### this regulation establishes compositional and information requirements for the following categories of food : ### this regulation establishes compositional and information requirements for categories of food for specific nutritional purposes :


### food for special medical purposes . ### food for special medical purposes , including formula intended for low birth - weight and pre - term infants .


### the definitions of ' labelling ' and ' pre - packaged foodstuff ' in points and of article 1 of directive 2000 / 13 / ec ; ### the definitions of ‘ prepacked food’ and ' labelling ' in points and of article 2 of regulation no 1169 / 2011 ;


### food referred to in article 1 may be placed on the market only if it complies with the provisions of this regulation . ### food referred to in article 1 and 1 may be placed on the market only if it complies with the provisions of this regulation .


### food referred to in article 1 may be placed on the market only if it complies with the provisions of this regulation . ### food referred to in article 1 and may be placed on the market only if it complies with the provisions of this regulation .


### the composition of food referred to in article 1 shall be such that it is appropriate to satisfy the nutritional needs of , and it is suitable for the persons to whom it is intended , in accordance with generally accepted scientific data . ### the composition of food referred to in article 1 and 1 shall be such that it is appropriate to satisfy the specific nutritional needs of , and it is suitable for the persons to whom it is intended , in accordance with generally accepted scientific data .


### subject to the general requirements of articles 7 and 9 and taking into account directive 2006 / 141 / ec , directive 2006 / 125 / ec and directive 1999 / 21 / ec as well as any technical and scientific progress , the commission shall be empowered to adopt delegated regulations , no later than [ 2 years after the date of the entry into force of this regulation ] , in accordance with article 15 , with respect to the following : ### subject to the general requirements of articles 7 and 9 and taking into account directive 2006 / 141 / ec , directive 2006 / 125 / ec , directive 1999 / 21 / ec and directive 96 / 8 / ec as well as any technical and scientific progress , the commission shall be empowered to adopt delegated regulations for foods covered by article 1 , no later than [ 2 years after the date of the entry into force of this regulation ] , in accordance with article 15 , with respect to the following :


### subject to the requirements of articles 7 and 9 and taking into account relevant technical and scientific progress , the commission shall update the delegated regulations mentioned in paragraph 2 in accordance with article 15 . ### subject to the requirements of articles 7 and 9 and taking into account relevant technical and scientific progress , the commission shall update the delegated acts mentioned in paragraph 2 in accordance with article 15 .


### it should be clarified that regulation no [ … ] of the european parliament and of council of… on the financing , management and monitoring of the common agricultural policy13 [ horizontal cap regulation : hzr ] and the provisions adopted pursuant to it should apply in relation to the measures set out in this regulation . for the sake of consistency with other legal instruments relating to the cap , some rules currently provided for in regulation no 73 / 2009 , are now laid down in regulation no [ … ] [ hzr ] , in particular rules to guarantee compliance with the obligations laid down by direct payment provisions , including checks and the application of administrative measures and administrative penalties in case of non - compliance , rules related to cross - compliance such as the statutory management requirements , the good agricultural and environmental condition , the monitoring and evaluation of relevant measures and rules related to the recovery of undue payments . ### it should be clarified that regulation no [ . . . ] of the european parliament and of council of . . . on the financing , management and monitoring of the common agricultural policy13 [ horizontal cap regulation : hzr ] and the provisions adopted pursuant to it should apply in relation to the measures set out in this regulation . for the sake of consistency with other legal instruments relating to the cap , some rules currently provided for in regulation no 73 / 2009 , are now laid down in regulation no [ . . . ] [ hzr ] , in particular rules to guarantee compliance with the obligations laid down by direct payment provisions , including checks and the application of administrative measures and administrative penalties in case of non - compliance , rules related to cross - compliance such as the statutory management requirements , the good agricultural and environmental condition , the monitoring and evaluation of relevant measures and rules related to the recovery of undue payments . the tasks of the certification body and the obligation to provide an opinion on the legality and regularity of the underlying transactions , as well as the respect of the principle of sound financial management , shall not lead to a further increase of the administrative burden in member states .


### in order to supplement or amend certain non - essential elements of this regulation , the power to adopt delegated acts in accordance with article 290 of the treaty should be delegated to the commission . 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 council . ### in order to supplement or amend certain non - essential elements of this regulation , the power to adopt delegated acts in accordance with article 290 of the treaty should be delegated to the commission . only the power to adopt non - legislative acts of general application to supplement or amend certain non - essential elements of the legislative act is delegated . the objectives , content , scope and duration of the delegation of power shall be explicitly defined in the legislative act and the essential elements of an area shall be reserved for the legislative act and accordingly shall not be subject of a delegation of power . thus , all important legal aspects shall be defined in the basic act . the commission ensures that the administrative burden linked to delegated acts does not exceed the extent strictly required . moreover , legal certainty must be guaranteed . it is of particular importance that the commission reduces administrative costs and 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 council .


### in order to take into account new legislation on support schemes that may be adopted after the entry into force of this regulation , the power to adopt acts in accordance with article 290 of the treaty should be delegated to the commission for the purpose of amending the list of support schemes covered by this regulation . ### in order to take into account new legislation on support schemes that may be adopted after the entry into force of this regulation , the power to adopt acts in accordance with article 290 of the treaty should be delegated to the commission for the purpose of amending the list of support schemes set out in annex i to this regulation .


### experience from the application of the various support schemes for farmers has shown that support was in a number of cases granted to beneficiaries whose business purpose was not or only marginally targeted at an agricultural activity , such as airports , railway companies , real estate companies and companies managing sport grounds . to ensure the better targeting of support , member states should refrain from granting direct payments to such natural and legal persons . smaller part - time farmers contribute directly to the vitality of rural areas , for that reason they should not be prevented from being granted direct payments . ### experience from the application of the various support schemes for farmers has shown that support was in a number of cases granted to beneficiaries whose business purpose was not or only marginally targeted at an agricultural activity , such as airports , railway companies , real estate companies and companies managing sport grounds . to ensure the better targeting of support , member states should refrain from granting direct payments to such natural and legal persons . however , such rules shall maintain cost - effectiveness and avoid excessive administrative burden for member states and beneficiaries . smaller part - time farmers contribute directly to the vitality of rural areas , for that reason they should not be prevented from being granted direct payments .


