### the active substance is essential to prevent or to control a serious danger to public or animal health or the environment ; or ### it is shown by evidence that the active substance is necessary to prevent or control a serious danger to public or animal health or to the environment , to food and feed safety , or to the public interest and that there are no effective alternative substances or technologies available . the use of any biocidal product containing active substances included in annex i pursuant to this paragraph shall be subject to appropriate risk mitigation measures to ensure that exposure of humans and the environment is minimised .


### a biocidal product authorised in accordance with article&#160 ; 25 may be made available on the market in all member states without the need for mutual recognition . however , the authorisation holder shall notify each member state before placing the biocidal product on the market within the territory of that member state and shall use the official language or languages of that member state in the product ' s labelling , unless that member state provides otherwise . ### a biocidal product authorised in accordance with article&#160 ; 25 may be placed on the market in all member states without the need for mutual recognition . however , the authorisation holder shall notify each member state 30 days before placing the biocidal product on the market within the territory of that member state and shall use the official language or languages of that member state in the product ' s labelling , unless that member state provides otherwise .


### 7 . available toxicological data relating to : – co - formulants of concern ) , or – a mixture that a substance of concern is a component of – if no data is available , then the appropriate test described in annex ii , shall be carried out for the co - formulants of concern ) or a mixture that a substance of concern is a component of . ### 7 . available toxicological data relating to : – co - formulants of concern ) , or – a mixture that a substance of concern is a component of . if insufficient data are available for a co - formulant and cannot be inferred through read - across or other accepted non - testing approaches , targeted acute test described in annex ii , shall be carried out for the substance of concern or a mixture that a substance of concern is a component of .


### 7 . 3 . by dermal route testing by the dermal route is appropriate if : – inhalation of the substance is unlikely ; or – skin contact in production and / or use is likely ; or – the physicochemical and toxicological properties suggest potential for a significant rate of absorption through the skin . ### 7 . 3 . by dermal route testing by the dermal route is necessary only if : – inhalation of the substance is unlikely ; – skin contact in production and / or use is likely ; – the physicochemical and toxicological properties suggest potential for a significant rate of absorption through the skin ; and – the results of an in vitro dermal penetration study demonstrate high dermal absorption and bioavailability .


### an active substance shall be approved for an initial period not exceeding 10 years if at least one biocidal product containing that active substance may be expected to meet the criteria laid down in point of article 18 taking into account the factors set out in article&#160 ; 18 and&#160 ; . ### an active substance shall be included in annex - i for an initial period not exceeding 10 years if at least one biocidal product containing that active substance fulfils the conditions laid down in point of article 18 taking into account the factors set out in article&#160 ; 18 and&#160 ; .


### within 90 days of validating the application , and subject to articles 34 , 35 and 36 , the member states concerned shall agree on the summary of biocidal product characteristics and shall record their agreement in the register for biocidal products . ### within 90 days of validating the application , and subject to articles 34 , 35 and 36 , the member states concerned shall agree on the summary of biocidal product characteristics included in the national authorisation granted by the reference member state and shall record their agreement in the register for biocidal products . without prejudice to articles 34 , 35 , and 36 , if agreement is not reached within the 90 day period referred to in the second subparagraph , each member state which agrees to the biocidal product characteristics referred to in the first subparagraph may register its agreement in the register of biocidal products and authorise the product in conformity with the summary of biocidal product characteristics to which it agreed .


### any person intending to perform tests or studies involving vertebrate animals or non - vertebrate animals shall ask the agency whether such tests or studies have already been submitted in connection with a previous application under this regulation or directive 98 / 8 / ec . the competent authority or the agency shall verify whether such tests or studies have already been submitted . where such tests or studies have already been submitted in connection with a previous application , under this regulation or directive 98 / 8 / ec , the competent authority or the agency shall , without delay , communicate the name and contact details of the data owner to the prospective applicant . where the data acquired under those tests or studies are still protected under article 59 , the prospective applicant : shall , in the case of data involving tests on vertebrate animals , request from the data owner the right to refer to those tests or studies ; and may , in the case of data not involving tests on vertebrate animals , request from the data owner the right to refer to those tests or studies . ### any person intending to perform tests or studies involving vertebrate animals or non - vertebrate animals , , shall submit a written request to the agency to determine whether such tests or studies have already been submitted to the agency , or to a competent authority in connection with a previous application under this regulation or directive 98 / 8 / ec . the request shall be accompanied by fees in accordance with article 79 . if the applicant fails to pay the fees , the agency shall not consider the request . the agency shall verify whether such tests or studies have already been submitted . where such tests or studies have already been submitted to the agency , or to a competent authority in connection with a previous application , under this regulation or directive 98 / 8 / ec , the agency shall , without delay , communicate the name and contact details of the data submitter to the prospective applicant . the data submitter shall where relevant , facilitate contacts between the prospective applicant and the data owner where the data acquired under those tests or studies are still protected under article 59 , the prospective applicant : shall , in the case of data involving tests on vertebrate animals ; and may , in the case of data not involving tests on vertebrate animals , request from the data owner all the scientific and technical data related to the tests and studies concerned as well as the right to refer to these data when submitting applications within the framework of the present regulation .


### for the purposes of this paragraph and for existing active substances listed in annex ii to regulation no 1451 / 2007 , the provisions on mandatory data sharing , as laid down in articles 61 and 62 of this regulation , shall apply to all toxicological and ecotoxicological studies included in the dossier . the relevant person shall be required to apply for data sharing only for those data that it does not already possess . ### for the purposes of this paragraph and for existing active substances listed in annex ii to regulation no . 1451 / 2007 , the provisions on data sharing , as laid down in articles 61 and 62 and 63 of this regulation , shall apply to all studies included in the dossier . the relevant person shall be required to apply for data sharing only for those data that it does not already possess .


### it is up to each member state to decide whether the tasks referred to in article 5 of this directive are attributed to an already existing body covering a wider range of discrimination grounds . in the case the tasks under article 5 will be covered by expanding the mandate of an already existing body or structure , the member state should ensure allocation of sufficient resources to the existing body for the performance of additional tasks in order to ensure that the performance of already existing tasks of these bodies will not suffer . ### member states are encouraged to attribute the tasks referred to in article 5 of this directive to an already existing equality body designated in accordance with article 13 of directive 2000 / 43 / ec or covering a wider range of discrimination grounds . in the case the tasks under article 5 will be covered by expanding the mandate of an already existing body or structure , the member state should ensure allocation of sufficient additional resources to the existing body for the performance of additional tasks in order to ensure the effective and adequate provision of all functions of the body and in particular that the performance of already existing tasks of these bodies will not suffer .


### the application and monitoring of the union rules on free movement should be improved to ensure workers are better informed about their rights , to assist and to protect them in the exercise of those rights , and to combat circumvention of these rules by public authorities and public or private employers . ### the application and monitoring of the union rules on free movement of workers should be improved to ensure workers are better informed about their rights , to assist and to protect them in the exercise of those rights , and to combat circumvention of these rules by public authorities and public or private employers . to that end , council directive 91 / 533 / eec1 should be implemented and monitored consistently . 1 council directive 91 / 533 / eec of 14 october 1991 on an employer ' s obligation to inform employees of the conditions applicable to the contract or employment relationship .


### member states shall ensure that existing or newly created bodies are aware , make use of and co - operate with the existing information and assistance services at union level , such as your europe , solvit , eures , enterprise europe network and the points of single contact . ### member states shall ensure that existing or newly created bodies are aware , make use of and co - operate with the existing information and assistance services at national level via contact points and at union level , via inter alia your europe , solvit , eures , enterprise europe network , the points of single contact and the european network of national contact points .


### this directive lays down minimum requirements , thus giving the member states the option of introducing or maintaining more favourable provisions . member states also have the possibility to extend the competencies of the organisations entrusted with tasks related to the protection of union migrant workers against discrimination on grounds of nationality so as to cover the right to equal treatment without discrimination on grounds of nationality of all union citizens and their family members exercising their right to free movement , as enshrined in article 21 tfeu and directive 2004 / 38 / ec of the european parliament and of the council of 29 april 2004 on the right of citizens of the union and their family members to move and reside freely within the territory of the member states . the implementation of the present directive should not serve to justify any regression in relation to the situation which already prevails in each member state . ### this directive lays down minimum requirements , thus giving the member states the option of introducing or maintaining more favourable provisions . member states also have the possibility to extend the competencies of the organisations entrusted with tasks related to the protection of eu workers working in another member states against discrimination on grounds of nationality so as to cover the right to equal treatment without discrimination on grounds of nationality of all union citizens and their family members exercising their right to free movement , as enshrined in article 21 tfeu and directive 2004 / 38 / ec of the european parliament and of the council of 29 april 2004 on the right of citizens of the union and their family members to move and reside freely within the territory of the member states . the implementation of the present directive should not serve to justify any regression in relation to the situation which already prevails in each member state .


