### the general arrangement should be granted to all those developing countries which share a common developing need and are in a similar stage of economic development . countries which are classified by the world bank as high - income or upper - middle income countries have per capita income levels allowing them to attain higher levels of diversification without the scheme ' s tariff preferences and include economies which have successfully completed their transition from centralised to market economies . those countries do not share the same development , trade and financial needs as the remaining developing countries ; they are at a different stage of economic development , i . e they are not similarly - situated as the more vulnerable developing countries ; and , so as to prevent unjustified discrimination , they need to be treated differently . furthermore , the use of tariff preferences provided under the scheme by high - income or upper - middle income countries increases the competitive pressure on exports from poorer , more vulnerable countries and therefore could impose unjustifiable burden on those more vulnerable developing countries . the general arrangement takes account of the fact that the development , financial and trade needs are subject to change and assures that the arrangement remains open if the situation of a country changes . ### the general arrangement should be granted to all those developing countries which share a common developing need and are in a similar stage of economic development . these arrangements should provide a real alternative for acp countries that do not wish to conclude an economic partnership agreement . countries which are classified by the world bank as high - income countries have per capita income levels allowing them to attain higher levels of diversification without the scheme ' s tariff preferences and include economies which have successfully completed their transition from centralised to market economies . some countries which are classified by the world bank as upper - middle income countries however , are still vulnerable due to the lack of diversification and their insufficient integration in the world economy . high - income countries and non - vulnerable upper - middle income countries do not share the same development , trade and financial needs as the remaining developing countries ; they are at a different stage of economic development , i . e they are not similarly - situated as the more vulnerable developing countries ; and , so as to prevent unjustified discrimination , they need to be treated differently . furthermore , the use of tariff preferences provided under the scheme by high - income or non - vulnerable upper - middle income countries increases the competitive pressure on exports from poorer , more vulnerable countries and therefore could impose unjustifiable burden on those more vulnerable developing countries . the general arrangement takes account of the fact that the development , financial and trade needs are subject to change and assures that the arrangement remains open if the situation of a country changes .


### the requesting country shall submit its request to the commission in writing . the request shall provide comprehensive information concerning the ratification of the conventions listed in annex viii and shall include the binding undertakings referred to in article 9 , and . ### the requesting country shall submit its request to the commission in writing . the request shall provide comprehensive information concerning the ratification and effective implementation of the conventions listed in annex viii and shall include the binding undertakings referred to in article 9 , and .


### the commission shall notify the requesting country of a decision taken in accordance with paragraphs 4 and 5 . where the requesting country is granted the special incentive arrangement , it shall be informed of the date on which that decision enters into force . ### the commission shall notify the requesting country of a decision taken in accordance with paragraphs 4 and 5 and publish a notice in the official journal of the european union announcing and motivating its decision . where the requesting country is granted the special incentive arrangement , it shall be informed of the date on which that decision enters into force .


### where the commission considers that the findings do not justify temporary withdrawal , it shall adopt a decision to terminate the temporary withdrawal procedure in accordance with the advisory procedure referred to in article 38 . ### where the commission considers that the findings do not justify temporary withdrawal , it shall adopt a decision to terminate the temporary withdrawal procedure in accordance with the advisory procedure referred to in article 38 . the decision shall be fully motivated , based on evidence received , and be published immediately .


### serious and systematic violation of principles laid down in the conventions listed in part a of annex&#160 ; viii ; ### violation of principles laid down in the conventions listed in part a of annex&#160 ; viii , in accordance with article 19 ;


### state that the commission will monitor and evaluate the situation in the beneficiary country concerned for six months from the date of publication of the notice . ### set forth the measures that the beneficiary country must undertake to comply with article 19 ; state that the commission will monitor and evaluate the situation in the beneficiary country concerned for six months from the date of publication of the notice .


### where the commission considers that the findings do not justify temporary withdrawal , it shall decide , in accordance with the advisory procedure referred to in article 38 , to terminate the temporary withdrawal procedure . ### where the commission considers that the findings do not justify temporary withdrawal , it shall decide , in accordance with the advisory procedure referred to in article 38 , to terminate the temporary withdrawal procedure . the decision shall be fully motivated , based on evidence received , and be published immediately .


### where the commission considers that the findings justify temporary withdrawal for the reasons referred to in paragraph 1 , it shall be empowered , in accordance with article 36 , to adopt delegated acts to amend annex ii , iii , iv , whichever is applicable , in order to temporarily withdraw the tariff preferences referred to in article 1 . ### where the commission considers that the findings justify temporary withdrawal for the reasons referred to in paragraph 1 , it shall be empowered , in accordance with article 36 , to adopt delegated acts to amend annex ii , iii , iv , whichever is applicable , in order to temporarily withdraw the tariff preferences referred to in article 1 . the decision shall be fully motivated , based on evidence received , and be published immediately .


### flows of dirty money through transfers of funds can damage the stability and reputation of the financial sector and threaten the internal market . terrorism shakes the very foundations of our society . the soundness , integrity and stability of the system of transfers of funds and confidence in the financial system as a whole could be seriously jeopardised by the efforts of criminals and their associates either to disguise the origin of criminal proceeds or to transfer funds for terrorist purposes . ### massive flows of illicit money damage the structure , stability and reputation of the financial sector and threaten the single market as well as international development , and terrorism shakes the very foundations of our society . crucial facilitators of illicit money flows are secretive corporate structures operating in and through secrecy jurisdiction , often also referred to as tax havens . the soundness , integrity and stability of the system of transfers of funds and confidence in the financial system as a whole is being seriously jeopardised by the efforts of criminals and their associates either to disguise the origin of criminal proceeds or to transfer funds for terrorist purposes .


### the full traceability of transfers of funds can be a particularly important and valuable tool in the prevention , investigation and detection of money laundering or terrorist financing . it is therefore appropriate , in order to ensure the transmission of information throughout the payment chain , to provide for a system imposing the obligation on payment service providers to have transfers of funds accompanied by information on the payer and the payee . ### the full traceability of transfers of funds can be a particularly important and valuable tool in the prevention , investigation and detection of money laundering or terrorist financing . it is therefore appropriate , in order to ensure the transmission of information throughout the payment chain channelled through the financial system , to provide for a system imposing the obligation on payment service providers to report identity information on transfer of funds conceded on behalf of their clients , and to have transfers of funds accompanied by information to the competent authorities on the payer and the payee to prevent their financial services being misused for money laundering and terrorist financing .


### it is appropriate to exclude from the scope of this regulation transfers of funds that represent a low risk of money laundering or terrorist financing . such exclusions should cover credit or debit cards , mobile telephones or other digital or information technology devices , automated teller machine withdrawals , payments of taxes , fines or other levies , and transfers of funds where both the payer and the payee are payment service providers acting on their own behalf . in addition , in order to reflect the special characteristics of national payment systems , member states may exempt electronic giro payments , provided that it is always possible to trace the transfer of funds back to the payer . however , there must be no exemption when a debit or credit card , a mobile telephone or other digital or it prepaid or postpaid device is used in order to effect a person - to - person transfer . ### it is appropriate to exclude from the scope of this regulation transfers of funds that represent a low risk of money laundering or terrorist financing . such exclusions should cover credit or debit cards , mobile telephones or other digital or information technology devices , automated teller machine withdrawals , payments of taxes , fines or other levies , and transfers of funds where both the payer and the payee are payment service providers acting on their own behalf . in addition , in order to reflect the special characteristics of national payment systems , member states may exempt electronic giro payments , provided that it is always possible to trace the transfer of funds back to the payer . however , every exemption should be reviewed periodically , and there must be no exemption when a debit or credit card , a mobile telephone or other digital or it prepaid or postpaid device is used in order to effect a person - to - person transfer .