### one of the objectives of the new cap is the enhancement of environmental performance through a mandatory ‘ greening’ component of direct payments which will support agricultural practices beneficial for the climate and the environment applicable throughout the union . for that purpose , member states should use part of their national ceilings for direct payments to grant an annual payment , on top of the basic payment , for compulsory practices to be followed by farmers addressing , as a priority , both climate and environment policy goals . those practises should take the form of simple , generalised , non - contractual and annual actions that go beyond cross - compliance and are linked to agriculture such as crop diversification , maintenance of permanent grassland and ecological focus areas . the compulsory nature of those practises should also concern farmers whose holdings are fully or partly situated in ‘ natura 2000’ areas covered by council directive 92 / 43 / eec of 21 may 1992 on the conservation of natural habitats and of wild fauna and flora19 and by directive 2009 / 147 / ec of the european parliament and of the council of 30 november 2009 on the conservation of wild birds20 , as long as these practises are compatible with the objectives of those directives . farmers who fulfil the conditions laid down in council regulation no 834 / 2007 of 28 june 2007 on organic production and labelling of organic products and repealing regulation no 2092 / 9121 should benefit from the ‘ greening’ component without fulfilling any further obligation , given the recognised environmental benefits of the organic farming systems . non - respect of the ‘ greening’ component should lead to penalties on the basis of article 65 of regulation no [ … ] [ hzr ] . ### one of the objectives of the new cap is the enhancement of environmental performance through a ' greening ' component of direct payments which will support agricultural practices beneficial for the climate and the environment applicable throughout the union . for that purpose , member states should use part of their national ceilings for direct payments to grant an annual payment , on top of the basic payment , for practices to be followed by farmers addressing , as a priority , both climate and environment policy goals . those practises should take the form of simple , generalised , non - contractual and annual actions that go beyond cross - compliance and are linked to agriculture such as crop diversification , maintenance of permanent grassland and ecological focus areas , while taking into adequate account national and regional specificites . for reasons of transparency and efficiency practical hurdles for farmers and administrative complexity for authorities must be avoided ; in order to streamline the administrative procedures associated with these measures , all agricultural controls should be , as far as possible , operated at the same time . those practises should also concern farmers whose holdings are fully or partly situated in ' natura 2000 ' areas covered by council directive 92 / 43 / eec of 21 may 1992 on the conservation of natural habitats and of wild fauna and flora19 and by directive 2009 / 147 / ec of the european parliament and of the council of 30 november 2009 on the conservation of wild birds20 , as long as these practises are compatible with the objectives of those directives . farmers who fulfil the conditions laid down in council regulation no 834 / 2007 of 28 june 2007 on organic production and labelling of organic products and repealing regulation no 2092 / 9121 should benefit from the ' greening ' component without fulfilling any further obligation , given the recognised environmental benefits of the organic farming systems . areas which are cultivated with crops not subject to any nitrogen fertilization or areas where perennial energy crops have been planted shall be considered as ecological focus areas . the same applies to areas which are farmed under ' natura 2000 ' or subject to farming requirements under the water framework directive or where more than 75 % of the agricultural area is subject to obligations regarding agri - environmental measures . possible sanction imposed by non - respect of the ' greening ' component shall not go beyond the ' greening component ' . any reduction or penalties imposed by non - respect of the greening components shall remain in the member states and regions where it originated if the member state ' s error rate within the agricultural policy area does not exceed 2 % .


### in order to promote the sustainable development of agriculture in areas with specific natural constraints , member states should be able to use part of their national ceilings for direct payments to grant an annual area - based payment , on top of the basic payment , to all farmers operating in such areas . that payment should not replace the support given under rural development programs and should not be granted to farmers in areas which were designated in accordance with council regulation no 1698 / 2005 of 20 september 2005 on support for rural development by the european agricultural fund for rural development 22 but have not been designated in accordance with article 46 of regulation no [ … ] of the european parliament and of the council of … . on support for rural development by the european agricultural fund for rural development 23 [ rdr ] . ### in order to promote the sustainable development of agriculture in areas with specific natural constraints , member states should be able to use part of their national ceilings for direct payments to grant an annual area - based payment , on top of the basic payment , to all farmers operating in such areas . that payment should not replace the support given under rural development programs and should not be granted to farmers in areas which were designated in accordance with council regulation no 1698 / 2005 of 20 september 2005 on support for rural development by the european agricultural fund for rural development 22 but have not been designated in accordance with article 46 of regulation no [ . . . ] of the european parliament and of the council of . . . . on support for rural development by the european agricultural fund for rural development 23 [ rdr ] . the criteria used to define areas with specific natural contraints shall not increase the current level of bureaucracy , build up on existing systems which meet the objectives and shall lead to a comparable system within the eu .


### the commission shall be empowered to adopt delegated acts in accordance with article 55 for the purpose of amending the list of support schemes set out in annex i . ### in accordance with article 290 of the treaty a legislative act may delegate to the commission the power to adopt non - legislative acts of general application to supplement or amend certain non - essential elements of the legislative act . the objectives , content , scope and duration of the delegation of power shall be explicitly defined in the legislative acts . the essential elements of an area shall be reserved for the legislative act and accordingly shall not be subject of a delegation of power . the commission shall be empowered to adopt delegated acts in accordance with article 55 for the purpose of amending the list of support schemes set out in annex i .


### farmers participating in the small farmers scheme shall be exempted from the agricultural practises provided for in chapter 2 of title iii . ### farmers participating in the small farmers scheme shall be exempted from the agricultural practises provided for in chapter 2 of title iii , however , they must fulfill cross compliance obligations and controls as laid down in regulation no [ . . . ] [ hzr ] .


### regulation of the european parliament and of the council establishing a european banking authority ### regulation of the european parliament and of the council establishing a european supervisory authority


### a report published on 25 february 2009 by a high - level group of experts chaired by j . de larosière , requested by the commission , concluded that the supervisory framework needed to be strengthened to reduce the risk and severity of future financial crises . it recommended far - reaching reforms to the structure of supervision of the financial sector in the community . that group of experts also concluded that a european system of financial supervisors should be created , comprising three european supervisory authorities , one for the banking sector , one for the securities sector and one for the insurance and occupational pensions sector , and the creation of a european systemic risk council . ### a report published on 25 february 2009 by a high - level group of experts chaired by j . de larosière , requested by the commission , concluded that the supervisory framework needed to be strengthened to reduce the risk and severity of future financial crises . it recommended reforms to the structure of supervision of the financial sector in the community . that group of experts also concluded that a european system of financial supervisors should be created , comprising three european supervisory authorities , one for the banking sector , one for the securities sector and one for the insurance and occupational pensions sector , and the creation of a european systemic risk council . the recommendations in the report represented the lowest level of change that the experts qualified as necessary to avoid a similar crisis to take place in the future .


