### the programme represents the added value of ensuring that european statistics are focused on the information needed to design , implement , monitor and evaluate union policies . in addition , it contributes to the effective use of resources by fostering actions which provide an essential contribution to the development , production and dissemination of harmonised , comparable and reliable statistical information . ### the programme represents the added value of ensuring that european statistics are focused on the information needed to design , implement , monitor and evaluate union policies . in addition , it contributes to the effective use of resources by fostering actions which provide an essential contribution to the development , production and dissemination of harmonised , comparable and reliable statistical information . it is based on the idea of a reasonable burden - sharing between the eu budget and the member states ' budgets .


### – objective 1 : provide quality statistical information to support the development , monitoring and evaluation of the policies of the european union properly reflecting priorities ; ### – objective 1 : provide quality statistical information as close to real - time as practicable , to support the development , monitoring and evaluation of the policies of the european union properly reflecting priorities ;


### – objective 1 : provide quality statistical information to support the development , monitoring and evaluation of the policies of the european union properly reflecting priorities ; ### – objective 1 : provide quality statistical information to support the development , monitoring and evaluation of the policies of the european union properly reflecting the priorities and needs of end users in a cost - effective manner without unnecessary duplication of effort ;


### the commission shall take appropriate measures ensuring that , when actions financed under this regulation are implemented , the financial interests of the european union are protected by the application of preventive measures against fraud , corruption and any other illegal activities , by effective checks and , if irregularities are detected , by the recovery of the amounts wrongly paid and , where appropriate , by effective , proportionate and deterrent penalties . ### the commission shall take appropriate measures ensuring that , when actions financed under this regulation are implemented , the financial interests of the european union are protected by the application of preventive measures against fraud , corruption and any other illegal activities , by consistent and effective checks and , if irregularities are detected , by the recovery of the amounts wrongly paid and , where appropriate , by effective , proportionate and deterrent penalties .


### the european anti - fraud office may carry out on - the - spot check and inspections on economic operators concerned directly or indirectly by such funding in accordance with the procedures laid down in regulation 2185 / 96 with a view to establishing whether there has been fraud , corruption or any other illegal activity affecting the financial interests of the european union in connection with a grant agreement or grant decision or contract funded under this regulation . ### the european anti - fraud office shall carry out on - the - spot check and inspections on economic operators concerned directly or indirectly by such funding in accordance with the procedures laid down in regulation 2185 / 96 with a view to establishing whether there has been fraud , corruption or any other illegal activity affecting the financial interests of the european union in connection with a grant agreement or grant decision or contract funded under this regulation .


### reports ### evaluation and review


### member states may stipulate that , where an insurance or reinsurance intermediary acts under the responsibility of an insurance or reinsurance undertaking or of another registered insurance or reinsurance intermediary , the latter intermediary or the undertaking shall be responsible for ensuring that it meets the conditions for registration set out in this directive . in such a case , the person or entity accepting responsibility shall , having been informed by the member states of the matters set out in paragraph 7 of this article , sub - paragraphs and , be satisfied as to the matter set out in paragraph 7 of this article , sub - paragraph . member states may also stipulate that the person or entity which takes responsibility for the intermediary shall register that intermediary . ### member states may stipulate that , where an insurance or reinsurance intermediary acts under the responsibility of an insurance or reinsurance undertaking or intermediary , the insurance intermediary shall not be required to provide the competent authority with the information in article 3 and and the insurance entity responsible shall ensure that the insurance intermediary meets the conditions for registration and other provisions set out in this directive . member states may also stipulate that the person or entity which takes responsibility for the intermediary shall register that intermediary .


### roadworthiness testing is a part of a wider regime ensuring that vehicles are kept in a safe and environmentally acceptable condition during their use . this regime should cover periodic roadworthiness tests for all vehicles and roadside technical inspection for vehicles used for commercial road transport activities as well as provisions on a vehicle registration procedure to ensure that vehicles which constitute an immediate risk to road safety are not used on roads . ### roadworthiness testing is a part of a wider regime ensuring that vehicles are kept in a condition which complies with the existing safety and environmental legislative framework . this regime should cover periodic roadworthiness tests for all vehicles and roadside technical inspection for vehicles used for commercial road transport activities as well as provisions on a vehicle registration procedure to ensure that vehicles which constitute an immediate risk to road safety are not used on roads .


### in order to allow a monitoring of the roadside inspection regime implemented in the union member states should communicate on a biannual basis to the commission the results of the roadside inspections performed . the commission should report the data collected to the european parliament . ### in order to allow a monitoring of the roadside inspection regime implemented in the union member states should communicate before 31 march of every second year to the commission the results of the roadside inspections performed . the commission should report the data collected to the european parliament .


### this regulation establishes a regime of roadside inspections of commercial vehicles circulating within the territory of the member states . ### this directive establishes a regime of roadside inspections of commercial vehicles circulating within the territory of the member states .


### – motor vehicles used for the carriage of passengers and with more than eight seats , excluding the driver ' s seat – vehicle category m2 and m3 , ### – motor vehicles and any attached trailer , used for the carriage of passengers and with more than eight seats , excluding the driver ' s seat – vehicle category m2 and m3 ,


### – motor vehicles used for the carriage of goods and having a maximum permissible mass exceeding 3 500kg - vehicle categories n2 and n3 , ### – motor vehicles and any attached trailer used for the carriage of goods and having a maximum permissible mass exceeding 3 500kg - vehicle categories n2 and n3 ,


### ‘ roadworthiness test’ means a verification that the parts and components of a vehicle comply with its safety and environmental characteristics at the time of approval , first registration or entry into service , or at the time of retrofitting ; ### ' roadworthiness test ' means an inspection to ensure that a vehicle is safe to be used on public roads and complies with required environmental characteristics .


### check the roadworthiness certificate and roadside inspection report , where available , kept on board in accordance with article 7 ; ### shall check the roadworthiness certificate and roadside inspection report , where available , kept on board in accordance with article 7 ;


### carry out a visual assessment of the condition of the vehicle and of its cargo . ### shall carry out a visual assessment of the condition of the vehicle and of its cargo


### mobile inspection units shall include appropriate equipment for carrying out a roadside inspection , including at least the equipment necessary to assess the condition of the brakes , steering , suspension and emissions of the vehicle . ### mobile inspection units and other facilities authorised to undertake more detailed inspections shall include appropriate equipment for carrying out a roadside inspection , including at least the equipment necessary to assess the condition of the brakes , steering , suspension and emissions of the vehicle .


### during the recent financial crisis , numerous banks revealed huge losses from 2007 to 2009 on the position they had held both on and off balance sheet . this raised not only the question of how auditors could give unqualified audit reports to their clients for those periods but also about the suitability and adequacy of the current legislative framework . the commission published on 13 october 2010 a green paper on audit policy : lessons from the crisis , which launched a wide public consultation , in the general context of financial market regulatory reform , on the role and scope of audit and how the audit function could be enhanced in order to contribute to increased financial stability . it resulted from the public consultation that the rules of directive 2006 / 43 / ec regarding the carrying out of the statutory audit of annual and consolidated accounts of public - interest entities could be substantially improved . the european parliament issued an own initiative report on the green paper on 13 september 2011 . the european economic and social committee also adopted a report on that green paper on 16 june 2011 . ### the commission published on 13 october 2010 a green paper on audit policy : lessons from the crisis , which launched a wide public consultation , in the general context of financial market regulatory reform , on the role and scope of audit and how the audit function could be enhanced in order to contribute to increased financial stability . it resulted from the public consultation that the rules of directive 2006 / 43 / ec regarding the carrying out of the statutory audit of annual and consolidated accounts of public - interest entities could be improved . the european parliament issued an own - initiative report on the green paper on 13 september 2011 . the european economic and social committee also adopted a report on that green paper on 16 june 2011 .


### auditors , audit firms and their employees should in particular refrain from carrying out the statutory audit of an entity if they have a business interest or financial interest in it and from engaging on trading in financial instruments issued , guaranteed or otherwise supported by an audited entity , other than holdings in diversified collective investment schemes . the statutory auditor or audit firm should abstain from the internal decision - making processes of the audited entity . statutory auditors or their employees should be prevented from taking up duties in the audited entity at managerial or board level until an appropriate period has elapsed since the end of the audit engagement . ### auditors , audit firms and any person participating in , or otherwise in a position to directly or indirectly influence the outcome of , the statutory audit should in particular refrain from carrying out the statutory audit of an entity if they have a business interest or financial interest in it and from engaging on trading in financial instruments issued , guaranteed or otherwise supported by an audited entity , other than holdings in diversified collective investment schemes . the statutory auditor or audit firm should abstain from the internal decision - making processes of the audited entity . statutory auditors or their employees should be prevented from taking up duties in the audited entity at managerial or board level until an appropriate period has elapsed since the end of the audit engagement .


