### where the authority maintains its decision , the council , acting by qualified majority as defined in article 205 of the treaty , shall , within two months , decide whether the authority ' s decision is maintained or revoked . ### where the authority maintains its decision , the council shall take a decision whether the authority ' s decision is maintained or revoked on the basis of a qualified majority of its members , as defined in article 16 of the eu treaty and in article 3 of the protocol on transitional provisions annexed to the treaty on european union and to the treaty on the functioning of the european union , at a meetings no later than two months after the authority has informed the member state as set out in the fourth subparagraph .


### the joint committee shall serve as a forum in which the authority shall cooperate regularly and closely and ensure cross - sectoral consistency with the european insurance and occupational pensions authority and the european securities and markets authority . ### the joint committee shall serve as a forum in which the authority shall cooperate regularly and closely and ensure cross - sectoral consistency with the other esas , in particular on : – financial conglomerates ; – accounting and auditing ; – micro - prudential analyses of cross - sectoral developments , risks and vulnerabilities for financial stability ; – retail investment products ; – anti - money laundering measures ; and – information exchange with the european systemic risk board and developing the relationship between the european systemic risk board and the european supervisory authorities .


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


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


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


### there is a need to introduce an effective instrument to establish harmonised technical standards in financial services to ensure , also through a single rulebook , a level playing field and an adequate protection of depositors , investors and consumers across europe . as a body with highly specialised expertise , it is efficient and appropriate to entrust the authority , in areas defined by community law , with the elaboration of draft technical standards , which do not involve policy choices . the commission should endorse those draft technical standards in accordance with community law in order to give them binding legal effect . the draft technical standards have to be adopted by the commission . they would be subject to amendment if , for example , the draft technical standards were incompatible with community law , would not respect the principle of proportionality or would run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of community financial services legislation . to ensure a smooth and expedited adoption process for those standards , the commission should be subject to a time limit for its decision on the endorsement . ### there is a need to introduce an effective instrument to establish harmonised technical standards in financial services to ensure , also through a single rulebook , a level playing field and an adequate protection of depositors , investors and consumers across europe . as a body with highly specialised expertise , it is efficient and appropriate to entrust the authority , in areas defined by eu law , with the elaboration of draft technical standards , which do not involve policy choices . the commission should be empowered to adopt delegated acts in accordance with the procedure referred to in article 290 of the treaty on the functioning of the european union concerning technical standards in financial services .


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


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


### before submitting them to the commission , the authority shall , where appropriate , conduct open public consultations on technical standards and analyse the potential related costs and benefits . ### the authority shall conduct open public consultations on technical standards and analyse the potential related costs and benefits before adopting draft technical standards . the authority shall also request an opinion or advice of the banking stakeholder group referred to in article 22 .


### where a member state considers that a decision taken under article 11 impinges on its fiscal responsibilities , it may notify the authority and the commission within one month after notification of the authority ' s decision to the competent authority that the decision will not be implemented by the competent authority . ### where a member state considers that a decision taken under article 11 impinges on its fiscal responsibilities , it may notify the authority and the commission within ten working days after notification of the authority ' s decision to the competent authority that the decision will not be implemented by the competent authority .


### where the competent authority has not complied with community law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the competent authority to take the action necessary to comply with community law . ### where the competent authority has not complied with eu law within the 10 working days set out in paragraph 3 from receipt of the authority ' s recommendation , the authority shall take a decision requiring the competent authority to take the action necessary to comply with eu law .


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


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


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


### the joint committee of european supervisory authorities shall meet at least once every two months . ### the board of the joint committee of european supervisory authorities shall meet at least once every two months .


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


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


### the executive director shall be appointed by the board of supervisors on the basis of merit , skills , knowledge of financial institutions and markets , and experience relevant to financial supervision and regulation and managerial experience , following an open selection procedure . ### the executive director shall be appointed by the board of supervisors on the basis of merit , skills , knowledge of financial institutions and markets , and experience relevant to financial supervision and regulation and managerial experience , following an open selection procedure organised and managed by the commission and after endorsement of the european parliament .