### owing to the potential terrorist financing threat posed by anonymous transfers , it is appropriate to require payment service providers to request information on the payer and the payee . in line with the risk based approach developed by fatf , it is appropriate to identify areas of higher and lower risk with a view to better targeting money laundering and terrorist financing risks . accordingly , the payment service provider of the payee and the intermediary service provider should establish effective risk - based procedures for cases where a transfer of funds lacks the required payer and payee information , in order to decide whether to execute , reject or suspend that transfer and what appropriate follow - up action to take . where the payment service provider of the payer is established outside the territory of the union , enhanced customer due diligence should be applied , in accordance with directive [ xxxx / yyyy ] , in respect of cross - border correspondent banking relationships with that payment service provider . ### owing to the potential terrorist financing threat posed by anonymous transfers , it is appropriate to require payment service providers to request information on the payer and the payee . in line with the risk based approach developed by fatf , it is appropriate to identify areas of higher and lower risk with a view to better targeting money laundering and terrorist financing risks . accordingly , the payment service provider of the payee and the intermediary service provider should establish effective risk - based procedures and individually assess and evaluate risks for cases where a transfer of funds lacks or are incomplete regarding the information on the required payer and payee information , in order to decide whether to execute , reject or suspend that transfer and what appropriate anti - abuse measures with view to preventing misuse and which follow - up action to take . where the payment service provider of the payer is established outside the territory of the union , enhanced customer due diligence should be applied , in accordance with directive [ xxxx / yyyy ] , in respect of cross - border correspondent banking relationships with that payment service provider .


### however , this regulation shall apply when a credit or debit card , or a mobile telephone , or any other digital or it device is used in order to effect a person - to - person transfer of funds . ### however , this regulation shall apply when a credit or debit card , or a mobile telephone , e - money or any other digital or it prepaid or postpaid device is used in order to effect a person - to - person transfer of funds .


### by way of derogation from article 4 and , where the payment service provider of the payee is established outside the union , transfers of funds amounting to eur 1 000 or less shall be accompanied only by : ### by way of derogation from article 4 and , where the payment service provider of the payee is established outside the union , transfers of funds amounting to eur 1 000 or less shall be accompanied by :


### the payment service provider of the payee shall detect whether the fields relating to the information on the payer and the payee in the messaging system or the payment and settlement system used to effect the transfer of funds , have been filled in using the characters or inputs admissible within the conventions of that system . ### the payment service provider of the payee shall detect whether the fields relating to the information on the payer and the payee in the messaging system or the payment and settlement system used to effect the transfer of funds , have been filled in using the characters or inputs admissible to the internal risk - based established anti - abuse procedures within the conventions of that system .


### the payment service provider of the payee shall establish effective risk - based procedures for determining when to execute , reject or suspend a transfer of funds lacking the required payer and payee information and the appropriate follow up action . ### the payment service provider of the payee shall establish effective risk - based procedures for determining when to execute , reject or suspend a transfer of funds lacking the required complete payer and payee information and the appropriate follow up action .


### if the payment service provider of the payee becomes aware , when receiving transfers of funds , that information on the payer and the payee required under articles 4 and , 5 and 6 is missing or incomplete , it shall either reject the transfer or ask for complete information on the payer and the payee . ### the payment service provider of the payee , when receiving transfers of funds , need to make the necessary inquiries that information on the payer and the payee required under articles 4 and , 5 and 6 is not missing nor incomplete . if not completed , it shall reject the transfer and ask for complete information on the payer and the payee to proceed the transfer .


### where a payment service provider regularly fails to supply the required information on the payer , the payment service provider of the payee shall take steps , which may initially include the issuing of warnings and setting of deadlines , before either rejecting any future transfers of funds from that payment service provider or deciding whether or not to restrict or terminate its business relationship with that payment service provider . ### where a payment service provider regularly fails to supply the required complete information on the payer , the payment service provider of the payee shall take steps , which may initially include the issuing of warnings and setting of deadlines , before either rejecting any future transfers of funds from that payment service provider or deciding whether or not to restrict or terminate its business relationship with that payment service provider .


### the payment service provider of the payee shall consider missing or incomplete information on the payer and the payee as a factor in assessing whether the transfer of funds , or any related transaction , is suspicious , and whether it must be reported to the financial intelligence unit . ### the payment service provider of the payee shall according to the payment service providers risk - based procedures consider missing or incomplete information on the payer and the payee as a factor in assessing whether the transfer of funds , or any related transaction , is suspicious , and whether it must be reported to the financial intelligence unit .


### the intermediary payment service provider shall consider missing or incomplete information on the payer and the payee as a factor in assessing whether the transfer of funds , or any related transaction , is suspicious , and whether it must be reported to the financial intelligence unit . ### the intermediary payment service provider shall in compliance with its risk - based procedures consider missing or incomplete information on the payer and the payee as a default factor and in assessing whether the transfer of funds , or any related transaction , is suspicious , whether it must be reported to the financial intelligence unit .


### member states shall establish effective mechanisms to encourage reporting of breaches of the provisions of this regulation to competent authorities . ### member states shall establish effective mechanisms to encourage reporting of breaches of the provisions of this regulation to competent authorities . appropriate technical and organizational measures shall be implemented to protect data against accidental or unlawful destruction , accidental loss , alteration , or unlawful disclosure .


### the payment service providers shall establish appropriate procedures for their employees to report breaches internally through a specific channel . ### the payment service providers in cooperation with the competent authorities shall establish internal appropriate procedures for their employees to report breaches internally through a secure channel .


### the commission may authorise any member state to conclude agreements with a country or territory which does not form part of the territory of the union mentioned in article 355 of the treaty , which contain derogations from this regulation , in order to allow for transfers of funds between that country or territory and the member state concerned to be treated as transfers of funds within that member state . ### without prejudice to article 15 , the commission may , in cases of attested equivalence , authorise any member state to conclude agreements with a country or territory which does not form part of the territory of the union mentioned in article 355 of the treaty , which contain derogations from this regulation , in order to allow for transfers of funds between that country or territory and the member state concerned to be treated as transfers of funds within that member state .