### member states shall ensure that associations , organisations or other legal entities , which have , in accordance with the criteria laid down by their national law , a legitimate interest in ensuring that the provisions of this directive are complied with , may engage , either on behalf of or in support of the worker and members of his / her family , with his / her approval , in any judicial and / or administrative procedure provided for the enforcement of rights under article 45 of the treaty and articles 1 to 10 of regulation no 492 / 2011 . ### member states shall ensure that associations , organisations or other legal entities , which have , in accordance with the criteria laid down by their national law , a legitimate interest in ensuring that the provisions of this directive are complied with , have the right to engage , either on behalf of or in support of the worker and members of his / her family , with his / her approval , in any judicial and / or administrative procedure provided for the enforcement of rights under article 45 tfeu and articles 1 to 10 of regulation no 492 / 2011 .


### this directive lays down minimum requirements , thus giving the member states the option of introducing or maintaining more favourable provisions . member states also have the possibility to extend the competencies of the organisations entrusted with tasks related to the protection of union migrant workers against discrimination on grounds of nationality so as to cover the right to equal treatment without discrimination on grounds of nationality of all union citizens and their family members exercising their right to free movement , as enshrined in article 21 tfeu and directive 2004 / 38 / ec of the european parliament and of the council of 29 april 2004 on the right of citizens of the union and their family members to move and reside freely within the territory of the member states . the implementation of the present directive should not serve to justify any regression in relation to the situation which already prevails in each member state . ### this directive lays down minimum requirements , thus giving the member states the option of introducing or maintaining more favourable provisions . however , the introduction or maintaining of more favourable provisions should be proportionate to the socio - economic reality of the member state . to this end , the commission should introduce a set of criteria and a methodology , to present in a clear and transparent way a full justification , substantiated by convincing arguments and data , including all relevant socio - economic indicators , which led to the conclusion that those provisions are needed . the criteria and methodology should be applicable to all member states . member states also have the possibility to extend the competencies of the organisations entrusted with tasks related to the protection of union migrant workers against discrimination on grounds of nationality so as to cover the right to equal treatment without discrimination on grounds of nationality of all union citizens and their family members exercising their right to free movement , as enshrined in article 21 tfeu and directive 2004 / 38 / ec of the european parliament and of the council of 29 april 2004 on the right of citizens of the union and their family members to move and reside freely within the territory of the member states . the implementation of the present directive should not serve to justify any regression in relation to the situation which already prevails in each member state .


### member states shall designate a structure , a body or bodies for the promotion , analysis , monitoring and support of equal treatment of all workers or members of their families without discrimination on grounds of nationality and make the necessary arrangements for functioning of such bodies . these bodies may form part of agencies at a national level with similar objectives but covering a wider range of discrimination grounds . in that case , the member state shall ensure allocation of sufficient resources to the existing body for the performance of additional tasks in order to ensure that the performance of already existing tasks of these bodies will not suffer . ### member states shall designate a structure , a body or bodies for the promotion , analysis , monitoring and support of equal treatment of all workers or members of their families without discrimination , particularly on grounds of nationality , and make the necessary arrangements for functioning of such bodies , including guaranteeing their complete independence . member states shall ensure that these bodies have a gender sensitive approach at all stages of the process . these bodies may form part of agencies at a national level with similar objectives as those referred to in article 13 of directive 2000 / 43 / ec or covering a wider range of discrimination grounds . in that case , the member state shall ensure allocation of sufficient resources to the existing body for the performance of additional tasks in order to ensure the effective and adequate provision of all functions of the body and in particular that the performance of already existing tasks of these bodies will not suffer .


### member states shall provide clear , easily accessible , comprehensive and up - to - date information on the rights conferred by the union law on free movement of workers . this information should also be easily accessible through your europe and eures . ### member states shall , through national contact points , provide clear , easily accessible , comprehensive , up - to - date and multilingual information on the rights conferred by the union law on free movement of workers and on available means of legal protection and redress . member states are also encouraged to set up multilingual websites providing information on the free movement of workers . while selecting the languages to be made available , the member states should focus above all on the largest nationality groups among mobile workers in a given country . this information should also be easily accessible through your europe and eures .


### member states shall provide clear , easily accessible , comprehensive and up - to - date information on the rights conferred by the union law on free movement of workers . . this information should also be easily accessible through your europe and eures . ### member states shall provide , via national contact points , clear , easily accessible , comprehensive , up - to - date and multilingual information on the rights conferred by union law concerning free movement of workers and on means of available legal protection and redress . member states are also encouraged to set up a multilingual website dedicated to information on free movement of workers . this information should also be easily accessible through your europe and eures .


### however , the effective exercise of the freedom of movement of workers is still a major challenge and many workers are very often unaware of their rights to free movement . they still suffer from discrimination on the grounds of nationality when moving across european union borders of the member states . there is , therefore , a gap between the legislation and its application in practice that needs to be addressed . ### however , the effective exercise of the freedom of movement of workers is still a major challenge and many workers are very often unaware of their rights to free movement . they still suffer from discrimination on the grounds of nationality when moving across european union borders of the member states . there is , therefore , a gap between the legislation and its application in practice that needs to be addressed as well as clearer sanctions that need to be implemented for the cases in which this right is infringed .


### in july 2010 , in its communication on ' reaffirming the free movement of workers : rights and major developments ‘ the commission pointed out that it will explore ways of tackling the new needs and challenges facing eu migrant workers and their family members , and in the context of the new strategy for the single market will consider how to promote and enhance mechanisms for the effective implementation of the principle of equal treatment for eu workers and members of their families exercising their right to free movement . ### in july 2010 , in its communication on ' reaffirming the free movement of workers : rights and major developments ‘ the commission pointed out that it will explore ways of tackling the new needs and challenges facing eu workers and their family members , and in the context of the new strategy for the single market will consider how to promote and enhance mechanisms for the effective implementation of the principle of equal treatment for eu workers and members of their families exercising their right to free movement .


### member states should promote dialogue with non - governmental organisations and between social partners to address and combat different forms of discrimination on the grounds of nationality . ### member states should promote dialogue with social partners and non - governmental organisations to address and combat different forms of discrimination on the grounds of nationality .


### member states should establish how employers , workers and other people can be provided with easily accessible , relevant information on the provisions of this directive and the relevant provisions of regulation no 492 / 2011 . this information should also be easily accessible through your europe and eures . ### member states should establish how employers , workers and other people can be provided with easily accessible , relevant information on provisions of regulation no 492 / 2011 , including information on the institution to which the tasks referred to in article 5 are attributed . this information should also be easily accessible through your europe and eures .


### to provide more effective levels of protection , associations and legal entities should also be empowered to engage , as the member states determine , on behalf of or in support of any victim in proceedings , without prejudice to national rules of procedure concerning representation and defense before the courts . ### to provide more effective levels of protection , associations and legal entities should also be empowered to engage , as the member states determine , on behalf of or in support of any victim in proceedings , without prejudice to national rules of procedure concerning representation and defence before the courts . member states should be encouraged to implement the commission’s recommendation c3539 of 11 june 2013 on common principles for injunctive and compensatory collective redress mechanisms in the member states concerning violations of rights granted under union law and to facilitate the operation of its mechanism to protect workers efficiently .


### in this context , workers who have been subject to discrimination on the grounds of nationality , or to any unjustified restriction in exercising their right to free movement , should have adequate and effective means of legal protection and redress . when member states only provide for administrative procedures they shall ensure that any administrative decision may be challenged before a tribunal in the sense of article 47 of the charter . ### in this context , eu workers who have been subject to discrimination on the grounds of nationality , or to any unjustified restriction in exercising their right to free movement , must be granted with adequate and effective means of legal protection and redress . when member states only provide for administrative procedures they shall ensure that any administrative decision may be challenged before a tribunal in the sense of article 47 of the charter .