### the process for the development of technical standards in this regulation is without prejudice to the commission ' s powers to adopt on its own initiative implementing measures under comitology procedures at level 2 of the lamfalussy structure as laid out in the relevant community legislation . the matters concerned by the technical standards do not involve policy decisions , and their content is framed by the community acts adopted at level 1 . development of the draft standards by the authority ensures that they fully benefit from the specialised expertise of national supervisory authorities . ### the commission should endorse those draft technical standards in order to give them binding legal effect . they will be subject to amendment if , for example , they are incompatible with eu law , do not respect the principle of proportionality or run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of european union financial services legislation . to ensure a smooth and expeditious adoption process for those standards , the commission should be subject to a time limit for its decision on the endorsement .


### the authority shall set a time limit for conciliation between the competent authorities taking into account any relevant time periods specified in the legislation referred to in article 1 and the complexity and urgency of the matter . ### the authority shall set a time limit for conciliation between the competent authorities taking into account any relevant time periods specified in the legislation referred to in article 1 and the complexity and urgency of the matter . at that stage the authority shall at act as a mediator .


### where the national authority does not comply with the recommendation , the commission should be empowered to address a decision to the national supervisory authority concerned in order to ensure compliance with community law , creating direct legal effects which can be invoked before national courts and authorities and enforced under article 226 of the treaty . ### where the national authority does not comply with the recommendation within a deadline fixed by the authority , the authority should address a decision without delay to the national supervisory authority concerned in order to ensure compliance with eu law , creating direct legal effects which can be invoked before national courts and authorities and enforced under article 258 of the treaty .


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


### the joint committee shall serve as a forum in which the authority shall cooperate regularly and closely and ensure cross - sectoral consistency with the european insurance and occupational pensions authority and the european securities and markets authority . ### the joint committee shall serve as a forum in which the authority shall cooperate regularly and closely and ensure cross - sectoral consistency within all pillars of the european supervisory authority , in particular regarding : – financial conglomerates ; – accounting and auditing ; – micro - prudential analyses for financial stability ; – retail investment products ; – money laundering measures .


### the authority shall ensure that no decision adopted under articles 10 or 11 impinges in any way on the fiscal responsibilities of member states . ### the authority shall ensure that no decision adopted under articles 10 or 11 impinges directly on the fiscal responsibilities of member states .


### without prejudice to the powers of the commission under article 226 of the treaty , where a competent authority does not comply with the decision of the authority referred to in paragraph 2 within the period laid down therein , the authority may , where the relevant requirements laid down in the legislation referred to in article 1 are directly applicable to financial institutions , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under that legislation , including the cessation of any practice . ### without prejudice to the powers of the commission under article 258 of the treaty , where a competent authority does not comply with the decision of the authority referred to in paragraph 2 within the period laid down therein , the authority shall , pursuant to the relevant requirements laid down in the legislation referred to in article 1 , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under that legislation , including the cessation of any practice .


### each member other than the chairperson shall have an alternate , who may replace the member of the management board if that person is prevented from attending . ### each member shall have an alternate , who may replace the member of the management board if that person is prevented from attending . the chairperson ' s alternate shall be elected in accordance with article 33 .


### for the purposes of article 11 , the board of supervisors shall convoke a panel to facilitate the settlement of the disagreement , consisting of the chairperson and two of its members , who are not representatives of the competent authorities which are parties to the disagreement . ### for the purposes of article 11 , the board of supervisors shall convoke an independent panel to facilitate an impartial settlement of the disagreement , consisting of the chairperson and two of its members , who are not representatives of the competent authorities which are parties to the disagreement and who shall not have any interest in the conflict .


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


### the authority shall ensure an adequate coverage of cross - sectoral developments , risks and vulnerabilities by closely cooperating with the european insurance and occupational pensions authority and the european securities and markets authority . ### the authority shall ensure an adequate coverage of cross - sectoral developments , risks and vulnerabilities by closely cooperating with the european insurance and occupational pensions authority and the european securities and markets authority and the european supervisory authority .