### directive of the european parliament and of the council amending council directives 78 / 660 / eec and 83 / 349 / eec as regards disclosure of non - financial and diversity information by certain large companies and groups ### directive of the european parliament and of the council amending council directives 78 / 660 / eec and 83 / 349 / eec as regards disclosure of financial , non - financial and diversity information by certain large companies and groups


### in providing this information , companies may rely on national frameworks , eu - based frameworks such as the eco - management and audit scheme , and international frameworks such as the united nations global compact , the guiding principles on business and human rights implementing the un “protect , respect and remedy” framework , the organisation for economic co - operation and development guidelines for multinational enterprises , the international organisation for standardisation 26000 , the international labour organization tripartite declaration of principles concerning multinational enterprises and social policy , and the global reporting initiative . ### in providing information on their compliance with rights and values protected by norms of international law , companies shall apply the guiding principles on business and human rights implementing the un “protect , respect and remedy” framework and the oecd guidelines for multinational enterprises , companies may also rely on national frameworks , eu - based frameworks such as the eco - management and audit scheme , and other international frameworks such as the united nations global compact , the international organisation for standardisation 26000 standard , the international labour organization tripartite declaration of principles concerning multinational enterprises and social policy , and the global reporting initiative or on a set of quantifiable , sector - specific social criteria endorsed by the european union under , for example , a ‘ social labelling’ scheme .


### in providing this information , companies may rely on national frameworks , eu - based frameworks such as the eco - management and audit scheme , and international frameworks such as the united nations global compact , the guiding principles on business and human rights implementing the un ‘ protect , respect and remedy’ framework , the organisation for economic co - operation and development guidelines for multinational enterprises , the international organisation for standardisation 26000 , the international labour organization tripartite declaration of principles concerning multinational enterprises and social policy , and the global reporting initiative . ### in providing information on their compliance with rights and values protected by norms of international law , companies shall apply the guiding principles on business and human rights implementing the un ' protect , respect and remedy ' framework and the oecd guidelines for multinational enterprises , companies may also rely on eu - based frameworks such as the eco - management and audit scheme , and other international frameworks such as the united nations global compact , the international organisation for standardisation 26000 standard , the international labour organization tripartite declaration of principles concerning multinational enterprises and social policy , and the global reporting initiative .


### the consolidated annual report shall include a fair review of the development and performance of the business and of the position of the undertakings included in the consolidation taken as a whole , together with a description of the principal risks and uncertainties that they face . ### the consolidated annual report shall include a fair review of the development and performance of the business and of the position of the undertakings included in the consolidation taken as a whole , together with a description of the principal risks and uncertainties that they face , including the entire supply chain .


### for parent undertakings of undertakings to be consolidated that together exceed an average number of 500 employees during the financial year , and , on their balance sheet dates , exceed either a balance sheet total of eur 20 million or a net turnover of eur 40 million , the review shall also include a non - financial statement containing information relating to at least environmental , social and employee matters , respect for human rights , anti - corruption and bribery matters , including the following : ### for parent undertakings of undertakings to be consolidated that together exceed an average number of 250 employees during the financial year , and , on their balance sheet dates , exceed either a balance sheet total of eur 17 , 5 million or a net turnover of eur 35 million , the review shall also include a non - financial statement containing information relating equally to environmental , social and employee matters , anti - discrimination measures , respect for human rights , anti - corruption and bribery matters , taking into account the company ' s complete supply chain , including the following :


### the risks related to these matters and how the company manages those risks ### the risks related to these matters linked to the company ' s operations which are likely to cause , or have caused , severe adverse social , environmental or human rights impacts , and how the company manages those risks


### where the undertakings included in the consolidation taken as a whole do not pursue policies in relation to one or more of these matters , the company shall provide an explanation for not doing so . ### where the undertakings included in the consolidation taken as a whole do not pursue policies in relation to one or more of these matters , the company shall provide a reasoned explanation based on assessment of risks for not doing so .


### in providing such information the consolidated annual report may rely on national , eu - based or international frameworks and if so , shall specify which frameworks it has relied upon . ### in providing such information , the company shall take into account its responsibility to respect rights and values protected by norms of international law . in this respect the company shall apply the guiding principles on business and human rights implementing the united nations ' ' protect , respect and remedy ' framework and the organisation for economic cooperation and development guidelines for multinational enterprises . in addition , the consolidated annual report may rely on national , eu - based or international frameworks and if so , shall specify which frameworks it has relied upon . this provision shall apply without prejudice to the requirements of this directive or to other european union legislation or guidance containing more specific rules for companies ' non - financial disclosure .


### for parent undertakings of undertakings to be consolidated that together exceed an average number of 500 employees during the financial year , and , on their balance sheet dates , exceed either a balance sheet total of eur 20 million or a net turnover of eur 40 million , the review shall also include a non - financial statement containing information relating to at least environmental , social and employee matters , respect for human rights , anti - corruption and bribery matters , including the following : ### for parent undertakings of undertakings to be consolidated that together exceed an average number of 250 employees during the financial year , and , on their balance sheet dates , exceed either a balance sheet total of eur 20 million or a net turnover of eur 40 million , the review shall also include a non - financial statement containing information relating to at least environmental , social and employee matters , respect for human rights , anti - corruption and bribery matters , taking into account the company´s complete supply chain , including the following :


### the risks related to these matters and how the company manages those risks . ### the risks related to these matters linked to the company ' s operations which are likely to cause , or have caused , adverse social , environmental or human rights impacts , and how the company manages those risks


### where the undertakings included in the consolidation taken as a whole do not pursue policies in relation to one or more of these matters , the company shall provide an explanation for not doing so . ### where the undertakings included in the consolidation taken as a whole do not pursue policies in relation to one or more of these matters , the company shall provide a reasoned explanation for not doing so based on assessment of risks related to these matters linked to the company ' s operations , which are likely to cause , or have caused , adverse social , environmental and human rights ' impacts ; and how the company manages those risks ;


### the dissemination of content which is protected by copyright and related rights and the linked services , including books , audiovisual productions and recorded music require the licensing of rights by different holders of copyright and related rights , such as authors , performers , producers and publishers . it is normally for the rightholders to choose between the individual or collective management of their rights . management of copyright and related rights includes the granting of licences to users , the auditing of licensees and monitoring of the use of rights , the enforcement of copyright and related rights , the collection of rights revenue derived from the exploitation of rights and the distribution of the amounts due to rightholders . collecting societies enable rightholders to be remunerated for uses which they would not be in a position to control or enforce themselves , including in non - domestic markets . moreover , they have an important social and cultural role as promoters of the diversity of cultural expressions by enabling the smallest and less popular repertoires to access the market . article 167 of the treaty on the functioning of the european union requires the union to take cultural aspects into account in its action , in particular in order to respect and to promote the diversity of its cultures . ### the dissemination of content which is protected by copyright and related rights and the linked services , including books , audiovisual productions and recorded music require the licensing of rights by different holders of copyright and related rights , such as authors , performers , producers and publishers . it is normally for the rightholders to choose between the individual or collective management of their rights . management of copyright and related rights includes the granting of licences to users , the auditing of licensees and monitoring of the use of rights , the enforcement of copyright and related rights , the collection of rights revenue derived from the exploitation of rights and the distribution of the amounts due to rightholders . collective management organisations enable rightholders to be remunerated for uses which they would not be in a position to control or enforce themselves , including in non - domestic markets . moreover , they have an important social and cultural role as promoters of the diversity of cultural expressions by enabling the smallest and less popular repertoires to access the market . article 167 of the treaty on the functioning of the european union requires the union to take cultural aspects into account in its action , in particular in order to respect and to promote the diversity of its cultures .