### member states shall ensure that judicial and / or administrative procedures , including where they deem it appropriate , conciliation procedures , for the enforcement of the obligations under article 45 of the treaty and articles 1 to 10 of regulation no 492 / 2011 , are available to all workers and members of their families who consider they have suffered or are suffering from unjustified restrictions to their right to free movement or consider themselves wronged by failure to apply the principle of equal treatment to them , even after the relationship in which the discrimination is alleged to have occurred has ended . ### member states shall ensure that judicial and / or administrative procedures , including where they deem it appropriate , conciliation procedures , for the enforcement of the obligations under article 45 of the treaty and articles 1 to 10 of regulation no 492 / 2011 , are available to all workers and members of their families who consider they have suffered or are suffering from unjustified restrictions to their right to free movement or consider themselves wronged by failure to apply the principle of equal treatment to them , even after the relationship in which the discrimination is alleged to have occurred has ended . workers shall be provided with verifiable , readily understandable pay slips and issued with time sheets .


### to provide more effective levels of protection , associations and legal entities should also be empowered to engage , as the member states determine , on behalf of or in support of any victim in proceedings , without prejudice to national rules of procedure concerning representation and defense before the courts . ### to provide more effective levels of protection , associations and legal entities that can represent the legal interests of workers should also be empowered to engage , in accordance to the member states’ legislation , on behalf of or in support of any victim in proceedings , without prejudice to national rules of procedure concerning representation and defence before the courts .


### conducting independent surveys concerning discrimination on the basis of nationality ; ### conducting independent surveys and analyses concerning discrimination on the basis of nationality ;


### member states shall encourage dialogue with appropriate non - governmental organisations and the social partners which have , in accordance with their national law and practice , a legitimate interest in contributing to the fight against discrimination on grounds of nationality with a view to promoting the principle of equal treatment . ### member states shall encourage dialogue with the social partners and appropriate non - governmental organisations which have , in accordance with their national law and practice , a legitimate interest in contributing to the fight against discrimination on grounds of nationality with a view to promoting the principle of equal treatment .


### member states shall ensure that the provisions adopted pursuant to this directive together with the relevant provisions already in force in articles 1 to 10 of regulation no&#160 ; 492 / 2011 , are brought to the attention of the persons concerned by all appropriate means throughout their territory . ### member states shall ensure that the provisions adopted pursuant to this directive together with the relevant provisions already in force in articles 1 to 10 of regulation no&#160 ; 492 / 2011 , are brought to the attention of the persons concerned , in particular workers and employers by all appropriate means throughout their territory .


### paragraph 1 shall apply without prejudice to national rules on time limits for enforcement of those rights . these time limits shall be such that they cannot be regarded as capable of rendering virtually impossible or excessively difficult the exercise of rights conferred by union law . ### time limits for enforcement of those rights shall be such that they cannot be regarded as capable of rendering virtually impossible or much more difficult the exercise of rights conferred by union law .


### member states shall provide clear , easily accessible , comprehensive and up - to - date information on the rights conferred by the union law on free movement of workers . . this information should also be easily accessible through your europe and eures . ### member states shall provide clear , free , easily accessible , comprehensive and up - to - date information on the rights conferred by the union law on free movement of workers . this information should also be easily accessible through your europe and eures .


### member states shall designate a structure , a body or bodies for the promotion , analysis , monitoring and support of equal treatment of all workers or members of their families without discrimination on grounds of nationality and make the necessary arrangements for functioning of such bodies . these bodies may form part of agencies at a national level with similar objectives but covering a wider range of discrimination grounds . in that case , the member state shall ensure allocation of sufficient resources to the existing body for the performance of additional tasks in order to ensure that the performance of already existing tasks of these bodies will not suffer . ### member states shall designate a structure , a body or bodies for the promotion , analysis , monitoring and support of equal treatment of all workers or members of their families without discrimination on grounds of nationality and make the necessary arrangements for functioning of such bodies . these bodies may form part of existing agencies or bodies at a national level with similar objectives but covering a wider range of discrimination grounds . in that case , the member state shall ensure allocation of sufficient resources to the existing body for the performance of additional tasks in order to ensure that the performance of already existing tasks of these bodies will not suffer .


### member states shall ensure that existing or newly created bodies are aware , make use of and co - operate with the existing information and assistance services at union level , such as your europe , solvit , eures , enterprise europe network and the points of single contact . ### member states shall ensure that existing or newly created bodies are aware , make use of and co - operate with the existing information and assistance services at national level via contact points and at union level , via inter alia your europe , solvit , eures , enterprise europe network , the points of single contact and the european network of national contact points .


### it is up to each member state to decide whether the tasks referred to in article 5 of this directive are attributed to an already existing body covering a wider range of discrimination grounds . in the case the tasks under article 5 will be covered by expanding the mandate of an already existing body or structure , the member state should ensure allocation of sufficient resources to the existing body for the performance of additional tasks in order to ensure that the performance of already existing tasks of these bodies will not suffer . ### member states are encouraged to attribute the tasks referred to in article 5 of this directive to an already existing equality body designated in accordance with article 13 of directive 2000 / 43 / ec or covering a wider range of discrimination grounds . in the case the tasks under article 5 will be covered by expanding the mandate of an already existing body or structure , the member state should ensure allocation of sufficient additional resources to the existing body for the performance of additional tasks in order to ensure the effective and adequate provision of all functions of the body and in particular that the performance of already existing tasks of these bodies will not suffer .


### the application and monitoring of the union rules on free movement should be improved to ensure workers are better informed about their rights , to assist and to protect them in the exercise of those rights , and to combat circumvention of these rules by public authorities and public or private employers . ### the application and monitoring of the union rules on the free movement of workers should be improved to ensure that they are better informed about their rights , to assist and to protect them in the exercise of those rights , and to combat circumvention of these rules by public authorities and public or private employers .


### member states shall provide clear , easily accessible , comprehensive and up - to - date information on the rights conferred by the union law on free movement of workers . . this information should also be easily accessible through your europe and eures . ### member states shall provide , via national contact points , clear , easily accessible , comprehensive , up - to - date and multilingual information on the rights conferred by union law concerning free movement of workers and on means of available legal protection and redress . member states are also encouraged to set up a multilingual website dedicated to information on free movement of workers . this information should also be easily accessible through your europe and eures .


### conducting independent surveys concerning discrimination on the basis of nationality ; ### conducting independent surveys and independent analyses concerning discrimination and non - discrimination on the basis of nationality and / or , in the case of cross - border workers , on the basis of place of residence . for each member state it should be specified which jobs are nationality - restricted ;


### member states shall ensure that existing or newly created bodies are aware , make use of and co - operate with the existing information and assistance services at union level , such as your europe , solvit , eures , enterprise europe network and the points of single contact . ### member states shall ensure that these bodies are aware , make use of and co - operate with the existing information and assistance services at national level via contact points and at union level , such as your europe , solvit , eures , enterprise europe network , the points of single contact and the european network of national contact points . member states shall also ensure cooperation with existing information and assistance services provided by social partners and ngos .


### member states shall deploy no later than 1 october 2015 the necessary ecall psap infrastructure required for the proper receipt and handling of all ecalls , if necessary purged of non - emergency calls , on their territory , in accordance with the specifications laid down by delegated regulation no 305 / 2013 , in order to ensure the compatibility , interoperability and continuity of the interoperable eu - wide ecall service . this is without prejudice to the right of each member state to organise its emergency services in the way most cost effective and appropriate to its needs , including the possibility to filter calls that are not emergency calls and may not be handled by ecall psaps , in particular in the case of manually triggered ecalls ; ### member states shall deploy no later than 1 june 2016 the necessary ecall psap infrastructure required for the proper receipt and handling of all ecalls , if necessary purged of non - emergency calls , on their territory , in accordance with the specifications laid down by delegated regulation no 305 / 2013 , in order to ensure the compatibility , interoperability and continuity of the interoperable eu - wide ecall service . member states shall also ensure that the level of accuracy and reliability of caller location of a call to 112 with a gnss - enabled mobile terminal is equivalent to that of an ecall , in accordance with directive 95 / 46 / ec on data protection , and no later than 1 june 2016 . this is without prejudice to the right of each member state to organise its emergency services in the way most cost effective and appropriate to its needs , including the possibility to filter calls that are not emergency calls and may not be handled by ecall psaps , in particular in the case of manually triggered ecalls ;


### contracts should be awarded on the basis of objective criteria that ensure compliance with the principles of transparency , non - discrimination and equal treatment . these criteria should guarantee that tenders are assessed in conditions of effective competition , also where contracting authorities require high - quality works , supplies and services that are optimally suited to their needs , for instance where the chosen award criteria include factors linked to the production process . as a result , contracting authorities should be allowed to adopt as award criteria either ‘ the most economically advantageous tender’ or ‘ the lowest cost’ , taking into account that in the latter case they are free to set adequate quality standards by using technical specifications or contract performance conditions . ### contracts should be awarded on the basis of objective criteria that ensure compliance with the principles of transparency , non - discrimination and equal treatment . these criteria should guarantee that tenders are assessed in conditions of effective competition , also where contracting authorities require high - quality works , supplies and services that are optimally suited to their needs , for instance where the chosen award criteria include factors linked to the production process . as a result , contracting authorities should be allowed to adopt as award criteria preferably ‘ the most economically advantageous tender’ and after ‘ the lowest cost’ , taking into account that in the latter case they are free to set adequate quality standards by using technical specifications or contract performance conditions .