### the authority should actively promote a coordinated community supervisory response , in particular where adverse developments could potentially jeopardise the orderly functioning and integrity of financial markets or the stability of the financial system in the community . in addition to its powers for action in emergency situations , it should therefore be entrusted with a general coordination function within the european system of financial supervisors . the smooth flow of all relevant information between competent authorities should be a particular focus of the authority ' s actions . ### the authority should actively promote a coordinated union supervisory response , in particular to ensure the orderly functioning and integrity of financial markets or the stability of the financial system in the union . in addition to its powers for action in emergency situations , it should therefore be entrusted with a general coordination function . the smooth flow of all relevant information between competent authorities should be a particular focus of the authority ' s actions .


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


### in the case of adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system in the community , the commission , upon its own initiative or following a request by the authority , the council , or the esrb , may adopt a decision addressed to the authority , determining the existence of an emergency situation for the purposes of this regulation . ### in the case of adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system in the community , the esrb , upon its own initiative or following a request by the authority , the council , the european parliament or the commission , may issue a warning declaring the existence of an emergency situation in order to enable the authority without further requirements to adopt the individual decisions referred to in paragraph 3 .


### that report shall also evaluate progress achieved towards regulatory and supervisory convergence in the fields of crisis management and resolution in the community . the evaluation shall be based on extensive consultation , including with the banking stakeholder group . ### that report shall also evaluate progress achieved towards regulatory and supervisory convergence in the fields of crisis management and resolution in the community and shall submit a report to the parliament and the council together with any appropriate proposals to amend this regulation . the evaluation shall be based on extensive consultation , including with the banking stakeholder group .


### the banking stakeholder group shall be composed of 30 members , representing in balanced proportions community credit and investment institutions , their employees as well as consumers and users of banking services . ### the banking stakeholder group shall be composed of 30 members , representing in balanced proportions union credit and investment institutions , their employees as well as consumers , users of banking services and representatives of smes . not less than 5 of the members shall be independent top - ranking academics . the number of members representing market participants shall not exceed 10 . not less than 10 members shall be elected by sme organisations .


### there is a need to introduce an effective instrument to establish harmonised technical standards in financial services to ensure , also through a single rulebook , a level playing field and an adequate protection of depositors , investors and consumers across europe . as a body with highly specialised expertise , it is efficient and appropriate to entrust the authority , in areas defined by community law , with the elaboration of draft technical standards , which do not involve policy choices . the commission should endorse those draft technical standards in accordance with community law in order to give them binding legal effect . the draft technical standards have to be adopted by the commission . they would be subject to amendment if , for example , the draft technical standards were incompatible with community law , would not respect the principle of proportionality or would run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of community financial services legislation . to ensure a smooth and expedited adoption process for those standards , the commission should be subject to a time limit for its decision on the endorsement . ### there is a need to introduce an effective instrument to establish harmonised technical standards in financial services to ensure , also through a single rulebook , a level playing field and an adequate protection of depositors , investors and consumers across europe . as a body with highly specialised expertise , it is efficient and appropriate to entrust the authority , in areas defined by community law , with the elaboration of draft technical standards , which do not involve policy choices . the commission should endorse those draft technical standards in accordance with community law in order to give them binding legal effect . the draft technical standards have to be adopted by the commission . they should not be subject to amendment by the commission . the commission should reject the draft technical standards only if they were incompatible with european union law , would not respect the principle of proportionality or would run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of european union financial services legislation . to ensure a smooth and expedited adoption process for those standards , the commission should be subject to a time limit for its decision on the endorsement .


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


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


### the process for the development of technical standards in this regulation is without prejudice to the commission ' s powers to adopt on its own initiative implementing measures under comitology procedures at level 2 of the lamfalussy structure as laid out in the relevant community legislation . the matters concerned by the technical standards do not involve policy decisions , and their content is framed by the community acts adopted at level 1 . development of the draft standards by the authority ensures that they fully benefit from the specialised expertise of national supervisory authorities . ### the commission should endorse those draft technical standards in order to give them binding legal effect . they will be subject to amendment if , for example , they are incompatible with eu law , do not respect the principle of proportionality or run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of european union financial services legislation . to ensure a smooth and expeditious adoption process for those standards , the commission should be subject to a time limit for its decision on the endorsement .


### the competent authorities shall make every effort to comply with those guidelines and recommendations . ### within two months of the issuance of a guideline or recommendation , each competent authority shall decide whether it intends to comply with that guideline or recommendation . in the event that it does not intend to comply , it shall inform the authority , stating reasons . the authority shall publish those reasons .


