### the commission shall be empowered to adopt delegated acts in accordance with article 23 specifying the details of the presentation and the content of each of the elements of information referred to in paragraph 2 , the presentation and details of the other information the product manufacturer may include within the key information document as referred to in paragraph 3 , and the details of the common format and the common symbol referred to in paragraph 4 . the commission shall take into account the differences between investment products and the capabilities of retail investors as well as the features of investment products that allow the retail investor to select between different underlying investments or other options provided for by the product , including where this selection can be undertaken at different points in time , or changed in the future . ### the commission shall be empowered to adopt technical standards in accordance with article 23 specifying the details of the presentation and the content of each of the elements of information referred to in paragraph 2 , the presentation and details of the other objective information the product manufacturer may include within the key information document as referred to in paragraph 3 , and the details of the common format and the common symbol referred to in paragraph 4 . the performance scenarios referred to in paragraph 2 i ) shall take into account the impact of costs over time and shall take into account possible future performance . the indicator shall make it clear that the potential for greater rewards is linked to taking greater risks . the warning referred to in paragraph 2 point i ) shall be a visual warning based on a scale of risk , designed in a way that the investor understand that no investment product is risk free and that he must not act without understanding the investment product or without a personal advice regarding the planned investment . the summary indicator of the risk and reward and the warning on risks shall be designed to make the risks the investors are taking on clear and comparable between products . the comparison referred to in paragraph 2 point ii ) shall be designed to help the investor to understand how taking greater risk impacts the rewards of the investment product , and the risk - free benchmark , such as that of a savings account , shall be set in way that is comprehensible for retail investors and not misleading to them . the summary indicator of the costs referred to in paragraph 2 shall illustrate in monetary terms the impact of the costs on what the investor might get back from their investment over time . it shall include figures that can be used by retail investors to compare between products . the commission shall take into account disclosures to retail investors made by the person selling the investment product related to costs under [ mifid ] and [ imd ] , to ensure that there is consistency in information on costs in the key information document with these other disclosures , and that the information is comprehensive about costs and clearly shows to the retail investor the overall impact that costs may have . the commission shall take into account the differences between investment products and the capabilities of retail investors as well as the features of investment products that allow the retail investor to select between different underlying investments or other options provided for by the product , including where this selection can be undertaken at different points in time , or changed in the future . before adopting technical standards , the commission shall conduct due consumer testing in order to select the most appropriate measures for consumers .


### where investment product manufacturers subject to this regulation are also subject to directive 2009 / 138 / ec , this regulation and directive 2009 / 138 / ec shall both apply . ### where prip manufacturers subject to this regulation are also subject to information for policyholder requirements under directive 2009 / 138 / ec , these requirements , when equivalent , are met by the information disclosures under this regulation .


### the power to adopt delegated acts referred to in articles 8 , 10 and 12 shall be conferred on the commission for a period of [ 4 years ] from the entry into force of this regulation . the delegation of power shall be tacitly extended for periods of an identical duration , unless the european parliament or the council opposes such extension not later than three months before the end of each period . ### the power to adopt technical standards referred to in articles 8 , 10 and 12 shall be conferred on the commission for a period of [ 4 years ] from the entry into force of this regulation . the delegation of power shall be tacitly extended for periods of an identical duration , unless the european parliament or the council opposes such extension not later than three months before the end of each period .


### a person selling an investment product to retail investors shall provide them with the key information document in good time before the conclusion of a transaction relating to the investment product . ### a person recommending or selling an investment product to retail investors shall provide them with the key information document promptly and in good time before any commitment is entered into relating to the investment product .


### the investment product manufacturer may only include other information where it is necessary for the retail investor to take an informed investment decision about a specific investment product . ### the investment product manufacturer may only include other objective information where it is necessary for the retail investor to take an informed investment decision about a specific investment product .


### key information documents are the foundation for investment decisions by retail investors . for this reason , investment product manufacturers have an important responsibility towards retail investors in ensuring that they comply with the rules of this regulation . it is therefore important to ensure that retail investors who relied on a key investor document for their investment decision have an effective right of redress . it should also be ensured that all retail investors across the union have the same right to seek compensation for damages they may suffer due to failures on the part of investment product manufacturers in complying with the requirements set out in this regulation . therefore , rules regarding the liability of the investment product manufacturers should be harmonised . this regulation should establish that the retail investor should be able to hold the product manufacturer liable for an infringement of this regulation in case a loss is caused through the use of the key information document . ### key information documents are the foundation for investment decisions by retail investors . for this reason , investment product manufacturers have an important responsibility towards retail investors in ensuring that they comply with the rules of this regulation . it is therefore important to ensure that retail investors who relied on a key investor document for their investment decision have an effective right of redress . it should also be ensured that all retail investors across the union have the same right to seek compensation for damages they may suffer due to failures on the part of investment product manufacturers in complying with the requirements set out in this regulation , provided a causal link is established . therefore , rules regarding the liability of the investment product manufacturers should be harmonised .


### pension products for which a financial contribution from the employer is required by national law and where the employee has no choice as to the pension product provider . ### pension products for which the financial arrangements do not fall under the scope of the directive 2003 / 41 / ec or under the directive 2009 / 138 / ec ; and for which the level of retirement provision is in effect a promise or an offer by the employer to the employee . for pension products which do not fall under the directive 2003 / 41 / ec or the directive 2009 / 138 / ec or under this regulation , member states shall provide equivalent disclosure requirements .


### the commission shall be empowered to adopt delegated acts in accordance with article 23 specifying the details of the presentation and the content of each of the elements of information referred to in paragraph 2 , the presentation and details of the other information the product manufacturer may include within the key information document as referred to in paragraph 3 , and the details of the common format and the common symbol referred to in paragraph 4 . the commission shall take into account the differences between investment products and the capabilities of retail investors as well as the features of investment products that allow the retail investor to select between different underlying investments or other options provided for by the product , including where this selection can be undertaken at different points in time , or changed in the future . ### the commission shall be empowered to adopt delegated acts in accordance with article 23 specifying the details of the presentation and the content of each of the elements of information referred to in paragraph 2 , the presentation and details of the other objective information the product manufacturer may include within the key information document as referred to in paragraph 3 , and the details of the common format and the common symbol referred to in paragraph 4 . the commission shall take into account the differences between prips and the capabilities of retail investors as well as the features of prips that allow the retail investor to select between different underlying investments or other options provided for by the product , including where this selection can be undertaken at different points in time , or changed in the future .


### a delegated act adopted pursuant to articles 8 , 10 and 12 shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of 2 months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object . that period shall be extended by [ 2 months ] at the initiative of the european parliament or the council . ### a technical standard adopted pursuant to articles 8 , 10 and 12 shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of 2 months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object . that period shall be extended by [ 2 months ] at the initiative of the european parliament or the council .


### customers within the meaning of directive 2002 / 92 / ec ; ### customers who are not professional customers as defined in [ relevant articles of imd ] [ . . . ] of directive 2002 / 92 / ec ;


### the key information document should be drawn up in a format which allows retail investors to compare different investment products , since consumer behaviours and capabilities are such that the format , presentation and content of information must be carefully calibrated to maximise understanding and use of information . the same order of items and headings for these items should be followed for each document . in addition , the details of the information to be included in the key information document for different products and the presentation of this information should be further harmonised through delegated acts that take into account existing and on - going research on consumer behaviour , including results from testing the effectiveness of different ways of presenting information with consumers . in addition , some investment products give the retail investor a choice between multiple underlying investments . those products should be taken into account when drawing up the format . ### the key information document should be drawn up in a standardised format which allows retail investors to compare different packaged retail investment products , since consumer behaviours and capabilities are such that the format , presentation and content of information must be carefully calibrated to maximise understanding and use of information . the same order of items and headings for these items should be followed for each document . in addition , the details of the information to be included in the key information document for different products and the presentation of this information should be further harmonised through delegated acts that take into account existing and on - going research on consumer behaviour , including results from testing the effectiveness of different ways of presenting information with consumers . in addition , some packaged retail investment products give the retail investor a choice between multiple underlying investments . those products should be taken into account when drawing up the format .


