in order to allow for the identification of surplus of the allowable catch referred to under paragraph 2 , sustainable fisheries agreements shall provide for transparency and exchange of all relevant information between the union and the third country about the total fishing effort on the concerned stocks by national and , where appropriate , foreign vessels . 2b . sustainable fisheries agreements shall provide that union fishing vessels can only operate in the waters of the third country with which an agreement has been concluded if they are in possession of a fishing authorisation , which has been issued in accordance with a procedure agreed by both parties to the agreement . 2c . sustainable fisheries agreements shall provide that fishing authorisations of any kind shall only be granted to new fishing vessels and those previously flagged in the union for at least 24 months preceding the request for a fishing authorisation and wishing to target species covered by the sustainable fisheries agreement . 2d . respect for democratic principles , the rule of law , and human rights as laid down in the universal declaration of human rights , shall constitute an essential element of sustainable fisheries agreements that shall include specific provisions regarding human rights . 2e . from 1 january 2015 , union fishing vessels shall not undertake any fishing activities in third country waters except in compliance with the terms of a sustainable fisheries agreement .


### prohibitions of the use of certain fishing gears in certain areas or seasons ; ### restrictions on the use of certain fishing gears in certain areas or seasons ;


### fisheries management based on the best available scientific advice requires harmonised , reliable and accurate data sets . therefore member states should collect data on fleets and their fishing activities , in particular biological data on catches , including discards , survey information on fish stocks and on the potential environmental impact of fishing activities on the marine ecosystem . ### fisheries management based on full and accurate scientific advice requires harmonised , reliable and accurate data sets . therefore member states shall collect data on fleets and their fishing activities , in particular biological data on catches , including discards , survey information on fish stocks and on the potential environmental impact of fishing activities on the marine ecosystem .


### for the purpose of achieving the general objectives set out in article 2 , the common fisheries policy shall in particular : eliminate unwanted catches of commercial stocks and gradually ensure that all catches of such stocks are landed ; provide conditions for efficient fishing activities within an economically viable and competitive fishing industry ; promote the development of union aquaculture activities to contribute to food security and employment in coastal and rural areas ; contribute to a fair standard of living for those who depend on fishing activities ; take into account the interests of consumers ; ensure systematic and harmonised data collection and management . ### for the purpose of achieving the general objectives set out in article 2 , the common fisheries policy shall in particular : ensure that by 2015 fishing opportunities are determined in accordance with the best available scientific advice and are set at levels that will restore and maintain populations of all stocks of harvested species above levels capable of producing maximum sustainable yield ; ensure that the management and exploitation of fish stocks is conducted within the framework of multiannual plans embracing every fishery ; eliminate unwanted catches through the development and use of selective gear and other means , starting with commercial stocks and gradually ensuring that catches of all fish are landed , with the exception of species specifically exempted and listed by the commission as being able to survive discard ; provide and promote conditions for efficient , sustainable and low - impact fishing activities within an economically viable and competitive fishing industry where access to resources is based on equitable and transparent criteria ; promote the development of environmentally sustainable and ecosystem - based union aquaculture activities to contribute to food security and employment in coastal and rural areas ; contribute to a fair standard of living for those in coastal communities and those who depend on fishing activities ; protect the interests of consumers by ensuring that labelling is clear , detailed and accurate and by securing the traceability of fisheries and aquaculture products throughout the food chain ; ensure systematic , timely and harmonised collection of the robust biological , technical and environmental data necessary for meeting the objectives of the common fisheries policy ;


### union financial assistance towards member states shall be conditional upon compliance with the rules of the common fisheries policy by member states . ### union financial assistance towards member states shall be transparent and conditional upon compliance with the rules of the common fisheries policy by member states .


### the common fisheries policy shall implement the ecosystem - based approach to fisheries management to ensure that the impacts of fishing activities on the marine ecosystem are limited . ### the common fisheries policy shall implement the ecosystem - based approach to fisheries management to ensure it supports the principle of achieving maximum sustainable yield where possible and over a realistic timeframe .


### member states shall record the information on characteristics and activity for union fishing vessels flying their flag that is necessary for the management of measures established under this regulation . ### member states shall record and publish the information on vessel and gear characteristics , ownership and spatial and time - related activity of union fishing vessels flying their flag that is necessary for the management of measures established under this regulation .


### composition , functioning and funding of advisory councils advisory councils shall be composed of organizations representing the fisheries operators and other interest groups affected by the common fisheries policy . 2 . each advisory council shall consist of a general assembly and an executive committee and shall adopt the measures necessary for its organization and to ensure transparency and the respect of all opinions expressed . 3 . advisory councils may apply for union financial assistance as bodies pursuing an aim of general european interest . 4 . the commission shall be empowered to adopt delegated acts in accordance with article 55 concerning the composition and the functioning of advisory councils . ### composition , functioning and funding of advisory councils advisory councils shall be composed of organisations representing the fisheries and , where appropriate , aquaculture operators ; other interest groups affected by the common fisheries policy , e . g . environmental organisations and consumer groups . with respect to a ) it shall be ensured that employers , self - employed fishermen and employees as well as different fishing métiers are duly represented . representatives of national and regional administrations having fisheries interests in the area concerned and researchers from the member states ' scientific and fisheries research institutes and from the international scientific institutions that advise the commission shall be allowed to participate as observers . 1a . representatives of the commission and the european parliament may take part as observers in advisory council meetings . representatives of the fisheries sector and other interest groups from third countries , including representatives from regional fisheries organisations , that have a fishing interest in the area or fisheries covered by an advisory council may be invited to participate in that advisory council as observers when issues which affect them are discussed . 2 . each advisory council shall consist of a general assembly and an executive committee and shall adopt the measures necessary for its organization and to ensure transparency and the respect of all opinions expressed . 3 . advisory councils may apply for union financial assistance as bodies pursuing an aim of general european interest . 4 . the commission shall be empowered to adopt delegated acts in accordance with article 55 concerning the composition and the functioning of advisory councils , without prejudice to paragraph 1 and 1a .


### member states shall ensure availability of relevant competences and human resources to be involved in the scientific advisory process . ### member states shall ensure availability of relevant competences and human resources to be involved in the scientific advisory process , whilst encouraging the involvement of local research centres .


### member states should manage and make available to end - users of scientific - data the collected data , on the basis of a multi - annual union program . member states should also cooperate with each other to coordinate data collection activities . where relevant , member states should also cooperate with third countries within the same sea basin regarding data collection . ### member states shall manage and make available to end - users of scientific - data the collected data , on the basis of a multi - annual union program . member states shall also cooperate with each other to coordinate data collection activities . where relevant , member states should also cooperate with third countries within the same sea basin regarding data collection .


### fishing opportunities shall comply with quantifiable targets , time frames and margins established in accordance with article 9 and 11 , and . ### fishing opportunities shall comply with quantifiable targets , time frames and margins established in multiannual plans in accordance with article 9 and article 11 , and .


### the common fisheries policy shall apply the precautionary approach to fisheries management , and shall aim to ensure , by 2015 , that exploitation of living marine biological resources restores and maintains populations of harvested species above levels which can produce the maximum sustainable yield . ### the common fisheries policy shall be applied on the basis of scientific data and reports in order to achieve the maximum sustainable yield in fisheries where this is possible by 2015 , and by 2020 in those where this is not possible . the target in mixed fisheries shall be the optimum sustainable yield .


### member states shall collect biological , technical , environmental and socio - economic data necessary for ecosystem based fisheries management , manage them and make them available to end users of scientific data , including bodies designated by the commission . those data shall in particular enable the assessment of : ### member states shall collect biological , technical , environmental and socio - economic data necessary for ecosystem based fisheries management , manage them and make them available to end users of scientific data , including bodies designated by the commission , which shall cooperate closely with the regional authorities and the racs . data shall be collected on an annual basis and enable the assessment of :


### at the world summit on sustainable development at johannesburg in 2002 , the union and its member states committed to act against the continued decline of many fish stocks . therefore , the union should improve its common fisheries policy to ensure that as a matter of priority exploitation levels of marine biological resources stocks are restored and maintained at levels capable of producing maximum sustainable yields from the populations of harvested stocks by 2015 . where less scientific information is available , this may require applying proxies to maximum sustainable yield . ### at the world summit on sustainable development at johannesburg in 2002 , the union and its member states committed to act against the continued decline of many fish stocks . therefore , the union should improve its common fisheries policy to ensure that as a matter of priority exploitation levels of marine biological resources stocks are , where possible , restored and maintained at levels capable of producing maximum sustainable yields from the populations of harvested stocks by 2015 . where less scientific information is available , this may require applying proxies to maximum sustainable yield .