### the authority shall contribute to promote the efficient and consistent functioning of colleges of supervisors referred to in directive 2006 / 48 / ec and foster the coherence of the application of community legislation across colleges . ### the authority shall contribute to promote and monitor the efficient effective and consistent functioning of the colleges of supervisors referred to in directive 2006 / 48 / ec and foster the coherence of the application of union law across colleges .


### where the competent authority has not complied with community law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the competent authority to take the action necessary to comply with community law . ### where the competent authority has not complied with eu law within the 10 working days set out in paragraph 3 from receipt of the authority ' s recommendation , the authority shall take a decision requiring the competent authority to take the action necessary to comply with eu law .


### where a member state considers that a decision taken under article 11 impinges on its fiscal responsibilities , it may notify the authority and the commission within one month after notification of the authority ' s decision to the competent authority that the decision will not be implemented by the competent authority . ### where a member state considers that a decision taken under article 11 impinges directly on its fiscal responsibilities , it may notify the authority , the commission and the council within three working days after notification of the authority ' s decision to the competent authority .


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


### there is a need to introduce an effective instrument to establish harmonised technical standards in financial services to ensure , also through a single rulebook , a level playing field and an adequate protection of depositors , investors and consumers across europe . as a body with highly specialised expertise , it is efficient and appropriate to entrust the authority , in areas defined by community law , with the elaboration of draft technical standards , which do not involve policy choices . the commission should endorse those draft technical standards in accordance with community law in order to give them binding legal effect . the draft technical standards have to be adopted by the commission . they would be subject to amendment if , for example , the draft technical standards were incompatible with community law , would not respect the principle of proportionality or would run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of community financial services legislation . to ensure a smooth and expedited adoption process for those standards , the commission should be subject to a time limit for its decision on the endorsement . ### there is a need to introduce an effective instrument to establish harmonised technical standards in financial services to ensure , also through a single rulebook , a level playing field and an adequate protection of depositors , investors and consumers across europe . as a body with highly specialised expertise , it is efficient and appropriate to entrust the authority , in areas defined by eu law , with the elaboration of draft technical standards , which do not involve policy choices . the commission should be empowered to adopt delegated acts in accordance with the procedure referred to in article 290 of the treaty on the functioning of the european union concerning technical standards in financial services .


### without prejudice to the powers of the commission under article 226 of the treaty , where a competent authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non compliance by the competent authority in order to maintain or restore neutral conditions of competition in the market or ensure the orderly functioning and integrity of the financial system , the authority may , where the relevant requirements of the legislation referred to in article 1 are directly applicable to financial institutions , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under community law including the cessation of any practice . ### without prejudice to the powers of the commission under article 258 of the treaty , where a competent authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non compliance by the competent authority in order to maintain or restore neutral conditions of competition in the market or ensure the orderly functioning and integrity of the financial system , the authority shall , pursuant to the legislation referred to in article 1 , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under union law including the cessation of any practice .


### the standards shall be adopted by the commission by means of regulations or decisions and published in the official journal of the european union . ### the commission shall adopt delegated acts in accordance with articles 7a to 7d , designed to establish the technical standards referred to in paragraph 1 . technical standards shall be devised by taking into account proportionality as an overarching principle . those acts shall be in the form of regulations and decisions and should be published in the official journal of the european union .


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


### the executive director , the commission and the esrb shall be invited to the meetings of the joint committee of european supervisory authorities as well as the sub - committees mentioned in article 43 as observers . ### the executive director , a representative of the commission and the esrb shall be invited to the meetings of the european supervisory authorities as well as the sub - committees mentioned in article 43 as observers .


### where the national authority does not comply with the recommendation , the commission should be empowered to address a decision to the national supervisory authority concerned in order to ensure compliance with community law , creating direct legal effects which can be invoked before national courts and authorities and enforced under article 226 of the treaty . ### where the national authority does not comply with the recommendation within a deadline fixed by the authority , the authority should address a decision without delay to the national supervisory authority concerned in order to ensure compliance with eu law , creating direct legal effects which can be invoked before national courts and authorities and enforced under article 258 of the treaty .