### when established in the union , collecting societies – as service providers – must comply with the national requirements pursuant to directive 2006 / 123 / ec of the european parliament and of the council of 12 december 2006 on services in the internal market which seeks to create a legal framework for ensuring the freedom of establishment and the free movement of services between the member states . this implies that collecting societies should be free to provide their services across borders , to represent rightholders resident or established in other member states or grant licences to users resident or established in other member states . ### when established in the union , collecting societies – as service providers – must comply with the national requirements pursuant to directive 2006 / 123 / ec of the european parliament and of the council of 12 december 2006 on services in the internal market which seeks to create a legal framework for ensuring the freedom of establishment and the free movement of services between the member states . in this context , reminds that the derogation in article 17 for intellectual property rights from the principle of freedom to provide cross - border services without unjustified restriction , covers the rights as such and it does not concern services linked to the management of such rights , such as those provided by collective management organisations . this implies that collective management organisations should be free to provide their services across borders , to represent rightholders resident or established in other member states or grant licences to users resident or established in other member states .


### there are significant differences in the national rules governing the functioning of collecting societies , in particular as regards their transparency and accountability towards their members and rightholders . beyond the difficulties non - domestic rightholders face when exercising their rights and the too often poor financial management of the revenues collected , problems with the functioning of collecting societies lead to inefficiencies in the exploitation of copyright and related rights across the internal market to the detriment of the members of collecting societies , rightholders and users alike . these difficulties do not arise in the functioning of independent rights management service providers who act as agents for rightholders for the management of their rights on a commercial basis and in which rightholders do not exercise membership rights . ### there are significant differences in the national rules governing the functioning of collective management organisations , in particular as regards their transparency and accountability towards their members and rightholders . beyond the difficulties non - domestic rightholders face when exercising their rights and the too often poor financial management of the revenues collected , problems with the functioning of collective management organisations lead to inefficiencies and inequities in the exploitation of copyright and related rights across the internal market to the detriment of the members of collecting societies , rightholders , users and consumers alike .


### there are significant differences in the national rules governing the functioning of collecting societies , in particular as regards their transparency and accountability towards their members and rightholders . beyond the difficulties non - domestic rightholders face when exercising their rights and the too often poor financial management of the revenues collected , problems with the functioning of collecting societies lead to inefficiencies in the exploitation of copyright and related rights across the internal market to the detriment of the members of collecting societies , rightholders and users alike . these difficulties do not arise in the functioning of independent rights management service providers who act as agents for rightholders for the management of their rights on a commercial basis and in which rightholders do not exercise membership rights . ### there are significant differences in the national rules governing the functioning of collecting societies , in particular as regards their transparency and accountability towards their members , rightholders and users . beyond the difficulties non - domestic rightholders face when exercising their rights and the too often poor financial management of the revenues collected , problems with the functioning of collecting societies lead to inefficiencies in the exploitation of copyright and related rights across the internal market to the detriment of the members of collecting societies , rightholders and users alike .


### having the freedom to provide and to receive collective management services across national borders entails that rightholders are able to freely choose the collecting society for the management of their rights , such as public performance or broadcasting rights , or categories of rights , such as interactive communication to the public , provided the collecting society already manages such rights or categories of rights . this implies that rightholders can easily withdraw their rights or categories of rights from a collecting society and entrust or transfer all or part of them to another collecting society or another entity irrespective of the member state of residence or the nationality of either the collecting society or the rightholder . collecting societies managing different types of works and other subject matter , such as literary , musical or photographic works , should also allow this flexibility to rightholders as regards the management of different types of works and other subject matter . collecting societies should inform rightholders of this choice and allow them to exercise it as easily as possible . finally , this directive should not prejudice the possibilities of rightholders to manage their rights individually , including for non - commercial uses . ### having the freedom to provide and to receive collective management services across national borders entails that rightholders are able to freely choose the collecting society for the management of their rights , such as public performance or broadcasting rights , or categories of rights , such as interactive communication to the public , provided the collecting society already manages such rights or categories of rights . this implies that rightholders can easily withdraw their rights or categories of rights from a collecting society and entrust or transfer all or part of them to another collecting society or another entity irrespective of the member state of residence or the nationality of either the collecting society or the rightholder . collecting societies managing different types of works and other subject matter , such as literary , musical or photographic works , should also allow this flexibility to rightholders as regards the management of works , different types of works and other subject matter . collecting societies should inform rightholders of this choice and allow them to exercise it as easily as possible . finally , this directive should not prejudice the possibilities of rightholders to manage their rights individually , including for non - commercial uses or placement in the public domain .


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


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


### for reasons of sound management , a collecting society ' s senior management must be independent . managers and executive directors should be required to declare annually to the collecting society whether there are conflicts between their interests and those of the society . ### for reasons of sound management , a collective management organisation ' s senior management must be independent . managers and executive directors should be required to declare before taking up their duties and thereafter annually to the collective management organisation whether there are conflicts between their interests and those of the organisation .


### collecting societies collect , manage and distribute revenue from the exploitation of the rights entrusted to them by rightholders . this revenue is ultimately due to rightholders who may be members of that society , or another society . it is therefore important that collecting societies exercise the utmost diligence in collecting , managing and distributing that revenue . accurate distribution is only possible where collecting societies maintain proper records of membership , licences and use of works and other subject matter . where appropriate , data should also be provided by rightholders and users and verified by the collecting societies . amounts collected and due to rightholders should be managed separately from any own assets of the collecting society and , if they are invested , pending their distribution to rightholders , this should be carried out in accordance with the investment policy decided by the collecting societies ' general meeting . in order to maintain a high level of protection for the rights of rightholders and to ensure that any income which may be derived from exploitation of their rights accrues for the benefit of rightholders , the investments made and held by the collecting society should be managed in accordance with criteria which would oblige the collecting society to act prudently , while allowing the collecting society to decide on the most secure and efficient investment policy . this should allow the colleting society to opt for an asset allocation that suits the precise nature and duration of any exposure to risk of any rights revenue invested and which does not unduly prejudice any rights revenue owed to rightholders . moreover , in order to ensure that the amounts due to rightholders are appropriately and effectively distributed , it is necessary to require collecting societies to undertake diligent and good faith reasonable measures to identify and locate the relevant rightholders . it is also appropriate to provide for the approval by members of collecting societies of the rules governing any situation where , due to the lack of identified or located rightholders , amounts collected cannot be distributed . ### collective management organisations collect , manage and distribute revenue from the exploitation of the rights entrusted to them by rightholders . this revenue is ultimately due to rightholders who may be members of that society , or another society . it is therefore important that collective management organisations exercise the utmost diligence in collecting , managing and distributing that revenue . accurate distribution is only possible where collective management organisations maintain proper records of membership , licences and use of works and other subject matter . where appropriate , data should also be provided by rightholders and users and verified by the collective management organisations . amounts collected and due to rightholders should be managed separately from any own assets of the collective management organisation and , if they are invested , pending their distribution to rightholders , this should be carried out in accordance with the investment policy decided by the collective management organisations ' general meeting . in order to maintain a high level of protection for the rights of rightholders and to ensure that any income which may be derived from exploitation of their rights accrues for the benefit of rightholders , the investments made and held by the collective management organisation should be managed in accordance with criteria which would oblige the collective management organisation to act prudently , while allowing the collective management organisation to decide on the most secure and efficient investment policy . this should allow the collective management organisation to opt for a secure and profitable asset allocation that prevents exposure to risk of any rights revenue invested and which does not unduly prejudice any rights revenue owed to rightholders . moreover , in order to ensure that the amounts due to rightholders are appropriately and effectively distributed , it is necessary to require collective management organisations to undertake diligent and good faith reasonable measures to identify and locate the relevant rightholders . it is also appropriate to provide for the approval by members of collective management organisations of the rules governing any situation where , due to the lack of identified or located rightholders , amounts collected cannot be distributed .