### the commission shall be empowered to adopt delegated acts in accordance with article 23 specifying the details of the presentation and the content of each of the elements of information referred to in paragraph 2 , the presentation and details of the other information the product manufacturer may include within the key information document as referred to in paragraph 3 , and the details of the common format and the common symbol referred to in paragraph 4 . the commission shall take into account the differences between investment products and the capabilities of retail investors as well as the features of investment products that allow the retail investor to select between different underlying investments or other options provided for by the product , including where this selection can be undertaken at different points in time , or changed in the future . ### the european banking authority , the european insurance and occupational pensions authority and the european securities and markets authority shall develop draft regulatory standards in accordance with article 23 specifying the details of the presentation and the content of each of the elements of information referred to in paragraph 2 , the presentation and details of the other information the product manufacturer may include within the key information document as referred to in paragraph 3 , and the details of the common format and the common symbol referred to in paragraph 4 . the european supervisory authorities shall take into account the differences between prips and the capabilities of retail investors as well as the features of prips that allow the retail investor to select between different underlying investments or other options provided for by the product , including where this selection can be undertaken at different points in time , or changed in the future . the european supervisory authorities shall submit those draft regulatory technical standards to the commission by [ . . . ] . power is conferred on the commission to adopt the regulatory technical standards in accordance with the procedure set out in articles 10 to 14 of regulation no 1093 / 2010 , articles 10 to 14 of regulation 1094 / 2010 and articles 10 to 14 of regulation no 1095 / 2010 .


### the key information document should be drawn up in a format which allows retail investors to compare different investment products , since consumer behaviours and capabilities are such that the format , presentation and content of information must be carefully calibrated to maximise understanding and use of information . the same order of items and headings for these items should be followed for each document . in addition , the details of the information to be included in the key information document for different products and the presentation of this information should be further harmonised through delegated acts that take into account existing and on - going research on consumer behaviour , including results from testing the effectiveness of different ways of presenting information with consumers . in addition , some investment products give the retail investor a choice between multiple underlying investments . those products should be taken into account when drawing up the format . ### the key information document should be drawn up in a standardised format which allows retail investors to compare different prips , since consumer behaviours and capabilities are such that the format , presentation and content of information must be carefully calibrated to maximise financial education , understanding and use of information . the same order of items and headings for these items should be followed for each document . in addition , the details of the information to be included in the key information document for different prips and the presentation of this information should be further harmonised through delegated acts that take into account existing and on - going research on consumer behaviour , including results from testing the effectiveness of different ways of presenting information to consumers . in addition , some prips give the retail investor a choice between multiple underlying investments and may have varied costs and charges depending on personal characteristics of the customer , such as their age or investment amount . those products should be taken into account when drawing up the format .


### a warning , which is made public and which identifies the person responsible and the nature of the breach ; ### a warning , which is made public and which identifies the legal person responsible and the nature of the breach ;


### where successive transactions regarding the same investment product are carried out on behalf of a retail investor in accordance with instructions given by that investor to the person selling the investment product prior to the first transaction , the obligation to provide a key information document under paragraph 1 shall only apply to the first transaction . ### where successive transactions regarding the same prip are carried out on behalf of a retail investor in accordance with instructions given by that investor to the person selling the prip prior to the first transaction , the obligation to provide a key information document under paragraph 1 shall only apply to the first transaction .


### the key information document shall be accurate , fair , clear and not misleading ### the key information document shall constitute pre - contractual information . it shall be accurate , fair , clear and not misleading . the document shall make it possible to compare products before taking an investment decision .


### under a section titled ‘ what are the costs ? ’ , the costs associated with an investment in the investment product , comprising both direct and indirect costs to be borne by the investor , including summary indicators of these costs ; ### under a section titled ‘ what are the costs ? ’ , the costs associated with an investment in the prip , comprising both direct and indirect costs to be borne by the investor , including summary indicators of these costs and , for comparability reasons , total costs expressed in monetary and percentage terms , to show the effects of the total costs on the investment ;


### customers within the meaning of directive 2002 / 92 / ec ; ### customers who are not professional customers as defined in [ annex i of imd ] [ . . . ] ;


### a delegated act adopted pursuant to articles 8 , 10 and 12 shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of 2 months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object . that period shall be extended by [ 2 months ] at the initiative of the european parliament or the council . ### a delegated act adopted pursuant to articles 8 , 10 and 12 shall enter into force only if no objection has been expressed either by the european parliament or the council within a period of 3 months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object . that period shall be extended by [ 3 months ] at the initiative of the european parliament or the council .


### four years after the date of entry into force of this regulation , the commission shall review this regulation . the review shall include a general survey of the practical application of the rules laid down in this regulation , taking due account of developments in the market for retail investment products . as regards ucits as defined in article 1 of directive 2009 / 65 / ec , the review shall assess whether the transitional arrangements under article 24 of this regulation shall be prolonged , or whether , following the identification of any necessary adjustments , the provisions on key investor information in directive 2009 / 65 / ec might be replaced by or considered equivalent to the key investor document under this regulation . the review shall also reflect on a possible extension of the scope of this regulation to other financial products . ### four years after the date of entry into force of this regulation , the commission shall review this regulation . the review shall include a general survey of the practical application of the rules laid down in this regulation , taking due account of developments in the market for retail investment products . as regards ucits as defined in article 1 of directive 2009 / 65 / ec , the review shall assess whether the transitional arrangements under article 24 of this regulation shall be prolonged , or whether , following the identification of any necessary adjustments , the provisions on key investor information in directive 2009 / 65 / ec might be replaced by or considered equivalent to the key investor document under this regulation . furthermore , the commission shall assess the necessary changes to directive 2003 / 71 / ec in order to merge the summary providing key information as referred to in article 5 of directive 2003 / 71 / ec with the key information document of this regulation , with a view to replacing the summary of the prospectus by the key information document . ultimately the review shall also reflect on a possible extension of the scope of this regulation to other financial products .


### four years after the date of entry into force of this regulation , the commission shall review this regulation . the review shall include a general survey of the practical application of the rules laid down in this regulation , taking due account of developments in the market for retail investment products . as regards ucits as defined in article 1 of directive 2009 / 65 / ec , the review shall assess whether the transitional arrangements under article 24 of this regulation shall be prolonged , or whether , following the identification of any necessary adjustments , the provisions on key investor information in directive 2009 / 65 / ec might be replaced by or considered equivalent to the key investor document under this regulation . the review shall also reflect on a possible extension of the scope of this regulation to other financial products . ### after the entry into force of this regulation , the commission shall review the union legislation in the area of financial services with a view to assessing the merits of : introducing standardised key information documents in accordance with the rules introduced by this regulation in relation to classes of financial instruments not covered by this regulation , in particular in relation to the products covered by directive 2003 / 71 / ec and directive 2009 / 138 / ec ; introducing harmonised market conduct requirements relating to the selling of financial products ; and granting the european supervisory authorities and the national competent authorities powers to intervene in relation to specific categories of financial products , including through product prohibitions introduced in the interests of investor protection and financial stability , taking account of the powers introduced in this respect by regulation no xx / xx of the european parliament and of the council of [ date ] on markets in financial instruments and amending regulation [ emir ] on otc derivatives , central counterparties and trade repositories .


### a financial contribution to the eib to the provisioning and capital allocation for loans or guarantees to be issued by the eib on its own resources under the risk - sharing instrument for project bonds in the field of ten - t and ten - e . the union exposure to the risk sharing instrument , including management fees and other eligible costs , shall be strictly limited to the amount of the union contribution to the risk - sharing instrument for project bonds and there shall be no further liability on the general budget of the union . the residual risk inherent in all operations shall be borne by the eib . the detailed terms and conditions for implementing the risk - sharing instrument for project bonds , including its monitoring and control , shall be laid down in a delegation agreement between the commission and the eib . in 2012 and 2013 , an amount of up to eur 210 million , of which up to eur 200 million for transport projects and up to eur 10 million for energy projects , may be redeployed for the risk - sharing instrument for project bonds in accordance with the procedure referred to in article 15 from the ten - t and ten - e budget lines , respectively . the risk - sharing instrument for project bonds may reuse any revenues received within the investment period for new loans and guarantees . ### a financial contribution to the eib to the provisioning and capital allocation for loans or guarantees to be issued by the eib on its own resources under the risk - sharing instrument for project bonds in the field of ten - t and ten - e . the union exposure to the risk sharing instrument , including management fees and other eligible costs , shall be strictly limited to the amount of the union contribution to the risk - sharing instrument for project bonds and there shall be no further liability on the general budget of the union . the residual risk inherent in all operations shall be borne by the eib . the detailed terms and conditions for implementing the risk - sharing instrument for project bonds , including its monitoring and control , shall be laid down in a delegation agreement between the commission and the eib , which shall be submitted to the european parliament and the council . in 2012 and 2013 , an amount of up to eur 210 million , of which up to eur 200 million for transport projects and up to eur 10 million for energy projects , may be redeployed for the risk - sharing instrument for project bonds in accordance with the procedure referred to in article 15 from the ten - t and ten - e budget lines , respectively . the risk - sharing instrument for project bonds may reuse any revenues received within the investment period for new loans and guarantees .