### member states shall put in place measures to adjust the fishing capacity of their fleets in order to achieve an effective balance between such fishing capacity and their fishing opportunities . ### member states shall put in place measures to adjust the fishing capacity of their fleets in order to achieve an effective balance between such fishing capacity and their fishing opportunities . the european maritime and fisheries fund shall continue to have financial instruments for the permanent cessation of fishing with a view to achieving this objective .


### member states shall put in place measures to adjust the fishing capacity of their fleets in order to achieve an effective balance between such fishing capacity and their fishing opportunities . ### member states shall put in place measures to adjust the fishing capacity of their national fleets in order to achieve an effective balance between their fishing capacity and their fishing opportunities in line with the general objectives set out in article 2 .


### the establishment of effective , proportionate and dissuasive sanctions . ### the establishment of effective , proportionate and dissuasive sanctions , including the freezing of funds from the european maritime and fisheries fund ;


### member states should manage and make available to end - users of scientific - data the collected data , on the basis of a multi - annual union program . member states should also cooperate with each other to coordinate data collection activities . where relevant , member states should also cooperate with third countries within the same sea basin regarding data collection . ### member states should manage and make available to end - users of scientific data the collected data , on the basis of a multi - annual union programme . regional authorities should be involved more actively in data collection activities . member states should also cooperate with each other to coordinate data collection activities . where relevant , member states should also cooperate with third countries within the same sea basin regarding data collection .


### measures are needed to reduce and eliminate the current high levels of unwanted catches and discards . indeed , unwanted catches and discards constitute a substantial waste and affect negatively the sustainable exploitation of marine biological resources and marine ecosystems as well as the financial viability of fisheries . an obligation to land all catches of managed stocks caught during fishing activities in union waters or by union fishing vessels should be established and gradually implemented . ### measures are needed to reduce the current high levels of unwanted catches and discards with increased and improved techniques for avoidance and minimisation of unwanted species . such practices must be supported by realistic incentives at all levels .


### policy - oriented fisheries science should be reinforced by means of nationally - adopted fisheries scientific data collection , research and innovation programs in coordination with other member states as well as by union research and innovation framework tools . ### policy - oriented fisheries science shall be reinforced by means of nationally - adopted fisheries scientific data collection , research and innovation programs in coordination with other member states as well as by union research and innovation framework tools .


### clear time frames to reach the quantifiable targets ; ### clear and realistic time frames to reach the quantifiable targets ;


### in special areas of conservation within the meaning of article 6 of directive 92 / 43 / eec , of article 4 of directive 2009 / 147 / ec and of article 13 of directive 2008 / 56 / ec , fishing activities shall be conducted by member states in such a way so as to alleviate the impact from fishing activities in such special areas of conservation . ### in protected areas within the meaning of article 6 of directive 92 / 43 / eec , of article 4 of directive 2009 / 147 / ec and of article 13 of directive 2008 / 56 / ec , fishing activities shall be conducted by member states in such a way so as to prevent the deterioration of natural habitats and the disturbance of the species for which the areas have been designated , with the goal to achieve a favourable conservation status ; 1a . member states shall take non - discriminatory measures for the purpose of complying with paragraph 1 and must notify the commission , other member states and the regional advisory council prior to the entry into force of such measures . 1b . all actions taken by the union and by member states under the common fisheries policy shall be in full compliance with the aarhus convention on access to information .


### the common fisheries policy shall implement the ecosystem - based approach to fisheries management to ensure that the impacts of fishing activities on the marine ecosystem are limited . ### the common fisheries policy shall be applied to fisheries management with the aim of ensuring a limited impact and a balance between fishing activity and the marine ecosystem .


### fishing opportunities shall comply with quantifiable targets , time frames and margins established in accordance with article 9 and 11 , and . ### fishing opportunities shall not exceed the level specified in the scientific advice and shall comply with quantifiable targets , time frames and margins established in multiannual plans in accordance with article 9 and 11 , and .


### union financial assistance may be granted to contribute to the achievement of the objectives set out in articles 2 and 3 . ### union financial assistance shall be granted only to actions and initiatives that comply with the objectives set out in articles 2 and 3 .


### apply solely to fishing vessels flying the flag of that member state or , in the case of fishing activities which are not conducted by a fishing vessel , to persons established in the territory ; ### apply to all vessels operating in relation to stocks in their waters for which they have been allocated fishing opportunities ;


### union financial assistance towards operators shall be conditional upon compliance with the rules of the common fisheries policy by operators . ### union financial assistance towards operators , vessel owners and fishermen shall be conditional upon compliance with the rules of the common fisheries policy by operators .


### member states should manage and make available to end - users of scientific - data the collected data , on the basis of a multi - annual union program . member states should also cooperate with each other to coordinate data collection activities . where relevant , member states should also cooperate with third countries within the same sea basin regarding data collection . ### member states shall manage and make available to end - users of scientific - data the collected data , on the basis of a multi - annual union program . member states shall also cooperate with each other to coordinate data collection activities . where relevant , member states should also cooperate with third countries within the same sea basin regarding data collection .


### objectives consistent with the objectives set out in articles 2 and 3 ; ### objectives consistent with the objectives set out in this regulation ;


### at the end of the strategic phase , the commission , assisted by independent expert should evaluate the maturity and the readiness of the initiative to enter the implementation phase . ### at the end of the strategic phase , the commission , assisted by independent experts , should assess the quality of the strategic phase and , if appropriate , suggest improvements . the transition to the implementation phase should be seamless and without unnecessary delays .


### the community financial contribution and the cash contribution of the participating states to bonus - 169 shall be pooled and administered centrally by the bonus eeig . ### as a general rule , the community financial contribution and the cash contribution of the participating states to bonus shall be pooled and administered centrally by the bonus eeig . however , in justified cases , a participating state may devote its cash contribution exclusively to domestic research .


### a positive evaluation of the strategic phase carried out by the commission with the assistance of independent experts ; this evaluation shall cover the progress made towards the achievement of objectives and deliverables set out in article 2 and annex i ; ### the outcomes of the strategic phase described in article 2 , as well as the progress made towards the achievement of objectives and deliverables set out in annex i , section 2 ;


### the community financial contribution for the implementation phase shall be provided under the following conditions : ### the commission shall before the end of the strategic phase assess the following :


### developing a financing structure of funding bonus - 169 project based on a pool of funds consisting of cash contributions of the participating states and of the community ; ### developing a financing structure of funding bonus projects ;


### member states shall require issuers active in the extractive or logging of primary forest industries , as defined in [ … ] to prepare , in accordance with chapter 9 of directive 2011 / . . / eu of the european parliament and of the council , a report on payments made to governments on an annual basis . the report shall be made public at the latest six months after the end of each financial year and shall remain publicly available for at least five years . payments to governments shall be reported at consolidated level . ### member states shall require issuers active in the extractive industries , as defined in [ … ] to prepare , in accordance with chapter 9 of directive 2011 / . . / eu of the european parliament and of the council , a report on payments made to governments on an annual basis . the report shall be made public at the latest six months after the end of each financial year and shall remain publicly available for at least five years . payments to governments shall be reported at consolidated level .


### in order to provide for enhanced transparency of payments made to governments , issuers whose securities are admitted to trading on a regulated market and which have activities in the extractive or logging of primary forest industries should disclose in a separate report on an annual basis payments made to governments in the countries in which they operate . the report should include types of payments comparable to those disclosed under the extractive industries transparency initiative and provide civil society with information to hold governments of resource - rich countries to account for their receipts from the exploitation of natural resources . the initiative is also complementary to the eu flegt action plan and the timber regulation which require traders of timber products to exercise due diligence in order to prevent illegal wood from entering into the eu market . the detailed requirements are defined in chapter 9 of directive 2011 / . . . / eu of the european parliament and of the council . ### in order to provide for enhanced transparency of payments made to governments , issuers whose securities are admitted to trading on a regulated market should disclose on an annual basis payments made to governments in the countries in which they operate . this disclosure should be part of the annual report and should include types of payments building on those disclosed under the extractive industries transparency initiative and provide civil society , including investors , with information to hold governments of resource - rich countries to account for their receipts from the exploitation of natural resources . the initiative is also complementary to the eu flegt action plan and the timber regulation which require traders of timber products to exercise due diligence in order to prevent illegal wood from entering into the eu market . for the purposes of transparency and investor protection , the principles regarding the reporting of payments made to governments , such as integrated reporting , materiality , project - by - project reporting , universality , comprehensiveness and comparability , are laid down in this directive . the detailed requirements are defined in chapter 9 of directive 2011 / . . . / eu of the european parliament and of the council .