### collecting societies collect , manage and distribute revenue from the exploitation of the rights entrusted to them by rightholders . this revenue is ultimately due to rightholders who may be members of that society , or another society . it is therefore important that collecting societies exercise the utmost diligence in collecting , managing and distributing that revenue . accurate distribution is only possible where collecting societies maintain proper records of membership , licences and use of works and other subject matter . where appropriate , data should also be provided by rightholders and users and verified by the collecting societies . amounts collected and due to rightholders should be managed separately from any own assets of the collecting society and , if they are invested , pending their distribution to rightholders , this should be carried out in accordance with the investment policy decided by the collecting societies ' general meeting . in order to maintain a high level of protection for the rights of rightholders and to ensure that any income which may be derived from exploitation of their rights accrues for the benefit of rightholders , the investments made and held by the collecting society should be managed in accordance with criteria which would oblige the collecting society to act prudently , while allowing the collecting society to decide on the most secure and efficient investment policy . this should allow the colleting society to opt for an asset allocation that suits the precise nature and duration of any exposure to risk of any rights revenue invested and which does not unduly prejudice any rights revenue owed to rightholders . moreover , in order to ensure that the amounts due to rightholders are appropriately and effectively distributed , it is necessary to require collecting societies to undertake diligent and good faith reasonable measures to identify and locate the relevant rightholders . it is also appropriate to provide for the approval by members of collecting societies of the rules governing any situation where , due to the lack of identified or located rightholders , amounts collected cannot be distributed . ### collecting societies collect , manage and distribute revenue from the exploitation of the rights entrusted to them by rightholders . this revenue is ultimately due to rightholders who may be members of that society , or another society . it is therefore important that collecting societies exercise the utmost diligence in collecting , managing and distributing that revenue . accurate distribution is only possible where collecting societies maintain proper and transparent records of membership , licences and use of works and other subject matter . where appropriate , data should also be provided by rightholders and users and verified by the collecting societies . amounts collected and due to rightholders should be managed separately from any own assets of the collecting society and , if they are invested , pending their distribution to rightholders , this should be carried out in accordance with the investment policy decided by the collecting societies ' general meeting . in order to maintain a high level of protection for the rights of rightholders and to ensure that any income which may be derived from exploitation of their rights accrues for the benefit of rightholders , the investments made and held by the collecting society should be managed in accordance with criteria which would oblige the collecting society to act prudently , while allowing the collecting society to decide on the most secure and efficient investment policy . this should allow the colleting society to opt for a secure and profitable asset allocation that prevents exposure to risk of any rights revenue invested and which does not unduly prejudice any rights revenue owed to rightholders . moreover , in order to ensure that the amounts due to rightholders are appropriately and effectively distributed , it is necessary to require collecting societies to undertake diligent and good faith reasonable measures to identify and locate the relevant rightholders . it is also appropriate to provide for the approval by members of collecting societies of the rules governing any situation where , due to the lack of identified or located rightholders , amounts collected cannot be distributed .


### moreover , member states should establish appropriate procedures by means of which it will be possible to make complaints against collecting societies who do not comply with the law and to ensure that , where appropriate , effective , proportionate and dissuasive sanctions are imposed . member states should determine which authorities should be responsible for administering the complaints procedures and sanctions . to ensure that the requirements for multi - territorial licensing are complied with , specific provisions on the monitoring of their implementation should be laid down . the competent authorities of the member states and the european commission should cooperate with each other to this end . ### moreover , member states should establish appropriate procedures by means of which it will be possible to make complaints against collective management organisations who do not comply with the law and to ensure that , where appropriate , effective , proportionate and dissuasive sanctions or measures are imposed . member states should determine which authorities should be responsible for administering the complaints procedures and sanctions . to ensure that the requirements for multi - territorial licensing are complied with , specific provisions on the monitoring of their implementation should be laid down . the competent authorities of the member states and the european commission should cooperate with each other to this end .


### moreover , member states should establish appropriate procedures by means of which it will be possible to make complaints against collecting societies who do not comply with the law and to ensure that , where appropriate , effective , proportionate and dissuasive sanctions are imposed . member states should determine which authorities should be responsible for administering the complaints procedures and sanctions . to ensure that the requirements for multi - territorial licensing are complied with , specific provisions on the monitoring of their implementation should be laid down . the competent authorities of the member states and the european commission should cooperate with each other to this end . ### moreover , member states should establish appropriate procedures by means of which it will be possible to make complaints against collecting societies who do not comply with the law and to ensure that , where appropriate , effective , proportionate and dissuasive measures and sanctions are imposed . member states should determine which authorities should be responsible for administering the complaints procedures and sanctions . to ensure that the requirements for multi - territorial licensing are complied with , specific provisions on the monitoring of their implementation should be laid down . the competent authorities of the member states and the european commission should cooperate with each other to this end .


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


### ‘ member of a collecting society’ means a rightholder or an entity directly representing rightholders , including other collecting societies and associations of rightholders , fulfilling the membership requirements of the collecting society ; ### ‘ member’ means a rightholder or an entity directly representing rightholders , including other collective management organisations and associations of rightholders , fulfilling the membership requirements of the collective management organisation , regardless of its legal form ;


### ‘ rights revenue’ means income collected by a collecting society on behalf of rightholders , whether from an exclusive right , a right to remuneration or a right to compensation ; ### ‘ rights revenue’ means income collected by a collective management organisation on behalf of its members , whether from an exclusive right or a right to remuneration and including any income derived from the investments of rights revenue ;


### rightholders shall have the right to authorise a collecting society of their choice to manage the rights , categories of rights or types of works and other subject matter of their choice , for the member states of their choice , irrespective of the member state of residence or of establishment or the nationality of either the collecting society or the rightholder . ### rightholders shall have the right to authorise a collective management organisation of their choice to manage the rights , categories of rights , works or types of works and other subject matter of their choice , for the member states of their choice , irrespective of the member state of residence or of establishment or the nationality of either the collective management organisation or the rightholder .


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


### collecting societies shall keep records of members which are regularly updated so that members can be properly identified and located . ### collecting societies shall keep publicly accessible records of their members and their respective rights or works which the rightholders authorise the collecting society to manage . the records are regularly updated so that both members and their managed rights and works can be properly identified and located .


### every member of a collecting society shall have the right to appoint any other natural or legal person as a proxy holder to attend and vote at the general meeting in his name . ### every member of a collective management organisation shall have the right to appoint any other natural or legal person as a proxy holder to attend and vote at the general meeting in his name . to be valid , the proxy shall have been given by the member to the proxy holder no more than three months before its use .