### the chair of the joint committee of european supervisory authorities shall be appointed on an annual rotational basis from among the chairpersons of the european banking authority , the european insurance and occupational pensions authority and the european securities and markets authority . ### the chair of the european supervisory authority shall be appointed on an annual rotational basis from among the chairpersons of the european supervisory authority , the european supervisory authority and the european supervisory authority .


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


### the authority may also request information to be provided at recurring intervals . ### the authority may also request information to be provided at recurring intervals . those requests shall use common reporting formats to be fulfilled , where appropriate , at a consolidated level .


### in the case of adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system in the community , the commission , upon its own initiative or following a request by the authority , the council , or the esrb , may adopt a decision addressed to the authority , determining the existence of an emergency situation for the purposes of this regulation . ### in the case of adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system in the community , the esrb , upon its own initiative or following a request by the authority , the council , the european parliament or the commission , may issue a warning declaring the existence of an emergency situation in order to enable the authority without further requirements to adopt the individual decisions referred to in paragraph 3 .


### the commission shall take such a decision no later than three months from the adoption of the recommendation . the commission may extend this period by one month . ### the authority shall take such a decision no later than one month from the adoption of the recommendation .


### that report shall also evaluate progress achieved towards regulatory and supervisory convergence in the fields of crisis management and resolution in the community . the evaluation shall be based on extensive consultation , including with the banking stakeholder group . ### that report shall examine whether to combine the supervision of all financial sectors whether banking or insurance or to supervise separately ; whether prudential and conducts of business should be combined or separated .


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


### the standards shall be adopted by the commission by means of regulations or decisions and published in the official journal of the european union . ### the commission shall adopt technical standards in accordance with articles 7a to 7d , in the form of regulations or decisions .


### in areas not covered by technical standards , the authority should have the power to issue non - binding guidelines and recommendations on the application of community legislation . in order to ensure transparency and strengthen compliance by national supervisory authorities with those guidelines and recommendations , national authorities should be obliged to state their reasons where they do not comply with those guidelines and recommendations . ### in areas not covered by technical standards , the authority should have the power to issue guidelines and recommendations on the application of union legislation . in order to ensure transparency and strengthen compliance by national supervisory authorities with those guidelines and recommendations , national authorities should be obliged to state their reasons where they do not comply with those guidelines and recommendations publicly in order to be fully transparent with market participants . in areas not covered by technical standards , the authority should establish and promulgate best practices .


### the board of appeal shall be composed of six members and six alternates , who shall be individuals with relevant knowledge and experience , excluding current staff of the competent authorities or other national or community institutions involved in the activities of the authority . ### the board of appeal shall be composed of six members and six alternates , who shall be individuals with relevant knowledge and experience , excluding current staff of the competent authorities or other national or eu institutions or financial institutions involved in the activities of the authority .


### this regulation establishes a european banking authority . ### this regulation establishes a european supervisory authority .


### the european parliament may invite the chairperson or his alternate , while fully respecting his or her independence , to make a statement regularly before its competent committee and answer questions put by members of that committee . ### the chairperson shall at least quarterly , make a statement before the european parliament and answer any questions put by its members .


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


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


### the authority shall contribute to promote the efficient and consistent functioning of colleges of supervisors referred to in directive 2006 / 48 / ec and foster the coherence of the application of community legislation across colleges . ### the authority shall contribute to promote and monitor the efficient effective and consistent functioning of the colleges of supervisors referred to in directive 2006 / 48 / ec and foster the coherence of the application of union law across colleges .


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


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


### ' financial institutions ' means ' credit institutions ' as defined in directive 2006 / 48 / ec , ' investment firms ' as defined in directive 2006 / 49 / ec , and ' financial conglomerates ' as defined in directive 2002 / 87 / ec ; ### ' financial institutions ' means undertakings and entities subject to any of the legislative acts mentioned in article&#160 ; 1 . however , with regard to directive 2005 / 60 / ec , ' financial institutions ' means only credit and financial institutions as defined in that directive ;


### the european parliament may invite the chairperson or his alternate , while fully respecting his or her independence , to make a statement regularly before its competent committee and answer questions put by members of that committee . ### the chairperson shall , at least quarterly , make a statement before the european parliament and answer any questions put by its members .