### eur 130 000 for public supply and service contracts awarded by central government authorities and design contests organised by such authorities ; where public supply contracts are awarded by contracting authorities operating in the field of defence , that threshold shall apply only to contracts concerning products covered by annex iii ; ### eur 300 000 for public supply and service contracts awarded by central government authorities and design contests organised by such authorities ; where public supply contracts are awarded by contracting authorities operating in the field of defence , that threshold shall apply only to contracts concerning products covered by annex iii ;


### at least 90 % of the activities of that legal person are carried out for the controlling contracting authority or for other legal persons controlled by that contracting authority ; ### the activities in their entirety of that legal person are carried out for the controlling contracting authority or for other legal persons controlled by that contracting authority or with respect to the provision of services of general interest ;


### contracting authorities may decide not to award a contract to the tenderer submitting the best tender where they have established that the tender does not comply , at least in an equivalent manner , with obligations established by union legislation in the field of social and labour law or environmental law or of the international social and environmental law provisions listed in annex xi . ### contracting authorities may decide not to award a contract to the tenderer submitting the best tender where they have established that the tender does not comply with obligations established by union or member state legislation in the field of social and labour law or environmental law or of the international social and environmental law provisions listed in annex xi .


### member states may reserve the right to participate in public procurement procedures to sheltered workshops and economic operators whose main aim is the social and professional integration of disabled and disadvantaged workers or provide for such contracts to be performed in the context of sheltered employment programmes , provided that more than 30% of the employees of those workshops , economic operators or programmes are disabled or disadvantaged workers . ### member states may reserve the right to participate in public procurement procedures to : sheltered workshops , or provide for such contracts to be performed in the context of sheltered employment programmes , provided that the majority of the employees concerned are disabled persons who , by reason of the nature of the seriousness of their disabilities , cannot carry on occupations under normal conditions or easily find employment on the ordinary market ; b ) social enterprises or programmes whose main aim is the social and professional integration of disadvantaged workers , provided that more than 30% of the employees of those enterprises or programmes are disabled or disadvantaged workers . the call for competition shall make reference to this provision .


### member states may provide that at the request of the subcontractor and where the nature of the contract so allows , the contracting authority shall transfer due payments directly to the subcontractor for services , supplies or works provided to the main contractor . in such case , member states shall put in place appropriate mechanisms permitting the main contractor to object to undue payments . the arrangements concerning that mode of payment shall be set out in the procurement documents . ### member states may provide that at the request of the subcontractor and where the nature of the contract so allows , the contracting authority shall transfer due payments directly to the subcontractor for services , supplies or works provided to the main contractor . in such case , member states shall put in place appropriate mechanisms permitting the main contractor to object to undue payments ex - post and provide for regulation that allow the contracting authority to take over the main contractor ' s signatory status without re - tendering if necessary , in order to endure legal certainty . the arrangements concerning that mode of payment shall be set out in the procurement documents .


### the report , or its main elements , shall be communicated to the commission or to the national oversight body where they so request . ### the report , or its main elements , shall be communicated to the commission or to the national oversight body .


### public procurement plays a key role in the europe 2020 strategy as one of the market - based instruments to be used to achieve a smart , sustainable and inclusive growth while ensuring the most efficient use of public funds . for that purpose , the current public procurement rules adopted pursuant to directive 2004 / 17 / ec of the european parliament and of the council of 31 march 2004 coordinating the procurement procedures of entities operating in the water , energy , transport and postal services sectors and directive 2004 / 18 / ec of the european parliament and of the council of 31 march 2004 on the coordination of procedures for the award of public works contracts , public supply contracts and public service contracts have to be revised and modernised in order to increase the efficiency of public spending , facilitating in particular the participation of small and medium - sized enterprises in public procurement and to enable procurers to make better use of public procurement in support of common societal goals . there is also a need to clarify basic notions and concepts to ensure better legal certainty and to incorporate certain aspects of related well - established case - law of the court of justice of the european union . ### public procurement plays a key role in the europe 2020 strategy as one of the market - based instruments to be used to achieve a smart , sustainable and inclusive growth while ensuring the most efficient use of public funds . for that purpose , the current public procurement rules adopted pursuant to directive 2004 / 17 / ec of the european parliament and of the council of 31 march 2004 coordinating the procurement procedures of entities operating in the water , energy , transport and postal services sectors and directive 2004 / 18 / ec of the european parliament and of the council of 31 march 2004 on the coordination of procedures for the award of public works contracts , public supply contracts and public service contracts have to be revised and modernised in order to increase the efficiency of public spending , simplifying access for small and medium - sized enterprises to public procurement and to enable procurers to make better use of public procurement in support of common societal goals . there is also a need to clarify basic notions and concepts to ensure better legal certainty and to incorporate certain aspects of related well - established case - law of the court of justice of the european union .


### not all contracting authorities may have the internal expertise to deal with economically or technically complex contracts . against this background , appropriate professional support would be an effective complement to monitoring and control activities . on the one hand , this objective can be achieved by knowledge sharing tools offering technical assistance to contracting authorities ; on the other hand , business , not least smes , should benefit from administrative assistance , in particular when participating in procurement procedures on a cross - border basis . ### certain contracting authorities , particularly at regional level , do not have the internal expertise to deal with economically or technically complex contracts . against this background , appropriate professional support would be an effective complement to monitoring and control activities . on the one hand , this objective can be achieved by knowledge sharing tools offering technical assistance to contracting authorities ; on the other hand , business , not least smes , should benefit from administrative assistance , in particular when participating in procurement procedures on a cross - border basis .


### the term of a framework agreement shall not exceed four years , save in exceptional cases duly justified , in particular by the subject of the framework agreement . ### a framework agreement shall not exceed the term put in place by national provisions of the individual member states .


### the measures referred to in this paragraph shall take due account of the legitimate interests to protect information of a commercially confidential nature and of the protection of industrial and commercial property rights . ’ ### the measures referred to in this paragraph shall take due account of the legitimate interests to protect information of a commercially confidential nature and of the protection of industrial and commercial property rights . member states shall ensure that the ownership and confidentiality of the data resulting from the use of safety features with the object of demonstrating the authenticity of pharmaceutical products are respected . ’


### the safety features referred to in point of article 54 shall not be partly or fully removed or covered - up , unless the following conditions are fulfilled : ### the safety features referred to in point of article 54 shall not be partly or fully removed or covered up , unless the following conditions are fulfilled and the identification , authenticity and traceability of medicinal products is ascertained :


### the safety features referred to in point of article 54 shall not be partly or fully removed or covered - up , unless the following conditions are fulfilled : ### the safety features referred to in point of article 54 shall not be partly or fully removed or covered up , unless the following conditions are fulfilled and the unique identification , authenticity and traceability of medicinal products is ascertained :


### additional dissemination obligations may be laid down in the grant agreement . ### additional dissemination obligations may be laid down in the grant agreement . when research is conducted in a field relevant to tackling societal challenges such as health or climate change , these additional obligations shall aim at ensuring accessibility of research results to those most affected by the specific societal challenge , respecting at the same time intellectual property rights .


### additional exploitation obligations may be laid down in the grant agreement . any such additional obligations shall be indicated in the work programme or work plan . ### additional exploitation obligations may be laid down in the grant agreement . any such additional obligations shall be indicated in the work programme or work plan . when research is conducted in a field relevant to tackling societal challenges such as health or climate change , these additional obligations shall aim at ensuring the widest possible uptake of innovative solutions in accordance with intellectual property rights , in the best public interest , both within and outside the union , and licensing of results to third parties shall , by default , take place on non - exclusive terms .