### collecting societies shall be diligent in the collection and the management of rights revenue . ### collective management organisations shall be diligent , accurate and transparent in the collection and the management of rights revenue . except in member states with systems of extended collective licensing , a collective management organization shall ensure that it only collects rights revenue on behalf of rightholders whose rights it is authorised to represent .


### the collecting society shall not be allowed to use rights revenue and any income derived from its investment for its own account , save that it may deduct its management fees . ### the collecting society shall not be allowed to use rights revenue and any income derived from its investment for its own account , save that it may deduct its management fees according to the rules referred to in article 7 .


### member states shall ensure that the collecting society regularly and diligently distributes and pays amounts due to all rightholders it represents . the collecting society shall carry out such distribution and payments no later than 12 months from the end of the financial year in which the rights revenue was collected , unless objective reasons related in particular to reporting by users , the identification of rights , rightholders or to the matching of information on works and other subject matter with rightholders prevent the collecting society from respecting this deadline . the collecting society shall carry out such distribution and payments accurately , ensuring equal treatment of all categories of rightholders . ### member states shall ensure that the collective management organisations regularly and diligently distributes and pays amounts due to all rightholders it represents . the collective management organisation shall carry out such distribution and payments without undue delay and no later than three months after the rights revenue was collected , unless objective reasons related in particular to reporting by users , the identification of rights , rightholders or to the matching of information on works and other subject matter with rightholders prevent the collective management organisation from respecting this deadline . the collective management organisation shall carry out such distribution and payments accurately , ensuring equal treatment of all categories of rightholders .


### member states shall ensure that the collecting society regularly and diligently distributes and pays amounts due to all rightholders it represents . the collecting society shall carry out such distribution and payments no later than 12 months from the end of the financial year in which the rights revenue was collected , unless objective reasons related in particular to reporting by users , the identification of rights , rightholders or to the matching of information on works and other subject matter with rightholders prevent the collecting society from respecting this deadline . the collecting society shall carry out such distribution and payments accurately , ensuring equal treatment of all categories of rightholders . ### member states shall ensure that the collecting society regularly and diligently distributes and pays amounts due to all rightholders it represents . such distributions and payments shall be carried out by the collecting society without undue delay and no later than 3 months from the collection of the rights revenue , unless objective reasons related in particular to reporting by users , the identification of rights , rightholders or to the matching of information on works and other subject matter with rightholders prevent the collecting society from respecting this deadline . the collecting society shall carry out such distribution and payments accurately , ensuring equal treatment of all categories of rightholders .


### the collecting society shall regularly , diligently and accurately distribute and pay amounts due to other collecting societies . ### the collecting society shall regularly , diligently , accurately and without undue delay distribute and pay amounts due to other collecting societies .


### information provided to rightholders , members , other collecting societies and users on request ### information provided to rightholders , members , other collective management organisations and users


### member states shall ensure that a collecting society makes the following information available at the request of any rightholder whose rights it represents , any collecting society on whose behalf it manages rights under a representation agreement or any user , by electronic means , without undue delay : ### member states shall ensure that a collective management organisation makes the following information available to any rightholder whose rights it represents , to any collective management organisation on whose behalf it manages rights under a representation agreement or to any user , by electronic means , without undue delay :


### member states shall ensure that a collecting society makes public the following information : ### member states shall ensure that a collective management organisation makes public the following information preferably through publicly accessible and searchable interfaces :


### the collecting society may take reasonable measures to protect the accuracy and integrity of the data , to control its re - use and to protect personal data and commercially sensitive information . ### the collecting society may take reasonable measures to protect the accuracy and integrity of the data and to protect personal data and , when necessary , commercially sensitive information .


### disputes with another collecting society on the application of articles 24 , 25 , 26 , 28 and 29 . ### disputes with another collecting society on the application of articles 22 , 23 , 24 , 25 , 26 , 28 and 29 .


### the europe 2020 strategy for smart , sustainable and inclusive growth assigns a prominent role to the european institute of innovation and technology which contributes to a number of flagship initiatives . ### the europe 2020 strategy for smart , sustainable and inclusive growth assigns a prominent role to the european institute of innovation and technology which aims at contributing to a number of flagship initiatives , in particular the flagships for an innovation union and youth on the move .


### ' stakeholder forum ' means a meeting open to representatives of national and regional authorities , organized interests and individual entities from business , higher education , and research , cluster organisations , as well as other interested parties from across the knowledge triangle . ### ' stakeholder forum ' means a meeting open to representatives of national and regional authorities , organized interests and individual entities from business , higher education , research , cluster organisations , civil society organisations , as well as other interested parties from across the knowledge triangle .


### the internal market comprises an area without internal frontiers in which the free movement of goods , persons , services and capital must be ensured . to that end a comprehensive union type - approval system for motor vehicles is in place . the technical requirements for the type - approval of motor vehicles and their exhaust systems with regard to permissible sound levels should be harmonised to avoid the adoption of requirements that differ from one member state to another and to ensure the proper functioning of the internal market while , at the same time , providing for a high level of environmental protection and public safety . ### the internal market comprises an area without internal frontiers in which the free movement of goods , persons , services and capital must be ensured . to that end a comprehensive union type - approval system for motor vehicles is in place , as road vehicles are the biggest source of noise within the transport sector . the technical requirements for the type - approval of motor vehicles and their exhaust systems with regard to permissible sound levels should be harmonised to avoid the adoption of requirements that differ from one member state to another and to ensure the proper functioning of the internal market while , at the same time , providing for a high level environmental protection and public safety and a better quality of life and health .


### in its communication ' executive summary of the pharmaceutical sector inquiry report ' the commission demonstrated that pricing and reimbursement procedures often unnecessarily delay the launch of generic medicines in union markets . approving the price of generic medicinal products and their coverage by the health insurance system should not require any new or detailed assessment when the reference product has already been priced and included in the health insurance system . it is therefore appropriate to lay down shorter time limits for generic medicinal products in those cases . ### in its communication ' executive summary of the pharmaceutical sector inquiry report ' the commission demonstrated that pricing and reimbursement procedures often unnecessarily delay the launch of generic medicines in union markets . approving the price of generic medicinal products and their coverage by the health insurance system should not require any new or detailed assessment when the reference product is essentially similar , within the meaning of directive 2001 / 83 / ec , and has already been priced and included in the health insurance system . it is therefore appropriate to lay down shorter time limits for generic medicinal products in those cases . if generic medicinal products display differences by comparison with the reference medicinal product , for example as regards their packaging or their therapeutic indications , member states may provide for their assessment .


### the quality , safety and efficacy of medicinal products , including the bioequivalence of generic medicinal products with the reference product , are ascertained in the framework of marketing authorisation procedures . in the framework of pricing and reimbursement procedures , member states should therefore not re - assess the elements on which the marketing authorisation is based , including the quality , safety , efficacy or bioequivalence of the medicinal product . ### proof of the quality , safety and efficacy of medicinal products , including the bioequivalence of generic medicinal products with the reference product , is verified in the framework of marketing authorisation procedures . in the framework of pricing and reimbursement procedures , member states should therefore not re - assess the essential elements on which the marketing authorisation is based , including the quality , safety , efficacy or bioequivalence of the medicinal product . however , member states must be guaranteed full access to the data used by the authorities responsible for granting the marketing authorisation so that they can assess the relative safety , efficiency and efficacy of a medicinal product in the context of its inclusion in the scope of the mandatory health insurance system . the competent authorities should also be able to include or generate additional relevant data for the purposes of assessing medicinal products .