### the commission in its communication of 4 march 2009 entitled ' driving european recovery ' proposed to bring forward draft legislation creating a european system of financial supervisors and a european systemic risk board , and in its communication of 27 may 2009 entitled ' european financial supervision ' provided more detail about the possible architecture of such a new supervisory framework . ### the commission in its communication of 4 march 2009 entitled ' driving european recovery ' proposed to bring forward draft legislation creating a european system of financial supervisors and a european systemic risk board , and in its communication of 27 may 2009 entitled ' european financial supervision ' provided more detail about the possible architecture of such a new supervisory framework . the communication does not include all the recommendations made in the de larosière report .


### the community has reached the limits of what can be done with the present status of the committees of european supervisors , which remain advisory bodies to the commission . the community cannot remain in a situation where there is no mechanism to ensure that national supervisors arrive at the best possible supervisory decisions for cross - border institutions ; where there is insufficient cooperation and information exchange between national supervisory authorities ; where joint action by national authorities requires complicated arrangements to take account of the patchwork of regulatory and supervisory requirements ; where national solutions are most often the only feasible option in responding to european problems , where different interpretations of the same legal text exist . the european system of supervisors should be designed to overcome these deficiencies and provide a system that is in line with the objective of a stable and single community financial market for financial services , linking national supervisors into a strong community network . ### the union has reached the limits of what can be done with the present status of the committees of european supervisors . the union cannot remain in a situation where there is no mechanism to ensure that national supervisors arrive at the best possible supervisory decisions for cross - border institutions ; where there is insufficient cooperation and information exchange between national supervisory authorities ; where joint action by national authorities requires complicated arrangements to take account of the patchwork of regulatory and supervisory requirements ; where national solutions are most often the only feasible option in responding to european problems , where different interpretations of the same legal text exist . the european system of supervisors should be designed to overcome these deficiencies and provide a system that is in line with the objective of a stable and single union financial market for financial services , linking national supervisors into a strong union network .


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


### the european supervisory authorities should replace the committee of european banking supervisors established by commission decision 2009 / 78 / ec , the committee of european insurance and occupational pensions supervisors established by commission decision 2009 / 79 / ec and the committee of european securities regulators established by commission decision 2009 / 77 / ec , and assume all of the tasks and competences of those committees . the scope of each authority ' s action should be clearly defined . where institutional reasons and the responsibilities assigned in the treaty so require , the commission should also be part of the network of supervisory activities . ### the european supervisory authority should replace the committee of european banking supervisors established by commission decision 2009 / 78 / ec , the committee of european insurance and occupational pensions supervisors established by commission decision 2009 / 79 / ec and the committee of european securities regulators established by commission decision 2009 / 77 / ec , and assume all of the tasks and competences of those committees . the scope of each authority ' s action should be clearly defined . where institutional reasons and the responsibilities assigned in the treaty so require , the commission should also be part of the network of supervisory activities .


### the european banking authority should act with a view to improving the functioning of the internal market , including in particular by ensuring a high , effective and consistent level of regulation and supervision taking account of the varying interests of all member states , to protect depositors and investors , to ensure the integrity , efficiency and orderly functioning of financial markets , to safeguard the stability of the financial system , and to strengthen international supervisory coordination , for the benefit of the economy at large , including financial institutions and other stakeholders , consumers and employees . in order to be able to fulfil its objectives , it is necessary and appropriate that the authority should be a community body having legal personality and it should have legal , administrative and financial autonomy . ### the european banking authority should act with a view to improving the functioning of the internal market , including in particular by ensuring a high , effective and consistent level of regulation and supervision taking account of the varying interests of all member states to prevent regulatory arbitrage and guarantee a level playing field , to protect depositors and investors , to ensure the integrity , efficiency and orderly functioning of financial markets , to safeguard the stability of the financial system , and to strengthen international supervisory coordination , for the benefit of the economy at large , while taking account of the need to enhance competition and innovation within the internal market and to ensure global competitiveness , including financial institutions and other stakeholders , consumers and employees . its tasks also include promoting supervisory convergence and providing advice to the eu institutions in the areas of banking , payments , e - money regulation and supervision , and related corporate governance , auditing and financial reporting issues . in order to be able to fulfil its objectives , it is necessary and appropriate that the authority should be a community body having legal personality and it should have legal , administrative and financial autonomy .


### the court of justice of the european communities in its judgement of 2 may 2006 in case c - 217 / 04 has acknowledged that article 95 of the treaty relating to the adoption of measures for the approximation of legislation for the establishment and functioning of the internal market provides an appropriate legal basis for setting up a ' community body responsible for contributing to the implementation of a process of harmonisation ' , when the tasks conferred on such a body are closely related to the subject - matter of the acts approximating the national legislations . the purpose and tasks of the authority - assisting competent national supervisory authorities in the consistent interpretation and application of community rules and contributing to financial stability necessary for financial integration - are closely linked to the objectives of the community acquis concerning the internal market for financial services . the authority should therefore be established on the basis of article 95 of the treaty . ### the court of justice of the european communities in its judgement of 2 may 2006 in case c - 217 / 04 has acknowledged that article 95 of the treaty relating to the adoption of measures for the approximation of legislation for the establishment and functioning of the internal market provides an appropriate legal basis for setting up a ' community body responsible for contributing to the implementation of a process of harmonisation ' , when the tasks conferred on such a body are closely related to the subject - matter of the acts approximating the national legislations . the purpose and tasks of the authority - assisting competent national supervisory authorities in the consistent interpretation and application of community rules and contributing to financial stability necessary for financial integration - are closely linked to the objectives of the community acquis concerning the internal market for financial services . the authority should therefore be established on the basis of article 114 of the treaty .