### article 6 report on payments to governments member states shall require issuers active in the extractive or logging of primary forest industries , as defined in [ … ] to prepare , in accordance with chapter 9 of directive 2011 / . . . / eu of the european parliament and of the council , a report on payments made to governments on an annual basis . the report shall be made public at the latest six months after the end of each financial year and shall remain publicly available for at least five years . payments to governments shall be reported at consolidated level . ### article 6 report on payments to governments member states shall require all issuers to prepare , in accordance with chapter 9 of directive 2011 / . . . / eu of the european parliament and of the council , a report on payments made to governments and additional information on their financial activities in third countries on an annual basis as part of the annual financial statements . the report shall be made public at the latest six months after the end of each financial year and shall remain publicly available . payments to governments shall be reported at consolidated level .


### a harmonised regime for notification of major holdings of voting rights , especially regarding aggregation of holdings of shares with holdings of financial instruments , should improve legal certainty , enhance transparency and reduce administrative burden for cross - border investors . member states should therefore not be allowed to adopt stricter or divergent rules in that area than those provided in directive 2004 / 109 / ec . however , taking into account the existing differences in ownership concentration in the union , member states should continue to be allowed to set lower thresholds for notification of holdings of voting rights . ### a harmonised regime for notification of major holdings of voting rights , especially regarding aggregation of holdings of shares with holdings of financial instruments , should improve legal certainty , enhance transparency and reduce administrative burden for cross - border investors . member states should therefore not be allowed to adopt stricter or divergent rules in that area than those provided in directive 2004 / 109 / ec . however , taking into account the existing differences in ownership concentration in the union , member states should continue to be allowed to set lower thresholds for notification of holdings of voting rights ; nevertheless , measures to incentivise long term investment should be considered and also a requirement for full transparency of voting for any borrowed shares .


### member states shall require issuers active in the extractive or logging of primary forest industries , as defined in [ … ] to prepare , in accordance with chapter 9 of directive 2011 / . . . / eu of the european parliament and of the council , a report on payments made to governments on an annual basis . the report shall be made public at the latest six months after the end of each financial year and shall remain publicly available for at least five years . payments to governments shall be reported at consolidated level . ### member states shall require all issuers to prepare , in accordance with chapter 9 of directive 2011 / . . . / eu of the european parliament and of the council , a disclosure of payments made to governments as part of their annual financial statements . the report shall be made public at the latest six months after the end of each financial year and shall remain publicly available for at least five years . payments to governments shall be reported at consolidated level .


### in order to provide for enhanced transparency of payments made to governments , issuers whose securities are admitted to trading on a regulated market and which have activities in the extractive or logging of primary forest industries should disclose in a separate report on an annual basis payments made to governments in the countries in which they operate . the report should include types of payments comparable to those disclosed under the extractive industries transparency initiative and provide civil society with information to hold governments of resource - rich countries to account for their receipts from the exploitation of natural resources . the initiative is also complementary to the eu flegt action plan and the timber regulation which require traders of timber products to exercise due diligence in order to prevent illegal wood from entering into the eu market . the detailed requirements are defined in chapter 9 of directive 2011 / . . . / eu of the european parliament and of the council . ### in order to provide for enhanced transparency of financial activities in third countries , in particular payments made to governments , issuers whose securities are admitted to trading on a regulated market should disclose as part of the annual report of financial statements , payments made to governments in the countries in which they operate on a per - country basis . the disclosure of such data is intended to enable investors to make better - informed decisions , thereby improving corporate governance and accountability and contributing to the containment of tax evasion . the report should incorporate disclosures on a country basis . for issuers active in the extractive industry or the logging of primary forests , the report should also specify the specific project or projects to which those payments have been attributed , building on the disclosure requirements of the extractive industries transparency initiative to provide civil society with information whereby governments of resource - rich countries can be held to account for their receipts from the exploitation of natural resources . the initiative is also complementary to the eu flegt action plan and the timber regulation which require traders of timber products to exercise due diligence in order to prevent illegal wood from entering into the union market . the detailed requirements are defined in chapter 9 of directive 2011 / . . . / eu of the european parliament and of the council .


### eib activity in neighbourhood countries should take place in the framework of the european neighbourhood policy , under which the eu aims to develop a special relationship with neighbouring countries with a view to establishing an area of prosperity and good neighbourliness , founded on the values of the eu and characterised by close and peaceful relations based on co - operation . to achieve these objectives the eu and its partners implement jointly agreed bilateral action plans defining a set of priorities including on political and security issues , trade and economic matters , environmental concerns and integration of transport and energy networks . the union for the mediterranean , the eastern partnership , and the black sea synergy are multilateral and regional initiatives complementary to the european neighbourhood policy aimed at fostering co - operation between the eu and the respective group of neighbouring partner countries facing common challenges and / or sharing a common geographical environment . the union for the mediterranean supports improved socio - economic , solidarity , regional integration , sustainable development and knowledge building , underlining the need to increase financial co - operation to support regional and trans - national projects . the eastern partnership aims to create the necessary conditions to accelerate political association and further economic integration between the eu and eastern partner countries . the russian federation and the eu have a wide - ranging strategic partnership , distinct from the european neighbourhood policy and expressed through the common spaces and roadmaps . this is complemented at multilateral level by the northern dimension which provides a framework for co - operation between the eu , russia , norway and iceland . ### eib activity in neighbourhood countries should take place in the framework of the european neighbourhood policy , under which the eu aims to develop a special relationship with neighbouring countries with a view to establishing an area of prosperity and good neighbourliness , founded on the values of the eu and characterised by close and peaceful relations based on co - operation . to achieve these objectives the eu and its partners implement jointly agreed bilateral action plans defining a set of priorities including on political and security issues , trade and economic matters , environmental and social concerns and integration of transport and energy networks . the union for the mediterranean , the eastern partnership , and the black sea synergy are multilateral and regional initiatives complementary to the european neighbourhood policy aimed at fostering co - operation between the eu and the respective group of neighbouring partner countries facing common challenges and / or sharing a common geographical environment . the union for the mediterranean supports improved socio - economic development , solidarity , regional integration , sustainable development and knowledge building , underlining the need to increase financial co - operation to support regional and trans - national projects and support smes . the eastern partnership aims to create the necessary conditions to accelerate political association and further economic integration between the eu and eastern partner countries . the russian federation and the eu have a wide - ranging strategic partnership , distinct from the european neighbourhood policy and expressed through the common spaces and roadmaps . this is complemented at multilateral level by the northern dimension which provides a framework for co - operation between the eu , russia , norway and iceland .


### immediately publish on its website the new methodologies together with a detailed explanation thereof ; ### immediately publish on its website the new methodologies together with a detailed explanation thereof as well as the date of application of the new methodologies ;


### where a credit rating agency has committed intentionally or with gross negligence any of the infringements listed in annex&#160 ; iii having an impact on a credit rating on which an investor has relied when purchasing a rated instrument , such an investor may bring an action against that credit rating agency for any damage caused to that investor . ### where a credit rating agency has been deemed by esma ' s board of supervisors to have committed , intentionally or with gross negligence , any of the infringements listed in annex&#160 ; iii in accordance with article 24 and where this has resulted in an impact on a credit rating on which an investor / issuer has relied when purchasing or selling a rated instrument , such an investor / issuer may bring an action against that credit rating agency for any damage caused to that investor / issuer .