### supporting a multimodal single european transport area by investing in the trans - european transport network network ; ### supporting a multimodal and interoperable single european transport area by investing in the trans - european transport network network ;


### developing comprehensive , high quality and interoperable railway system ; ### promoting optimum traffic development through the introduction of intelligent transport systems ;


### enhancing regional mobility through connecting secondary and tertiary nodes to ten - t infrastructure ; ### enhancing regional mobility through the interconnection of secondary and tertiary nodes and networks with ten - t infrastructure ;


### in order to identify or test new solutions to issues relating to sustainable urban development which are of relevance at union level , the erdf should support innovative actions in the field of sustainable urban development . ### in order to identify or test new solutions to issues relating to sustainable urban development which are of relevance at union level , the erdf should support innovative actions in the field of sustainable urban development , placing the emphasis , in particular , on environmentally sound transport , intermodality and sustainable mobility between towns and cities and peri - urban and rural areas .


### at least 50% of the total erdf resources at national level shall be allocated to the thematic objectives set in out in point 1 , 3 and 4 of article 9 of regulation no [ &#8230 ; ] / 2012 [ cpr ] . ### at least 50% of the total erdf resources at national level shall be allocated to the thematic objectives set out in points 1 , 3 , 4 and 7 of article 9 of regulation no [ &#8230 ; ] / 2012 [ cpr ] .


### at least 50% of the total erdf resources at national level shall be allocated to the thematic objectives set in out in point 1 , 3 and 4 of article 9 of regulation no [ &#8230 ; ] / 2012 [ cpr ] . ### at least 50% of the total erdf resources at national level shall be allocated to the thematic objectives set out in points 1 , 3 , 4 and 7 of article 9 of regulation no [ &#8230 ; ] / 2012 [ cpr ] ;


### unless it concerns the renewal of an audit engagement in accordance with the second subparagraph of article 33 , the recommendation of the audit committee referred to in paragraph 2 of this article , shall be prepared following a selection procedure organized by the audited entity respecting the following criteria : ### the recommendation of the audit committee referred to in paragraph 2 of this article , shall be prepared following a tender procedure organized by the audited entity respecting the following criteria :


### the additional report shall be disclosed to the general meeting of the audited entity if the management or administrative body of the audited entity so decides . ### the additional report shall be disclosed to the general meeting of the audited entity if the supervisory or administrative body of the audited entity so decides .


### the statutory auditor or audit firm shall establish an appropriate gradual rotation mechanism with regard to the most senior personnel involved in the statutory audit , including at least the persons who are registered as statutory auditors . the gradual rotation mechanism shall be undertaken in phases on the basis of individuals rather than of a complete team . it shall be proportionate in view of the scale and the dimension of the activity of the statutory auditor or audit firm . ### the statutory auditor or audit firm shall establish an appropriate gradual rotation mechanism with regard to the most senior personnel involved in the statutory audit , including at least the persons who are registered as statutory auditors . the gradual rotation mechanism shall be undertaken in phases on the basis of individuals rather than of the entire audit engagement team . it shall be proportionate in view of the scale and the dimension of the activity of the statutory auditor or audit firm .


### in order to address the familiarity threat and therefore reinforce the independence of auditors and audit firms , it is important to establish a maximum duration of the audit engagement of a statutory auditor or audit firm in a particular audited entity . an appropriate gradual rotation mechanism should also be established with regard to the most senior personnel involved in the statutory audit , including the key audit partners carrying out the statutory audit on behalf of the audit firm . it is also important to provide for an appropriate period within which such statutory auditor or audit firm may not carry out the statutory audit of the same entity . in order to ensure a smooth transition , the former auditor should transfer a handover file with relevant information to the incoming auditor . ### in order to address the familiarity threat and therefore reinforce the independence of auditors and audit firms , it is important to establish a maximum duration of the audit engagement of a statutory auditor or audit firm in a particular audited entity . furthermore , a comprehensive , transparent and independent evaluation of audit quality should be regularly and appropriately documented . this comprehensive assessment should form the basis for the annual auditor selection by the general assembly , which follows a tender procedure . furthermore , an appropriate gradual rotation mechanism should be established with regard to the most senior personnel involved in the statutory audit , including the key audit partners carrying out the statutory audit on behalf of the audit firm . in order to ensure a smooth transition in case of a new auditor or audit firm , the former auditor should transfer a handover file with relevant information to the incoming auditor .


### in order to address the familiarity threat and therefore reinforce the independence of auditors and audit firms , it is important to establish a maximum duration of the audit engagement of a statutory auditor or audit firm in a particular audited entity . an appropriate gradual rotation mechanism should also be established with regard to the most senior personnel involved in the statutory audit , including the key audit partners carrying out the statutory audit on behalf of the audit firm . it is also important to provide for an appropriate period within which such statutory auditor or audit firm may not carry out the statutory audit of the same entity . in order to ensure a smooth transition , the former auditor should transfer a handover file with relevant information to the incoming auditor . ### in order to address the familiarity threat and therefore reinforce the independence of auditors and audit firms , it is important to establish a maximum duration of the audit engagement of a statutory auditor or audit firm in a particular audited entity . furthermore , a comprehensive , transparent and independent evaluation of audit quality should be regularly and appropriately documented . this comprehensive evaluation should form the basis for the auditor selection by the general meeting , which follows a tender procedure at least every 7 years . furthermore , an appropriate gradual rotation mechanism should be established with regard to the most senior personnel involved in the statutory audit , including the key audit partners carrying out the statutory audit on behalf of the audit firm .


### where the statutory auditor belongs to a network , a member of such network may provide to the audited entity , to its parent undertaking and to its controlled undertakings within the union statutory audit services or related financial audit services . ### where the statutory auditor belongs to a network , a member of such network may provide to the audited entity , to its parent undertaking and to its controlled undertakings statutory audit services , audit - related and other assurance services subject to prior approval of the audit committee and as long as these do not pose a threat to independence that cannot be reduced to an acceptable level by the application of safeguards .


### it is also important that the role of the audit committee in the selection of a new statutory auditor or audit firm be reinforced , for the benefit of a more informed decision of the general meeting of shareholders or members of the audited entity . hence , when making a proposal to the general meeting , the board should explain whether it follows the recommendation of the audit committee and , if not , why . the recommendation of the audit committee should include at least two possible choices for the audit engagement and a duly justified preference for one of them , so that the general meeting can make a real choice . in order to provide a fair and proper justification in its recommendation , the audit committee should use the results of a mandatory selection procedure organised by the audited entity , under the responsibility of the audit committee . in such selection procedure , the audited entity should invite statutory auditors or audit firms , including smaller ones , to present proposals for the audit engagement . tender documents should contain transparent and non - discriminatory selection criteria to be used for the evaluation of proposals . considering , however , that this selection procedure could entail disproportionate costs for companies with reduced market capitalisation or small and medium - sized public - interest entities having regard to their dimension , it is appropriate to relieve such entities from this obligation . ### it is also important that the role of the audit committee in the selection of a new statutory auditor or audit firm be reinforced , for the benefit of a more informed decision of the general meeting of shareholders or members of the audited entity . hence , when making a proposal to the general meeting , the board should explain whether it follows the recommendation of the audit committee and , if not , why . the recommendation of the audit committee should include at least two possible choices for the audit engagement , a comprehensive assessment of both proposals , and a duly justified preference for one of them , so that the general meeting can make a real choice . in order to provide a fair and proper justification in its recommendation , the audit committee should use the results of a mandatory tender procedure organised by the audited entity , under the responsibility of the audit committee . in such tender procedure , the audited entity should publish a call to auditors or audit firms to present proposals for the audit engagement . tender documents should contain transparent and non - discriminatory selection criteria to be used for the evaluation of proposals . considering , however , that this tender procedure could entail disproportionate costs for companies with reduced market capitalisation or small and medium - sized public - interest entities having regard to their dimension , it is appropriate to relieve such entities from this obligation .