### some weaknesses have , however , recently been identified , in particular with regard to the statistical quality - management framework . ### some serious systemic inaccuracies and weaknesses have , however , recently been identified , in particular with regard to the statistical quality - management framework , as a result of the indulgent provision of statistical data which preceded the start of the social , financial and economic crisis .


### specific quality requirements , such as target values and minimum standards for the production of statistics , may be laid down in sectoral legislation . where sectoral legislation does not so provide , the commission may adopt , by means of delegated acts in accordance with article 26a , such specific quality requirements . ### specific quality requirements , such as target values and minimum standards for the statistical production , may be laid down in sectoral legislation .


### ‘ public authority’ means any contracting authority , as defined by directive 2004 / 18 / ec ; ### ‘ public authority’ means any contracting authority as defined by directive 2004 / 18 / ec and by article 2 of directive 2004 / 17 / ec of the european parliament and of the council of 31 march 2004 coordinating the procurement procedures of entities operating in the water , energy , transport and postal services sectors1 ; 1 oj l 134 , 30 . 04 . 2004 , p . 1 .


### payment by public authorities ### payment by public authorities and sectoral undertakings


### member states shall ensure that the maximum duration of a procedure of acceptance or verification referred to in paragraph 2 shall not exceed 30 days , unless otherwise specified and duly justified in the tender documents and the contract . ### member states shall ensure that a procedure of acceptance or verification referred to in paragraph 2 : is carried out immediately ; does not exceed 15 calendar days .


### member states shall ensure that the applicable reference rate in commercial transactions leading to the delivery of goods or the provision of services for remuneration to public authorities : ### member states shall ensure that the applicable reference rate in commercial transactions :


### member states shall ensure that the period for payment fixed in the contract shall not exceed the time limits provided for in paragraph 2 , unless it is specifically agreed between the debtor and the creditor and is duly justified in the light of particular circumstances such as an objective need to schedule payment over a longer period . ### member states shall ensure that the period for payment fixed in the contract shall not exceed the time limits provided for in paragraph 2 .


### ‘ public authority’ means any contracting authority , as defined by directive 2004 / 18 / ec ; ### ‘ public authority’ means any contracting authority as defined by directive 2004 / 17 / ec of the european parliament and of the council of 31 march 2004 coordinating the procurement procedures of entities operating in the water , energy , transport and postal services sectors1 and by directive 2004 / 18 / ec , regardless of the subject or value of the contract ; 1oj l 134 , 30 . 4 . 2004 , p . 1 .


### member states shall ensure that , in commercial transactions leading to the delivery of goods or the provision of services for remuneration to public authorities , the creditor is entitled , without the necessity of a reminder , to interest for late payment equal to statutory interest if the following conditions are satisfied : ### member states shall ensure that , in commercial transactions , the creditor is entitled , without the necessity of a reminder , to interest for late payment equal to statutory interest if the following conditions are satisfied :


### the directive should provide for a flexible entry system based on demand and objective criteria , such as a valid work contract or a binding job offer that specifies the level of remuneration applicable to seasonal workers in the sector concerned . ### the directive should provide for a flexible entry system based on demand and objective criteria , such as a valid work contract or a binding job offer that specifies , in accordance with national provisions or collective agreements , the level of remuneration and secondary working conditions applicable to seasonal workers in the sector concerned .


### member states shall require employers of seasonal workers to provide evidence that the seasonal worker will benefit from accommodation that ensures an adequate standard of living . if seasonal workers are required to pay rent for such accommodation , its cost shall not be excessive in relation to their remuneration . ### member states shall require employers of seasonal workers to provide evidence that the seasonal worker will benefit from adequate accommodation that is affordable in relation to his or her remuneration .


### member states shall require employers of seasonal workers to provide evidence that the seasonal worker will benefit from accommodation that ensures an adequate standard of living . if seasonal workers are required to pay rent for such accommodation , its cost shall not be excessive in relation to their remuneration . ### member states shall require employers of seasonal workers to provide evidence that the seasonal worker has accommodation for the duration of the seasonal work .


### activities dependent on the passing of the seasons are typically to be found in sectors such as agriculture , during the planting or harvesting period , or tourism , during the holiday period . ### activities dependent on the passing of the seasons are typically to be found in sectors such as agriculture and horticulture , during the planting or harvesting period , or tourism , during the holiday period .


### whatever the law applicable to the employment relationship , seasonal workers shall be entitled to : working conditions , including pay and dismissal as well as health and safety requirements at the workplace , applicable to seasonal work as laid down by law , regulation or administrative provision and / or universally applicable collective agreements in the member state to which they have been admitted according to this directive . in the absence of a system for declaring collective agreements to be of universal application , member states may , if they so decide , base themselves on collective agreements which are generally applicable to all similar undertakings in the geographical area and in the profession or industry concerned , and / or collective agreements which have been concluded by the most representative employers ' and labour organisations at national level and which are applied throughout national territory ; 2 . equal treatment with nationals of the host member state as regards at least with regard to : freedom of association and affiliation and membership of an organisation representing workers or of any organisation whose members are engaged in a specific occupation , including the benefits conferred by such organisations , without prejudice to the national provisions on public policy and public security ; b ) provisions in national laws regarding the branches of social security as defined in article 3 of council regulation no 883 / 04 ; c ) payment of statutory pensions based on the worker ' s previous employment under the same conditions as nationals of the member states concerned when they move to a third country ; d ) access to goods and services and the supply of goods and services made available to the public , except public housing and counselling services afforded by employment services . ### seasonal workers shall be entitled to equal treatment with nationals of the host member state at least with regard to : working conditions , including pay and dismissal , working hours , holidays and disciplinary provisions , as well as health and safety requirements at the workplace , taking into account , in addition to legal , administrative and regulatory provisions , arbitration decisions and collective agreements and contracts , concluded at any level , in accordance with the host member state ' s law and practices , by the most representative employers ' and labour organisations , under the same terms as for nationals of the host member state ; 2 . freedom of association and affiliation and membership of an organisation representing workers or of any organisation whose members are engaged in a specific occupation , including the rights and benefits conferred by such organisations , including the right to negotiate and conclude collective agreements and the right to strike and take industrial action , in accordance with the host member state’s national law and practices which comply with union law , without prejudice to the national provisions on public policy and public security ; 3 . the branches of social security , as defined in regulation no 883 / 2004 ; 4 . access to goods and services and the supply of goods and services made available to the public including procedures for obtaining housing and the assistance and advice services afforded by employment offices as provided by national law . this paragraph shall be without prejudice to the freedom of contract in accordance with national and union law .


### in the absence of a system for declaring collective agreements to be of universal application , member states may , if they so decide , base themselves on collective agreements which are generally applicable to all similar undertakings in the geographical area and in the profession or industry concerned , and / or collective agreements which have been concluded by the most representative employers ' and labour organisations at national level and which are applied throughout national territory . ### in the absence of a system for declaring collective agreements to be of universal application , member states may , if they so decide , base themselves on collective agreements which are generally applicable to all similar undertakings in the geographical area and in the profession or industry concerned , and / or collective agreements which have been concluded by the most representative employers ' and labour organisations at national level and which are applied throughout national territory , in accordance with national law and practice .


### building on these lessons the eit aims to consolidate and further develop its role as an ‘ investor’ which nurtures and enables existing centres of excellence in research , business and higher education in europe to come together and foster their long - term systematic collaborations through the kics . ### building on these lessons the eit aims to consolidate and further develop in nurturing and enabling existing centres of excellence in research , business and higher education in europe to come together and foster their long - term systematic collaborations through the kics .


### therefore , the projected eit budget for the kics in the period 2014 - 2020 equals to 2 , 9 billion euro . through the eit ' s strong leverage effect , the kics are expected to mobilise a further 8 , 890 billion euro of other public and private sources . ### the projected eit budget for the kics in the period 2014 - 2020 equals to 2 , 9 billion euro . through the eit ' s strong leverage effect , the kics are expected to mobilise a further 8 , 890 billion euro of other public and private sources .