### member states shall ensure that a decision on the price which may be charged for the medicinal product concerned is adopted and communicated to the applicant within 60 days of the receipt of an application submitted , in accordance with the requirements laid down in the member state concerned , by the holder of a marketing authorisation . however , with respect to medicines for which member states use health technology assessment as part of their decision - making process , the time - limit shall be 90 days . with respect to generic medicinal products , that time limit shall be 15 days , provided that the price of the reference medicinal product has been approved by the competent authorities . ### member states shall ensure that a decision on the price which may be charged for the medicinal product concerned is adopted and communicated to the applicant within 90 days of the receipt of an application submitted , in accordance with the requirements laid down in the member state concerned , by the holder of a marketing authorisation . with respect to generic medicinal products , that time limit shall be 30 days , provided that the price of the reference medicinal product has been approved by the competent authorities and that the generic product is essentially similar to the reference product , within the meaning of directive 2001 / 83 / ec of 6 november 2001 .


### if the information supporting the application is inadequate , the competent authorities shall forthwith notify the applicant of the detailed additional information required and take their final decision within 60 days of receipt of this additional information . however , with respect to medicines for which member states use health technology assessment as part of their decision - making process , the time - limit shall be 90 days . with respect to generic medicinal products , that time limit shall be 15 days , provided that the reference medicinal product has already been included in the public health insurance system . member states shall not request any additional information which is not explicitly required under national legislation or administrative guidelines . ### if the information supporting the application is inadequate , the competent authorities shall forthwith notify the applicant of what detailed additional information is required and take their final decision within 90 days of receipt of this additional information . with respect to generic medicinal products , that time limit shall be 30 days , provided that the reference medicinal product is essentially similar , within the meaning of directive 2001 / 83 / ec of 6 november 2001 , and has already been included in the public health insurance system .


### member states shall ensure that a decision on an application to include a medicinal product in the scope of the public health insurance system , submitted by the marketing authorisation holder in accordance with the requirements laid down in the member state concerned , is adopted and communicated to the applicant within 60 days of its receipt . however , with respect to medicines for which member states use health technology assessment as part of their decision - making process , the time - limit shall be 90 days . with respect to generic medicinal products , that time limit shall be 15 days , provided that the reference medicinal product has already been included in the public health insurance system . ### member states shall ensure that a decision on an application to include a medicinal product in the scope of the public health insurance system , submitted by the marketing authorisation holder in accordance with the requirements laid down in the member state concerned , is adopted and communicated to the applicant within 90 days of its receipt . with respect to generic medicinal products , that time limit shall be 30 days , provided that the reference medicinal product is essentially similar , within the meaning of directive 2001 / 83 / ec , and has already been included in the public health insurance system . if generic medicinal products display differences by comparison with the reference medicinal product , for example as regards their packaging or their therapeutic indications , member states may provide for their re - assessment .


### irrespective of the organisation of their internal procedures , member states shall ensure that the overall period of time taken by the inclusion procedure set out in paragraph 5 of this article and the price approval procedure set out in article 3 does not exceed 120 days . however , with respect to the medicinal products for which member states use health technology assessment as part of their decision - making process , the time limit shall not exceed 180 days . with respect to generic medicinal products , that time limit shall not exceed 30 days , provided that the reference medicinal product has already been included in the public health insurance system . those time - limits may be extended in accordance with paragraph 5 of this article or article 3 . ### irrespective of the organisation of their internal procedures , member states shall ensure that the overall period of time taken by the inclusion procedure set out in paragraph 5 of this article and the price approval procedure set out in article 3 does not exceed 180 days . with respect to generic medicinal products , that time limit shall be 30 days , provided that the reference medicinal product is essentially similar , within the meaning of directive 2001 / 83 / ec , and has already been included in the public health insurance system . those time - limits may be extended in accordance with paragraph 5 of this article or article 3 .


### the decisions referred to in this paragraph shall also include any evaluation , expert opinion or recommendation on which they are based . the applicant shall be informed of all remedies available , including judicial remedies , and the remedies procedure set out article 8 , of the time limits for applying for such remedies . ### les décisions visées au présent paragraphe contiennent également toute évaluation , tout avis d ' expert ou toute recommandation d ' expert sur lesquels elles s ' appuient . the applicant shall be informed of all remedies available , including judicial remedies , and of the time limits for applying for such remedies .


### paragraphs 2 , 3 and 4 shall apply where a member state adopts measures intended to control or promote the prescription of specific named medicinal products . ### paragraphs 2 and 3 shall apply where a member state adopts measures intended to control or promote the prescription of specific named medicinal products .


### where member states intend to adopt or amend any measure falling within the scope of this directive , they shall immediately communicate to the commission the draft measure envisaged , together with the reasoning on which the measure is based . ### where member states adopt or amend any measure falling within the scope of this directive , they shall communicate the final text to the commission , together with the reasoning on which the measure is based .


### in order to ensure the necessary flexibility in collecting information on transactions in wholesale energy products , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty setting out the timing , form and content of the information which market participant are required to provide . reporting obligations should not create unnecessary costs for market participants . persons reporting transactions to a competent authority in accordance with the provisions of directive 2004 / 39 / ec of the european parliament and of the council of 21 april 2004 on markets in financial instruments16 , and to trade repositories and competent authorities in accordance with the provisions of regulation . . / . . of the european parliament and the council on otc derivatives , central counterparties and trade repositories should therefore not be subject to additional reporting obligations under this regulation . ### in order to ensure the necessary flexibility in collecting information on transactions in wholesale energy products , the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty setting out the timing , form and content of the information which market participant are required to provide . reporting obligations should not create unnecessary costs for market participants but must ensure that the agency receives all information necessary to effectively pursue its tasks . persons reporting transactions to a competent authority in accordance with the provisions of directive 2004 / 39 / ec of the european parliament and of the council of 21 april 2004 on markets in financial instruments16 , and to trade repositories and competent authorities in accordance with the provisions of regulation . . / . . of the european parliament and the council on otc derivatives , central counterparties and trade repositories should therefore not be subject to additional reporting obligations under this regulation . it must however be ensured that these relevant authorities and trade repositories make all necessary information immediately available to the agency


### where information is not commercially sensitive , the agency should be able to make that information available to market participants and the wider public . such transparency can help build confidence in the market and help the development of knowledge about the functioning of wholesale energy markets . ### where information is not commercially sensitive , or can be published in an aggregated and anonymised format , the agency shall make that information available to market participants and the wider public . such transparency will help building confidence in the market and foster the development of knowledge about the functioning of wholesale energy markets .


### market participants shall publicly disclose inside information in respect of business or facilities which the participant concerned owns or controls or for which the participant is responsible for operational matters , either in whole or in part . such information shall include information relevant to the capacity of facilities for production , storage , consumption or transmission of electricity or natural gas . ### market participants shall effectively and publicly disclose inside information in respect of business or facilities which the participant concerned owns or controls or for which the participant is responsible for operational matters , either in whole or in part . such information shall include information relevant to the capacity of facilities for production , storage , consumption or transmission of electricity or natural gas .