### the legal acts which lay down the tasks for competent authorities of member states , including cooperating with each other and with the commission , are the following : directive 2006 / 48 / ec of the european parliament and of the council of 14 june 2006 relating to the taking up and pursuit of the business of credit institutions , directive 2006 / 49 / ec of the european parliament and of the council of 14 june 2006 on the capital adequacy of investment firms and credit institutions and directive 94 / 19 / ec of the european parliament and of the council of 30 may 1994 on deposit - guarantee schemes . ### the legal acts which lay down the tasks for competent authorities of member states , including cooperating with each other and with the commission , are the following : directive 2006 / 48 / ec of the european parliament and of the council of 14 june 2006 relating to the taking up and pursuit of the business of credit institutions , directive 2006 / 49 / ec of the european parliament and of the council of 14 june 2006 on the capital adequacy of investment firms and credit institutions and directive 94 / 19 / ec of the european parliament and of the council of 30 may 1994 on deposit - guarantee schemes . the application of this regulation to directive 94 / 19 / ec should be without prejudice to the ongoing review of that directive and should not pre - empt the powers , if any , that may be conferred on the authority as a result of that review .


### existing community legislation regulating the field covered by this regulation also includes directive 2002 / 87 / ec of the european parliament and of the council of 16 december 2002 on the supplementary supervision of credit institutions , insurance undertakings and investment firms in a financial conglomerate and amending council directives 73 / 239 / eec , 79 / 267 / eec , 92 / 49 / eec , 92 / 96 / eec , 93 / 6 / eec and 93 / 22 / eec , and directives 98 / 78 / ec and 2000 / 12 / ec of the european parliament and of the council , directive 2005 / 60 / ec of the european parliament and of the council of 26 october 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing , and directive 2002 / 65 / ec of the european parliament and of the council of 23 september 2002 concerning the distance marketing of consumer financial services . ### existing eu legislation regulating the field covered by this regulation also includes directive 2002 / 87 / ec of the european parliament and of the council of 16 december 2002 on the supplementary supervision of credit institutions , insurance undertakings and investment firms in a financial conglomerate , regulation no 1781 / 2006 of the european parliament and of the council of 15 november 2006 on information on the payer accompanying transfers of funds1 , directive 2009 / 110 / ec of the european parliament and of the council of 16 september 2009 on the taking up , pursuit and prudential supervision of the business of electronic money institutions2 and relevant parts of directive 2005 / 60 / ec of the european parliament and of the council of 26 october 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing , and directive 2002 / 65 / ec of the european parliament and of the council of 23 september 2002 concerning the distance marketing of consumer financial services . 1 oj l 345 , 8 . 12 . 2006 , p . 1 . 2 oj l 267 , 10 . 10 . 2009 , p . 7 .


### it is desirable that the authority promote a consistent approach in the area of deposit guarantees to ensure a level playing field and the equitable treatment of depositors across the community . as deposit guarantee schemes are subject to oversight in their member states rather than regulatory supervision , it is appropriate that the authority should be able to exercise its powers under this regulation in relation to the deposit guarantee scheme itself and its operator . ### it is desirable that the authority promote a consistent approach in the area of deposit guarantees to ensure a level playing field and the equitable treatment of depositors across the community . as deposit guarantee schemes are subject to oversight in their member states rather than regulatory supervision , it is appropriate that the authority should be able to exercise its powers under this regulation in relation to the deposit guarantee scheme itself and its operator . the role of the authority will be reviewed once a european deposit guarantee fund will be established .


### ensuring the correct and full application of community law is a core prerequisite for the integrity , efficiency and orderly functioning of financial markets , the stability of the financial system , and for neutral conditions of competition for financial institutions in the community . a mechanism should therefore be established whereby the authority addresses instances of incorrect or insufficient application of community law . this mechanism should apply in areas where community legislation defines clear and unconditional obligations ### ensuring the correct and full application of union law is a core prerequisite for the integrity , transparency , efficiency and orderly functioning of financial markets , the stability of the financial system , and for neutral conditions of competition for financial institutions in the union . a mechanism should therefore be established whereby the authority addresses instances of incorrect or insufficient application of union law . this mechanism should apply in areas where union legislation defines clear and unconditional obligations .


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


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


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


### the delegation of tasks and responsibilities can be a useful instrument in the functioning of the network of supervisors in order to reduce the duplication of supervisory tasks , foster cooperation and thereby streamline the supervisory process as well as reduce the burden imposed on financial institutions . the regulation should therefore provide a clear legal basis for such delegation . delegation of tasks means that tasks are carried out by another supervisory authority instead of the responsible authority , while the responsibility for supervisory decisions remains with the delegating authority . by delegation of responsibilities one national supervisory authority , the delegatee , shall be able to decide upon a certain supervisory matter in its name in lieu of another national supervisory authority . delegations should be governed by the principle of allocating supervisory competence to a supervisor which is well placed to take action in the subject matter . a reallocation of responsibilities can be appropriate for example for reasons of economies of scale or scope , of coherence in group supervision , and of optimal use of technical expertise among national supervisory authorities . relevant community legislation may further specify the principles for reallocation of responsibilities upon agreement . the authority should facilitate delegation agreements between national supervisory authorities by all appropriate means . it should be informed in advance of intended delegation agreements to be able to express an opinion where appropriate . it should centralise the publication of such agreements to ensure timely , transparent and easily accessible information about agreements for all parties concerned . ### the delegation of tasks and responsibilities can be a useful instrument in the functioning of the network of supervisors in order to reduce the duplication of supervisory tasks , foster cooperation and thereby streamline the supervisory process as well as reduce the burden imposed on financial institutions , particularly for those financial institutions that do not have a european dimension . the regulation should therefore provide a clear legal basis for such delegation . delegation of tasks means that tasks are carried out by another supervisory authority instead of the responsible authority , while the responsibility for supervisory decisions remains with the delegating authority . by delegation of responsibilities one national supervisory authority , the delegatee , shall be able to decide upon a certain supervisory matter in its name in lieu of another national supervisory authority . delegations should be governed by the principle of allocating supervisory competence to a supervisor which is well placed to take action in the subject matter . a reallocation of responsibilities can be appropriate for example for reasons of economies of scale or scope , of coherence in group supervision , and of optimal use of technical expertise among national supervisory authorities . relevant eu legislation may further specify the principles for reallocation of responsibilities upon agreement . the authority should facilitate and monitor delegation agreements between national supervisory authorities by all appropriate means . it should be informed in advance of intended delegation agreements to be able to express an opinion where appropriate . it should centralise the publication of such agreements to ensure timely , transparent and easily accessible information about agreements for all parties concerned . it should identify and disseminate best practices regarding delegation and delegation agreements .