### kics not only build on their partners ' existing excellent research base , but are also the frontrunners for promoting and implementing the eit ' s educational mission . the objective is to educate and train talented people with the skills , knowledge and mindset needed in a global knowledge economy . to this end , the eit actively promotes , inter alia , the eit - labelled degrees by monitoring their quality and coherent implementation across kics . in this endeavour they will make extensive use of peer and expert evaluations , and establish a dialogue with national and quality assurance bodies . this will enhance the national and international recognition of the eit labelled qualifications and raise their attractiveness globally , while providing a platform for collaboration at international level . in the future , kics will be encouraged to expand their educational activities beyond post - graduate education to a greater variety of study modes to cater for a wider range of innovative , professional development activities , involving executive education , tailor - made training courses and summer schools . to enhance the impact of kics ' educational activities and to reach out to a wider audience , kics may envisage the design , on an experimental basis , of modules for undergraduate courses or packages targeted to school education . ### kics not only build on their partners ' existing excellent research base , but are also the frontrunners for promoting and implementing the eit ' s educational mission . the objective is to educate and train talented people with the skills , knowledge and mindset needed in a global knowledge economy and society . to this end , the eit actively promotes , inter alia , the eit - labelled degrees by monitoring their quality and coherent implementation across kics . in this endeavour they will make extensive use of peer and expert evaluations , and establish a dialogue with national and quality assurance bodies . this will enhance the national and international recognition and reputation of the eit labelled qualifications and raise their attractiveness globally , while providing a platform for collaboration at international level . the attractiveness of research in europe could be further promoted by providing research grants to top science students , provided they commit to an r&d project in europe or they establish an innovative start - up in europe . in the future , kics will be encouraged to expand their educational activities beyond post - graduate education to a greater variety of study modes to cater for a wider range of innovative , professional development activities , involving executive education , tailor - made training courses and summer schools , as well as internships within the kics and their partners . to enhance the impact of kics ' educational activities and to reach out to a wider audience , kics may envisage the design , on an experimental basis , of distant and e - learning modules and degrees , as well as modules for undergraduate courses or packages targeted to school education .


### a kic on urban mobility is both in line with the priorities defined in horizon 2020 and with europe 2020 strategy objectives of achieving a smarter , more sustainable , low carbon and inclusive urban development . a kic in this thematic area could contribute to each of europe 2020 strategy objectives by , for example , the promotion of eco - efficient solutions , intelligent ict schemes for traffic management , and provision of more efficient and affordable transport services . ### a kic on urban mobility and smart and sustainable development is both in line with the priorities defined in horizon 2020 and with europe 2020 strategy objectives of achieving a smarter , more sustainable , low carbon and inclusive urban development . a kic in this thematic area could contribute to each of europe 2020 strategy objectives by , for example , the promotion of eco - efficient solutions , intelligent ict schemes for traffic management , and provision of more efficient and affordable transport services .


### urban mobility ### urban mobility , smart and sustainable development .


### · urban mobility ### · urban mobility , smart and sustainable development .


### if the eit is to pioneer new models of open innovation and simplification , this should be reflected in its approach to administration . the eit headquarters needs to be a lean organisation , which follows a strategic approach towards tapping into expertise whenever needed , but without creating unnecessarily heavy and permanent structures . the costs of administrative expenditure , covering necessary staff , administrative , infrastructure and operational expenses , will over time not exceed 2 , 4% of the eit budget . part of the administrative expenditure is covered by the host country hungary through provision of free of charge office space until the end of 2030 , as well as an annual contribution of 1 . 5 million euro to the staff cost until the end of 2015 . on this basis , administrative expenditure will therefore be approximately 77 million euro for 2014 - 2020 . ### the eit is to pioneer new models of open innovation and simplification . this should be reflected in its approach to administration . the eit headquarters needs to be a lean organisation , which follows a strategic approach towards tapping into expertise whenever needed , but without creating unnecessarily heavy and permanent structures . the costs of administrative expenditure , covering necessary staff , administrative , infrastructure and operational expenses , will over time not exceed 2 , 4% of the eit budget . part of the administrative expenditure is covered by the host country hungary through provision of free of charge office space until the end of 2030 , as well as an annual contribution of 1 . 5 million euro to the staff cost until the end of 2015 . on this basis , administrative expenditure will therefore be approximately 77 million euro for 2014 - 2020 .


### the eit will also engage in a number of dissemination and outreach activities , such as the eit fellowship programme which will significantly enhance the impact of its operations across europe . moreover , a number of cross - cutting supporting and monitoring services will provide added value and efficiency gains for kic activities . in implementing and developing these activities , the eit will need to follow a strategy aimed at a high efficiency ratio , i . e . a maximum of impact to be achieved through light - touch mechanisms . around 141 , 76 million of the eit budget is needed to implement these activities . ### the eit will also engage in a number of dissemination and outreach activities , such as the eit fellowship programme which will significantly enhance the impact of its operations across europe . moreover , a number of cross - cutting supporting and monitoring services will provide added value and efficiency gains for kic activities . in implementing and developing these activities , the eit will need to follow a strategy aimed at a high efficiency ratio , i . e . a maximum of impact to be achieved through light - touch mechanisms . 141 , 76 million of the eit budget is needed to implement these activities .


### the depositary shall be a credit institution having its registered office in the community and be authorised in accordance with directive 2006 / 48 / ec of the european parliament and council of 14 june 2006 relating to the taking up and pursuit of the business of credit institutions . ### the depositary shall be either : a credit institution having its registered office in the community and authorised in accordance with directive 2006 / 48 / ec ;


### given that aifm employing high levels of leverage in their investment strategies may , under certain conditions , contribute to the build up of systemic risk or disorderly markets , special requirements should be imposed on aifm using certain techniques giving rise to particular risks . the information needed to detect , monitor and respond to those risks has not been collected in a consistent way throughout the community , and shared across member states so as to identify potential sources of risk to the stability of financial markets in the community . to remedy this situation , special requirements should apply to aifm , which consistently use high levels of leverage in their investment strategies . those aifm should be obliged to disclose information regarding their use and sources of leverage . that information should be aggregated and shared with other authorities in the community , so as to facilitate a collective analysis of the impact of the leverage of those aifm on the financial system in the community , as well as a common response . ### given that an aifm may employ leverage at the level of the aif and may , under certain conditions , contribute to the build up of systemic risk or disorderly markets , special requirements should be imposed on aifm employing leverage on a systemically significant basis . the information needed to detect , monitor and respond to those risks has not been collected in a consistent way throughout the union , and shared across member states so as to identify potential sources of risk to the stability of financial markets in the union . to remedy this situation , special requirements should apply to aifm , which employ leverage at the level of the aif on a systemically significant basis . such aifm should be obliged to disclose information regarding the use and sources of leverage . that information should be aggregated and shared with other authorities in the union , so as to facilitate a collective analysis of the impact of the leverage of aif managed by aifm on the financial system in the union , as well as a common response . competent authorities should pass such information to the european systemic risk board established under regulation no . . . / 2009 and to the european securities and markets authority established under regulation no . . . / 2009 for use by these bodies in the performance of their duties .


### ' marketing ' means any general offering or placement of units or shares in an aif to or with investors domiciled in the community , regardless of at whose initiative the offer or placement takes place ; ### ' marketing ' means any general offering or placement of units or shares in an aif , at the initiative of the aifm managing such aif , to or with investors domiciled in the union ;


### the scope of this directive should be confined to the management of collective investment undertakings which raise capital from a number of investors with a view to investing it in accordance with a defined investment policy on the principle of risk - spreading for the benefit of those investors . this directive should not apply to the management of pension funds or managers of non - pooled investments such as endowments , sovereign wealth funds or assets hold on own account by credit institutions , insurance or reinsurance undertakings . this directive should neither apply to actively managed investments in the form of securities , such as certificates , managed futures , or index - linked bonds . it should , however , cover managers of all collective investment undertakings which are not required to be authorised as ucits . investment firms authorised under directive 2004 / 39 / ec on markets in financial instruments should not be required to obtain an authorisation under this directive in order to provide investment services in respect of aif . investment firms can however only provide investment services in respect of aif , if and to the extent the units or shares thereof can be marketed in accordance with this directive . ### the scope of this directive should be confined to the management of collective investment undertakings which raise capital from a number of investors with a view to investing it in accordance with a defined investment policy for the benefit of those investors . this directive should not apply to the managers of non - pooled investments such as endowments , sovereign wealth funds , central banks or assets held on own account by credit institutions , pension funds , or insurance or reinsurance undertakings . in order to benefit from the exemptions provided for in this directive , aifm concerned should comply with the conditions of those exemptions on a continuous basis . this directive should , however , cover managers of all collective investment undertakings which are not required to be authorised as ucits . investment firms authorised under directive 2004 / 39 / ec on markets in financial instruments should not be required to obtain an authorisation under this directive in order to provide investment services in respect of aif . investment firms can however only provide investment services in respect of aif , if and to the extent the units or shares thereof can be marketed in accordance with this directive .