### there is a need to introduce an effective instrument to establish harmonised technical standards in financial services to ensure , also through a single rulebook , a level playing field and an adequate protection of depositors , investors and consumers across europe . as a body with highly specialised expertise , it is efficient and appropriate to entrust the authority , in areas defined by community law , with the elaboration of draft technical standards , which do not involve policy choices . the commission should endorse those draft technical standards in accordance with community law in order to give them binding legal effect . the draft technical standards have to be adopted by the commission . they would be subject to amendment if , for example , the draft technical standards were incompatible with community law , would not respect the principle of proportionality or would run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of community financial services legislation . to ensure a smooth and expedited adoption process for those standards , the commission should be subject to a time limit for its decision on the endorsement . ### there is a need to introduce an effective instrument to establish harmonised technical standards in financial services to ensure , also through a single rulebook , a level playing field and an adequate protection of depositors , investors and consumers across the union . as a body with highly specialised expertise , it is efficient and appropriate to entrust the authority , in areas defined by union law , with the elaboration of draft technical standards , which do not involve policy choices . the commission should be empowered to adopt delegated acts in accordance with the procedure referred to in article 290 of the treaty on the functioning of the european union concerning technical standards in financial services .


### before submitting them to the commission , the authority shall , where appropriate , conduct open public consultations on technical standards and analyse the potential related costs and benefits . ### the authority shall conduct open public consultations on technical standards and analyse the potential related costs and benefits before adopting draft technical standards . the authority shall also request an opinion or advice of the banking stakeholder group referred to in article 22 .


### the provisions of this regulation are without prejudice to the powers of the commission , in particular under article 226 of the treaty to ensure compliance with community law . ### the provisions of this regulation are without prejudice to the powers of the commission , in particular under article 258 of the treaty to ensure compliance with eu law .


### the financial crisis in 2007 / 2008 exposed important shortcomings in financial supervision , both in particular cases and in relation to the financial system as a whole . nationally - based supervisory models have lagged behind the integrated and interconnected reality of european financial markets , in which many financial firms operate across borders . the crisis exposed shortcomings in the area of cooperation , coordination , consistent application of community law and trust between national supervisors . ### the financial crisis in 2007 / 2008 exposed important shortcomings in financial supervision , both in particular cases and in relation to the financial system as a whole . nationally - based supervisory models have lagged behind the integrated and interconnected reality of european financial markets , in which many financial firms operate across borders . the crisis exposed shortcomings in the area of cooperation , coordination , consistent application of union law and trust between national supervisors .


### the banking stakeholder group shall be composed of 30 members , representing in balanced proportions community credit and investment institutions , their employees as well as consumers and users of banking services . ### the banking stakeholder group shall be composed of 30 members , representing in balanced proportions community credit and investment institutions , their employees as well as consumers and users of banking services and representatives of smes . the number of members representing market participants shall not exceed 10 . not less than 10 members shall be elected by sme organisations . not less than 3 members shall represent small banks . not less than 3 members shall represent cooperative banks .


### in order to ensure efficient and effective supervision and a balanced consideration of the positions of the competent authorities in different member states , the authority should be able to settle disagreements between those competent authorities with binding effect , including within colleges of supervisors . a conciliation phase should be provided for , during which the competent authorities may reach an agreement . the authority’s competence should cover disagreements on procedural obligations in the cooperation process as well as on the interpretation and application of community law in supervisory decisions . existing conciliation mechanisms provided for in sectoral legislation have to be respected . in the event of inaction by the national supervisory authorities concerned , the authority should be empowered to adopt , as a last resort , decisions directly addressed to financial institutions in areas of community law directly applicable to them . ### in order to ensure efficient and effective supervision and a balanced consideration of the positions of the competent authorities in different member states , the authority should be able to settle disagreements between those competent authorities with binding effect , including within colleges of supervisors . a conciliation phase should be provided for , during which the competent authorities may reach an agreement . the authority’s competence in that respect should be specified in the sectoral legislation referred to in article 1 . existing conciliation mechanisms provided for in sectoral legislation have to be respected . in the event of inaction by the national supervisory authorities concerned , the authority should be empowered to adopt , as a last resort , decisions directly addressed to financial institutions in areas of community law directly applicable to them .