### the level of fees received from one audited entity and the structure of fees can also threaten the independence of a statutory auditor or audit firm . thus , it is important to ensure that audit fees are not based on any form of contingency and that , when the audit fees from a single client are significant , a specific procedure is established to secure the quality of the audit . if the dependence on a single client is excessive , the statutory auditor or the audit firm should refrain from undertaking the statutory audit in question . ### the level of fees received from one audited entity and the structure of fees can also threaten the independence of a statutory auditor or audit firm . thus , it is important to ensure that audit fees are not based on any form of contingency and that , when the audit fees from a single client are significant , a specific procedure is established to secure the quality of the audit .


### whilst the primary responsibility for delivering financial information should rest with the management of the audited entities , auditors play a role by actively challenging management from a user ' s perspective . in order to improve audit quality , it is therefore important that the professional scepticism exercised by auditors vis - à - vis the audited entity is reinforced . auditors should recognise the possibility that a material misstatement due to fraud or error could exist , notwithstanding the auditor ' s past experience of the honesty and integrity of the audited entity ' s management . securing audit quality should be the main criterion to organise the audit work and to allocate the necessary resources to the tasks . the integrity of the statutory auditor , audit firm and their staff is essential to ensure the public confidence in statutory audits and financial markets . therefore , any incident that may have serious consequences for the integrity of the statutory audit activities should be appropriately managed . the statutory auditor or the audit firm should appropriately document the audit work . ### whilst the primary responsibility for delivering financial information should rest with the management of the audited entities , auditors play a role by actively challenging management from a user ' s perspective . in order to improve audit quality , it is therefore important that the professional scepticism exercised by auditors vis - à - vis the audited entity is reinforced . auditors should recognise the possibility that a material misstatement due to fraud or error could exist , notwithstanding the auditor ' s past experience of the honesty and integrity of the audited entity ' s management . securing audit quality should be the main criterion to organise the audit work and to allocate the necessary resources to the tasks . the integrity of the statutory auditor , audit firm and their staff is essential to ensure the public confidence in statutory audits and financial markets . therefore , any event or development that may have serious consequences for the integrity of the statutory audit activities should be appropriately managed . the statutory auditor or the audit firm should appropriately document the audit work .


### the value of statutory audit for the audited entity would be particularly enhanced if the communication between the statutory auditor or the audit firm , on the one hand , and the audit committee , on the other hand , was reinforced . further to the regular dialogue during the carrying out of the statutory audit , it is important that the statutory auditor or the audit firm submits to the audit committee an additional and more detailed report on the results of the statutory audit . it should be possible to make such additional detailed reports available to the supervisors of public - interest entities , but not to the public . ### the value of statutory audit for the audited entity would be particularly enhanced if the communication between the statutory auditor or the audit firm , on the one hand , and the audit committee , on the other hand , was reinforced . further to the regular dialogue during the carrying out of the statutory audit , it is important that the statutory auditor or the audit firm submits to the audit committee an additional and more detailed report on the results of the statutory audit . it should be possible to make such additional detailed reports available to the competent authorities supervising public - interest entities , but not to the public .


### statutory auditors or audit firms already provide supervisors of public - interest entities with information on facts or decisions which could constitute a breach of the rules governing the activities of the audited entity or the impairment of the continuous functioning of the audited entity . supervisory tasks would also be facilitated if supervisors of credit and financial institutions were required to establish a regular dialogue with their statutory auditors and audit firms . ### statutory auditors or audit firms already provide competent authorities supervising public - interest entities with information on facts or decisions which could constitute a breach of the rules governing the activities of the audited entity or the impairment of the continuous functioning of the audited entity . supervisory tasks would also be facilitated if supervisors of credit and financial institutions and their statutory auditors and audit firms were required to establish a regular dialogue with each other .


### in order to ensure a high level of investor and consumer confidence in the internal market by avoiding conflicts of interests , statutory auditors and audit firms should be subject to appropriate supervision by competent authorities which are independent from the audit profession and which have adequate capacity , expertise and resources . the national competent authorities should have the necessary powers to undertake their supervisory tasks , including the capacity to access documents , demand information from any person and carry out inspections . they should specialize in the supervision of financial markets , of compliance with financial reporting obligations or in statutory audit oversight . however , it should be possible that the supervision of the compliance with the obligations set on public - interest entities is carried out by the competent authorities responsible for the supervision of those entities . the funding of the competent authorities should be free from any possible undue influence by statutory auditors or audit firms . ### in order to ensure a high level of investor and consumer confidence in the internal market by avoiding conflicts of interests , statutory auditors and audit firms should be subject to appropriate supervision by competent authorities which are independent from the audit profession and which have adequate capacity , expertise and resources . the national competent authorities should have the necessary powers to undertake their supervisory tasks , including the capacity to access documents , demand information from any person and carry out inspections . they should specialize in the supervision of compliance with financial reporting obligations or in statutory audit oversight . however , it should be possible that the supervision of the compliance with the obligations set on public - interest entities is carried out by the competent authorities responsible for the supervision of those entities . the funding of the competent authorities should be free from any possible undue influence by statutory auditors or audit firms .


### the market for the provision of statutory audit services to public - interest entities evolves over time . it is therefore necessary that competent authorities monitor the developments in the market , particularly as regards possible limited choice of auditor and the risks that arise from high market concentration . ### the market for the provision of statutory audit services to public - interest entities evolves over time . it is therefore necessary that competent authorities monitor the developments in the market , particularly as regards the effects of the provision of non - audit services to public - interest entity clients on confidence in the quality of audit work and the independence of auditors and the role of audit committees in monitoring the quality of audit work and safeguarding the independence of auditors .


### in order to take account of the technical developments in the financial markets , in auditing and the audit profession and to specify the requirements laid down in this regulation , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty on the functioning of the european union . in particular , the use of delegated acts is necessary to adapt the list of related audit services and of non - audit services as well as to set out the level of fees that esma could charge for delivering the european quality certificate to statutory auditors and audit firms . it is of particular importance that the commission carries out appropriate consultations during its preparatory work , including at expert level . the commission , when preparing and drawing up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and to the council . ### in order to take account of the technical developments in the financial markets , in auditing and the audit profession and to specify the requirements laid down in this regulation , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty on the functioning of the european union . in particular , the use of delegated acts is necessary to adapt the list of related audit services and of prohibited non - audit services as well as to set out the level of fees that esma could charge for delivering the european quality certificate to statutory auditors and audit firms . it is of particular importance that the commission carries out appropriate consultations during its preparatory work , including at expert level and with esma . the commission , when preparing and drawing up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the esma , european parliament and to the council .


### in order to take account of the technical developments in the financial markets , in auditing and the audit profession and to specify the requirements laid down in this regulation , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty on the functioning of the european union . in particular , the use of delegated acts is necessary to adapt the list of related audit services and of non - audit services as well as to set out the level of fees that esma could charge for delivering the european quality certificate to statutory auditors and audit firms . it is of particular importance that the commission carries out appropriate consultations during its preparatory work , including at expert level . the commission , when preparing and drawing up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and to the council . ### in order to take account of the technical developments in the financial markets , in auditing and in the audit profession , and to specify the requirements laid down in this regulation , 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 adapting the list of related audit services and of non - audit services . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . the commission , when preparing and drawing up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and to the council .