### being involved in the decision - taking of the audited entity and the provision of the services referred to in points and of paragraph 3 shall be considered as affecting such independence in all cases . ### being involved in the decision - taking of the audited entity and the provision of non - audit services shall be considered as affecting such independence in all cases .


### if the proposal of the administrative or supervisory board departs from the recommendation of the audit committee , the proposal shall justify the reasons for not following the recommendation of the audit committee . ### if the proposal of the administrative or supervisory board departs from the recommendation of the audit committee , the proposal shall justify the reasons for not following the recommendation of the audit committee . it shall equally justify the reasons if , following a tender procedure referred to in paragraph 3 , the renewal of an audit engagement is proposed .


### the audited entity shall be free to invite any statutory auditors or audit firms to submit proposals for the provision of the statutory audit service on the condition that article 33 is respected and that at least one of the invited auditors or firms is not one who received more than 15% of the total audit fees from large public - interest entities in the member state concerned in the previous calendar year ; ### any statutory auditor or audit firm is free to submit proposals for the provision of the statutory audit service on the condition that article 33 is respected ;


### in the case of a credit institution or insurance undertaking , the administrative or supervisory board shall submit its draft proposal to the competent authority referred to in article 35 . the competent authority referred to in article 35 shall have the right to veto the choice proposed in the recommendation . any such opposition shall be duly justified . ### the administrative or supervisory board shall submit its draft proposal to the competent authority referred to in article 35 . the draft proposal to the competent authority referred to in article 35 shall be accompanied by the results of the comprehensive assessment referred to in article 32 and and have the right to veto the choice proposed in the recommendation . any such opposition shall be duly justified .


### the proposal of the administrative or supervisory board to the general meeting of shareholders or members of the audited entity for the appointment of statutory auditors or audit firms shall include the recommendation made by the audit committee . ### the proposal of the administrative or supervisory board to the general meeting of shareholders or members of the audited entity for the appointment of statutory auditors or audit firms shall include the recommendation made by the audit committee . the proposal to the general meeting shall be accompanied by the results of the comprehensive assessment referred to in article 32 and .


### the public - interest entity shall appoint a statutory auditor or audit firm for an initial engagement that shall not be shorter than two years . ### the public - interest entity shall appoint a statutory auditor or audit firm for an initial engagement that shall not be shorter than three years .


### the former statutory auditor or audit firm shall also grant access to the incoming statutory auditor or audit firm to the additional reports to the audit committee referred to in article 23 of previous years and to any information transmitted to competent authorities pursuant to articles 25 and 27 . ### the former statutory auditor or audit firm shall also grant access to the incoming statutory auditors or audit firms to the additional reports to the audit committee referred to in article 23 for the previous three years and to any information transmitted to competent authorities pursuant to articles 25 and 27 .


### the public - interest entity shall appoint a statutory auditor or audit firm for an initial engagement that shall not be shorter than two years . ### the public - interest entity shall appoint a statutory auditor or audit firm for an engagement period that shall not be shorter than one year .


### national regulatory authorities shall closely monitor and ensure the effective ability of end - users to benefit from the freedoms provided for in article 23 and , compliance with article 23 , and the continued availability of non - discriminatory internet access services at levels of quality that reflect advances in technology and that are not impaired by specialised services . they shall , in cooperation with other competent national authorities , also monitor the effects of specialised services on cultural diversity and innovation . national regulatory authorities shall report on an annual basis to the commission and berec on their monitoring and findings . ### national regulatory authorities shall closely monitor and ensure the effective ability of end - users to benefit from the freedoms provided for in article 23 and , compliance with article 23 , and the continued availability of non - discriminatory internet access services in accordance with the principle of net neutrality and at levels of quality that reflect advances in technology and that are not impaired by specialised services . they shall , in cooperation with other competent national authorities , also monitor the effects of specialised services on cultural diversity and innovation . national regulatory authorities shall report on an annual basis to the commission and berec on their monitoring and findings .


### end - users shall also be free to agree with either providers of electronic communications to the public or with providers of content , applications and services on the provision of specialised services with an enhanced quality of service . ### providers of electronic communications to the public and providers of content , applications and services shall be free to provide to end - user specialised services with an enhanced quality of service , the provision of which shall not impair in a recurring or continuous manner the general quality of internet access services . national regulatory authorities shall ensure that end - users are free to access these specialised services .


### end - users shall also be free to agree with either providers of electronic communications to the public or with providers of content , applications and services on the provision of specialised services with an enhanced quality of service . ### providers of electronic communications to the public or providers of content , applications and services may provide specialised services to a limited user group , access to which is controlled , through a closed electronic communications network . specialised services may not be marketed or used as an internet substitute or provide content , applications or services functionally identical to those of the open internet . where such agreements are concluded with the provider of internet access services , that provider shall ensure , in accordance with the principle of net neutrality , that the performance , affordability or quality of open internet access services is not restricted .


### ‘ specialised service’ means an electronic communications service or any other service that provides the capability to access specific content , applications or services , or a combination thereof , and whose technical characteristics are controlled from end - to - end or provides the capability to send or receive data to or from a determined number of parties or endpoints ; and that is not marketed or widely used as a substitute for internet access service ; ### ' specialised service ' means an electronic communications service or any other service using the internet protocol that provides to a determined number of parties optimised access to specific content , applications or services , or a combination thereof , and the technical characteristics of which are controlled using traffic management in order to ensure adequate service characteristics ; and that is not marketed or widely used as a substitute for internet access service ;


### within the limits of any contractually agreed data volumes or speeds for internet access services , providers of internet access services shall not restrict the freedoms provided for in paragraph 1 by blocking , slowing down , degrading or discriminating against specific content , applications or services , or specific classes thereof , except in cases where it is necessary to apply reasonable traffic management measures . reasonable traffic management measures shall be transparent , non - discriminatory , proportionate and necessary to : implement a legislative provision or a court order , or prevent or impede serious crimes ; b ) preserve the integrity and security of the network , services provided via this network , and the end - users ' terminals ; c ) prevent the transmission of unsolicited communications to end - users who have given their prior consent to such restrictive measures ; d ) minimise the effects of temporary or exceptional network congestion provided that equivalent types of traffic are treated equally . reasonable traffic management shall only entail processing of data that is necessary and proportionate to achieve the purposes set out in this paragraph . ### providers of internet access services shall not restrict the freedoms provided for in paragraph 1 by discriminating against , restricting , or otherwise interfering with the transmission of specific content , applications or services , or specific classes thereof , except in cases where it is necessary to apply reasonable traffic management measures to prevent or minimise the effects of network congestion , provided that equivalent types of traffic are treated equally , or to implement a court order . such measures shall be set by transparent procedures and they shall not be maintained longer than what is strictly necessary and provide adequate safeguards , in particular to ensure that any restrictions are limited to what is necessary , they are non - discriminatory and proportionate . those safeguards shall include the possibility of judicial redress . reasonable traffic management shall only entail processing of data that is necessary and proportionate to achieve the purposes set out in this article .


### in addition , there is demand on the part of content , applications and services providers , for the provision of transmission services based on flexible quality parameters , including lower levels of priority for traffic which is not time - sensitive . the possibility for content , applications and service providers to negotiate such flexible quality of service levels with providers of electronic communications to the public is necessary for the provision of specialised services and is expected to play an important role in the development of new services such as machine - to - machine communications . at the same time such arrangements should allow providers of electronic communications to the public to better balance traffic and prevent network congestion . providers of content , applications and services and providers of electronic communications to the public should therefore be free to conclude specialised services agreements on defined levels of quality of service as long as such agreements do not substantially impair the general quality of internet access services . ### in addition , there is demand on the part of content , applications and services providers , for the provision of transmission services based on flexible quality parameters , including lower levels of priority for traffic which is not time - sensitive . there is nothing in current union law preventing agreements for the provision of such transmission services . the possibility for content , applications and service providers to negotiate such flexible quality of service levels with providers of electronic communications to the public may be necessary for the provision of certain services such as machine - to - machine communications . at the same time such arrangements should allow providers of electronic communications to the public to better balance traffic and prevent network congestion . providers of content , applications and services and providers of electronic communications to the public should therefore continue to be free to conclude specialised services agreements on defined levels of quality of service as long as such agreements do not impair the general quality of internet access services .