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


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


### in order to safeguard financial stability it is necessary to identify , at an early stage , trends , potential risks and vulnerabilities stemming from the micro - prudential level , across borders and across sectors . the authority should monitor and assess such developments in the area of its competence and , where necessary , inform the european parliament , the council , the commission , the other european supervisory authorities and the european systemic risk board on a regular and , as necessary , ad hoc basis . the authority should also coordinate community - wide stress tests to assess the resilience of financial institutions to adverse market developments , ensuring an as consistent as possible methodology is applied at the national level to such tests ### in order to safeguard financial stability it is necessary to identify , at an early stage , trends , potential risks and vulnerabilities stemming from the micro - prudential level , across borders and across sectors . the authority should monitor and assess such developments in the area of its competence and , where necessary , inform the european parliament , the council , the commission , the other european supervisory authorities and the european systemic risk board on a regular and , as necessary , ad hoc basis . the authority should also initiate and coordinate union - wide stress tests to assess the resilience of financial institutions to adverse market developments , ensuring an as consistent as possible methodology is applied at the national level to such tests .


### close cooperation between the authority and the european systemic risk board is essential to give full effectiveness to the functioning of the european systemic risk board and the follow - up to its warnings and recommendations . the authority should share any relevant information with the european systemic risk board . data related to individual undertakings should be provided only upon reasoned request . upon receipt of warnings or recommendations addressed by the european systemic risk board to the authority or a national supervisory authority , the authority should ensure follow - up . ### close cooperation between the authority and the european systemic risk board is essential to give full effectiveness to the functioning of the european systemic risk board and the follow - up to its warnings and recommendations . the authority and the european systemic risk board should share any relevant information with the european systemic risk board . data related to individual undertakings should be provided only upon reasoned request . upon receipt of warnings or recommendations addressed by the european systemic risk board to the authority or a national supervisory authority , the authority should ensure follow - up as appropriate .


### close cooperation between the authority and the european systemic risk board is essential to give full effectiveness to the functioning of the european systemic risk board and the follow - up to its warnings and recommendations . the authority should share any relevant information with the european systemic risk board . data related to individual undertakings should be provided only upon reasoned request . upon receipt of warnings or recommendations addressed by the european systemic risk board to the authority or a national supervisory authority , the authority should ensure follow - up . ### close cooperation between the authority and the european systemic risk board is essential to give full effectiveness to the functioning of the european systemic risk board and the follow - up to its warnings and recommendations . the authority should share any relevant information with the european systemic risk board . data related to individual undertakings should be provided only upon reasoned request . upon receipt of warnings or recommendations addressed by the european systemic risk board to the authority or a national supervisory authority , the authority should , as appropriate , ensure follow - up .


### where appropriate , the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . for reasons of efficiency , a banking stakeholder group should be established for that purpose , representing in balanced proportions community credit and investment institutions , their employees , and consumers and other retail users of banking services , including smes . the banking stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or community legislation . ### the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . before adopting draft technical standards , guidelines and recommendations the authority should carry out an impact study . for reasons of efficiency , a banking stakeholder group should be established for that purpose , representing in balanced proportions community credit and investment institutions , trade unions , academics and consumers and other retail users of banking services , including smes . the banking stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or by eu legislation .


### where appropriate , the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . for reasons of efficiency , a banking stakeholder group should be established for that purpose , representing in balanced proportions community credit and investment institutions , their employees , and consumers and other retail users of banking services , including smes . the banking stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or community legislation . ### where appropriate , the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . for reasons of efficiency , a banking stakeholder group should be established for that purpose , representing in due proportions community credit and investment institutions of different member states , sizes and banking sectors , their employees , and consumers and other retail users of banking services , including smes . the banking stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or community legislation .


### member states have a core responsibility in preserving financial stability in crisis management , in particular with regard to stabilising and resolving individual ailing financial institutions . measures by the authority in emergency or settlement situations affecting the stability of a financial institution should not impinge on the fiscal responsibilities of member states . a mechanism should be established whereby member states may invoke this safeguard and ultimately bring the matter before the council for a decision . it is appropriate to confer on the council a role in this matter given the particular responsibilities of the member states in this respect . ### member states have a core responsibility in ensuring coordinated crisis management and in preserving financial stability in crisis situations , in particular with regard to stabilising and resolving individual ailing financial institutions . measures by the authority in emergency or settlement situations affecting the stability of a financial institution should not impinge on the fiscal responsibilities of member states . a mechanism should be established whereby member states may invoke this safeguard and ultimately bring the matter before the council for a decision . it is appropriate to confer on the council a role in this matter given the particular responsibilities of the member states in this respect .


### a board of supervisors composed of the heads of the relevant competent authority in each member state , and chaired by the chairperson of the authority , should be the principal decision - making organ of the authority . representatives of the commission , the european systemic risk board , the european central bank and the other two european supervisory authorities should participate as observers . members of the board of supervisors should act independently and only in the community ' s interest . for acts of a general nature , including those related to the adoption of technical standards , guidelines and recommendations as well as budgetary matters , it is appropriate to apply the rules on qualified majority as laid down in the treaty , whereas for all other decisions simple majority of members should apply . cases concerning the settlement of disagreements between national supervisory authorities should be examined by a restricted panel . ### a board of supervisors composed of the heads of the relevant competent authority in each member state , and chaired by the chairperson of the authority , should be the principal decision - making organ of the authority . representatives of the commission , the european systemic risk board , the european central bank and the european supervisory authority and the european supervisory authority should participate as observers . members of the board of supervisors should act independently and only in the union ' s interest . for acts of a general nature , including those related to the adoption of technical standards , guidelines and recommendations as well as budgetary matters , it is appropriate to apply the rules on qualified majority as laid down in article 16 of the treaty , whereas for all other decisions simple majority of members should apply . cases concerning the settlement of disagreements between national supervisory authorities should be examined by a restricted panel .


### a full time chairperson , selected by the board of supervisors through an open competition , should represent the authority . the management of the authority should be entrusted to an executive director , who should have the right to participate in meetings of the board of supervisors and the management board without the right to vote . ### a full - time chairperson , selected by the european parliament following an open competition managed by the commission and the subsequent drawing up of a short list by the commission , should represent the authority . the management of the authority should be entrusted to an executive director , who should have the right to participate in meetings of the board of supervisors and the management board without the right to vote .