### a statutory auditor or an audit firm shall establish appropriate and effective organisational and administrative arrangements to prevent , identify , eliminate or manage and disclose any threats to independence referred to in article 11 ; ### a statutory auditor or an audit firm shall establish appropriate and effective organisational and administrative arrangements to prevent , identify , eliminate or manage and disclose any threats to independence , other than in the normal course of business , referred to in article 11 ;


### a statutory auditor or an audit firm shall establish a policy to preclude his , her or its involvement and that of his , her or its employees in any criminal offence or breach of the law in the conduct of their work . the statutory auditor or the audit firm shall also establish appropriate and effective organisational and administrative arrangements for dealing with and recording incidents which have or may have serious consequences for the integrity of his , her or its statutory audit activities ; ### the statutory auditor or the audit firm shall also establish appropriate and effective organisational and administrative arrangements for dealing with and recording incidents which have or may have serious consequences for the integrity of his , her or its statutory audit activities ;


### a statutory auditor or an audit firm shall have adequate remuneration policies providing sufficient performance incentives to secure audit quality . in particular , compensation and performance evaluation of employees shall not be contingent on the amount of revenue that the statutory auditor or the audit firm derives from the audited entity ; ### a statutory auditor or an audit firm shall have adequate remuneration or profit - sharing policies providing sufficient performance incentives to secure audit quality . in particular , the amount of revenue that the statutory auditor or the audit firm derives from selling non - assurance services to the audited entity shall not form part of the performance evaluation and compensation of any person involved in or able to influence the conduct of the audit ;


### the statutory auditor or audit firm shall be able to demonstrate to the competent authority referred to in article 35 that such compliance is proportionate to the size and complexity of activities of the statutory auditor or audit firm . ### the statutory auditor or audit firm shall be able to demonstrate to the competent authority referred to in article 35 that the achievement of such compliance is proportionate to the size and complexity of activities of the statutory auditor or audit firm .


### a statutory auditor or an audit firm and any holder of voting rights in an audit firm shall be independent of the audited entity and shall not be involved in the decision - taking of the audited entity . ### a statutory auditor or an audit firm and any natural person in a position to directly or indirectly influence the outcome of the statutory audit shall be independent of the audited entity and shall not be involved in the decision - taking of the audited entity . holders of voting rights in an audit firm may not have a direct financial interest in any entity audited by the statutory auditor or audit firm . independence is required during both the period covered by the financial statements to be audited and the period during which the statutory audit is carried out . the statutory auditor or audit firm shall not carry out a statutory audit if there is any threat of self - review , self - interest , advocacy , familiarity or intimidation created by financial , personal , business , employment or other relationships between : – the statutory auditor , the audit firm , its network , and any natural person in a position to influence the outcome of the statutory audit , and – the audited entity from which an objective , reasonable and informed third party , taking into account the safeguards applied , would conclude that the statutory auditor ' s or audit firm ' s independence is compromised .


### a statutory auditor , an audit firm , their key audit partners , their employees as well as any other natural person whose services are placed at the disposal or under the control of such auditor or firm and who is directly involved in statutory audit activities , and persons closely associated with them within the meaning of article 1 of commission directive 2004 / 72 / ec shall not buy or sell or engage in any transaction in any financial instrument issued , guaranteed , or otherwise supported by any audited entity within their area of statutory audit activities other than holdings in diversified collective investment schemes , including managed funds such as pension funds or life insurance . ### the following persons or firms : a statutory auditor ; an audit firm ; network firms ; the key audit partners ; any natural person participating in , or otherwise in a position to directly or indirectly influence the outcome of , the statutory audit , and persons closely associated with them within the meaning of article 1 of commission directive 2004 / 72 / ec shall not : own any financial instruments of the audited entity , the parent undertaking to which the audited entity is material , or any entity whose financial information is incorporated into the financial statements of the audited entity , other than interests owned indirectly through diversified collective investment schemes , including managed funds such as pension funds or life insurance ; have or have had in the previous 12 months any personal , business , employment or other relationship with the audited entity , the parent undertaking to which the audited entity is material , or any entity whose financial information is incorporated into the financial statements of the audited entity that may compromise or may be generally perceived by an objective , reasonable and informed third party as compromising the independence of the statutory auditor or the audit firm .


### employees of a statutory auditor or an audit firm carrying out a statutory audit of a public - interest entity as well as any other natural person whose services are placed at the disposal or under the control of such auditor or firm shall not , when such employees or other natural persons are personally approved as statutory auditors , before a period of at least one year has elapsed since he or she was directly involved in the statutory audit activities , take up any of the duties referred to in points , b ) and of paragraph 1 . ### employees and partners other than key audit partners of a statutory auditor or an audit firm carrying out a statutory audit of a public - interest entity as well as any other natural person whose services are placed at the disposal or under the control of such auditor or firm shall not , when such employees , partners or other natural persons are personally approved as statutory auditors , before a period of at least one year has elapsed since he or she was directly involved in the statutory audit engagement , take up any of the duties referred to in points , b ) and of paragraph 1 .


### when the total fees received from a public - interest entity subject to the statutory audit represent , for two consecutive years , 15 % or more of the total annual fees received by the statutory auditor or audit firm carrying out the statutory audit , the auditor or firm shall inform the competent authority referred to in article 35 of such situation . the competent authority referred to in article 35 shall decide on the basis of objective grounds provided by the statutory auditor or the audit firm whether the statutory auditor or audit firm of such entity may continue to carry out the statutory for an additional period which in any case shall not be longer than two years . ### when the total fees received from a public - interest entity subject to the statutory audit represent , for two consecutive years , 15 % or more of the total annual fees received by the statutory auditor or audit firm carrying out the statutory audit , the auditor or firm shall inform the competent authority referred to in article 35 of such situation . the competent authority referred to in article 35 may decide on the basis of objective grounds provided by the statutory auditor or the audit firm whether the statutory auditor or audit firm of such entity may continue to carry out the statutory for an additional period which in any case shall not be longer than two years .


### a statutory auditor or an audit firm carrying out statutory audit of public - interest entities may provide to the audited entity , to its parent undertaking and to its controlled undertakings statutory audit services and related financial audit services . ### a statutory auditor or an audit firm carrying out statutory audit of public - interest entities may provide to the audited entity or its controlled undertakings non - audit services only after having properly assessed threats and potential safeguards to independence in accordance with article 11 and after having obtained approval from the audit committee .


### any other statutory duty related to audit work imposed by union legislation to the statutory auditor or audit firm . ### any statutory or regulatory duty imposed by law or regulation .


### a statutory auditor or an audit firm carrying out statutory audit of public - interest entities shall not directly or indirectly provide to the audited entity , to its parent undertaking and to its controlled undertakings non - audit services . ### a statutory auditor or an audit firm carrying out statutory audit of public - interest entities shall not directly or indirectly provide to the audited entity , to its parent undertaking or to its controlled undertakings prohibited non - audit services .


### actuarial and legal services , including the resolution of litigation ; ### actuarial services and legal services , including the provision of legal advice , negotiating on behalf of the audit client or acting in the resolution of litigation , where the outcome would have a material impact on the financial statements to be audited ;


### 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 shall be considered as affecting such independence in all cases .


### if the statutory auditor ' s or audit firm ' s independence is affected by threats of self - review or self - interest , the statutory auditor or audit firm shall not carry out the statutory audit . ### if the statutory auditor ' s or audit firm ' s independence is affected by threats of self - review , the statutory auditor or audit firm shall not carry out the statutory audit .


### where a statutory auditor or an audit firm carries out statutory audit of a public - interest entity which is part of a group of undertakings whose parent undertaking is situated in a third country , the confidentiality and professional secrecy rules referred to in article 23 of directive 2006 / 43 / ec shall not impede the transfer by the statutory auditor or audit firm of relevant documentation of the audit work performed to the group auditor situated in a third country if such documentation is exclusively necessary for the preparation of the audit of consolidated financial statements of the parent undertaking . ### where a statutory auditor or an audit firm carries out statutory audit of a public - interest entity which is part of a group of undertakings whose parent undertaking is situated in a third country , the confidentiality and professional secrecy rules referred to in article 23 of directive 2006 / 43 / ec shall not impede the transfer by the statutory auditor or audit firm of relevant documentation of the audit work performed to the group auditor situated in a third country if such documentation is necessary for the performance of the audit of consolidated financial statements of the parent undertaking .


### when carrying out the statutory audit of a public - interest entity , the statutory auditor or audit firm shall take the necessary steps with a view to forming an opinion as to whether the annual or consolidated financial statements of the public - interest entity give a true and fair view in accordance with the relevant financial reporting framework and , where appropriate , whether such annual or consolidated financial statements comply with statutory requirements as referred to in article 22 . ### when carrying out the statutory audit of a public - interest entity , the statutory auditor or audit firm shall perform the audit in accordance with the international auditing standards referred to in article 26 of directive 2006 / 43 / ec and shall take the necessary steps with a view to forming an opinion as to whether the annual or consolidated financial statements of the public - interest entity give a true and fair view and have been prepared in accordance with the relevant financial reporting framework .