### where the commission has adopted a decision pursuant to paragraph 1 , the authority may adopt individual decisions requiring competent authorities to take the necessary action in accordance with the legislation referred to in article 1 to address any risks that may jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system by ensuring that financial institutions and competent authorities satisfy the requirements laid down in that legislation . ### where the existence of an emergency situation is declared pursuant to paragraph 1 , the authority may adopt decisions addressed to the competent authorities of member states requiring them to take the necessary action in accordance with the legislation referred to in article 1 to address any risks that may jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system by ensuring that financial institutions and competent authorities satisfy the requirements laid down in that legislation .


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


### a member of the board of appeal , who was appointed by the management board of the authority , may not be removed during his term of office , unless he has been found guilty of serious misconduct , and the management board takes a decision to that effect after consulting the board of supervisors . ### a member of the board of appeal may not be removed during his term of office , unless he has been found guilty of serious misconduct , and the european parliament takes a decision to that effect after consulting the board of supervisors .


### the authority shall participate as an observer in colleges of supervisors as it deems appropriate . for the purpose of that participation , it shall be considered a ' competent authority ' within the meaning of the relevant legislation and , at its request , shall receive all relevant information shared with any member of the college . ### the authority shall participate in colleges of supervisors as it deems appropriate . for the purpose of that participation , it shall be considered a ' competent authority ' within the meaning of the relevant legislation and , at its request , shall receive all relevant information shared with any member of the college .


### the authority should actively promote a coordinated community supervisory response , in particular where adverse developments could potentially jeopardise the orderly functioning and integrity of financial markets or the stability of the financial system in the community . in addition to its powers for action in emergency situations , it should therefore be entrusted with a general coordination function within the european system of financial supervisors . the smooth flow of all relevant information between competent authorities should be a particular focus of the authority ' s actions . ### the authority should actively promote a coordinated union supervisory response , in particular to ensure the orderly functioning and integrity of financial markets or the stability of the financial system in the union . in addition to its powers for action in emergency situations , it should therefore be entrusted with a general coordination function . the smooth flow of all relevant information between competent authorities should be a particular focus of the authority ' s actions .


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


### any action by the competent authorities in relation to facts which are subject to a decision pursuant to paragraph 4 or 6 shall be compatible with those decisions . ### when taking action in relation to issues which are subject to a decision pursuant to paragraph 4 or 6 competent authorities shall comply with such decision .


### a joint committee of the european supervisory authorities is hereby established . ### the european supervisory authorities is hereby established and shall have its headquarters in frankfurt .


### where the competent authority has not complied with community law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the competent authority to take the action necessary to comply with community law . ### where the competent authority has not complied with union law within ten working days as provided for in the second subparagraph of paragraph 3 , the authority shall take a decision requiring the competent authority to take the action necessary to comply with union law .


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


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


### for the purposes of article 11 , the board of supervisors shall convoke a panel to facilitate the settlement of the disagreement , consisting of the chairperson and two of its members , who are not representatives of the competent authorities which are parties to the disagreement . ### for the purposes of article 11 , the board of supervisors shall convoke an independent panel to facilitate an impartial settlement of the disagreement , consisting of the chairperson and two of its members , who are not representatives of the competent authorities which are parties to the disagreement and who shall not have any interest in the conflict .


### the chairperson shall be appointed by the board of supervisors on the basis of merit , skills , knowledge of financial institutions and markets , and experience relevant to financial supervision and regulation , following an open selection procedure . ### the chairperson shall be appointed by the board of supervisors on the basis of merit , skills , knowledge of financial institutions and markets , and experience relevant to financial supervision and regulation , following an open selection procedure organised and managed by the commission .


### the standards shall be adopted by the commission by means of regulations or decisions and published in the official journal of the european union . ### the commission shall adopt delegated acts in accordance with articles 7a to 7d , designed to establish the technical standards referred to in paragraph 1 . those acts shall be in the form of regulations or decisions .