### within the limits of any contractually agreed data volumes or speeds for internet access services , providers of internet access services shall not restrict the freedoms provided for in paragraph 1 by blocking , slowing down , degrading or discriminating against specific content , applications or services , or specific classes thereof , except in cases where it is necessary to apply reasonable traffic management measures . reasonable traffic management measures shall be transparent , non - discriminatory , proportionate and necessary to : ### providers of internet access services shall treat all internet traffic in accordance with the principle of net neutrality , except in cases where it is necessary to apply reasonable traffic management measures . reasonable traffic management measures shall be transparent , non - discriminatory , proportionate , subject to clear , comprehensible and accessible redress mechanisms and necessary to :


### implement a legislative provision or a court order , or prevent or impede serious crimes ; ### implement a legislative provision or a court order ;


### end - users shall be free to access and distribute information and content , run applications and use services of their choice via their internet access service . ### end - users have the right to access and distribute information and content , run applications connect hardware and use services , software and devices of their choice via their internet access service , in accordance with the principle of net neutrality .


### ‘ specialised service’ means an electronic communications service or any other service that provides the capability to access specific content , applications or services , or a combination thereof , and whose technical characteristics are controlled from end - to - end or provides the capability to send or receive data to or from a determined number of parties or endpoints ; and that is not marketed or widely used as a substitute for internet access service ; ### ' specialised service ' means an electronic communications service , operated within closed electronic communications networks using the internet protocol with strict admission control ; and that is not marketed or used as a substitute for internet access service or functionally identical to services available over the public internet access service ;


### the internet has developed over the past decades as an open platform for innovation with low access barriers for end - users , content and application providers and internet service providers . the existing regulatory framework aims at promoting the ability of end - users to access and distribute information or run applications and services of their choice . recently , however , the report of the body of european regulators for electronic communications on traffic management practices published in may 2012 and a study , commissioned by the executive agency for consumers and health and published in december 2012 , on the functioning of the market of internet access and provision from a consumer perspective , showed that a significant number of end - users are affected by traffic management practices which block or slow down specific applications . these tendencies require clear rules at the union level to maintain the open internet and to avoid fragmentation of the single market resulting from individual member states ' measures . ### the internet has developed over the past decades as an open platform for innovation with low access barriers for end - users , content and application providers and internet service providers . the key driver of the unprecedented innovation and economic activity in the digital age has been the fact that all internet traffic is treated equally , without discrimination , restriction or interference , independent of its sender , receiver , type , content , device , service or application ; conform the principle of net neutrality . the existing regulatory framework aims at promoting the ability of end - users to access and distribute information or run applications and services of their choice . this ability is best ensured when all types of traffic are treated equally by providers of electronic communications to the public . recently , however , the report of the body of european regulators for electronic communications on traffic management practices published in may 2012 and a study , commissioned by the executive agency for consumers and health and published in december 2012 , on the functioning of the market of internet access and provision from a consumer perspective , showed that a significant number of end - users are affected by traffic management practices which block or slow down specific applications . these tendencies require clear rules to enshrine the principle of net neutrality in law at the union level to maintain the open internet and to avoid fragmentation of the single market resulting from individual member states ' measures . indeed , as stated by the european parliament resolution of 17 november 2011 on the open internet and net neutrality in europe 2011 / 2866 , the internet ' s open character ' has been a key driver of competitiveness , economic growth , social development and innovation – which has led to spectacular levels of development in online applications , content and services – and thus of growth in the offer of , and demand for , content and services , and has made it a vitally important accelerator in the free circulation of knowledge , ideas and information , including in countries where access to independent media is limited '


### within the limits of any contractually agreed data volumes or speeds for internet access services , providers of internet access services shall not restrict the freedoms provided for in paragraph 1 by blocking , slowing down , degrading or discriminating against specific content , applications or services , or specific classes thereof , except in cases where it is necessary to apply reasonable traffic management measures . reasonable traffic management measures shall be transparent , non - discriminatory , proportionate and necessary to : implement a legislative provision or a court order , or prevent or impede serious crimes ; b ) preserve the integrity and security of the network , services provided via this network , and the end - users ' terminals ; c ) prevent the transmission of unsolicited communications to end - users who have given their prior consent to such restrictive measures ; d ) minimise the effects of temporary or exceptional network congestion provided that equivalent types of traffic are treated equally . reasonable traffic management shall only entail processing of data that is necessary and proportionate to achieve the purposes set out in this paragraph . ### providers of internet access services shall specifically not restrict the provisions of paragraph 1 by : - deleting , blocking , slowing down , degrading or discriminating against specific content , applications , services or terminal devices , or specific classes thereof , - prioritising specific content , applications , services or terminal devices , or specific classes thereof , or - concluding special pricing agreements with the end - user which make accessing particular content , applications , services or terminal devices or specific classes thereof seem less economically attractive , except in cases where it is necessary to apply justified and reasonable data traffic management measures . data traffic management measures shall be regarded as justified and reasonable where they : - preserve the integrity and security of the network , services provided via this network , and the end - users ' terminals , or - minimise the effects of proven temporary and exceptional network congestion and manage traffic in the event of such acute network congestion , provided that all content , applications and services are treated in accordance with the best effort principle . they must not be maintained any longer than is strictly necessary . data traffic management measures shall be transparent , non - discriminatory , proportionate , necessary , and subject to clear , comprehensible and accessible redress mechanisms .


### end - users shall be free to access and distribute information and content , run applications and use services of their choice via their internet access service . end - users shall be free to enter into agreements on data volumes and speeds with providers of internet access services and , in accordance with any such agreements relative to data volumes , to avail of any offers by providers of internet content , applications and services . ### end - users shall be free to access and distribute information and content , run applications , and use devices , services and software of their choice , irrespective of their origin or destination , via their internet access service . internet access service providers shall not restrict or prevent the use by end - users of any terminal equipment to access and distribute information and content via their internet access service . this is in accordance with directive of the european parliament and of the council 2014 / . . . / eu1a*and without prejudice to the rights of member states to grant individual rights of use under article 5 of directive 2002 / 20 / ec . _________________ 1a directive 2014 / . . . / eu of the european parliament and of the council of . . . on the harmonisation of the laws of the member states relating to the making available on the market of radio equipment and repealing directive 1999 / 5 / ec . * oj : please insert number of the directive and the number , date of adoption and publication reference of the directive in footnote 33a .


### ‘ internet access service’ means a publicly available electronic communications service that provides connectivity to the internet , and thereby connectivity between virtually all end points connected to the internet , irrespective of the network technology used ; ### ‘ internet access service ' means a publicly available electronic communications service that provides connectivity to the internet , and between virtually all end points connected to the internet , irrespective of the network technologies or terminal equipment used ;


### ‘ specialised service’ means an electronic communications service or any other service that provides the capability to access specific content , applications or services , or a combination thereof , and whose technical characteristics are controlled from end - to - end or provides the capability to send or receive data to or from a determined number of parties or endpoints ; and that is not marketed or widely used as a substitute for internet access service ; ### ' specialised service ' means an electronic communications service or any other service that provides the capability to access specific content , applications or services , or a combination thereof at a guaranteed capacity , and whose technical characteristics are controlled from end - to - end or provides the capability to send or receive data to or from a determined number of parties or endpoints ; and that is not marketed or widely used as a substitute for internet access service ;


### ‘ internet access service’ means a publicly available electronic communications service that provides connectivity to the internet , and thereby connectivity between virtually all end points connected to the internet , irrespective of the network technology used ; ### ' internet access service ' means a publicly available electronic communications service that provides connectivity to the internet , and thereby connectivity between virtually all end points connected to the internet , irrespective of the network technology used ; the member states shall impose reasonable minimum requirements in respect of internet access service quality , which must be constantly adapted to technological progress ; an internet access service enables end - users to use any internet - based application in accordance with the best effort principle ; the only permissible derogation from this principle is proportional and justified traffic management where the conditions for its use are clearly defined ;