### when carrying out the statutory audit of a public - interest entity , the statutory auditor or audit firm shall maintain professional scepticism throughout the audit , recognizing the possibility that a material misstatement due to facts or behaviour indicating irregularities , including fraud or error could exist , notwithstanding the auditor ' s or firm ' s past experience of the honesty and integrity of the audited entity ' s management and of the persons charged with its governance . ### when carrying out the statutory audit of a public - interest entity , the statutory auditor or audit firm shall maintain professional scepticism throughout the audit , recognising the possibility that a material misstatement due to facts or behaviour indicating irregularities , including fraud or error could exist , notwithstanding the auditor ' s or firm ' s past experience of the honesty and integrity of the audited entity ' s management and of the persons charged with its governance , as required by the international auditing standards referred to in article 26 of directive 2006 / 43 / ec .


### the statutory auditor or the audit firm shall keep records of the cases in which their employees do not respect this regulation . they shall also keep records of any consequence thereof , including the measures taken towards those employees and the measures taken to modify the internal quality control system . the statutory auditor or the audit firm shall prepare an annual report with an overview of any such measures taken and communicate it to the employees . ### the statutory auditor or the audit firm shall implement quality control procedures at the engagement level that are consistent with the international auditing standards referred to in article 26 of directive 2006 / 43 / ec .


### a statutory auditor or an audit firm shall create an audit file for each statutory audit carried out . the audit file shall contain at least the following data and documents , either in paper form or in electronic form : the contract between the statutory auditor or the audit firm and the audited entity , and any amendments thereto ; the correspondence with the audited entity related to the statutory audit ; an audit plan setting out the probable scope and method of the statutory audit ; a description of the nature and the extent of the auditing activities carried out ; the starting and ending dates of the phases of audit procedures set out in the audit plan ; the principal findings of the audit procedures carried out ; the conclusions drawn from the findings referred to under point ; the opinion of the statutory auditor or the key audit partner as evidenced by the drafts of the reports referred to in articles 22 and 23 ; the data recorded pursuant to article 11 , article 16 , articles 17 and 18 and 19 ; other relevant data and documents that are of importance in support of the reports referred to in articles 22 and 23 and for monitoring compliance with this regulation and other applicable legal requirements . ### a statutory auditor or an audit firm shall create an audit file for each statutory audit carried out . the audit file shall contain at least the documentation for the statutory audit carried out as required by the international standards on auditing referred to in article 26 of directive 2006 / 43 / ec . the statutory auditor or audit firm shall also document the data recorded pursuant to article 11 , article 16 , articles 17 and 19 . the statutory auditor or audit firm shall retain any other data and documents that are of importance in support of the reports referred to in articles 22 and 23 and for monitoring compliance with this regulation and other applicable legal requirements .


### the audit file shall be closed no later than two months after the date of signature of the audit report referred to in article 22 . ### the audit file shall be closed no later than sixty days after the date of signature of the audit report referred to in article 22 .


### where an incident which has or may have serious consequences for the integrity of the statutory audit activities of a statutory auditor or an audit firm occurs , the statutory auditor or the audit firm shall : keep record of the incident ; take appropriate measures with a view to managing the consequences of the incident and prevent any recurrence ; inform the competent authority referred to in article 35 of the incident . ### where the statutory auditor or audit firm becomes aware of any event or development which is likely to have material consequences for the audit opinion , the statutory auditor or the audit firm shall : keep a record of the event or development ; take appropriate measures , as required by the relevant international auditing standards , in response to the event or development ; inform the competent authority referred to in article 35 of the event or development forthwith if , having taken appropriate measures , the auditor continues to believe that the event or development is likely to have material consequences for the audit opinion .


### the disclosure in good faith to the competent authorities , by the statutory auditor or audit firm , of any fact referred to in the first subparagraph shall not constitute a breach of any contractual or legal restriction on disclosure of information and shall not involve such persons in liability of any kind . ### the disclosure in good faith to the competent authorities , by the statutory auditor or audit firm , of any fact or behaviour referred to in the first subparagraph shall not constitute a breach of any contractual or legal restriction on disclosure of information and shall not involve such persons in liability of any kind .


### carry out a review and maintain documentation of his , her or its review of the audit work performed by third - country auditor , statutory auditor , third - country audit entity or audit firm for the purpose of the group audit . the documentation retained by the group auditor shall enable the relevant competent authority to review the work of the group auditor properly . ### evaluate the audit work performed by third - country auditor or statutory auditor and third - country audit entity or audit firm for the purpose of the group audit and document the nature , timing and extent of involvement in the work performed by those auditors , including where applicable the auditor ' s review of relevant parts of those auditors´ audit documentation . the documentation retained by the group auditor shall enable the relevant competent authority to review the work of the group auditor .


### before the reports referred to in articles 22 and 23 are issued , an internal quality control review shall be performed to assess whether the statutory auditor or the key audit partner could reasonably have come to the opinion and conclusions expressed in the draft of these reports . ### before the reports referred to in articles 22 and 23 are issued , an engagement quality control review shall be performed to assess whether the statutory auditor or the key audit partner could reasonably have come to the opinion and conclusions expressed in the draft of those reports in accordance with the international auditing standards referred to in article 26 of directive 2006 / 43 / ec .


### when reviewing the internal quality control , the reviewer shall record at least the following : ### when performing the engagement quality control review , the reviewer shall carry out an objective evaluation of at least the following :


### the oral and written information provided by the statutory auditor or key audit partner to support the main findings of the audit procedures carried out and the conclusions drawn from those findings , whether or not at the request of the internal quality control reviewer ; ### the oral and written information provided by the statutory auditor or key audit partner to support the significant judgements and main findings of the audit procedures carried out and the conclusions drawn from those findings , whether or not at the request of the engagement quality control reviewer ;


### the main findings of the audit procedures carried out and the conclusions drawn from those findings ; ### the significant judgements and main findings of the audit procedures carried out and the conclusions drawn from those findings ;


### the statutory auditor or the audit firm shall present the results of the statutory audit of the public - interest entity in an audit report . ### the statutory auditor or the audit firm shall present the results of the statutory audit of the public - interest entity in an audit report prepared in accordance with the international auditing standards referred to in article 26 of directive 2006 / 43 / ec .


### identify which body within the audited entity appointed the statutory auditor or the audit firm ; ### if not already disclosed in the management report or the annual financial statements for the same financial year , state by whom or by which body the appointment of the statutory auditor or audit firm was made ;


### indicate that the statutory audit was conducted in accordance with the international standards on auditing as referred to in article 20 ; ### indicate that the statutory audit was conducted in accordance with the international standards on auditing referred to in article 26 of directive 2006 / 43 / ec ;


### provide a statement on the situation of the audited entity or , in case of the statutory audit of consolidated financial statements , of the parent undertaking and the group , especially an assessment of the entity ' s or the parent undertaking ' s and group ' s ability to meet its / their obligation in the foreseeable future and therefore continue as a going concern ; ### provide : a conclusion on the appropriateness of management ' s use of the going concern assumption in the preparation of the financial statements in accordance with the applicable financial reporting framework ; and a statement as to whether , based on the audit , the auditor has identified a material uncertainty related to events or conditions that may cast significant doubt about the entity ' s ability to continue as a going concern that the auditor believes needs to be disclosed in accordance with the applicable financial reporting framework ;


### declare that the non - audit services referred to in article 10 were not provided and that the statutory auditor or the audit firm remained completely independent in conducting the audit . where the statutory audit was carried out by an audit firm , the report shall identify each member of the audit engagement team and shall state that all members remained completely independent and had no direct or indirect interest in the audited entity ; ### declare that the prohibited non - audit services referred to in article 10 were not provided and that the statutory auditor or the audit firm remained independent in conducting the audit ; declare that non - audit and non - assurance services provided to the audited public - interest entity other than those referred to in article 10 had appropriate involvement of the audit committee or have been approved by the audit committee . where the statutory audit was carried out by an audit firm , the report shall state that all members of the engagement team remained independent of the audited entity ;