### ' competent authorities ' means competent authorities as defined in directives 2006 / 48 / ec and 2006 / 49 / ec and , where deposit guarantee schemes are concerned , bodies which administer deposit - guarantee schemes pursuant to directive 94 / 19 / ec . ### ' competent authorities ' means competent authorities as defined in directives 2006 / 48 / ec and 2006 / 49 / ec and , where deposit guarantee schemes are concerned , competent authorities referred to in the directive 94 / 19 / ec .


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


### the european parliament may also call upon the chairperson to submit a report on the performance of his duties . ### the chairperson shall submit a report on the performance of his or her duties to the european parliament when requested and at least 15 days before making the statement referred to in paragraph 1 .


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


### the authority shall have its seat in london . ### the authority shall have its seat in frankfurt .


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


### where a member state considers that a decision taken under article 11 impinges on its fiscal responsibilities , it may notify the authority and the commission within one month after notification of the authority ' s decision to the competent authority that the decision will not be implemented by the competent authority . ### where a member state considers that a decision taken under article 11 impinges directly on its fiscal responsibilities , it may notify the authority , the commission and the council within three working days after notification of the authority ' s decision to the competent authority .


### the provisions of this regulation are without prejudice to the powers of the commission , in particular under article 226 of the treaty to ensure compliance with community law . ### the provisions of this regulation are without prejudice to the powers of the commission , in particular under article 258 of the treaty to ensure compliance with eu law .


### it is essential that business secrets and other confidential information are protected . the confidentiality of information exchanged in the network should likewise be safeguarded . ### it is essential that business secrets and other confidential information are protected . the confidentiality of information made available to the authority and exchanged in the network should be subject to stringent and effective confidentiality rules .


### joint committee of european supervisory authorities ### european supervisory authority


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


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


### the chair of the joint committee of european supervisory authorities shall be appointed on an annual rotational basis from among the chairpersons of the european banking authority , the european insurance and occupational pensions authority and the european securities and markets authority . ### the chair of the european supervisory authority shall be appointed on an annual rotational basis from among the chairpersons of the european supervisory authority , the european supervisory authority and the european supervisory authority .


### before submitting them to the commission , the authority shall , where appropriate , conduct open public consultations on technical standards and analyse the potential related costs and benefits . ### the authority shall conduct open public consultations on the draft technical standards and analyse the potential related costs and benefits before adopting them . the authority shall request an opinion or advice of the banking stakeholder group .


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


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


### for the purposes of article 11 , the board of supervisors shall convoke a panel to facilitate the settlement of the disagreement , consisting of the chairperson and two of its members , who are not representatives of the competent authorities which are parties to the disagreement . ### for the purposes of article 11 , the board of supervisors shall convoke an independent panel to facilitate an impartial settlement of the disagreement , consisting of the chairperson and two of its members , who are not representatives of the competent authorities which are parties to the disagreement and who shall not have any interest in the conflict .


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


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


### within three years from the date set out in the second paragraph of article 67 and every three years thereafter , the commission shall publish a general report on the experience acquired as a result of the operation of the authority and the procedures laid down in this regulation . ### within three years from the date set out in the second paragraph of article 67 and every three years thereafter , the commission shall examine this regulation , and in particular the functioning of article 23 , and publish a general report on the experience acquired as a result of the operation of the authority and the procedures laid down in this regulation .


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


### in the case of non - contractual liability , the authority shall , in accordance with the general principles common to the laws of the member states , make good any damage caused by it or by its staff in the performance of their duties . the court of justice shall have jurisdiction in any dispute over the remedying of such damage . ### in the case of non - contractual liability , the authority shall , in accordance with the general principles common to the laws of the member states , make good any unjustifiable damage caused by it or by its staff in the performance of their duties . the court of justice shall have jurisdiction in any dispute over the remedying of such damage .


### where the commission has adopted a decision pursuant to paragraph 1 , the authority may adopt individual decisions requiring competent authorities to take the necessary action in accordance with the legislation referred to in article 1 to address any risks that may jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system by ensuring that financial institutions and competent authorities satisfy the requirements laid down in that legislation . ### where the esrb takes the view that co - ordinated action by national authorities is necessary to respond to adverse development which may jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system , the authorities shall adopt individual decisions requiring competent authorities to take the necessary actions in accordance with the legislation referred to in article 1 to address any such developments by ensuring that financial institutions and competent authorities satisfy the requirements laid down in that legislation .