### in addition , there is demand on the part of content , applications and services providers , for the provision of transmission services based on flexible quality parameters , including lower levels of priority for traffic which is not time - sensitive . the possibility for content , applications and service providers to negotiate such flexible quality of service levels with providers of electronic communications to the public is necessary for the provision of specialised services and is expected to play an important role in the development of new services such as machine - to - machine communications . at the same time such arrangements should allow providers of electronic communications to the public to better balance traffic and prevent network congestion . providers of content , applications and services and providers of electronic communications to the public should therefore be free to conclude specialised services agreements on defined levels of quality of service as long as such agreements do not substantially impair the general quality of internet access services . ### in addition , there is demand on the part of content , applications and services providers , for the provision of transmission services based on flexible quality parameters , including lower levels of priority for traffic which is not time - sensitive . the possibility for content , applications and service providers to negotiate such flexible quality of service levels with providers of electronic communications to the public could foster the development of new services such as machine - to - machine communications . at the same time such arrangements should allow providers of electronic communications to the public to better balance traffic and prevent network congestion . providers of content , applications and services and providers of electronic communications to the public should therefore be free to conclude specialised services agreements on defined levels of quality of service as long as such defined levels of quality are technically necessary for the functionality of the service and these agreements do not impair the quality of internet access services , in accordance with the principle of net neutrality .


### the freedom of end - users to access and distribute information and lawful content , run applications and use services of their choice is subject to the respect of union and compatible national law . this regulation defines the limits for any restrictions to this freedom by providers of electronic communications to the public but is without prejudice to other union legislation , including copyright rules and directive 2000 / 31 / ec . ### the right of end - users to access and distribute information and content , run applications and use services of their choice is subject to the respect of union and compatible national law .


### in an open internet , providers of electronic communications to the public should , within contractually agreed limits on data volumes and speeds for internet access services , not block , slow down , degrade or discriminate against specific content , applications or services or specific classes thereof except for a limited number of reasonable traffic management measures . such measures should be transparent , proportionate and non - discriminatory . reasonable traffic management encompasses prevention or impediment of serious crimes , including voluntary actions of providers to prevent access to and distribution of child pornography . minimising the effects of network congestion should be considered reasonable provided that network congestion occurs only temporarily or in exceptional circumstances . ### in an open internet , providers of electronic communications to the public should not block , slow down , degrade or discriminate against specific content , applications or services or specific classes thereof except for a limited number of clearly defined reasonable traffic management measures . such measures should be transparent , proportionate and non - discriminatory . reasonable traffic management could encompass voluntary actions of providers to prevent access to and distribution of child pornography , subject to judicial review . . minimising the effects of network congestion could be considered reasonable provided that network congestion occurs only temporarily or in exceptional circumstances .


### while it is in the first place for roaming providers to assess themselves the reasonable character of the volumes of roaming voice calls , sms and data to be covered at domestic rates under their various retail packages , national regulatory authorities should supervise the application by roaming providers of such reasonable use limits and ensure that they are specifically defined by reference to detailed quantified information in the contracts in terms which are clear and transparent to customers . in so doing , national regulatory authorities should take utmost account of relevant guidance from berec . in its guidance , berec should identify various usage patterns substantiated by the underlying voice , data and sms usage trends at the union level , and the evolution of expectations as regards in particular wireless data consumption . ### while it is in the first place for roaming providers to assess themselves the reasonable character of the volumes of roaming voice calls , sms and data to be covered at domestic rates under their various retail packages , national regulatory authorities should supervise the application by roaming providers of such reasonable use limits and ensure that they are specifically defined by reference to detailed quantified information in the contracts in terms which are clear and transparent to customers . in so doing , national regulatory authorities should take utmost account of relevant guidance from berec . in its guidance , berec should , following consultation of all relevant stakeholders , identify various usage patterns substantiated by the underlying voice , data and sms usage trends at the union level , and the evolution of expectations as regards in particular wireless data consumption .


### ' article 5a super - credits for 95 g co2 / km target in calculating the average specific emissions of co2 , each new passenger car with specific emissions of co2 of less than 35 g co2 / km shall be counted as 1 . 3 passenger cars in the period from 2020 to 2023 and as 1 passenger car from 2024 onwards . 2 . the maximum number of new passenger cars to be taken into account in the application of the multipliers set out in paragraph 1 for the period 2020 to 2023 shall not exceed a cumulative total of 20 000 new registrations of passenger cars per manufacturer . ' ### ' article 5a ultra - low carbon vehicles from 2020 onwards : the average specific emissions target of co2 of each manufacturer who is responsible for the registration in the union market of more than 5% of new passenger cars with specific emissions of less than 50 g co2 / km shall be increased by 2 g co2 / km ; the average specific emissions target of co2 of each manufacturer who is responsible for the registration in the union market of less than 4% of new passenger cars with specific emissions of co2 of less than 50 g co2 / km shall be reduced by 1 g co2 / km ; the average specific emissions target of co2 of manufacturers who are responsible for the registration in the union market of 4% to 5% of new passenger cars with specific emissions of co2 of less than 50 g co2 / km shall not be affected . 2 . from 2020 and each subsequent calendar year , the commission shall , on the basis of the information provided by member states in accordance with article 8 , calculate to what extent the credits and debits obtained under the provisions of this article affect the level of the target set out in article 1 . '


### article 4 , article 8 and , article 9 and article 10 and shall not apply to a manufacturer which is responsible together with all of its connected undertakings for less than 500 new passenger cars registered in the eu in the previous calendar year . ’ ### article 4 , article 8 and , article 9 and article 10 and shall not apply to a manufacturer which is responsible together with all of its connected undertakings for less than 1000 new passenger cars registered in the eu in the previous calendar year . ’


### in recognition of the disproportionate impacts on the smallest manufacturers resulting from compliance with specific emissions targets defined on the basis of the utility of the vehicle , high administrative burden of the derogation procedure and only marginal benefit in terms of avoided co2 from the vehicles sold by these manufacturers , producers responsible annually for less than 500 new passenger cars are excluded from the scope of the specific emissions target and the excess emissions premium . ### in recognition of the disproportionate impacts on the smallest manufacturers resulting from compliance with specific emissions targets defined on the basis of the utility of the vehicle , high administrative burden of the derogation procedure and only marginal benefit in terms of avoided co2 from the vehicles sold by these manufacturers , producers responsible annually for less than 1000 new passenger cars are excluded from the scope of the specific emissions target and the excess emissions premium .


### by 31 december 2014 , the commission shall review the specific emissions targets , modalities and other aspects of this regulation in order to establish the co2 emission targets for new passenger cars for the period beyond 2020 . ### from 1 january 2018 at the earliest , the commission shall review the specific emissions targets , modalities and other aspects of this regulation in order to establish the co2 emission targets for new passenger cars for the period beyond 2020 based on the new world light duty test cycle / procedure or if not available , based on a fully defined and operational test procedure in place at that time .


### articles 18 , 18 , 22 , 23 , 24 , 25 , 26 , 27 , 32 and 36 shall also apply to entities owned , in whole or in part , by a collecting society and which offer or grant multi - territorial licences for online rights in musical works . ### articles 18 , 19 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 32 and 36 shall also apply to entities owned , in whole or in part , by a collecting society and which offer or grant multi - territorial licences for online rights in musical works .


### the collecting society shall regularly , diligently and accurately distribute and pay amounts due to other collecting societies . ### the collecting society shall regularly , without delay after the collection of rights revenue , diligently and accurately distribute and pay amounts due to other collecting societies .


### a general meeting of the members of the collecting society shall be convened at least once a year . ### a general meeting of the members of the collecting society shall be convened at least once a year . the general meeting shall be empowered to take the strategic decisions in the collecting society . the power to take any other decisions may be delegated by the general meeting to the body exercising the supervisory function .