### give an opinion which shall state clearly the opinion of the statutory auditor or the audit firm as to whether the annual or consolidated financial statements give a true and fair view and have been prepared in accordance with the relevant financial reporting framework and , where appropriate , whether the annual or consolidated financial statements comply with statutory requirements ; the audit opinion shall be either unqualified , qualified , an adverse opinion or , if the statutory auditor or audit firm are unable to express an audit opinion , a disclaimer of opinion . in case of a qualified or an adverse opinion or a disclaimer of opinion , the report shall explain the reasons of such decision ; ### give an opinion which shall state clearly the opinion of the statutory auditor or the audit firm as to whether the annual or consolidated financial statements give a true and fair view and have been prepared in accordance with the relevant financial reporting framework and , where appropriate , whether the annual or consolidated financial statements comply with statutory requirements ; in accordance with international standards on auditing the audit opinion shall be either unqualified , qualified , or an adverse opinion . in case of a qualified or an adverse opinion , the report shall explain the reasons of such decision . in the case of credit institutions and insurance undertakings , in accordance with article16 of regulation no 1093 / 2010 and of regulation no 1094 / 2010 respectively , the opinion of the statutory auditor or the audit firm shall state the ' going concern ' of the audited entity , where necessary , and inform the competent authority ;


### give an opinion which shall state clearly the opinion of the statutory auditor or the audit firm as to whether the annual or consolidated financial statements give a true and fair view and have been prepared in accordance with the relevant financial reporting framework and , where appropriate , whether the annual or consolidated financial statements comply with statutory requirements ; the audit opinion shall be either unqualified , qualified , an adverse opinion or , if the statutory auditor or audit firm are unable to express an audit opinion , a disclaimer of opinion . in case of a qualified or an adverse opinion or a disclaimer of opinion , the report shall explain the reasons of such decision ; ### give an opinion which shall state clearly the opinion of the statutory auditor or the audit firm as to whether the annual or consolidated financial statements give a true and fair view of the financial position of the individual entity or consolidated group and of its financial performance and its cash flows in accordance with the relevant financial reporting framework and , comply with statutory accounting requirements ; the audit opinion shall be either unmodified , qualified , an adverse opinion or , if the statutory auditor or audit firm are unable to express an audit opinion , a disclaimer of opinion . in the case of a qualified or an adverse opinion or a disclaimer of opinion , the audit report shall explain the reasons of such decision ;


### refer to any matters to which the statutory auditor or the audit firm draw attention by way of emphasis without qualifying the audit opinion ; ### refer in accordance with international standards on auditing to any matters to which the statutory auditor or the audit firm draw attention by way of emphasis without qualifying the audit opinion ;


### refer to any matters to which the statutory auditor or the audit firm draw attention by way of emphasis without qualifying the audit opinion ; ### refer to any other matters to which the statutory auditor or the audit firm also draw attention by way of emphasis without modifying the audit opinion ;


### the audit report shall be signed and dated by the statutory auditor or the audit firm . where an audit firm carries out the statutory audit , the audit report shall be signed by at least the statutory auditor carrying out the statutory audit on behalf of the audit firm . ### the audit report shall be signed and dated by the statutory auditor or the audit firm . where an audit firm carries out the statutory audit , the audit report shall be signed by the statutory auditor carrying out the statutory audit on behalf of the audit firm .


### identify the dates of the meetings with the audit committee or the body performing equivalent functions within the audited entity ; ### describe the nature and extent of communication with the audit committee , the management body and the administrative or supervisory body of the audited entity , including the frequency of such communication ;


### describe the distribution of tasks among the statutory auditors and / or the audit firm ; ### include a description of the scope and timing of the audit , and where relevant describe : – the distribution of tasks among the statutory auditors and / or the audit firm ; and – which audit work has been performed by third - country auditor , statutory auditor , third - country audit entity or audit firm in the case of a statutory audit of consolidated financial statements ;


### the additional report to the audit committee shall be signed and dated by the statutory auditor or the audit firm . where an audit firm carries out the statutory audit , the additional report to the audit committee shall be signed by at least the statutory auditor carrying out the statutory audit on behalf of the audit firm . ### the additional report to the audit committee shall be signed and dated by the statutory auditor or the audit firm . where an audit firm carries out the statutory audit , the additional report to the audit committee shall be signed by the statutory auditor carrying out the statutory audit on behalf of the audit firm .


### the statutory auditor or audit firm shall report to the audit committee on key matters arising from the statutory audit , and in particular on material weaknesses in internal control in relation to the financial reporting process . upon request of any of the parties , the statutory auditor or audit firm shall discuss these matters with the audit committee . ### the statutory auditor or audit firm shall report to the audit committee on key matters arising from the statutory audit , and in particular on significant deficiencies in internal control in relation to the financial reporting process . upon request of any of the parties , the statutory auditor or audit firm shall discuss these matters with the audit committee .


### the impairment of the continuous functioning of the public - interest entity ; ### a material threat to , or material doubt concerning , the continuous functioning of the public - interest entity ;


### competent authorities supervising credit institutions and insurance undertakings shall establish regular a dialogue with the statutory auditors and audit firms carrying out the statutory audit of those institutions and undertakings . ### competent authorities supervising public interest entities referred to in article 3 , and shall establish regular a dialogue with the statutory auditors and audit firms carrying out the statutory audit of those institutions and undertakings . the competent authority and the statutory auditor or audit firm shall inform each other and the audited entity about relevant facts or decisions referred to in paragraph 1 . at least once a year , the esrb shall organise a meeting with the statutory auditors and audit firms or networks carrying out the statutory audit of any fsb identified systemically important financial institutions in order to inform the esrb of sectoral or any significant developments in those systemically important financial institutions .


### competent authorities supervising credit institutions and insurance undertakings shall establish regular a dialogue with the statutory auditors and audit firms carrying out the statutory audit of those institutions and undertakings . ### a regular dialogue shall be established between the competent authorities supervising credit institutions and insurance undertakings and the bodies responsible for financial stability and the statutory auditors and audit firms carrying out the statutory audit of those institutions and undertakings .


### the disclosure in good faith to the competent authorities , by the statutory auditor or audit firm , of any fact or decision referred to in paragraph 1 or of any fact during the dialogue foreseen in paragraph 2 shall not constitute a breach of any contractual or legal restriction on disclosure of information and shall not involve such persons in liability of any kind . ### the disclosure in good faith to the competent authorities or to the bodies responsible for financial stability , by the statutory auditor or audit firm , of any fact , information , opinion or decision referred to in paragraph 1 or of any fact , information or opinion emerging during the dialogue provided for in paragraph 2 shall not constitute a breach of any contractual or legal restriction on disclosure of information and shall not involve such persons in liability of any kind .


### the annual financial report or the annual income statement shall be audited in accordance with the provisions of this regulation . ### the annual financial report and the annual income statement shall be subject to statutory audit .


### where the statutory auditor or the audit firm belongs to a network , the statutory auditor or the audit firm shall provide the following additional information in the annual financial report or as an annex to the annual income statement : ### where the statutory auditor or the audit firm belongs to a network , the statutory auditor or the audit firm shall provide the following additional information in the annual financial report or as an annex to the annual income statement , or in the transparency report required by article 27 :


### the audited consolidated financial statements for the network and , where there is a legal entity governing the network , the audited financial statements of such legal entity prepared in accordance with article 4 of directive 2004 / 109 / ec . ### where there is a legal entity governing the network , the audited financial statements of such legal entity prepared in accordance with article 4 of directive 2004 / 109 / ec .


### a statutory auditor or an audit firm that carries out statutory audit of public - interest entities shall make public an annual transparency report at the latest three months after the end of each financial year . the annual transparency report shall be published on the website of the statutory auditor or audit firm and shall remain available on that website for at least five years . ### a statutory auditor or an audit firm that carries out statutory audit of public - interest entities shall make public an annual transparency report at the latest four months after the end of each financial year . the annual transparency report shall be published on the website of the statutory auditor or audit firm and shall remain available on that website for at least five years from the day of publication on the website .


### statutory auditors and audit firms shall communicate to esma and to the competent authorities that the transparency report has been published on the website of the statutory auditor or audit firm or , as appropriate , that it has been updated . ### statutory auditors and audit firms shall communicate to the competent authorities that the transparency report has been published on the website of the statutory auditor or audit firm or , as appropriate , that it has been updated .


### a list of public - interest entities for which the statutory auditor or audit firm has carried out statutory audits during the preceding financial year and a list of the entities from which the statutory auditor or audit firm receives more than 5% of its annual revenue ; ### a list of public - interest entities for which the statutory auditor or audit firm has carried out statutory audits during the preceding financial year and a list of the entities from which the statutory auditor or audit firm receives more than 5% of its annual revenue generated by fees coming from statutory audit and non audit services ;


### a statutory auditor or audit firm shall provide annually to his , her or its competent authority a list of the audited public - interest entities by revenue generated from them . ### a statutory auditor or audit firm shall provide annually to his , her or its competent authority a list of all the public - interest entities audited by that statutory auditor or audit firm , together with details of the services provided to , and the fees received in respect of each category or service from , each public - interest entity .