### a full time chairperson , selected by the board of supervisors through an open competition , should represent the authority . the management of the authority should be entrusted to an executive director , who should have the right to participate in meetings of the board of supervisors and the management board without the right to vote . ### a full time chairperson , selected by the european parliament following an open competition managed by the commission and the subsequent drawing up of a short list by the commission , should represent the authority . the management of the authority should be entrusted to an executive director , who should have the right to participate in meetings of the board of supervisors and the management board without the right to vote .


### in order to ensure cross - sectoral consistency in the activities of the european supervisory authorities , those authorities should coordinate closely in a joint committee of european supervisory authorities and reach common positions where appropriate . the joint committee of european supervisory authorities should assume all of the functions of the joint committee on financial conglomerates . where relevant , acts also falling within the area of competence of the european insurance and occupational pensions authority or the european securities and markets authority should be adopted in parallel by the european supervisory authorities concerned . ### in order to ensure cross - sectoral consistency in the activities of the european supervisory authorities , those authorities should coordinate closely through the joint committee and reach common positions where appropriate . the joint committee should coordinate the functions of the three european supervisory authorities in relation to financial conglomerates . where relevant , acts also falling within the area of competence of the european supervisory authority or the european supervisory authority should be adopted in parallel by the european supervisory authorities concerned . the joint committee should be chaired for a 12 - month term on a rotating basis by the chairpersons of the three european supervisory authorities . the chairperson of the joint committee should be a vice - chair of the european systemic risk board . the joint committee should have a permanent secretariat , staffed on secondment from the three european supervisory authorities , to allow for informal information - sharing and the development of a common cultural approach across the three european supervisory authorities .


### in order to ensure cross - sectoral consistency in the activities of the european supervisory authorities , those authorities should coordinate closely in a joint committee of european supervisory authorities and reach common positions where appropriate . the joint committee of european supervisory authorities should assume all of the functions of the joint committee on financial conglomerates . where relevant , acts also falling within the area of competence of the european insurance and occupational pensions authority or the european securities and markets authority should be adopted in parallel by the european supervisory authorities concerned . ### in order to ensure cross - sectoral consistency in the activities of the european supervisory authorities , those authorities should coordinate closely through the european supervisory authorities and reach common positions where appropriate . the joint committee should coordinate the functions of the three european supervisory authorities in relation to financial conglomerates . where relevant , acts also falling within the area of competence of the european supervisory authority or the european supervisory authority should be adopted in parallel by the european supervisory authorities concerned . the joint committee will be chaired on a yearly revolving basis by the chairpersons of the three european supervisory authorities . the chairperson of the joint committee should be a vice - chair of the european systemic risk board . the joint committee will have a permanent secretariat , staffed on secondment from the three european supervisory authorities , to allow for informal information sharing and the development of a common cultural approach across the three european supervisory authorities .


### in order to guarantee its full autonomy and independence , the authority should be granted an autonomous budget with revenues mainly from obligatory contributions from national supervisory authorities and from the general budget of the european union . the community budgetary procedure should be applicable as far as the community contribution is concerned . the auditing of accounts should be undertaken by the court of auditors . ### in order to guarantee its full autonomy and independence , the authority should be granted an autonomous budget with revenues from the general budget of the european union . the union budgetary procedure should be applicable . the auditing of accounts should be undertaken by the court of auditors .


### the authority shall act within the scope of directive 2006 / 48 / ec , directive 2006 / 49 / ec , directive 2002 / 87 / ec , directive 2005 / 60 / ec , directive 2002 / 65 / ec and directive 94 / 19 / ec , including all directives , regulations , and decisions based on these acts , and of any further community act which confers tasks on the authority . ### the authority shall act within the scope of this regulation and of directive 2006 / 48 / ec , directive 2006 / 49 / ec , directive 2002 / 87 / ec , directive 2005 / 60 / ec , directive 2002 / 65 / ec and directive 94 / 19 / ec , including all directives , regulations , and decisions based on these acts , and of any further union act which confers tasks on the authority . the authority shall also act in the field of activities of credit institutions , financial conglomerates , investment firms , payment institutions and e - money institutions , including matters of corporate governance , auditing and financial reporting , provided that such actions by the authority are necessary to ensure the effective and consistent application of the legislation referred to in this paragraph .


### the objective of the authority shall be to contribute to : improving the functioning of the internal market , including in particular a high , effective and consistent level of regulation and supervision , protecting depositors and investors , ensuring the integrity , efficiency and orderly functioning of financial markets , safeguarding the stability of the financial system , and strengthening international supervisory coordination . for this purpose , the authority shall contribute to ensuring the consistent , efficient and effective application of the community law referred to in article 1 above , fostering supervisory convergence and providing opinions to the european parliament , the council , and the commission . ### the objective of the authority shall be to contribute to : improving the functioning of the internal market , including in particular a high , effective and consistent level of regulation and supervision , protecting depositors and investors , ensuring the integrity , efficiency and orderly functioning of financial markets , safeguarding the stability of the financial system , strengthening international supervisory coordination and preventing regulatory arbitrage and contributing to a level playing field . for this purpose , the authority shall contribute to ensuring the consistent , efficient and effective application of the eu legislation referred to in article 1 , fostering supervisory convergence and providing opinions to the european parliament , the council , and the commission and undertaking an economic analysis of markets to promote the achievement of the authority ' s objectives .


### ' competent authorities ' means competent authorities as defined in directives 2006 / 48 / ec and 2006 / 49 / ec and , where deposit guarantee schemes are concerned , bodies which administer deposit - guarantee schemes pursuant to directive 94 / 19 / ec . ### ' competent authorities ' means competent authorities as defined in directives 2006 / 48 / ec and 2006 / 49 / ec and , where deposit guarantee schemes are concerned , bodies which administer deposit - guarantee schemes pursuant to directive 94 / 19 / ec , or where the operation of the deposit guarantee scheme is administered by a private company , the public authority supervising that scheme pursuant to directive 94 / 19 / ec .