### given that aifm employing high levels of leverage in their investment strategies may , under certain conditions , contribute to the build up of systemic risk or disorderly markets , special requirements should be imposed on aifm using certain techniques giving rise to particular risks . the information needed to detect , monitor and respond to those risks has not been collected in a consistent way throughout the community , and shared across member states so as to identify potential sources of risk to the stability of financial markets in the community . to remedy this situation , special requirements should apply to aifm , which consistently use high levels of leverage in their investment strategies . those aifm should be obliged to disclose information regarding their use and sources of leverage . that information should be aggregated and shared with other authorities in the community , so as to facilitate a collective analysis of the impact of the leverage of those aifm on the financial system in the community , as well as a common response . ### given that an aifm may employ leverage at the level of the aif and may , under certain conditions , contribute to the build up of systemic risk or disorderly markets , special requirements should be imposed on aifm employing leverage on a systemically significant basis . the information needed to detect , monitor and respond to those risks has not been collected in a consistent way throughout the union , and shared across member states so as to identify potential sources of risk to the stability of financial markets in the union . to remedy this situation , special requirements should apply to aifm , which employ leverage at the level of the aif on a systemically significant basis . such aifm should be obliged to disclose information regarding the use and sources of leverage in their aif . information gathered by competent authorities should be aggregated and shared with other authorities in the union , so as to facilitate a collective analysis of the impact of the leverage of aif managed by aifm on the financial system in the union , as well as a common response .


### aifm shall ensure that , for each aif that it manages , a valuator is appointed which is independent of the aifm to establish the value of assets acquired by the aif and the value of the shares and units of the aif . ### the aifm shall , where appropriate , ensure the functional independence of the valuation function and the portfolio management function in view of the nature , scale and complexity of each aif that it manages .


### aifm shall ensure that , for each aif that it manages , a valuator is appointed which is independent of the aifm to establish the value of assets acquired by the aif and the value of the shares and units of the aif . ### aifm shall ensure in respect of each aif that it manages : that high level policies for the valuation of assets held or employed by the aif are adopted and documented ; that the calculation of the value of the assets of the aif is undertaken in accordance with those policies either by a valuator which is independent of the aifm or by the aifm ; that the value of the assets of the aif is calculated at an appropriate frequency and that the value of the shares or units of the aif are calculated at or prior to each time they can be issued or redeemed ; and that such valuation policies are periodically reviewed and amended to seek to ensure their continued appropriateness .


### the depositary shall act independently and solely in the interest of aif investors . ### in the context of their respective roles , the aifm and the depositary shall act honestly , fairly , professionally , independently and in the interest of the aif or the investors of the aif collectively .


### depositaries may delegate their tasks to other depositaries . ### depositaries may delegate their tasks to other depositaries . if the task consists in safe - keeping financial instruments pursuant to article 17 , it may also be delegated to a depositary in a third country which meets the conditions laid down in points to of the second subparagraph of article 38 .


### depositary for each aif it manages , the aifm shall ensure that a depositary is appointed to fulfil , where relevant , the following tasks : receive all payments made by investors when subscribing units or shares of an aif managed by the aifm and book them on behalf of the aifm in a segregated account ; safe - keep any financial instruments which belong to the aif ; verify whether the aif or the aifm on behalf of the aif has obtained the ownership of all other assets the aif invests in . 2 . an aifm shall not act as depositary . the depositary shall act independently and solely in the interest of aif investors . 3 . the depositary shall be a credit institution having its registered office in the community and be authorised in accordance with directive 2006 / 48 / ec of the european parliament and council of 14 june 2006 relating to the taking up and pursuit of the business of credit institutions . 4 . depositaries may delegate their tasks to other depositaries . 5 . the depositary shall be liable to the aifm and the investors of the aif for any losses suffered by them as a result of its failure to perform its obligations pursuant to this directive . in case of any loss of financial instruments which the depositary safe - keeps , the depositary can only discharge itself of its liability if it can prove that it could not have avoided the loss which has occurred . liability to aif investors may be invoked either directly or indirectly through the aifm , depending on the legal nature of the relationship between the depositary , the aifm and the investors . the depositary ' s liability shall not be affected by any delegation referred to in paragraph 4 . ### depositary for each aif it manages , the aifm shall ensure that a depositary is appointed to fulfil , where relevant , the following functions : receive all payments made by investors when subscribing units or shares of an aif managed by the aifm and book them on behalf of the aifm in a segregated account ; safe - keep any financial instruments which belong to the aif , namely : hold in custody all financial instruments that can be kept and make adequate arrangements so as to safeguard the aif ' s ownership rights , especially in the event of the depositary ' s insolvency , including arrangements to ensure that those financial instruments are registered in the depositary ' s books within segregated accounts or a common segregated account for multiple aif , so that in the event of the depositary ' s default they can be clearly identified as separate from the assets of the depositary ; maintain the records to verify the ownership of financial instruments that cannot be kept on the basis of the information provided by the aifm and external evidence of transactions made . verify whether the aif or the aifm on behalf of the aif has obtained the ownership of all other assets the aif invests in . 1a . in addition to the functions referred to in paragraph 1 , the depositary shall ensure that : the sale , issue , re - purchase , redemption and cancellation of shares or units of the aif are carried out in accordance with the applicable national law and the aif rules or instruments of incorporation ; the value of the shares or units of the aif is calculated in accordance with the applicable national law and the aif rules or instruments of incorporation ; in transactions involving the assets of an aif , any consideration is remitted to it within the usual time limits ; and an aif ' s income is applied in accordance with the applicable national law and the aif rules . 2 . an aifm shall not act as depositary . the depositary shall act honestly , fairly , professionally , independently and in the interest of aif investors . 3 . the depositary shall be either : a credit institution having its registered office in the community and be authorised in accordance with directive 2006 / 48 / ec , or an investment firm authorised in accordance with directive 2004 / 39 / ce . 3a . where an aif managed by an authorised aifm is domiciled in a third country , the depositary shall have its registered office in the union , unless all of the following conditions are satisfied : the competent authorities of the home member state of the aifm and those of the third country where the aif is domiciled have signed cooperation and exchange of information agreements ; the law of the third country where the aif is domiciled is in line with the standards set by international organisations ; the third country where the aif is domiciled is the subject of a decision taken pursuant to point stating that depositaries domiciled in that country are subject to effective prudential regulation and supervision which is equivalent to the provisions laid down in union law ; the third country where the aif is domiciled is the subject of a decision taken pursuant to point stating that the standards to prevent money laundering and terrorist financing are equivalent to those laid down in union law ; the home member state of the aifm has signed an agreement with the third country where the aif is domiciled which fully complies with the standards laid down in article 26 of the oecd model tax convention and ensures an effective exchange of information in tax matters . 4 . depositaries may delegate their tasks apart from functions of monitoring and oversight over their sub - depositaries . a depositary shall not delegate its functions to the extent that it becomes a letter - box entity . such a delegation of liability shall only occur in one instance . there shall be no chain of liability . 4a . depositaries shall respect best practices and shall exercise all due skill , care and diligence in the selection and appointment , periodic review and ongoing monitoring of their performance of any third party to whom they have delegated their tasks as referred to in this paragraph . 5 . the depositary shall be liable to the aifm and the investors of the aif for any losses suffered by them as a result of its intentional or negligent failure to perform its obligations pursuant to this directive or its improper performance of them except where such loss arises as a result of force majeure . in case of any loss of financial instruments which the depositary safe - keeps , the depositary can only discharge itself of its liability if it can prove that the loss has been caused by an external event , that it was not foreseeable and that the depositary could not have avoided the loss which has occurred . the depositary ' s liability towards aifm and investors shall not be affected by the fact that it has chosen to undertake a single delegation to an authorised third party , such as a sub - depositary or a sub - custodian , a part of its tasks . therefore , in the event of any loss of financial instruments which the depositary safe - keeps , as a primary obligation , without prejudice to national law , the depositary shall return the assets to the aif without undue delay . that requirement shall apply without prejudice to any legal proceedings . liability to aif investors may be invoked directly or indirectly through the aifm . 5a . by way of exception to paragraph 5 , where a depositary is legally prevented by the law of the country where the aifm invests on behalf of the aif or is unable to exercise its custodial functions due to an unforeseeable external event , the depositary can discharge itself of its own liability , including for loss of financial instruments , if it can prove that it has performed its due diligence duties as referred to in paragraph 4a . such delegation of liability can only occur in one instance . there shall be no chain of liability . 5b . by way of exception to paragraph 5 , where the contract between the depositary and a prime broker or a sub - custodian allows for the transfer and reuse of assets in compliance with the aif ' s rules , the depositary may discharge itself of its own liability if it can prove that it has performed its due diligence duties as referred to in paragraph 4a . the contract between the aifm and the depositary shall require that the aifm be informed of any contractual term allowing the transfer and reuse of assets in compliance with the aif ' s rules before the implementation of the contract . before they invest in the aif , investors shall be informed of that clause and updated about the identity of the third party . in particular , investors shall be informed of any transfer of liability to the third party that may exist , including in the event of loss of financial instruments . in that case , the delay for restitution shall be in accordance with the terms of the contract between the depositary and the third party . 5c . the depositary shall make available on request to the competent authorities of its home member state all information which it has obtained while undertaking its duties and that may be necessary for the competent authorities to supervise the aifm . if the home member state of the aifm is different from that of the depositary , the competent authorities of the home member state of the depositary shall share the information received without delay with the competent authorities of the home member state of the aifm . 5d . the commission is empowered to adopt , in accordance with article 49 of this directive , delegated acts further specifying the duties and responsibilities of depositaries and the conditions under which an aif depositary may delegate some of its functions to a third party . 5e . any appointment of a depositary shall be subject to approval from the competent authority of the home member state of the aifm . the competent authority may permit the appointment of more than one depositary where it is satisfied that this will not interfere with the proper performance of all the obligations of the depositary set out in this directive .