### a majority of the members of the audit committee shall be independent . the chairman of the audit committee shall be appointed by its members and shall be independent . ### a majority of the members of the audit committee shall be independent . the chairperson of the audit committee shall be elected annually by the general meeting of shareholders of the audited entity and shall be independent . the chairperson shall report directly to the shareholders .


### the public - interest entities referred to in points and shall explain to the public the reasons for which it considers it not appropriate to have either an audit committee or an administrative or supervisory body entrusted to carry out the functions of an audit committee . ### the public - interest entities referred to in point shall explain to the national competent authority the reasons for which it considers it not appropriate to have either an audit committee or an administrative or supervisory body entrusted to carry out the functions of an audit committee .


### be responsible for the procedure on the selection of statutory auditor or audit firm and recommend the statutory auditor or audit firm to be appointed in accordance with articles 32 ; ### be responsible for the procedure for the selection of statutory auditor or audit firm ;


### for the purposes of the application of article 37 of directive 2006 / 43 / ec , for the appointment of statutory auditors or audit firms by public - interest entities , the conditions set out in paragraphs 2 to 5 of this article shall apply . ### for the purposes of the application of article 37 of directive 2006 / 43 / ec , for the appointment of statutory auditors or audit firms by public - interest entities , the conditions set out in paragraphs 2 to 5 of this article shall apply , but may be subject to paragraph 9 .


### 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 shall be prepared following a selection procedure organised by the audited entity respecting the following criteria :


### the audited entity shall prepare tender documents to the intention of the invited statutory auditor or audit firm . those tender documents shall allow them to understand the business of the audited entity and the type of statutory audit that is to be carried out . the tender documents shall contain transparent and non - discriminatory selection criteria that shall be used by the audited entity to evaluate the proposals made by statutory auditors or audit firms ; ### the audited entity shall prepare tender documents for the attention of the invited statutory auditor or audit firm . those tender documents shall allow them to understand the business of the audited entity and the type of statutory audit that is to be carried out . the tender documents shall contain transparent and non - discriminatory selection criteria that shall be used by the audited entity to evaluate the proposals made by statutory auditors or audit firms ;


### public - interest entities which meet the criteria set out in points and of article 2 of directive 2003 / 71 / ec shall not be required to apply the selection procedure referred to in paragraph 4 . ### public - interest entities which meet the criteria set out in points and of article 2 of directive 2003 / 71 / ec shall not be required to apply the selection procedure referred to in paragraph 3 .


### 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 absence of a reply by the competent authority within the prescribed time - limit following submission of the audit committee ' s recommendation shall be considered as constituting an implied consent to the recommendation . ### 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 who shall submit them to esma . esma shall consult on such proposals with eba and eiopa . 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 and notified to esma . the absence of a reply by the competent authority or esma within the prescribed time - limit following submission of the audit committee ' s recommendation shall be considered as constituting an implied consent to the recommendation .


### the key audit partner responsible for carrying out a statutory audit shall cease his , her or their participation in the statutory audit of the audited entity after a period of seven years from the date of appointment has elapsed . he , she or they may participate in the statutory audit of the audited entity again after a period of at least three years . ### the key audit partner responsible for carrying out a statutory audit shall cease his , her or their participation in the statutory audit of the audited entity after a maximum period of seven years from the date of appointment has elapsed . he , she or they may participate in the statutory audit of the audited entity again after a period of at least three years has elapsed since the date on which he , she or they resigned as statutory auditor or key audit partner from the audit engagement .


### a person shall not be involved in the governance of those authorities if in the course of the three previous years he or she : ### a natural person shall not be involved in the governance of the competent authorities as defined in article 35 if in the course of the previous two years he or she :


### was an employee or otherwise associated with an audit firm . ### was an employee in an audit firm .


### the funding of those authorities shall be secure and free from any possible undue influence by statutory auditors and audit firms . ### the funding of those authorities shall be secure and free from undue influence by statutory auditors and audit firms .


### the competent authority shall be responsible for the quality assurance system and shall organise it in a manner that is independent of the reviewed statutory auditors and audit firms . ### the competent authority shall have the ultimate responsibility for the quality assurance system and shall organise it in a manner that is free from undue influence by the reviewed statutory auditors and audit firms .


### the competent authority may contract experts for carrying out specific inspections when the number of inspectors within the authority is insufficient . the competent authority may also be assisted by experts when this is essential for the proper conduct of an inspection . in such instances , the competent authorities and the experts shall comply with the requirements of this paragraph . experts shall be independent from professional associations and bodies . ### the competent authority may contract experts for carrying out specific inspections when the number of inspectors within the authority is insufficient . the competent authority may also be assisted by experts when this is essential for the proper conduct of an inspection . in such instances , the competent authorities and the experts shall comply with the requirements of this paragraph .


### market monitoring ### monitoring market quality and competitiveness


### the competent authorities referred to in article 35 shall regularly monitor the developments in the market for providing statutory audit services to public - interest entities . ### the competent authorities referred to in article 35 and the european competition network shall regularly monitor the developments in providing high - quality statutory audit services to public - interest entities .


### by x x 20xx [ 2 years after the entry into force of the regulation ] , and at least on a two - year basis thereafter , each competent authority shall draw up a report on this issue and submit it to esma , eba and eiopa . ### by x x 20xx [ 2 years after the entry into force of the regulation ] , and at least on a four - year basis thereafter , each competent authority shall draw up a report on this issue and submit it to esma and the commission .


### esma , eba and eiopa shall use those reports to draw up a joint report on the situation at union level . the report shall be submitted to the commission , the european central bank and the european systemic risk board . ### the commission following consultation with esma shall use those reports to draw up a joint report on the situation at union level . the report shall be submitted to member states and their parliaments , the european parliament , the european central bank and the european systemic risk board .


### without prejudice to article 52 , competent authorities designated pursuant to article 35 shall require at least the six largest audit firms in terms of statutory audits of large public - interest entities in each member state to establish a contingency plan addressing a possible event threatening the continuity of operations of the concerned firm . ### without prejudice to article 52 , competent authorities designated pursuant to article 35 shall require at least the six largest audit firms in terms of statutory audits of public - interest entities in each member state to establish a contingency plan addressing a possible event threatening the continuity of operations of the concerned firm .


### the competent authority shall make public a list of the firms concerned by the first subparagraph and update it annually . the competent authority shall use the information provided by statutory auditors and audit firms pursuant to article 28 to calculate which the largest six audit firms are . ### the competent authority shall make public a list of the firms concerned by the first subparagraph and update it annually . the competent authority shall use the information provided by statutory auditors and audit firms pursuant to article 29 to calculate which the largest six audit firms are .


### the inspections findings and conclusions referred to in article 40 . ### the report referred to in article 40 .


### esma shall provide advice to the competent authorities in the cases provided for in this regulation . the competent authorities shall consider that advice before taking any final decision under this regulation . ### esma shall provide advice to the competent authorities in the cases provided for in this regulation . the competent authorities shall consider that advice before taking any final decision under this regulation . the internal committee may create specific colleges of competent authorities to facilitate quality assurance , investigations , the european quality certificate referred to in article 50 , cooperation in inspections , contingency planning and administrative sanctions .