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


### technical standards ### technical standards – delegated acts


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


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


### the authority shall , with a view to establishing consistent , efficient and effective supervisory practices within the esfs , and to ensuring the common , uniform and consistent application of community legislation , issue guidelines and recommendations addressed to competent authorities or financial institutions . ### the authority shall , with a view to establishing consistent , efficient and effective supervisory practices within the esfs , in order to prevent a possible ' race to the bottom ' of national authorities concerning deliberately relaxing supervisory standards to increase the competitiveness of their financial centres , and to ensuring the common , uniform and consistent application of community legislation , issue guidelines and recommendations addressed to competent authorities or financial institutions .


### the authority shall , with a view to establishing consistent , efficient and effective supervisory practices within the esfs , and to ensuring the common , uniform and consistent application of community legislation , issue guidelines and recommendations addressed to competent authorities or financial institutions . ### the authority shall , with a view to establishing consistent , efficient and effective supervisory practices within the esfs , and to ensuring the common , uniform and consistent application of community legislation , issue guidelines and recommendations addressed to competent authorities or financial institutions taking into account the different nature of banks .


### the authority shall , with a view to establishing consistent , efficient and effective supervisory practices within the esfs , and to ensuring the common , uniform and consistent application of community legislation , issue guidelines and recommendations addressed to competent authorities or financial institutions . ### the authority shall , with a view to establishing consistent , efficient and effective supervisory practices within the esfs , and to ensuring the common , uniform and consistent application of eu legislation , issue guidelines and recommendations addressed to competent authorities or financial institutions .


### upon request from one or more competent authorities , from the commission or on its own initiative and after having informed the competent authority concerned , the authority may investigate the alleged incorrect application of community law . ### upon request from one or more competent authorities , the european parliament , the council , the commission or the banking stakeholder group , or on its own initiative and after having informed the competent authority concerned , the authority may investigate the alleged breach or non - application of union law .


### . ### where the addressee of the decision refuses to comply with union law or a specific decision taken by the authority , the authority may issue proceedings in the national courts , including applications for interim relief .


### where the commission has adopted a decision pursuant to paragraph 1 , the authority may adopt individual decisions requiring competent authorities to take the necessary action in accordance with the legislation referred to in article 1 to address any risks that may jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system by ensuring that financial institutions and competent authorities satisfy the requirements laid down in that legislation . ### where the esrb has adopted a decision pursuant to paragraph 1 , the authority may adopt individual decisions requiring competent authorities to take the necessary action in accordance with this regulation and the legislation referred to in article 1 to address any risks that may jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system by ensuring that financial market participants and competent authorities satisfy the requirements laid down in that legislation .


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


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


### if , at the end of the conciliation phase , the competent authorities concerned have failed to reach an agreement , the authority may take a decision requiring them to take specific action or to refrain from action in order to settle the matter , in compliance with community law . ### if , at the end of the conciliation phase , the competent authorities concerned have failed to reach an agreement , the authority shall , in accordance with the procedure set out in the second subparagraph of article 29 , take a decision to settle the disagreement and to require them to take specific action , in compliance with union law with binding effects on the competent authorities concerned .


### if , at the end of the conciliation phase , the competent authorities concerned have failed to reach an agreement , the authority may take a decision requiring them to take specific action or to refrain from action in order to settle the matter , in compliance with community law . ### if , at the end of the conciliation phase , the competent authorities concerned have failed to reach an agreement , the authority shall in accordance with the procedure set out in the second subparagraph of article 29 take a decision to settle the disagreement and to require them to take specific action , in compliance with union law with binding effects on the competent authorities concerned .


### competent authorities may , by bilateral agreement , delegate tasks and responsibilities to other competent authorities supervisory . ### member states shall allow competent authorities to delegate tasks and responsibilities to other competent authorities , by bilateral agreement , subject to the conditions set out in this article . member states may set out specific arrangements that have to be complied with before their competent authorities enter into such agreements and limit the scope of delegation to what is necessary for effective supervision of cross - border financial institutions and groups .


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


### the authority shall monitor and assess market developments in the area of its competence and , where necessary , inform the european insurance and occupational pensions authority , the european securities and markets authority , the esrb and the european parliament , the council and the commission about the relevant micro - prudential trends , potential risks and vulnerabilities . ### the authority shall monitor and assess market developments in the area of its competence and , where necessary , inform the european supervisory authority , the european supervisory authority , the esrb and the european parliament , the council and the commission about the relevant micro - prudential trends , potential risks and vulnerabilities .


### without prejudice to the competences of the community institutions , the authority may develop contacts with supervisory authorities from third countries . it may enter into administrative arrangements with international organisations and the administrations of third countries . ### the authority shall develop contacts with supervisory authorities from third countries . it may enter into administrative arrangements with international organisations and the administrations of third countries .


### the european banking authority shall co - operate with the esrb . ### the authority shall co - operate with the esrb .


### the authority shall cooperate closely with the esrb . it shall provide the esrb with regular and up - to - date information necessary for the achievement of its tasks . any data necessary for the achievement of its tasks that are not in summary or collective form shall be provided without delay to the esrb upon a reasoned request , as specified in article [ 15 ] of regulation no … . / … [ esrb ] . ### the authority shall cooperate closely with the esrb . it shall provide the esrb with regular and up - to - date information necessary for the achievement of its tasks . any data necessary for the achievement of its tasks that are not in summary or collective form shall be provided without delay to the esrb upon a reasoned request , as specified in article [ 15 ] of regulation no … . / … [ esrb ] . the authority shall develop an appropriate protocol for the disclosure of confidential information regarding individual financial institutions .


### the authority shall cooperate closely with the esrb . it shall provide the esrb with regular and up - to - date information necessary for the achievement of its tasks . any data necessary for the achievement of its tasks that are not in summary or collective form shall be provided without delay to the esrb upon a reasoned request , as specified in article [ 15 ] of regulation no … . / … [ esrb ] . ### the authority shall cooperate closely with the esrb . it shall provide the esrb with regular and up - to - date information necessary for the achievement of its tasks . any data necessary for the achievement of its tasks that are not in summary or collective form shall be provided without delay to the esrb upon a reasoned request , as specified in article [ 15 ] of regulation no … . / … [ esrb ] . the authority shall develop an adequate protocol for the disclosure of confidential information regarding individual financial institutions .


### in discharging its tasks set out in this regulation , the authority shall take the utmost account of the warnings and recommendations of the esrb . ### in discharging its tasks set out in this regulation , the authority shall take account of the warnings and recommendations of the esrb .