### aifm shall ensure that , for each aif that it manages , a valuator is appointed which is independent of the aifm to establish the value of assets acquired by the aif and the value of the shares and units of the aif . ### an aifm shall ensure that , for each aif that it manages , proper valuations of the aif ' s assets are performed on an appropriate , timely and consistent basis so that the value of the shares or units of the aif can be readily assessed by investors and other interested parties .


### that the legislation on prudential regulation and ongoing supervision of aifm in a third country is equivalent to this directive and effectively enforced ; ### that the legislation on prudential regulation and ongoing supervision of aifm in a third country is reasonably equivalent to this directive with respect to aifm and aif of a given size , type or complexity and effectively enforced ;


### in particular the commission should be empowered to adopt the measures necessary for the implementation of this directive . in this respect , the commission should be able to adopt measures determining the procedures under which aifm managing portfolios of aif whose assets under management do not exceed the threshold set out in this directive may exercise their right to be treated as aifm covered by this directive . these measures are also designed to specify the criteria to be used by competent authorities to assess whether aifm comply with their obligations as regards their conduct of business , the type of conflicts of interests aifm have to identify , as well as the reasonable steps aifm are expected to take in terms of internal and organizational procedures in order to identify , prevent , manage and disclose conflicts of interest . they are designed to specify the risk management requirements to be employed by aifm as a function of the risks which the aifm incurs on behalf of the aif that it manages as well as any arrangements needed to enable aifm to manage the particular risks associated with short selling transactions , including any relevant restrictions that might be needed to protect the aif from undue risk exposures . they are designed to specify the liquidity management requirements of this directive and in particular the minimum liquidity requirements for aif . they are designed to specify the requirements that originators of securitisation instruments have to meet in order for an aifm to be allowed to invest in such instruments issued after 1 january 2011 . they are as well designed to specify the requirements that aifm have to comply with when investing in such securitisation instruments . they are designed to specify the criteria under which a valuator can be considered independent in the meaning of this directive . they are designed to specify the conditions under which the delegation of aifm functions should be approved and the conditions under which the manager could no longer be considered to be the manager of the aif in case of excessive delegation . they are designed to specify the content and format of the annual report that aifm have to make available for each aif they manage and to specify the disclosure obligations of aifm to investors and reporting requirements to competent authorities as well as their frequency . they are designed to specify the disclosure requirements imposed on aifm as regards leverage and the frequency of reporting to competent authorities and of disclosure to investors . they are designed to setting limits to the level of leverage aifm can employ when managing aif they are designed to determine the detailed content and the way aifm acquiring controlling influence in issuers and non - listed companies should fulfil their information obligation towards issuers and non - listed companies and their respective shareholders and representatives of employees , including the information to be provided in the annual reports of the aif they manage . they are designed to specify the types of restrictions or conditions that can be imposed on the marketing of aif to professional investor in the home member state of the aifm . they are designed to specify general criteria for assessing equivalence of valuation standards of third countries where the valuator is established in a third country , the equivalence of legislation of third countries regarding depositaries and , for the purpose of the authorisation of aifm established in third countries , the equivalence of prudential regulation and ongoing supervision . they are designed to specify general criteria for assessing whether third countries grant community aifm effective market access comparable to that granted by the community to aifm from third countries . they are designed to specify the modalities , content and frequency of exchange of information regarding aifm between the competent authorities of the home member state of the aifm and other competent authorities where the aifm individually or collectively with other aifm may have an impact on the stability of systemically relevant financial institutions and the orderly functioning of markets . they are designed to specify the procedures for on - the - spot verifications and investigations . ### in particular the commission should be empowered to adopt the measures necessary for the implementation of this directive . in this respect , the commission should be able to adopt measures determining the procedures under which aifm managing portfolios of aif whose assets under management do not exceed the threshold set out in this directive may exercise their right to be treated as aifm covered by this directive . these measures are also designed to specify the criteria to be used by competent authorities to assess whether aifm comply with their obligations as regards their conduct of business , the type of conflicts of interests aifm have to identify , as well as the reasonable steps aifm are expected to take in terms of internal and organizational procedures in order to identify , prevent , manage and disclose conflicts of interest . they are designed to specify the risk management requirements to be employed by aifm as a function of the risks which the aifm incurs on behalf of the aif that it manages as well as any arrangements needed to enable aifm to manage the particular risks associated with short selling transactions , including any relevant restrictions that might be needed to protect the aif from undue risk exposures . they are designed to specify the liquidity management requirements of this directive and in particular the minimum liquidity requirements for aif . they are designed to specify the requirements that originators of securitisation instruments have to meet in order for an aifm to be allowed to invest in such instruments issued after 1 january 2011 . they are as well designed to specify the requirements that aifm have to comply with when investing in such securitisation instruments . they are designed to specify the conditions under which the manager could no longer be considered to be the manager of the aif in case of excessive delegation . they are designed to specify the content and format of the annual report that aifm have to make available for each aif they manage and to specify the disclosure obligations of aifm to investors and reporting requirements to competent authorities as well as their frequency . they are designed to specify the disclosure requirements imposed on aifm as regards leverage and the frequency of reporting to competent authorities and of disclosure to investors . they are designed to setting limits to the level of leverage aifm can employ when managing aif they are designed to determine the detailed content and the way aifm acquiring controlling influence in issuers and non - listed companies should fulfil their information obligation towards issuers and non - listed companies and their respective shareholders and representatives of employees , including the information to be provided in the annual reports of the aif they manage . they are designed to specify the types of restrictions or conditions that can be imposed on the marketing of aif to professional investor in the home member state of the aifm . they are designed to specify general criteria for assessing equivalence of valuation standards of third countries where the valuator is established in a third country , the equivalence of legislation of third countries regarding depositaries and , for the purpose of the authorisation of aifm established in third countries , the equivalence of prudential regulation and ongoing supervision . they are designed to specify the modalities , content and frequency of exchange of information regarding aifm between the competent authorities of the home member state of the aifm and other competent authorities where the aifm individually or collectively with other aifm may have an impact on the stability of systemically relevant financial institutions and the orderly functioning of markets . they are designed to specify the procedures for onthespot verifications and investigations .


### aifm shall , before implementation , notify the competent authorities of the home member state of any change regarding the information provided in their initial application that may substantially affect the conditions under which the authorisation has been granted , in particular changes of the investment strategy and policy of any aif managed by it , of the aif rules or instruments of incorporation and the identity of any further aif the aifm intends to manage . the competent authorities shall , within a month of receipt of that notification , either approve , or impose restrictions , or reject those changes . ### aifm shall , before implementation , notify the competent authorities of the home member state of any material changes to the conditions for initial authorisation or registration , in particular changes in the programme of activity of the aifm or the investment strategy and policy of any aif managed by it . the aifm shall inform the competent authority of any change concerning the persons effectively conducting the business of the aifm . the competent authorities shall , within a month of receipt of that notification , approve , impose restrictions or reject those changes . the competent authorities shall , where duly justified , reject changes regarding the investment strategy and policy of an aif or changes regarding rules or instruments of incorporation if those have been agreed upon by the investors .