### common standards on the content and presentation of the report referred to in article 23 ; ### common standards on the content and presentation of the report referred to in article 23 respecting reporting obligations resulting from national requirements ;


### common standards on the oversight activity of the audit committee referred to in article 24 ; ### common standards on the independence of the oversight activity of the audit committee referred to in article 24 due to risks resulting from any direct or indirect financial , business , employment or other relationship between audit committee members and the management of the audited entity ;


### common standards and best practices regarding the dismissal of auditors , in particular on the existence of proper grounds for it , as referred to in article 34 ; ### common standards and best practices on the existence of proper grounds regarding the dismissal of auditors , as referred to in article 34 ;


### enforcement practices and activities to be conducted by competent authorities under this regulation ; ### common standards and best practices in the auditing area facilitating the consistent enforcement of applicable accounting standards , especially impairment rules ;


### common standards and best practices for conducting quality assurance reviews provided for in article 40 , taking into consideration , in particular : ### common standards and best practices within the framework of the international auditing standards as referred to in article 20 for conducting quality assurance reviews provided for in article 40 , taking into consideration , in particular :


### ‘ target level’ means 1 . 5% of eligible deposits for the coverage of which a deposit guarantee scheme is responsible ; ### ‘ target level’ means an amount of no less than 1 . 0% of covered deposits reached over a period of 10 years . member states may decide to implement schemes that are either funded ex - ante or ex - post , subject to an observation period until 2015 to allow member states to reassess the benefits of ex - ante or ex - post schemes in light of basel observation periods . if , following or during the observation period a scheme that has been partly or fully funded ex - post becomes ex - ante the 10 year funding period shall start from the date of conversion to ex - ante ;


### the european banking authority shall periodically conduct peer reviews pursuant to article 15 of the [ eba regulation ] in this regard . deposit guarantee schemes shall be bound to professional secrecy referred to in article 56 of that regulation when exchanging information with the european banking authority . ### the european banking authority shall periodically conduct peer reviews pursuant to article 15 of the [ eba regulation ] in this regard , such peer reviews are to include inter - alia corporate governance practices under article 3 . 7 a . deposit guarantee schemes shall be bound to professional secrecy referred to in article 56 of that regulation when exchanging information with the european banking authority .


### member states shall monthly inform the european banking authority of the amount of eligible deposits and covered deposits in their member state and of the amount of the available financial means of their deposit guarantee schemes . this information shall be confirmed by the competent authorities and shall , accompanied by this confirmation , transmitted within 10 days from the end of each month to the european banking authority . ### member states shall annually inform the european banking authority of the amount of eligible deposits and covered deposits in their member state and of the amount of the available financial means of their deposit guarantee schemes . this information shall be confirmed by the competent authorities and shall , accompanied by this confirmation , transmitted within 4 months from the end of each year to the european banking authority .


### with effect from 1 july 2012 , the retail charge of a euro - sms tariff which a home provider may levy from its roaming customer for a regulated roaming sms message sent by that roaming customer may vary for any roaming sms message but shall not exceed eur 0 , 10 . without prejudice to articles 13 and 19 , the regulated maximum retail charge for the euro - sms tariff shall remain at eur 0 , 10 until 30 june 2016 . ### with effect from 1 july 2012 , the retail charge of a euro - sms tariff which a home provider may levy from its roaming customer for a regulated roaming sms message sent by that roaming customer shall not exceed eur 0 , 08 . without prejudice to articles 13 and 19 , the regulated maximum retail charge for the euro - sms tariff shall remain at eur 0 , 08 until 30 june 2016 .


### home providers shall ensure that their roaming customers , both before and after the conclusion of a contract , are kept adequately informed of the charges which apply to their use of regulated data roaming services , in ways which facilitate customers ' understanding of the financial consequences of such use and permit them to monitor and control their expenditure on regulated data roaming services in accordance with paragraphs 2 and 3 . the safeguard mechanisms referred to in paragraph 3 shall not apply to pre - paid customers . ### home providers shall ensure that their roaming customers , both before and after the conclusion of a contract , are kept adequately informed of the charges which apply to their use of regulated data roaming services , in ways which facilitate customers ' understanding of the financial consequences of such use and permit them to monitor and control their expenditure on regulated data roaming services in accordance with paragraphs 2 and 3 . the safeguard mechanisms referred to in paragraph 3 shall not apply to pre - paid customers , save where they have concluded a pre - paid agreement with automatic credit increase .


### proposal for a regulation of the european parliament and of the council amending council regulation no 1967 / 2006 concerning management measures for the sustainable exploitation of fishery resources in the mediterranean sea ### proposal for a regulation of the european parliament and of the council amending council regulation no 1967 / 2006 concerning management measures for the conservation and sustainable exploitation of fishery resources in the mediterranean sea


### in order to apply some of the provisions of regulation no 1967 / 2006 , the power to adopt acts in accordance with article 290 of the treaty should be delegated to the commission in respect of the following : ### in order to supplement or amend certain non - essential elements of regulation no 1967 / 2006 , the power to adopt acts in accordance with article 290 of the treaty should be delegated to the commission in respect of the following :


### further technical and scientific information is needed to duly take into account the specificities of the mediterranean fisheries to enable the commission to establish possible technical specifications limiting the maximum dimension of trawl nets and the maximum number of nets in multi - rig trawl nets , as mentioned above ; ### the conservation of fishery resources in the mediterranean sea is of particular importance and should therefore be mentioned in the title of regulation no 1967 / 2006 .


### article 30 is replaced by the following : the annexes shall be amended by means of delegated acts adopted in accordance with article 30a . ### article 30 is deleted .


### the delegation of powers referred to in articles 4 , 13 and , the first subparagraph of article 26 , the second subparagraph of article 27 , article 30 , annex i and annex ii shall be conferred for an indeterminate period of time from the date of the entry into force of this regulation . ### the power to adopt delegated acts referred to in articles 4 , 7 and , 13 and , the fourth subparagraph of article 13 , article 19 and , the first subparagraph of article 26 and the second subparagraph of article 27 shall be conferred on the commission for a period of three years from …* . the commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the three - year period . 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 . ______________ * oj please insert the date of the entry into force of this regulation .


### square mesh panels may be inserted into any towed net and shall be placed in front of any extension piece or at any point between the front of any extension piece and the posterior of the cod - end . it shall not be obstructed in any way by either internal or external attachments . it shall be constructed of knotless netting or of netting constructed with non - slip knots , and shall be inserted in such a way that the meshes remain fully open at all times while fishing . detailed rules for further technical specifications of square mesh panels shall be established by means of delegated acts adopted in accordance with article 30a . ### square mesh panels may be inserted into any towed net and shall be placed in front of any extension piece or at any point between the front of any extension piece and the posterior of the cod - end . it shall not be obstructed in any way by either internal or external attachments . it shall be constructed of knotless netting or of netting constructed with non - slip knots , and shall be inserted in such a way that the meshes remain fully open at all times while fishing .


### in annex ii , point 7 is replaced by the following : 7 . technical specifications limiting the maximum dimension of floatline , groundrope , circumference or perimeter of trawl nets along with the maximum number of nets in multi - rig trawl nets may be established by the commission by means of delegated acts adopted in accordance with article 30a . ### in annex ii , point 7 is deleted .


### the eib should continue to finance investment projects in the areas of social , environmental and economic infrastructure , and should consider increasing its activity in support of health and education infrastructure when there is clear added value in doing so . ### the eib should continue to finance investment projects in the areas of social , environmental and economic infrastructure , and should consider increasing its activity in support of health and education infrastructure in conjunction with furthering the core objectives of eu ' s long - term development policy .


### while the eib ' s strength remains its distinctiveness as an investment bank , eib financing operations should contribute to the general principles guiding union external action , as referred to in article 21 of the treaty on european union , of promoting and consolidating democracy and the rule of law , human rights and fundamental freedoms , and to the implementation of international environmental agreements to which the union is a party . in particular , in relation to developing countries , eib financing operations should foster their sustainable economic , social and environmental development , particularly in the most disadvantaged amongst them , their smooth and gradual integration into the world economy , the campaign against poverty , as well as compliance with objectives approved by the union in the context of the united nations and other competent international organisations . while contributing to the implementation of the measures necessary to further the objectives of union development cooperation policy in accordance with article 209 of the treaty , the eib should strive to support indirectly the achievement of the un ' s 2015 millennium development goals in all regions where it is active . ### while the eib ' s strength remains its distinctiveness as an investment bank , eib financing operations should contribute to the general principles guiding union external action , as referred to in article 21 of the treaty on european union , of promoting and consolidating democracy and the rule of law , human rights and fundamental freedoms , and to the implementation of international environmental agreements to which the union is a party . in particular , in relation to developing countries , eib financing operations should foster their sustainable economic , social and environmental development , particularly in the most disadvantaged amongst them , their smooth and gradual integration into the world economy , the campaign against poverty , as well as compliance with objectives approved by the union in the context of the united nations and other competent international organisations . while contributing to the implementation of the measures necessary to further the objectives of union development cooperation policy in accordance with article 209 of the treaty , the eib should strive to support indirectly the achievement of the un ' s 2015 millennium development goals , as well as the un ' s post - 2015 development goals in all regions where it is active and in all regions where it will continue to be active or will start operations post - 2015 .