### the perception of independence of credit rating agencies would be particularly affected should the same shareholders or members be investing in different credit rating agencies not belonging to the same group of credit rating agencies , at least if this investment reaches a certain size that could allow these shareholders or members to exercise a certain influence on the agency ' s business . therefore , in order to ensure the independence of credit rating agencies , it is appropriate to provide for stricter rules regarding the relations between the credit rating agencies and their shareholders . for this reason , no person should simultaneously hold a participation of 5% or more in more than one credit rating agency , unless the agencies concerned belong to the same group . ### the perception of independence of credit rating agencies would be particularly affected should the same shareholders or members be investing in different credit rating agencies not belonging to the same group of credit rating agencies . therefore , in order to ensure the independence of credit rating agencies , it is appropriate to provide for stricter rules regarding the relations between the credit rating agencies and their shareholders . for this reason , a shareholder or member holding a participation of 5% or more in one credit rating agency should not be allowed to hold any participation in another credit rating agency , unless the agencies concerned belong to the same group .


### immediately publish on its website the new methodologies together with a detailed explanation thereof ; ### immediately inform esma and publish on its website information about the new methodologies ;


### regarding matters concerning the civil liability of a credit rating agency and which are not covered by this regulation , such matters should be governed by the applicable national law determined by the relevant rules of international private law . the competent court to decide on a claim for civil liability brought by an investor should be determined by the relevant rules on international jurisdiction . ### regarding matters concerning the civil liability of a credit rating agency , such matters should be governed by the applicable national law determined by the relevant rules of international private law . the competent court to decide on a claim for civil liability brought by an investor should be determined by the relevant rules on international jurisdiction .


### a credit rating agency shall disclose on its website , on an ongoing basis , information about all entities or debt instruments submitted to it for their initial review or for preliminary rating . such disclosure shall be made whether or not issuers contract with the credit rating agency for a final rating . ### a credit rating agency shall report to esma , on an ongoing basis , information about all entities or debt instruments submitted to it for their initial review or for preliminary rating , indifferent with regard to whether or not the issuers contract with the credit rating agency for a final rating .


### the new rules limiting the duration of the business relationship between an issuer and the credit rating agency would significantly reshape the credit rating market in the union , which today remains largely concentrated . new market opportunities would arise for small and mid - size credit rating agencies , which would need to develop to take up those challenges in the first years following the entry into force of the new rules . those developments are likely to bring new diversity into the market . the objectives and the effectiveness of the new rules would , however , be largely jeopardised if , during these initial years , large established credit rating agencies would prevent their competitors from developing credible alternatives by acquiring them . further consolidation in the credit rating market driven by large established players would result in a reduction of the number of available registered credit rating agencies , thus creating selection difficulties for issuers at the moment in which they regularly need to appoint one or more new credit rating agencies and disturbing the smooth functioning of the new rules . more importantly , further consolidation driven by large established credit rating agencies would particularly prevent the emergence of more diversity in the market . ### further consolidation in the credit rating market driven by large established players would result in a reduction of the number of available registered credit rating agencies , thus creating selection difficulties for issuers and disturbing the smooth functioning of the market . more importantly , further consolidation driven by large established credit rating agencies would particularly prevent the emergence of more diversity in the market .


### the credit rating agency infringes the first subparagraph of article 8 by not publishing on its website the proposed changes to the methodologies , models or key rating assumptions or the proposed new methodologies , models or key rating assumptions together with a detailed explanation of the reasons for and the implications of the proposed changes . ### the credit rating agency infringes the first subparagraph of article 8 by not informing esma or not publishing on its website the proposed new methodologies or changes of the methodologies together with a explanation of the reasons for and the implications of the changes .


### have the right or the power to exercise 5% or more of the voting rights in any other credit rating agency ; ### have the right or the power to exercise voting rights in any other credit rating agency ;


### european rating index ### european rating data platform


### in order to further mitigate conflicts of interest and facilitate fair competition in the credit rating market , it is important to ensure that the fees charged by credit rating agencies to customers are not discriminatory . differences in fees charged for the same type of service should only be justifiable by a difference in the actual costs in providing this service to different customers . moreover , the fees charged for rating services to a given issuer should not depend on the results or outcome of the work performed or on the provision of related services . furthermore , in order to allow for the effective supervision of those rules , credit rating agencies should disclose to esma the fees received from each of their clients and their general pricing policy . ### in order to further mitigate conflicts of interest and facilitate fair competition in the credit rating market , the fees charged for rating services to a given issuer should not depend on the results or outcome of the work performed . furthermore , in order to allow for the effective supervision of those rules , credit rating agencies should disclose to esma the fees received from each of their clients and their general pricing policy .


### a credit rating agency that intends to change or use any new rating methodologies , models or key rating assumptions shall publish the proposed changes or proposed new methodologies on its website inviting stakeholders to submit comments for a period not shorter than one month , together with a detailed explanation of the reasons for and the implications of the proposed changes or proposed new methodologies . ### a credit rating agency that intends to change or use any new rating methodologies shall inform esma and publish relevant information about changes to the methodologies on its website inviting stakeholders to submit comments together with a explanation of the reasons for and the implications of the proposed changes or proposed new methodologies .


### a credit rating agency that intends to change or use any new rating methodologies , models or key rating assumptions shall publish the proposed changes or proposed new methodologies on its website inviting stakeholders to submit comments for a period not shorter than one month , together with a detailed explanation of the reasons for and the implications of the proposed changes or proposed new methodologies . ### a credit rating agency that intends to materially change or use any new rating methodologies , models or key rating assumptions shall publish the proposed changes or proposed new methodologies on its website inviting stakeholders to submit comments for a period of one month , together with a detailed explanation of the reasons for and the implications of the proposed material changes or proposed new methodologies .


### the credit rating agency infringes point of article 8 , where it intends to use new methodologies , by not publishing immediately on its website the new methodologies together with a detailed explanation thereof . ### the credit rating agency infringes point of article 8 , where it intends to use new methodologies , by not informing esma or publishing immediately on its website the new methodologies .


### investors , issuers and other interested parties should have access to up to date rating information on a central webpage . a european rating index established by esma should allow investors to easily compare all ratings that exist with regard to a specific rated entity and provide them with average ratings . in order to enable investors to compare ratings on the same entity issued by different credit rating agencies it is necessary that credit rating agencies use a harmonised rating scale , to be developed by esma and adopted by the commission as a regulatory technical standard . the use of the harmonised rating scale should only be mandatory for the publication of the ratings on the eurix webpage while credit rating agencies should be free to use their own rating scales when publishing the ratings on their own websites . the mandatory use of a harmonised rating scale should not have a harmonising effect on methodologies and processes of credit rating agencies , but should be limited to making the rating outcome comparable . it is important that the eurix webpage shows , in addition to an aggregate rating index , all available ratings per instrument in order to allow investors to consider the whole variety of opinions before taking their own investment decision . the aggregate rating index may help investors to get a first indication of the creditworthiness of an entity . the eurix should help smaller and new credit rating agencies to gain visibility . the european rating index would complement the information on historical performance data to be published by credit rating agencies in esma ' s central repository . the european parliament supported the establishment of such european rating index in its resolution on credit rating agencies of 8 june 2011 . ### investors , issuers and other interested parties should have access to up to date rating information on a central webpage and via data feeds . a european rating index established by esma should allow investors to easily compare all ratings that exist with regard to a specific rated entity and provide them with average ratings . in order to enable investors to compare ratings on the same entity issued by different credit rating agencies it is necessary that credit rating agencies use a harmonised rating scale , to be developed by esma in cooperation with eba and eiopa and adopted by the commission as a regulatory technical standard . the use of the harmonised rating scale should only be mandatory for the publication of the ratings on the eurix webpage while credit rating agencies should be free to use their own rating scales when publishing the ratings on their own websites . the mandatory use of a harmonised rating scale should not have a harmonising effect on methodologies and processes of credit rating agencies , but should be limited to making the rating outcome comparable . it is important that the eurix webpage shows , in addition to an aggregate rating index , all available ratings per instrument in order to allow investors to consider the whole variety of opinions before taking their own investment decision . the aggregate rating index may help investors to get a first indication of the creditworthiness of an entity . the eurix should help smaller and new credit rating agencies to gain visibility . credit ratings agencies that work on a subscription - or investor - based payment model shall be exempt from the publication of individual credit ratings and should only feature in the establishment of the average ratings . the european rating index would complement the information on historical performance data to be published by credit rating agencies in esma ' s central repository . the european parliament supported the establishment of such european rating index in its resolution on credit rating agencies of 8 june 2011 .