### tariffs for exclusive rights shall reflect the economic value of the rights in trade and of the service provided by the collecting society . ### in the absence of any national law or administrative provision laying down tariffs on a statutory basis , the tariffs shall reflect the economic value of the rights in trade and the nature and scope of use of the works and other protected subject - matter and of the service provided by the collecting society .


### members should be allowed to take part in monitoring the management of collecting societies . to this end , collecting societies should establish a supervisory function appropriate to their organisational structure and allow members to be represented in the body that exercises this function . to avoid imposing excessive burden on smaller collecting societies and to make the obligations arising from this directive proportionate , member states should be able to , if they consider this to be necessary , exclude the smallest collecting societies from having to organise such a supervisory function . ### members should be allowed to take part in monitoring the management of collecting societies . to this end , collecting societies should establish a supervisory function appropriate to their organisational structure and allow members , representing different categories of rightholders , to be represented in the body that exercises this function .


### in the absence of any national law which establishes the amounts due to rightholders in respect of a right to remuneration and a right to compensation , the collecting society shall base its own determination of those amounts due , on the economic value of those rights in trade . ### in the absence of any national law which establishes the amounts due to rightholders in respect of a right to compensation , the collecting society shall base its own determination of those amounts due , on non - discriminatory criteria , ensuring fair compensation for the use made of the works and other protected subject - matter .


### where the amounts due to rightholders cannot be distributed , after five years from the end of the financial year in which the collection of the rights revenue occurred , and provided that the collecting society has taken all necessary measures to identify and locate the rightholders , the collecting society shall decide on the use of the amounts concerned in accordance with article 7 , without prejudice to the right of the rightholder to claim such amounts from the collecting society . ### where the amounts due to rightholders cannot be distributed , after two years from the end of the financial year in which the collection of the rights revenue occurred , and provided that the collecting society has taken all necessary measures to identify and locate the rightholders , the collecting society shall allocate the amounts concerned in the best interests of the rightholders whose rights it manages , in accordance with article 7 , without prejudice to the right of the rightholder to claim such amounts from the collecting society .


### member states shall ensure that the collecting society regularly and diligently distributes and pays amounts due to all rightholders it represents . the collecting society shall carry out such distribution and payments no later than 12 months from the end of the financial year in which the rights revenue was collected , unless objective reasons related in particular to reporting by users , the identification of rights , rightholders or to the matching of information on works and other subject matter with rightholders prevent the collecting society from respecting this deadline . the collecting society shall carry out such distribution and payments accurately , ensuring equal treatment of all categories of rightholders . ### member states shall ensure that the collecting society regularly , in a timely manner and diligently distributes and pays amounts due to all rightholders it represents . the collecting society shall carry out such distribution and payments at least on a quarterly basis and no later than 12 months after the rights revenue was collected . the collecting society shall carry out such distribution and payments accurately , ensuring equal treatment of all categories of rightholders .


### to ensure that rightholders are in a position to monitor the performance of their collecting societies and compare their respective performance , collecting societies should make public an annual transparency report comprising comparable audited financial information specific to the activities of collecting societies . collecting societies should also make public an annual special report on the use of amounts dedicated to social , cultural and educational services . to avoid imposing excessive burden on smaller collecting societies and to make the obligations arising from this directive proportionate , member states should be able to , if they consider this to be necessary , exclude the smallest collecting societies from certain transparency obligations . ### to ensure that rightholders are in a position to monitor the performance of their collecting societies and compare their respective performance , collecting societies should make public an annual transparency report comprising comparable audited financial information specific to the activities of collecting societies . collecting societies should also make public an annual special report on the use of amounts dedicated to social , cultural and educational services .


### member states shall ensure that collecting societies make available to their members and rightholders effective and timely procedures for dealing with complaints and for resolving disputes in particular in relation to authorisation to manage rights and termination or withdrawal of rights , membership terms , the collection of amounts due to rightholders , deductions and distributions . ### member states shall ensure that collecting societies make available to their members and rightholders effective and timely procedures for dealing with complaints and for resolving disputes in particular in relation to authorisation to manage rights and termination or withdrawal of rights , membership terms , the collection of amounts due to rightholders , deductions and distributions . the procedures for dealing with complaints and for resolving disputes shall be made available for both copyright and neighbouring rights .


### collecting societies shall accept rightholders as members if they fulfil the membership requirements . they may only refuse a request for membership on the basis of objective criteria . these criteria shall be included in the statute or the membership terms of the collecting society and shall be made publicly available . ### collecting societies shall accept rightholders , or any other members as defined in article 3 , as members if they fulfil the membership requirements . they may only refuse a request for membership on the basis of objective and non - discriminatory criteria . these criteria shall be included in the statute or the membership terms of the collecting society and shall be made publicly available .


### rightholders shall have the right to terminate the authorisation to manage rights , categories of rights or types of works and other subject matter granted to a collecting society or to withdraw from a collecting society any of the rights or categories of rights or types of works and other subject matter of their choice , for the member states of their choice , upon serving reasonable notice not exceeding six months . the collecting society may decide that such termination or withdrawal will take effect only at the middle and at the end of the financial year , whichever is sooner after the expiry of the notice period . ### rightholders shall have the right to terminate the authorisation to manage rights , categories of rights or types of works and other subject matter granted to a collecting society or to withdraw from a collecting society any of the rights or categories of rights or types of works and other subject matter of their choice , for the member states of their choice , upon serving reasonable notice not exceeding six months . the collecting society may decide that such termination or withdrawal will take effect only at the end of a period not exceeding two years from the date on which the author joined .


### collecting societies shall inform their members of their rights under paragraphs 1 to 6 within six months of the transposition date of this directive . ### collecting societies shall inform their members of their rights under paragraphs 1 to 6 within three months of the transposition date of this directive .


### this directive lays down requirements necessary to ensure the proper functioning of the management of copyright and related rights by collecting societies . it also lays down requirements for multi - territorial licensing by collecting societies of authors ' rights in musical works for online use . ### this directive lays down requirements necessary to ensure the proper functioning of the management of copyright and related rights by collective management organisations . it also lays down requirements for multi - territorial licensing by collecting societies of authors ' rights in musical works for online use .


### member states shall ensure that collecting societies act in the best interest of their members and do not impose on rightholders whose rights they manage any obligations which are not objectively necessary for the protection of the rights and interests of these rightholders . ### member states shall ensure that collecting societies act in the best interest of their rightholders and members and do not impose on rightholders whose rights they manage any obligations which are not objectively necessary for the protection of the rights and interests of these rightholders .


### member states shall ensure that disputes between collecting societies and users concerning existing and proposed licensing conditions , tariffs , and any refusal to grant a licence can be submitted to a court , and if appropriate , to an independent and impartial dispute resolution body . ### member states shall ensure that disputes between collecting societies and users concerning existing and proposed licensing conditions , tariffs , the calculation of tariffs , and any refusal to grant a licence can be submitted to a specialised , independent and impartial dispute resolution body , or if appropriate , to a court .


### membership of collecting societies should be based on objective and non - discriminatory criteria including as regards publishers who by virtue of an agreement on the exploitation of rights , are entitled to a share of the income from the rights managed by collecting societies and to collect such income from the collecting society . ### membership of collecting societies should be based on objective and non - discriminatory criteria including as regards associations of rightholders , such as other collective societies or rightholders ' unions , and publishers who by virtue of an agreement on the exploitation of rights , are entitled to a share of the income from the rights managed by collecting societies and to collect such income from the collecting society .


### the seat of the agency shall be [ . . . ] ### the seat of the agency shall be [ . . . ] . the host member state shall ensure that the agency benefits from attractive conditions in respect of the accommodation to be provided for it and the rules applicable to its staff and members of its governing bodies , to be set out in a headquarters agreement . in order to ensure the best possible long - term functioning of the agency , a cost / benefit assessment should precede the conclusion of the headquarters agreement . particular account shall be taken of a member state’s willingness to provide resources of its own for hosting the agency , and its ability to do so , in order to ensure the agency’s smooth establishment and operation .