### for the purpose of consultation with stakeholders in areas relevant to the tasks of the authority , a banking stakeholder group shall be established . ### for the purpose of consultation with stakeholders in areas relevant to the tasks of the authority , a banking stakeholder group shall be established . the stakeholder group shall be consulted on all relevant decisions and actions of the authority . if case of urgency immediate consultation is impossible , the stakeholder group has to be informed about the decision as quick as possible .


### the banking stakeholder group may submit opinions and advice to the authority on any issue related to the tasks of the authority specified in articles 7 and 8 . ### the banking stakeholder group shall submit opinions and advice to the authority on any issue related to the tasks of the authority specified in articles 7 and 8 .


### the authority shall ensure that no decision adopted under articles 10 or 11 impinges in any way on the fiscal responsibilities of member states . ### the authority shall ensure that no decision adopted under articles 10 or 11 impinges in any way on the fiscal responsibilities of member states . the respective decision by the authority shall state that fiscal responsibilities are not affected .


### the management board shall be composed of the chairperson , a representative of the commission , and four members elected by the board of supervisors from among its members . ### the management board shall be composed of six members : the chairperson , a representative of the commission , and four members elected by the board of supervisors from among its voting members .


### decisions by the management board shall be adopted on the basis of a majority of the members present . each member shall have one vote . ### decisions by the management board shall be adopted on the basis of a majority of the members elected by the board of supervisors present . each of those members shall have one vote .


### the executive director shall participate in meetings of the management board without the right to vote . ### the executive director and a representative of the commission shall participate in meetings of the management board without the right to vote .


### the board of supervisors shall also elect from among its members an alternate who shall carry out the functions of the chairperson in his absence . ### the board of supervisors shall also elect from among its members an alternate who shall carry out the functions of the chairperson in his absence . that alternate shall not be a member of the management board .


### each year the executive director shall prepare a draft annual report with a section on the regulatory and supervisory activities of the authority and a section on financial and administrative matters . ### each year the executive director shall prepare a draft report with a section on the regulatory and supervisory activities of the authority and a section on financial and administrative matters .


### the authority shall contribute adequate resources to the administrative support of the joint committee of european supervisory authorities . this includes staff , administrative , infrastructure , and operational expenses . ### the joint committee shall have a permanent secretariat , staffed by personnel on secondment from the three european supervisory authorities . the authority shall contribute a fair proportion of the administrative , infrastructure and operational expenses .


### the authority shall contribute adequate resources to the administrative support of the joint committee of european supervisory authorities . this includes staff , administrative , infrastructure , and operational expenses . ### the joint committee shall have a permanent secretariat , staffed on secondment from the three european supervisory authorities . the authority shall contribute adequate resources to administrative , infrastructure and operational expenses .


### the joint committee shall be composed of the chairperson and the chairpersons of the european insurance and occupational pensions authority and the european securities and markets authority , and , where applicable , the chairperson of a sub - committee established under article 43 . ### the joint committee shall have a board composed of the chairpersons of the european supervisory authorities , and , where applicable , the chairperson of a sub - committee established under article 43 .


### the joint committee shall be composed of the chairperson and the chairpersons of the european insurance and occupational pensions authority and the european securities and markets authority , and , where applicable , the chairperson of a sub - committee established under article 43 . ### the joint committee shall be composed of the chairpersons of the european supervisory authorities , and , where applicable , the chairperson of a sub - committee established under article 43 .


### the board of appeal shall be a joint body of the european banking authority , the european insurance and occupational pensions authority , and the european securities and markets authority . ### the board of appeal shall be a joint body of the three european supervisory authorities .


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


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


### the board of appeal may , within the provisions of this article , exercise any power which lies within the competence of the authority , or it may remit the case to the competent body of the authority . that body shall be bound by the decision of the board of appeal . ### the board of appeal may either confirm the decision taken by the competent body of the authority , or it may remit the case to the competent body of the authority . that body shall be bound by the decision of the board of appeal and shall adopt an amended decision regarding the case concerned .


### actions before the court of first instance and the court of justice ### actions before the general court and the court of justice


### an action may be brought before the court of first instance or the court of justice , in accordance with article 230 of the treaty , contesting a decision taken by the board of appeal or , in cases where there is no right of appeal before the board of appeal , by the authority . ### an action may be brought before the court of first instance or the court of justice , in accordance with article 263 of the treaty , contesting a decision taken by the board of appeal or , in cases where there is no right of appeal before the board of appeal , by the authority .


### in the event that the authority has an obligation to act and fails to take a decision , proceedings for failure to act may be brought before the court of first instance or the court of justice in accordance with article 232 of the treaty . ### in the event that the authority has an obligation to act and fails to take a decision , proceedings for failure to act may be brought before the court of first instance or the court of justice in accordance with article 265 of the treaty .


### a subsidy from the community , entered in the general budget of the european union ; ### a funding from the community , entered in the general budget of the european union ;


### the expenditure of the authority shall include , at least , staff , remuneration , administrative , infrastructure and operational expenses . ### the expenditure of the authority shall include , at least , staff , remuneration , administrative , infrastructure professional training and operational expenses .


### on the basis of the statement of estimates , the commission shall enter in the preliminary draft general budget of the european union the estimates it deems necessary in respect of the establishment plan and the amount of the subsidy to be charged to the general budget of the european union in accordance with article 272 of the treaty . ### on the basis of the statement of estimates , the commission shall enter in the preliminary draft general budget of the european union the estimates it deems necessary in respect of the establishment plan and the amount of the subsidy to be charged to the general budget of the european union in accordance with articles 313 and 314 of the treaty .


### the staff regulations , the conditions of employment of other servants and the rules adopted jointly by the european community institutions for the purpose of applying these shall apply to the staff of the authority , including its executive director . ### the staff regulations , the conditions of employment of other servants and the rules adopted jointly by the european community institutions for the purpose of applying these shall apply to the staff of the authority , excluding its chairperson .


### all members of staff under contracts referred to in paragraph 1 shall be offered the possibility of concluding temporary agent contracts under article 2 of the conditions of employment of other servants at the various grades as set out in the authority’s establishment plan . ### in order to allow the smooth transition of the existing staff to the authority all members of staff under contracts referred to in paragraph 1 , including secondment contracts , shall be offered the possibility of concluding employment temporary agent contracts with equivalent or comparable economic and legal conditions , in accordance with the relevant legal framework .