### esma shall also verify that any intended changes to rating methodologies notified by a credit rating agency in accordance with article 8 comply with the criteria laid down in article 8 as specified in the regulatory technical standard referred to in point of article 21 . the credit rating agency may only apply the new rating methodology after esma has confirmed the methodology ' s compliance with article 8 . ### without prejudice to article 23 , within one month after notification by a credit rating agency in accordance with article 8 esma shall raise issues with any new rating methodologies or intended material changes to existing rating methodologies if they do not comply with the criteria laid down in article 8 . esma may require the credit rating agency to revise any new rating methodologies or material changes to existing rating methodologies that are not in accordance with the regulatory technical standard referred to in point of article 21 . this power shall be notwithstanding esma ' s ongoing supervisory tasks .


### regulation no 1060 / 2009 already provided a first round of measures to address the question of independence and integrity of credit rating agencies and their credit rating activities . the objectives of guaranteeing the independence of credit rating agencies and of identifying , managing and , to the extent possible , avoiding any conflict of interest that could arise were already underlying several provisions of that regulation in 2009 . whilst providing a sound basis , the existing rules do not appear to have had a sufficient impact in this regard . credit rating agencies still are not perceived as sufficiently independent actors . the selection and remuneration of the credit rating agency by the rated entity engenders inherent conflicts of interest , which are insufficiently addressed by the existing rules . under this model , there are incentives for credit rating agencies to issue complacency ratings on the issuer in order to secure a long - standing business relationship guaranteeing revenues or in order to secure additional work and revenues . moreover , relationships between the shareholders of credit rating agencies and the rated entities may cause conflicts of interest which are not sufficiently dealt with by the existing rules . as a result , credit ratings issued under the issuer - pays model may be perceived as the credit ratings that suit the issuer rather than the credit ratings needed by the investor . without prejudice to the conclusions of the report to be submitted by the commission on the issuer - pays model by december 2012 pursuant to article 39 of regulation no 1060 / 2009 , it is essential to reinforce the conditions of independence applying to credit rating agencies in order to increase the level of credibility of credit ratings issued under the issuer - pays model . ### regulation no 1060 / 2009 already provided a first round of measures to address the question of independence and integrity of credit rating agencies and their credit rating activities . the objectives of guaranteeing the independence of credit rating agencies and of identifying , managing and , to the extent possible , avoiding any conflict of interest that could arise were already underlying several provisions of that regulation in 2009 . credit rating agencies still are not perceived as sufficiently independent actors . the selection and remuneration of the credit rating agency by the rated entity engenders inherent conflicts of interest , which are insufficiently addressed by the existing rules . under this model , there are incentives for credit rating agencies to issue complacency ratings on the issuer in order to secure a long - standing business relationship guaranteeing revenues or in order to secure additional work and revenues . moreover , relationships between the shareholders of credit rating agencies and the rated entities may cause conflicts of interest which are not sufficiently dealt with by the existing rules . as a result , credit ratings issued under the issuer - pays model may be perceived as the credit ratings that suit the issuer rather than the credit ratings needed by the investor . without prejudice to the conclusions of the report to be submitted by the commission on the issuer - pays model by december 2012 pursuant to article 39 of regulation no 1060 / 2009 , it is essential to reinforce the conditions of independence applying to credit rating agencies in order to increase the level of credibility of credit ratings issued under the issuer - pays model .


### esma shall also verify that any intended changes to rating methodologies notified by a credit rating agency in accordance with article 8 comply with the criteria laid down in article 8 as specified in the regulatory technical standard referred to in point of article 21 . the credit rating agency may only apply the new rating methodology after esma has confirmed the methodology ' s compliance with article 8 . ### changes in methodology shall be reported to esma to ensure continuing conformity with the criteria laid down in article 8 as specified in the regulatory technical standard referred to in point of article 21 . changes in methodology shall be appropriately publicised . esma shall have due regard for internationally applied methodologies .


### where an investor establishes facts from which it may be inferred that a credit rating agency has committed any of the infringements listed in annex iii , it will be for the credit rating agency to prove that it has not committed that infringement or that that infringement did not have an impact on the issued credit rating . ### where an investor or issuer exercises a right of redress against a credit rating agency in accordance with article 35a , it will be for the investor or issuer to prove that the infringement had an impact on the issued credit rating and that that impact influenced the investor ' s or issuer ' s investment decision .


### in order to contribute to the issuance of up to date and credible sovereign ratings and to facilitate users ' understanding , it is important to regularly review ratings . it is also important to increase the transparency about the research work carried out , the staff allocated to the preparation of ratings and the underlying assumptions behind the credit ratings made by credit rating agencies in relation to sovereign debt . ### in order to contribute to the issuance of up to date and credible sovereign ratings and to facilitate users ' understanding , it is important to regularly review ratings . it is also important to increase the transparency about the research work carried out , the staff allocated to the preparation of ratings , its territorial presence , and the underlying assumptions behind the credit ratings made by credit rating agencies in relation to sovereign and sub - sovereign debt .


### hold 5% or more of the capital of any other credit rating agency . this prohibition does not apply to holdings in diversified collective investment schemes , including managed funds such as pension funds or life insurance , provided that the holdings in diversified collective investment schemes do not put him or her in a position to exercise significant influence on the business activities of those schemes ; ### hold capital of any other credit rating agency . this prohibition does not apply to holdings in diversified collective investment schemes , including managed funds such as pension funds or life insurance , provided that the holdings in diversified collective investment schemes do not put him or her in a position to exercise significant influence on the business activities of those schemes ;


### examination of rating methodologies ### examination of procedures used for the establishment of new and material changes to rating methodologies


### where a credit rating agency has entered into a contract with an issuer or its related third party for the issuing of credit ratings on that issuer , it shall not issue credit ratings on that issuer for a period exceeding three years . ### where a credit rating agency has entered into an exclusive contract with an issuer or its related third party for the issuing of credit ratings on that issuer , it shall not issue credit ratings on that issuer for a period exceeding five years .


### the perception of independence of credit rating agencies would be particularly affected should the same shareholders or members be investing in different credit rating agencies not belonging to the same group of credit rating agencies , at least if this investment reaches a certain size that could allow these shareholders or members to exercise a certain influence on the agency ' s business . therefore , in order to ensure the independence of credit rating agencies , it is appropriate to provide for stricter rules regarding the relations between the credit rating agencies and their shareholders . for this reason , no person should simultaneously hold a participation of 5% or more in more than one credit rating agency , unless the agencies concerned belong to the same group . ### the perception of independence of credit rating agencies would be particularly affected should the same shareholders or members be investing in different credit rating agencies not belonging to the same group of credit rating agencies . therefore , in order to ensure the independence of credit rating agencies , it is appropriate to provide for stricter rules regarding the relations between the credit rating agencies and their shareholders . for this reason , a shareholder or member holding a participation of 5% or more in one credit rating agency should not be allowed to hold any participation in another credit rating agency , unless the agencies concerned belong to the same group .


### the commission should adopt the draft regulatory technical standards developed by esma regarding the content of the handover file when a credit rating agency is replaced by another credit rating agency , the content , frequency and presentation of the information to be provided by issuers on structured finance instruments , harmonisation of the standard rating scale to be used by credit rating agencies , the presentation of the information , including structure , format , method and timing of reporting , that credit rating agencies should disclose to esma in relation to eurix and the content and format of the periodic reporting on fees charged by credit rating agencies for the purposes of ongoing supervision by esma . the commission should adopt those standards by means of delegated acts pursuant to article 290 of the treaty and in accordance with articles 10 to 14 of regulation no 1095 / 2010 . ### the commission should adopt the draft regulatory technical standards developed by esma regarding the content , frequency and presentation of the information to be provided by issuers on structured finance instruments , the presentation of the information , including structure , format , method and timing of reporting , that credit rating agencies , eba and national central banks of member states should disclose to esma in relation to eurix and the content and format of the periodic reporting on fees charged by credit rating agencies for the purposes of ongoing supervision by esma . the commission should adopt those standards by means of delegated acts pursuant to article 290 of the treaty and in accordance with articles 10 to 14 of regulation no 1095 / 2010 .


### where a credit rating agency has committed intentionally or with gross negligence any of the infringements listed in annex&#160 ; iii having an impact on a credit rating on which an investor has relied when purchasing a rated instrument , such an investor may bring an action against that credit rating agency for any damage caused to that investor . ### where a credit rating agency has been deemed by esma ' s board of supervisors to have committed , intentionally or with gross negligence , any of the infringements listed in annex&#160 ; iii in accordance with article 24 having an impact on a credit rating on which an investor has relied when purchasing a rated instrument , such an investor may bring an action against that credit rating agency for any damage caused to that investor as a direct result of that infringement .