### listed diseases subject to rules on : ### listed diseases that do not normally occur in the union , and for which immediate eradication measures must be taken as soon as they are detected , subject to rules on :


### the killing and disposal or slaughtering of animals that may be contaminated and contribute to the spread of the listed disease ; ### the humane killing and disposal or slaughtering of animals that may be contaminated and contribute to the spread of the listed disease , provided that this is done in such a way as to spare the animals any avoidable pain , distress or suffering ;


### the commission shall be empowered to adopt delegated acts in accordance with article 253 concerning : ### the commission shall be empowered to adopt delegated acts in accordance with article 253 , provided that such acts are based on scientific facts and due regard for the opinions of the european food safety authority , concerning :


### member states shall support operators and animal professionals in acquiring , maintaining and developing the basic knowledge of animal health provided for in article 10 through relevant programmes in agricultural or aquaculture sectors or formal education . ### member states shall support operators and animal professionals in acquiring , maintaining and developing the basic knowledge of animal health provided for in article 10 through relevant programmes in agricultural or aquaculture sectors or formal education , and ensure that the necessary level of knowledge is attained .


### on duly justified imperative grounds of urgency relating to a disease representing an emerging risk of highly significant impact the commission shall adopt immediately applicable implementing acts in accordance with the procedure referred to in article 255 . ### on duly justified imperative grounds of urgency relating to a disease representing an emerging risk of significant impact the commission shall adopt immediately applicable delegated acts in accordance with the procedure referred to in article 254 .


### surveillance following the use of vaccines and other veterinary medicinal products for specific listed diseases . ### surveillance following the use of vaccines and other veterinary medicinal products for specific diseases .


### in order to ensure legal certainty as regards the application of rules for identification and registration of animals , disease control measures for certain zoonoses and non - commercial movements of pet animals , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of the date on which regulations no 1760 / 2000 , no xxx / xxx [ ex - 998 / 2003 ] and no 21 / 2004 and directives 92 / 66 / eec , 2000 / 75 / ec , 2001 / 89 / ec , 2002 / 60 / ec , 2003 / 85 / ec , 2005 / 94 / ec and 2008 / 71 / ec cease to apply . ### in order to ensure legal certainty as regards the application of rules for identification and registration of animals , disease control measures for certain zoonoses and non - commercial movements of pet animals , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission in respect of the date on which regulations no xxx / xxx [ ex - 998 / 2003 ] and no 21 / 2004 and directives 92 / 66 / eec , 2000 / 75 / ec , 2001 / 89 / ec , 2002 / 60 / ec , 2003 / 85 / ec , 2005 / 94 / ec and 2008 / 71 / ec cease to apply .


### member states shall take the following criteria into consideration when determining whether or not to use and how to use veterinary medicinal products as disease prevention and control measures for a specific listed disease : ### member states shall take the following criteria into consideration when determining whether or not to use and how to use veterinary medicinal products as disease prevention and control measures for a specific disease :


### listed diseases subject to the disease prevention and control rules on : ### listed diseases which should be controlled in all member states with the long - term goal of eradicating them throughout the union , subject to the disease prevention and control rules on :


### the commission shall take into account the following criteria when adopting implementing acts provided for in paragraph 1 : ### the commission shall take into account the following criteria when adopting delegated acts provided for in paragraph 1 :


### listed diseases subject to the disease prevention and control rules on : ### listed diseases that are of relevance for certain member states , and for which measures are needed to prevent them spreading to parts of the union that are officially disease - free or have eradication programmes , subject to the disease prevention and control rules on :


### the member states may take measures concerning the use of veterinary medicinal products for listed diseases , to ensure the most efficient disease prevention or control for those diseases , provided that such measures comply with the rules on the use of veterinary medicinal products laid down in delegated acts adopted pursuant to article 47 . ### the member states shall take measures concerning the responsible use of veterinary medicinal products for infectious diseases , to ensure the most efficient disease prevention or control for those diseases , provided that such measures comply with the rules on the use of veterinary medicinal products laid down in delegated acts adopted pursuant to article 47 .


### listed diseases subject to the disease prevention and control rules on : ### listed diseases that are subject to the provisions of , and above , and other diseases for which measures are needed to prevent them spreading on account of their introduction into the union or movements between member states , subject to the disease prevention and control rules on :


### the commission may , by means of implementing acts , amend or terminate where necessary eradication programmes approved in accordance with points and . those implementing acts shall be adopted in accordance with the examination procedure referred to in article 255 . ### the commission may , by means of implementing acts , require the member states to amend or terminate where necessary eradication programmes approved in accordance with points and . those implementing acts shall be adopted in accordance with the examination procedure referred to in article 255 .


### the commission shall be empowered to adopt delegated acts in accordance with article 253 concerning amendments to annexes i and ii in order to take account of technical progress , scientific developments and changed circumstances in public and animal health . ### the commission shall be empowered to adopt delegated acts in accordance with article 253 concerning amendments to the annexes in order to take account of technical progress , scientific developments and changed circumstances in public and animal health .


### listed diseases subject to the disease prevention and control rules on : ### listed diseases that are subject to the provisions of and above , and other diseases for which there is a need for monitoring within the union , subject to the disease prevention and control rules on :


### the impact of transmissible animal diseases and the measures necessary to control these diseases can be devastating for individual animals , animal populations , animal keepers and the economy . ### the impact of transmissible animal diseases and the measures necessary to control these diseases can be devastating for individual animals , animal populations , animal keepers and the economy and can have a major influence on public health and food safety .


### specific conditions for the use veterinary medicinal products for a specific listed disease ; ### specific conditions for the use veterinary medicinal products for a specific disease ;


### when member states take national measures concerning movements of animals and germinal products or decide to take national measures to limit the impact of transmissible animal diseases other than listed diseases within their territory , those national measures should not interfere with the rules on the internal market laid down in union legislation . therefore , it is appropriate to set the framework for such national measures and ensure that they remain within the limits permitted under union law . ### when member states take national measures concerning movements of animals and germinal products or decide to take national measures to limit the impact of transmissible animal diseases other than listed diseases within their territory , those national measures may only interfere with the rules on the internal market laid down in union legislation when this is scientifically justified on the grounds of controlling infectious disease and is proportionate in relation to the risk . therefore , it is appropriate to set the framework for such national measures and ensure that they remain within the limits permitted under union law .


### a veterinarian of abnormal mortalities and other serious disease signs or significant decreased production rates with an undetermined cause in animals for further investigation , including sampling for laboratory examination when the situation so warrants . ### a veterinarian or aquatic animal health professional of abnormal mortalities and other disease signs or significant decreased production rates with an undetermined cause in animals for further investigation , including sampling for laboratory examination when the situation so warrants .


### risk mitigating measures to prevent the spread of listed diseases through animals treated with the veterinary medicinal products or products from such animals ; ### risk mitigating measures to prevent the spread of diseases through animals treated with the veterinary medicinal products or products from such animals ;


### the type and extent of its intended operation corresponds to that specified in its single safety certificate . ### the type and extent of its intended operation and areas of use correspond to that specified in its single safety certificate .


### member states shall ensure that the responsibility for the safe operation of the rail system and the control of risks associated with it is laid upon the infrastructure managers and railway undertakings , obliging them : ### member states and the agency shall ensure that the responsibility for the safe operation of the rail system and the control of risks associated with it is laid upon the infrastructure managers and railway undertakings , obliging them :


### the csms shall be revised at regular intervals , taking into account the experience gained from their application and the global development of railway safety and in view of generally maintaining and where reasonably practicable , continuously improving safety . ### the csms shall be revised annually , taking into account the experience gained from their application and the global development of railway safety and with a view to generally maintaining and , where reasonably practicable , continuously improving safety .


### metros , trams and light rail systems ; ### does not affect english version


### the national safety authority shall take a decision on an application for safety authorisation without delay and in any event not more than four months after all the information required and any supplementary information requested has been submitted . ### the national safety authority shall take a decision on an application for safety authorisation without delay and in any event not more than three months after receipt of the application . negative decisions shall be duly justified . if the national safety authority has doubts concerning the fulfilment of one or more conditions , it shall request further information from the railway undertaking within one month after receipt of the application for a single safety certificate . information requested shall be supplied within a reasonable period set by the national safety authority that shall not exceed one month unless , in exceptional circumstances , the national safety authority agrees to , and authorises , a time - limited extension , which shall not exceed two additional weeks .


### developing common safety targets and common safety methods with a view to gradually removing the need for national rules ; ### developing common safety targets and common safety methods with a view to greater harmonisation of national rules at a high safety level ;