### it is necessary to ensure that aifm operate subject to robust governance controls . aifm should be managed and organised so as to minimise conflicts of interest . recent developments underline the crucial need to separate asset safe - keeping and management functions , and segregate investor assets from those of the manager . to this end , the aifm has to appoint a depositary and entrust it with the booking of investor money on a segregated account , the safe - keeping of financial instruments and the verification of whether the aif or the aifm on behalf of the aif has obtained ownership of all other assets . ### it is necessary to ensure that aifm operate subject to robust governance controls . aifm should be managed and organised so as to minimise conflicts of interest . recent developments underline the crucial need to separate asset safe - keeping and management functions , and segregate investor assets from those of the manager . to this end , the aifm has to ensure that a separate depositary is appointed to provide depository functions with respect to aif . the depositary will be responsible for ensuring that investor money is booked correctly in segregated accounts , for the safe - keeping of financial instruments , including the holding in custody of financial instruments that can be kept , and the verification of whether the aif or the aifm on behalf of the aif has obtained ownership of all other assets . when ensuring that investor money is booked in segregated accounts , including where this is done by a person other than the depositary , the depositary should at least ensure that appropriate and rigorous processes for segregation are in place and routinely observed . the holding of assets could be delegated to a third party , which in its turn could delegate this function . the depositary and third parties may maintain a common segregated account for multiple aif . a depositary should act honestly , fairly , professionally , independently and in the interests of the aif or , where the aif is not an undertaking , the investors of the aif . these requirements should however be seen in the context of the whole relationship between the depositary and the aif . they should not , for example , prevent a depositary from doing business in its own name but on behalf of the aif where that is required by the very nature of the transaction and where the aif is in agreement . a depositary may in some cases act as a finance provider or otherwise as a counterparty to the aif , and may under these circumstances use assets of the aif as collateral or in other ways provide services to the aif which could cause the depositary to incur credit risk to the aif . acts that a depositary may undertake as a consequence of such arrangements with an aif should not be deemed contrary to the interests of the aif or , where the aif is not an undertaking , the investors of the aif . where an aif transfers full ownership of financial instruments or funds to a depositary for the purpose of securing or otherwise covering present or future , actual or contingent or prospective obligations , such financial instruments or funds should likewise no longer be regarded as belonging to the aif . the requirement for the depositary to act honestly , fairly , professionally , independently and in the interests of the aif or , where the aif is not an undertaking , the investors of the aif , includes a requirement to consider the appropriateness of any such transfer arrangements , including the extent to which the relevant financial instruments or funds are transferred in an amount which corresponds to the obligations in respect of which the transfer is made . the duties of the aifm to act honestly , with due skill , care and diligence , fairly and in the best interests of the aif it manages also include this requirement .


### for each aif it manages , the aifm shall ensure that a depositary is appointed to fulfil , where relevant , the following tasks : ### for each aif established in the community which it manages , the aifm shall ensure that a depositary is appointed to fulfil , where relevant , the following depositary functions :


### receive all payments made by investors when subscribing units or shares of an aif managed by the aifm and book them on behalf of the aifm in a segregated account ; ### ensure that all payments made by or on behalf of investors upon the subscription of units or shares of an aif managed by the aifm and all payments received by or for the benefit of investors upon the repurchase of shares or units of such an aif have been correctly booked on behalf of the aif in segregated accounts , including where those payments are made or received by a person other than the depositary ;


### safe - keep any financial instruments which belong to the aif ; ### safe - keep any financial instruments which belong to the aif , namely : hold in custody all financial instruments that can be kept and make adequate arrangements so as to safeguard the aif ' s ownership rights , especially in the event of the depositary ' s insolvency , including arrangements to ensure that those financial instruments are registered in the depositary ' s books within segregated accounts or a common segregated account for multiple aif , so that in the event of the depositary ' s default they can be clearly identified as separate from the assets of the depositary ; maintain the records necessary to verify the ownership of financial instruments that cannot be kept on the basis of the information provided by the aifm and external evidence of transactions made , and arrange for records to be kept of services and transactions undertaken by it which shall be sufficient to enable the competent authority of the aifm’s home member state to monitor the aifm’s compliance with its obligations under this subparagraph ;


### verify whether the aif or the aifm on behalf of the aif has obtained the ownership of all other assets the aif invests in . ### verify whether the aif or the aifm on behalf of the aif holds an ownership interest in all other assets the aif invests in , based on internal and external evidence of ownership .


### the depositary shall act independently and solely in the interest of aif investors . ### in the context of their respective roles , the aifm and the depositary shall act honestly , fairly , professionally , independently and in the interest of the aif or , where the aif is not an undertaking , the investors of the aif .


### the depositary shall be liable to the aifm and the investors of the aif for any losses suffered by them as a result of its failure to perform its obligations pursuant to this directive . ### the depositary shall be liable to the aifm for any losses suffered by them as a result of its unjustifiable failure to perform its obligations pursuant to this directive or its improper performance of them .


### liability to aif investors may be invoked either directly or indirectly through the aifm , depending on the legal nature of the relationship between the depositary , the aifm and the investors . the depositary ' s liability shall not be affected by any delegation referred to in paragraph 4 . ### liability to aif investors may be invoked either directly or indirectly through the aifm , depending on the legal nature of the relationship between the depositary , the aifm and the investors . the depositary ' s liability shall not be affected by any delegation referred to in paragraph 4 except as provided for in that paragraph .


### in no case shall the aifm ' s liability be affected by the fact that the aifm has delegated functions to a third party , nor shall the aifm delegate its functions to the extent that , in essence , it can no longer be considered to be the manager of the aif . ### in no case shall the aifm ' s liability be affected by the fact that the aifm has delegated functions to a third party , nor shall the aifm delegate its functions to the extent that , in essence , it can no longer be considered to be the manager of the aif and to the extent that it becomes a ' letter - box ' entity .


### a description of the investment strategy and objectives of the aif , all the assets which the aif can invest in and of the techniques it may employ and of all associated risks , any applicable investment restrictions , the circumstances in which the aif may use leverage , the types and sources of leverage permitted and the associated risks and of any restrictions to the use of leverage ; ### a description of the investment strategy and objectives of the aif , the types of assets which the aif can invest in and of the techniques it may employ and of the associated risks , any applicable investment restrictions , the circumstances in which the aif may use leverage , the types and sources of leverage permitted and the associated risks and of any restrictions in the use of leverage ;


### a description of all fees , charges and expenses and of the maximum amounts thereof which are directly or indirectly borne by investors ; ### a description of all fees , charges and expenses and of the maximum amounts or rates thereof which are directly or indirectly borne by investors ;


### in addition to the original objectives of the european capitals of culture which were to highlight the richness and diversity of european cultures and the features they share and to promote greater mutual understanding between european citizens , cities holding the title have also progressively added a new dimension by using the leverage effect of the title to stimulate the city ' s more general development . ### in addition to the original objectives of the european capitals of culture which were to highlight the richness and diversity of european cultures and national histories , the features they share and to promote greater mutual understanding between european citizens , cities holding the title have also progressively added a new dimension by using the leverage effect of the title to stimulate the city ' s more general development .


### cities in candidate and potential candidate countries shall also have the possibility to apply for the european capital of culture title in the framework of an open competition organised every third year in parallel with the competitions in the two member states , in accordance with the calendar in the annex . ### cities in candidate and potential candidate countries shall also have the possibility to apply for the european capital of culture title in the framework of an open competition organised every second year in parallel with the competitions in the two member states , in accordance with the calendar in the annex .


### humanitarian aid is of course the primary instrument in this kind of situation and the union has been at the forefront in this field since the beginning of the emergency . ### humanitarian aid is of course the primary instrument in this kind of situation and the union has been at the forefront in this field since the beginning of the emergency pledging in excess of eur 415 million in emergency aid to pakistan .


### it will be important to use all available means to support pakistan ' s recovery from this emergency and progress towards future development . ### it will be important to use all available means to support pakistan ' s recovery from this emergency , including the proposed exceptional trade measures to boost pakistan ' s exports in order to contribute to its future economic development .


### in particular , the european council underlined its firm commitment to grant exclusively to pakistan increased market access to the union through the immediate and time limited reduction of duties on key imports from pakistan . ### in particular , the european council underlined its firm commitment to grant exclusively to pakistan increased market access to the union through the exceptional , immediate and time limited reduction of duties on key imports from pakistan . on receipt of this mandate , the commission proposed a package identifying 75 tariff lines specific to pakistan ' s core export sectors in those areas worst hit by the floods , asserting that an increase in pakistani exports to the eu of no less than eur 100 million a year would provide real , substantial and worthwhile assistance to the region .