### the new rules limiting the duration of the business relationship between an issuer and the credit rating agency would significantly reshape the credit rating market in the union , which today remains largely concentrated . new market opportunities would arise for small and mid - size credit rating agencies , which would need to develop to take up those challenges in the first years following the entry into force of the new rules . those developments are likely to bring new diversity into the market . the objectives and the effectiveness of the new rules would , however , be largely jeopardised if , during these initial years , large established credit rating agencies would prevent their competitors from developing credible alternatives by acquiring them . further consolidation in the credit rating market driven by large established players would result in a reduction of the number of available registered credit rating agencies , thus creating selection difficulties for issuers at the moment in which they regularly need to appoint one or more new credit rating agencies and disturbing the smooth functioning of the new rules . more importantly , further consolidation driven by large established credit rating agencies would particularly prevent the emergence of more diversity in the market . ### further consolidation in the credit rating market driven by large established players would result in a reduction of the number of available registered credit rating agencies , thus creating selection difficulties for issuers and disturbing the smooth functioning of the market . more importantly , further consolidation driven by large established credit rating agencies would particularly prevent the emergence of more diversity in the market .


### after expiry of the consultation period referred to in the first subparagraph , the credit rating agency shall notify esma of the intended changes or proposed new methodologies . ### after expiry of the consultation period referred to in the first subparagraph , the credit rating agency shall notify esma of the intended material changes or proposed new methodologies .


### credit institutions , investment firms , insurance and reinsurance undertakings , institutions for occupational retirement provisions , management and investment companies , alternative investment fund managers and central counterparties as defined in regulation no xx / 201x of the european parliament and of the council of xx xxx 201x on otc derivatives , central counterparties and trade repositories shall make their own credit risk assessment and shall not solely or mechanistically rely on credit ratings for assessing the creditworthiness of an entity or financial instrument . competent authorities in charge of supervising these undertakings shall closely check the adequacy of undertakings credit assessment processes . ### credit institutions , investment firms , insurance and reinsurance undertakings , institutions for occupational retirement provisions , management and investment companies , alternative investment fund managers and central counterparties as defined in regulation no xx / 201x of the european parliament and of the council of xx xxx 201x on otc derivatives , central counterparties and trade repositories shall not solely or mechanistically rely on credit ratings for assessing the creditworthiness of an entity or financial instrument . competent authorities in charge of supervising these undertakings shall closely check the adequacy of undertakings credit assessment processes .


### esma shall establish a european rating index which will include all credit ratings submitted to esma pursuant to paragraph 1 and an aggregated rating index for any rated debt instrument . the index and individual credit ratings shall be published on esma ' s website . ### esma shall establish a european rating index which will include all credit ratings submitted to esma pursuant to paragraph 1 and an aggregated rating index for any rated debt instrument . the index and individual credit ratings shall be published on a dedicated website and be available as data feed . esma shall streamline its efforts in this respect with the work already undertaken by eba and eiopa .


### when methodologies , models or key assumptions used in credit rating activities are changed following the decision of esma referred to in paragraph 3 of article 22a , a credit rating agency shall : ### when methodologies , models or key assumptions used in credit rating activities are changed after the expiry of the one - month period for checking by esma as referred to in paragraph 3 of article 22a , a credit rating agency shall :


### when at least ten credit ratings are issued within an initial period of twelve months , that credit rating agency shall not issue any further credit ratings on those debt instruments after the end of that period ; ### when at least ten credit ratings are issued within an initial period of twelve months , that credit rating agency shall not issue any further credit ratings on those debt instruments after the end of that period unless a credit rating from another credit rating agency is also obtained ;


### directive xxxx / xx / eu of the european parliament and of the council of [ … ] on the access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms19 has introduced a provision requiring banks and investment firms to assess the credit risk of entities and financial instruments in which they invest themselves and not to simply rely in this respect on external ratings . this rule should be extended to other financial firms regulated under union law , including investment managers . member states should not be entitled to impose rules that allow stricter reliance of these investors on external ratings . ### directive xxxx / xx / eu of the european parliament and of the council of [ … ] on the access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms19 has introduced a provision requiring banks and investment firms to assess the credit risk of entities and financial instruments in which they invest themselves and not to simply rely in this respect on external ratings . this rule should be extended to other financial firms regulated under union law , including investment managers . member states should not be entitled to impose rules that allow stricter reliance of these investors on external ratings . furthermore , member states should revise their national rules and technical standards to eliminate the reference to credit ratings where they trigger mechanic reliance on credit ratings . member states should also review all references to specific credit ratings in order to take into account all registered and certified rating agencies .


### ‘ 2 . within the amount referred to in annex iv , the commission shall fix the maximum amount available to each eligible acp banana - supplying country for financing the actions referred to in paragraph 1 on the basis of a set of objective indicators . the indicators shall include trade in bananas with the eu ; the importance of banana exports to the economy in the acp country concerned ; and country’s level of development . the measurement of the allocation criteria shall be based on data from years preceding 2009 . ’ ### ‘ 2 . within the amount referred to in annex iv , the commission shall fix the maximum amount available to each eligible acp banana - supplying country for financing the actions referred to in paragraph 1 on the basis of a set of objective indicators . the indicators shall include trade in bananas with the eu ; the importance of banana exports to the economy in the acp country concerned ; and country’s level of development . the measurement of the allocation criteria shall be based on data from the three years prior to the year in which the measurement is made . ’


### ‘ 3 . the commission shall adopt multi - annual support strategies by analogy to article 19 , and in accordance with article 21 . it shall ensure that such strategies complement the geographic strategy papers of the countries concerned , and the temporary nature of these banana accompanying measures . the support strategies may be reviewed ad hoc , if necessary , but shall not be submitted to a mid - term review . ’ ### ‘ 3 . the commission shall adopt multi - annual support strategies by analogy to article 19 , and in accordance with article 21 . it shall ensure that such strategies complement the geographic strategy papers of the countries concerned , and the temporary nature of these banana accompanying measures . the multi - annual support strategies for banana accompanying measures must include : an environmental profile of the country with regard to the banana industry ; b ) a set of specifications stating when the banana accompanying measures were first implemented and the terms of reference for their review ; c ) the indicators to be used in assessing eligibility conditions when budget support is chosen as a method of granting aid ; d ) the expected results of targeted reforms in the banana industry ; e ) a detailed schedule of reforms and expected expenditure for each recipient country ; f ) the list of international labour organization standards to be met in order to protect workers’ health . the support strategies shall be subject to an independent ex ante review and , if necessary , an ad hoc review . ’


### the commission shall adopt multi - annual support strategies by analogy to article 19 , and in accordance with article 21 . it shall ensure that such strategies complement the geographic strategy papers of the countries concerned , and the temporary nature of these banana accompanying measures . the support strategies may be reviewed ad hoc , if necessary , but shall not be submitted to a mid - term review . ### the commission shall adopt multi - annual support strategies by analogy to article 19 , and in accordance with article 21 . it shall ensure that such strategies complement the geographic strategy papers of the countries concerned , and the temporary nature of these banana accompanying measures . the multi - annual support strategies for banana accompanying measures shall include : an environmental profile of the country with regard to the banana industry ; b ) a set of specifications stating when the banana accompanying measures were first implemented and the terms of reference for their review ; c ) indicators to assess progress in relation to disbursement conditions , when budget support will be chosen as the form of financing ; d ) the expected results of the assistance ; e ) a time schedule of support activities and of expected disbursements for each recipient country ; f ) the ways in which progress will be achieved and monitored in meeting internationally - agreed ilo core labour standards and appropriate occupational safety and health conventions ; g ) the support strategies shall be subject to an independent ex ante review and , if necessary , an ad hoc review . ’


### providing regular assessments and specific reports by economic sector , geographic area and type of intellectual property right infringed , which evaluate , inter alia , the impact of intellectual property rights infringements on society , economy , health , environment , safety and security , and the relation of such infringements with organized crime and terrorism ; ### providing regular assessments and specific reports by economic sector , geographic area and type of intellectual property right infringed , which evaluate , inter alia , the impact of intellectual property rights infringements on society , economy , health , environment , safety and security , and the relation of such infringements with organized crime ;


### with regard to representatives of the private sector , the office should involve , when assembling the observatory in the context of its activities , a representative selection of the economic sectors most concerned by and most experienced in the fight against infringements of intellectual property rights , in particular representatives of right holders and internet service providers . also , a proper representation of consumers and of small and medium sized enterprises should be ensured . ### with regard to representatives of the private sector , the office should involve , when assembling the observatory in the context of its activities , a representative selection of the sectors most concerned by and most experienced in the fight against infringements of intellectual property rights , in particular representatives of right holders and internet intermediaries . in this connection , particular attention should be paid to sectors which , by their very nature , generate value which is to a large extent intangible , such as the creative and cultural sector . also , a proper representation of consumers , small and medium - sized enterprises , creators and users of cultural services and platforms , including stakeholders of the non - profit sector , should be ensured .


### with regard to representatives of the private sector , the office should involve , when assembling the observatory in the context of its activities , a representative selection of the economic sectors most concerned by and most experienced in the fight against infringements of intellectual property rights , in particular representatives of right holders and internet service providers . also , a proper representation of consumers and of small and medium sized enterprises should be ensured . ### with regard to representatives of the private sector , the office should involve , when assembling the observatory in the context of its activities , a representative selection of the economic sectors most concerned by and most experienced in the fight against infringements as well as the valorisation of intellectual property rights , in particular representatives of right holders and internet service providers . also , a proper representation of consumers and of small and medium - sized enterprises should be ensured .


### the constant rise of infringements of intellectual property rights constitutes a genuine threat not only to the union economy , but also to the health and safety of union consumers . therefore , effective , immediate and coordinated actions at european and global levels are needed to successfully combat this phenomenon . ### the high level of infringements of intellectual property rights constitutes a genuine threat not only to the union economy , but also in many cases to the health and safety of union consumers . therefore , effective , immediate and coordinated actions at european and global levels are needed to successfully combat this phenomenon .


### this regulation entrusts the office for harmonization in the internal market with certain tasks related to the protection of intellectual property rights . in carrying out these tasks the office shall regularly invite experts , authorities and stakeholders which will assemble under the name ‘ european observatory on counterfeiting and piracy’ . ### this regulation entrusts the office for harmonisation in the internal market with certain tasks related to the enforcement of intellectual property rights covered by directive 2004 / 48 / ec , with the aim of facilitating and supporting the activities of national authorities , the private sector and the union institutions in the fight against infringements of those rights . in carrying out these tasks the office shall regularly invite experts , authorities and stakeholders which will assemble under the name ‘ european observatory on counterfeiting and piracy’ .


### researching , evaluating and promoting technical tools for professionals and benchmark techniques , including tracking and tracing systems which help to distinguish genuine from counterfeit products ; ### evaluating and promoting technical tools for professionals and benchmark techniques , including tracking and tracing systems which help to distinguish genuine from counterfeit products ;


### a member state receiving financial assistance from one or several other states , the imf , the efsf or the esm shall prepare in agreement with the commission - acting in liaison with the ecb - a draft adjustment programme aimed at re - establishing a sound and sustainable economic and financial situation and restoring its capacity to finance itself fully on the financial markets . the draft adjustment programme shall take due account of the current recommendations addressed to the member state concerned under articles 121 , 126 and / or 148 of the treaty - and its actions to comply with them - while aiming at broadening , strengthening and deepening the required policy measures . ### a member state requesting or&#160 ; receiving financial assistance from one or several other states , the imf , the efsf or the esm shall prepare in agreement with the commission - acting in liaison with the ecb - a draft adjustment programme aimed at re - establishing a sound and sustainable economic and financial situation and restoring its capacity to finance itself fully on the financial markets . the draft adjustment programme shall take due account of the current recommendations addressed to the member state concerned under articles 121 , 126 and / or 148 of the treaty - and its actions to comply with them - while aiming at broadening , strengthening and deepening the required policy measures . any macro - economic adjustment programme shall , where possible , take into account&#160 ; the national reform programme of the country concerned in the context of the europe 2020 strategy for growth and jobs .


### venture capital provides finance to undertakings that are generally very small , in the initial stages of their corporate existence and display a strong potential for growth and expansion . in addition , venture capital funds provide these undertakings with valuable expertise and knowledge , business contacts , brand - equity and strategic advice . by providing finance and advice to these undertakings , venture capital funds stimulates economic growth , contribute to the creation of jobs , boost innovative undertakings , increase their investment in research and development and foster entrepreneurship , innovation and competitiveness in the union . ### venture capital provides finance to undertakings that are generally very small , in the initial stages of their corporate existence and display a strong potential for growth and expansion . although venture capital funds often invest in start - up undertakings , there are instances where it is appropriate to make transformative investments in undertakings that have been established for more than five years . in addition , venture capital funds provide these undertakings with valuable expertise and knowledge , business contacts , brand - equity and strategic advice . by providing finance and advice to these undertakings , venture capital funds stimulate economic growth , contribute to the creation of jobs , boost innovative undertakings , increase their investment in research and development and foster entrepreneurship , innovation and competitiveness in the union .


### users of electrical and electronic equipment from private households should have the possibility of returning weee at least free of charge . producers should finance at least the collection from collection facilities , and the treatment , recovery and disposal of weee . member states should encourage producers to take full ownership of the weee collection in particular by financing the collection of weee throughout the whole waste chain , including from private households , in order to avoid leakage of separately collected weee to sub - optimal treatment and illegal exports , to create a level playing field by harmonising producer financing across the eu , to shift payment for the collection of this waste from general tax payers to the consumers of eee in line with the polluter pays principle . in order to give maximum effect to the concept of producer responsibility , each producer should be responsible for financing the management of the waste from his own products . the producer should be able to choose to fulfil this obligation either individually or by joining a collective scheme . each producer should , when placing a product on the market , provide a financial guarantee to prevent costs for the management of weee from orphan products from falling on society or the remaining producers . the responsibility for the financing of the management of historical waste should be shared by all existing producers in collective financing schemes to which all producers , existing on the market when the costs occur , contribute proportionately . collective financing schemes should not have the effect of excluding niche and low - volume producers , importers and new entrants . ### users of electrical and electronic equipment from private households should have the possibility of returning weee at least free of charge . producers should finance collection from collection facilities , and the treatment , recovery and disposal of weee . member states should encourage all stakeholders handling weee to help achieve the aim of the directive in order to avoid leakage of separately collected weee to sub - optimal treatment and illegal exports . all weee collected by all participants should be counted and recorded . so that payment for the collection of this waste is shifted from general taxpayers to the consumers of eee in line with the polluter pays principle , member states should encourage producers to treat all weee collected that is handed over to them free of charge by collectors of weee . if economic operators choose not to hand over weee free of charge and treat weee without prior agreement with a producer or producer responsibility organisation , whether there is a net cost or net credit after collection , transport and treatment , then producers shall not be required to finance any cost for this weee . so that proper treatment is possible , consumers have responsibility for ensuring that end - of - life eee is taken to collection facilities . in order to give maximum effect to the concept of producer responsibility , each producer should be responsible for financing the management of the waste from his own products . the producer should be able to choose to fulfil this obligation either individually or by joining a collective scheme . each producer should , when placing a product on the market , provide a financial guarantee to prevent costs for the management of weee from orphan products from falling on society or the remaining producers . the responsibility for the financing of the management of historical waste should be shared by all existing producers in collective financing schemes to which all producers , existing on the market when the costs occur , contribute proportionately . collective financing schemes should not have the effect of excluding niche and low - volume producers , importers and new entrants .


### without prejudice to article 5 , member states shall ensure that producers or third parties acting on their behalf achieve a minimum collection rate of 65% . the collection rate is calculated on the basis of the total weight of weee collected in accordance with articles 5 and 6 in a given year in that member state , expressed as a percentage of the average weight of electrical and electronic equipment placed on the market in the two preceding years in that member state . this collection rate shall be achieved annually and starting in 2016 . ### without prejudice to article 5 , member states shall ensure that a minimum collection rate of 65% is achieved . the collection rate is calculated on the basis of the total weight of weee collected in accordance with articles 5 and 6 in a given year in that member state , expressed as a percentage of the average weight of electrical and electronic equipment placed on the market in the three preceding years in that member state . this collection rate shall be achieved annually and starting in 2016 . from 2013 until the end of 2015 , member states shall ensure that an identically calculated minimum collection rate of 45% is achieved , which is to be fulfilled on a yearly basis .


### member states shall ensure thatproducers provide at least for the financing of the collection , treatment , recovery and environmentally sound disposal of weee from private households deposited at collection facilities set up under article 5 . member states , where appropriate , shall encourage producers to finance all the cost occurring for collection facilities for weee from private households . ### member states shall ensure that producers provide at least for the financing of the collection , treatment , recovery and environmentally sound disposal of weee from private households deposited at collection facilities set up under article 5 . in addition , member states , where appropriate , shall ensure that , to improve the collection of weee , sufficient financial resources are raised according to the polluter pays principle to cover the cost of collection of weee from households , including the cost of running the collection facilities and associated awareness - raising campaigns on the management of weee . these financial resources shall be available only to operators legally obliged to collect weee . where receiving full coverage for their costs , municipalities and private operators obliged by law to act as collection points shall hand over all the weee collected to producers or producer responsibility schemes . the financing of the collection of weee from households for removal to collection facilities should not fall under the individual producer responsibility for financing provided for in article&#160 ; 12 . 2 .


### member states shall ensure that producers provide at least for the financing of the collection , treatment , recovery and environmentally sound disposal of weee from private households deposited at collection facilities set up under article 5 . member states , where appropriate , shall encourage producers to finance all the cost occurring for collection facilities for weee from private households . ### member states shall ensure that producers provide at least for the financing of the collection , treatment , recovery and environmentally sound disposal of weee from private households deposited at collection facilities set up under article 5 which is handed over to them free of charge .


### users of electrical and electronic equipment from private households should have the possibility of returning weee at least free of charge . producers should finance at least the collection from collection facilities , and the treatment , recovery and disposal of weee . member states should encourage producers to take full ownership of the weee collection in particular by financing the collection of weee throughout the whole waste chain , including from private households , in order to avoid leakage of separately collected weee to sub - optimal treatment and illegal exports , to create a level playing field by harmonising producer financing across the eu , to shift payment for the collection of this waste from general tax payers to the consumers of eees in line with the polluter pays principle . in order to give maximum effect to the concept of producer responsibility , each producer should be responsible for financing the management of the waste from his own products . the producer should be able to choose to fulfil this obligation either individually or by joining a collective scheme . each producer should , when placing a product on the market , provide a financial guarantee to prevent costs for the management of weee from orphan products from falling on society or the remaining producers . the responsibility for the financing of the management of historical waste should be shared by all existing producers in collective financing schemes to which all producers , existing on the market when the costs occur , contribute proportionately . collective financing schemes should not have the effect of excluding niche and low - volume producers , importers and new entrants . ### users of electrical and electronic equipment from private households should have the possibility of returning weee at least free of charge . producers should therefore finance collection from collection facilities , and the treatment , recovery and disposal of weee . member states should encourage all stakeholders handling weee to help achieve the objective of the directive in order to avoid leakage of separately collected weee to sub - optimal treatment and illegal exports . so that payment for the collection of this waste is shifted from general taxpayers to the consumers of eees in line with the polluter pays principle , member states should encourage producers to treat all weee collected . so that proper treatment is possible , consumers have responsibility for ensuring that end - of - life eee is taken to collection facilities . in order to give maximum effect to the concept of producer responsibility , each producer should be responsible for financing the management of the waste from his own products . the producer should be able to choose to fulfil this obligation either individually or by joining a collective scheme . each producer should , when placing a product on the market , provide a financial guarantee to prevent costs for the management of weee from orphan products from falling on society or the remaining producers . the responsibility for the financing of the management of historical waste should be shared by all existing producers in collective financing schemes to which all producers , existing on the market when the costs occur , contribute proportionately . collective financing schemes should not have the effect of excluding niche and low - volume producers , importers and new entrants .


### for products placed on the market later than 13 august 2005 , each producer shall be responsible for financing the operations referred to in paragraph 1 relating to the waste from his own products . the producer can choose to fulfil this obligation either individually or by joining a collective scheme . ### for products placed on the market later than 13 august 2005 , each producer shall be responsible for financing the operations referred to in paragraph 1 relating to the waste from his own products . the producer can choose to fulfil this obligation either individually or by joining a collective scheme . collective schemes shall introduce differentiated fees for producers based on how easily products and the strategic materials they contain can be recycled .


### a common methodology shall be established for the calculation of the total weight of electrical and electronic equipment placed on the national market . ### by july 31 , 2011 at the latest , a common methodology shall be established for the calculation of the total weight of electrical and electronic equipment placed on the national market .


### without prejudice to article 5 , member states shall ensure that producers or third parties acting on their behalf achieve a minimum collection rate of 65% . the collection rate is calculated on the basis of the total weight of weee collected in accordance with articles 5 and 6 in a given year in that member state , expressed as a percentage of the average weight of electrical and electronic equipment placed on the market in the two preceding years in that member state . this collection rate shall be achieved annually and starting in 2016 . ### without prejudice to article&#160 ; 5 , member states shall ensure that a minimum collection rate of 85% is achieved . the collection rate is calculated on the basis of the total weight of weee , in each of the categories of equipment set out in annex&#160 ; i , collected in accordance with articles&#160 ; 5 and 6 in a given year in that member state , expressed as a percentage of the average weight of electrical and electronic equipment , in each of the categories set out in annex&#160 ; i , placed on the market in the three preceding years in that member state . this collection rate shall be achieved annually and starting in 2016 . from 2013 until the end of 2015 , member states shall ensure that an identically calculated minimum collection rate of 45% is achieved annually .


### member states shall ensure that , for the purpose of calculating these targets , producers or third parties acting on their behalf keep records on the mass of weee , their components , materials or substances when entering and leaving the treatment facility and / or when entering the recovery or recycling facility . ### member states shall ensure that , for the purpose of calculating these targets , producers or third parties acting on their behalf keep records on the mass of weee , their components , materials or substances when entering and leaving the treatment facility and when entering and leaving the recovery or recycling facility .


### by 31 december 2012 at the latest the european parliament and the council shall re - examine the collection rate and target date referred to in paragraph 1 also in view of setting a possible separate collection target for cooling and freezing equipment , on the basis of a report of the commission accompanied by a proposal , if appropriate . ### by 31 december 2012 at the latest the european parliament and the council shall re - examine the collection rate and target date referred to in paragraph 1 also in view of setting a possible separate collection target in particular for equipment containing ozone depleting substances or global warming substances such as cooling and freezing appliances , as well as for small appliances , and equipment containing mercury such as fluorescent lamps , on the basis of a report of the commission accompanied by a proposal , if appropriate .


### a common methodology shall be established for the calculation of the total weight of electrical and electronic equipment placed on the national market . ### by 2014 a common methodology shall be established to determine the volume of weee generated in each member state .


### by 31 december 2012 at the latest the european parliament and the council shall re - examine the collection rate and target date referred to in paragraph 1 also in view of setting a possible separate collection target for cooling and freezing equipment , on the basis of a report of the commission accompanied by a proposal , if appropriate . ### by 31 december 2012 at the latest the european parliament and the council shall re - examine the collection target and target date referred to in paragraph 1 also in view of setting possible separate collection targets in particular for equipment containing ozone depleting substances or global warming substances such as cooling and freezing appliances , as well as for small appliances , and equipment containing mercury such as fluorescent lamps , on the basis of a report of the commission accompanied by a proposal , if appropriate .


### member states shall , in line with community product legislation including directive 2005 / 32 / ec on eco - design , encourage measures to promote the design and production of electrical and electronic equipment notably in view of facilitating re - use , dismantling and recovery of weee , its components and materials . these measures shall respect the proper functioning of the internal market . in this context , member states shall take appropriate measures so that producers do not prevent , through specific design features or manufacturing processes , weee from being re - used , unless such specific design features or manufacturing processes present overriding advantages , for example , with regard to the protection of the environment and / or safety requirements ### member states shall , in line with community product legislation including directive 2005 / 32 / ec on eco - design , encourage cooperation between producers and recyclers and measures to promote the design and production of electrical and electronic equipment notably in view of facilitating re - use , dismantling and recovery of weee , its components and materials . these measures shall respect the proper functioning of the internal market . in this context , member states shall take appropriate measures so that producers do not prevent , through specific design features or manufacturing processes , weee from being re - used , unless such specific design features or manufacturing processes present overriding advantages , for example , with regard to the protection of the environment and / or safety requirements