### the agency shall at least on an annual basis submit a report to the commission on its activities under this regulation . such reports shall bring to the notice of the commission flaws in market rules , standards , and procedures which could facilitate insider trading and market manipulation or undermine the internal market . reports may be combined with the report referred to in article 11 of regulation no 713 / 2009 . ### the agency shall at least on an annual basis submit a report to the european parliament and to the commission on its activities under this regulation and make this report public . such reports shall bring to the notice of the commission flaws in market rules , standards , and procedures which could facilitate insider trading and market manipulation or undermine the internal market . reports may be combined with the report referred to in article 11 of regulation no 713 / 2009 .


### the agency may decide to make publicly available parts of the information which it holds provided that commercially sensitive information on individual market participants or individual transactions is not released . ### the agency shall make publicly available parts of the information it holds - based on fundamental and market data - in an accessible format , including those relating to bilateral contracts , to increase market transparency and confidence provided that commercially sensitive information on individual market participants or individual transactions is not released .


### building trust in the online environment is key to economic development . lack of trust makes consumers , businesses and administrations hesitate to carry out transactions electronically and to adopt new services . ### building trust in the online environment is key to economic and social development . lack of trust , in particular because of a perceived lack of legal certainty , makes consumers , businesses and administrations hesitate to carry out transactions electronically and to adopt new services .


### this regulation seeks to enhance trust in electronic transactions in the internal market by enabling secure and seamless electronic interactions to take place between businesses , citizens and public authorities , thereby increasing the effectiveness of public and private online services , electronic business and electronic commerce in the union . ### this regulation seeks to enhance trust in electronic transactions in the internal market by providing a common foundation for legally secure electronic interactions between businesses , citizens and public authorities , thereby increasing the effectiveness of public and private online services , electronic business and electronic commerce in the union .


### directive 1999 / 93 / ec of the european parliament and of the council of 13 december 1999 on a community framework for electronic signatures , essentially covered electronic signatures without delivering a comprehensive cross - border and cross - sector framework for secure , trustworthy and easy - to - use electronic transactions . this regulation enhances and expands the acquis of the directive . ### directive 1999 / 93 / ec of the european parliament and of the council of 13 december 1999 on a community framework for electronic signatures , essentially covered electronic signatures without delivering a comprehensive cross - border and cross - sector framework for secure , trustworthy and easy - to - use electronic transactions . this regulation addresses these lacunae .


### member states should remain free to use or introduce means , for electronic identification purposes , for accessing online services . they should also be able to decide whether to involve the private sector in the provision of these means . member states should not be obliged to notify their electronic identification schemes . the choice to either notify all , some or none of the electronic identification schemes used at national level to access at least public online services or specific services is up to the member states . ### member states should remain free to use or introduce means , for electronic authentication or identification purposes , for accessing online services . they should also be able to decide whether to involve the private sector in the provision of these means . member states should not be obliged to notify their electronic identification schemes . the choice to either notify all , some or none of the electronic identification schemes used at national level to access at least public online services or specific services is up to the member states .


### some conditions need to be set in the regulation with regard to which electronic identification means have to be accepted and how the schemes should be notified . these should help member states to build the necessary trust in each other ' s electronic identification schemes and to mutually recognise and accept electronic identification means falling under their notified schemes . the principle of mutual recognition and acceptance should apply if the notifying member state meets the conditions of notification and the notification was published in the official journal of the european union . however , the access to these online services and their final delivery to the applicant should be closely linked to the right to receive such services under the conditions set by national legislation . ### some conditions need to be set in the regulation with regard to which electronic authentication or identification means have to be accepted and how the schemes should be notified . these should help member states to build the necessary trust in each other ' s electronic identification schemes and to mutually recognise and accept electronic identification means falling under their notified schemes . the principle of mutual recognition and acceptance should apply if the notifying member state meets the conditions of notification and the notification was published in the official journal of the european union . however , the access to these online services and their final delivery to the applicant should be closely linked to the right to receive such services under the conditions set by national legislation .


### member states should be able to decide to involve the private sector in the issuance of electronic identification means and to allow the private sector the use of electronic identification means under a notified scheme for identification purposes when needed for online services or electronic transactions . the possibility to use such electronic identification means would enable the private sector to rely on electronic identification and authentication already largely used in many member states at least for public services and to make it easier for businesses and citizens to access their online services across borders . in order to facilitate the use of such electronic identification means across borders by the private sector , the authentication possibility provided by the member states should be available to relying parties without discriminating between public or private sector . ### member states should be able to involve the private sector in issuing electronic authentication or identification means . private sector parties should also be allowed to use electronic authentication and identification means under a notified scheme for authentication or identification purposes when needed for online services or electronic transactions . the possibility to use such means would enable the private sector to rely on electronic identification and / or authentication already largely used in many member states at least for public services and to make it easier for businesses and citizens to access their online services across borders . in order to facilitate the use of such electronic authentication or identification means across borders by the private sector , the authentication possibility provided by the member states should be available to relying parties without discriminating between public and private sector .


### the cross border use of electronic identification means under a notified scheme requires member states to cooperate in providing technical interoperability . this rules out any specific national technical rules requiring non - national parties for instance to obtain specific hardware or software to verify and validate the notified electronic identification . technical requirements on users , on the other hand , stemming from the inherent specifications of whatever token is used are inevitable . ### the cross border use of electronic identification means under a notified scheme requires member states to cooperate in providing technical interoperability . technical requirements on users stemming from the inherent specifications of whatever token is used are inevitable . member states whose identification mechanisms rely on specific hardware or software to verify and validate the notified electronic identification must provide such certification tokens at no additional cost for union principals who are not their nationals or residents .


### cooperation of member states should serve the technical interoperability of the notified electronic identification schemes with a view to foster a high level of trust and security appropriate to the degree of risk . the exchange of information and the sharing of best practices between member states with a view to their mutual recognition should help such cooperation . ### cooperation of member states should serve the technical interoperability of the notified electronic authentication or identification schemes with a view to foster a high level of trust and security appropriate to the degree of risk . the exchange of information and the sharing of best practices between member states with a view to their mutual recognition should help such cooperation .


### to ensure sustainability and durability of qualified trust services and to boost users ' confidence in the continuity of qualified trust services , supervisory bodies should ensure that the data of qualified trust service providers are preserved and kept accessible for an appropriate period of time even if a qualified trust service provider ceases to exist . ### to ensure sustainability and durability of trust services with clearly public missions and to boost users ' confidence in the continuity of trust services , supervisory bodies should ensure that the data of such trust service providers are preserved and kept accessible for an appropriate period of time even if such a trust service provider ceases to exist .


### to facilitate the supervision of qualified trust services providers , for example when a provider is providing its services in the territory of another member state and is not subject to supervision there , or when the computers of a provider are located in the territory of another member state than the one where it is established , a mutual assistance system between supervisory bodies in the member states should be set up . ### to facilitate the supervision of trust services providers , for example when a provider is providing its services in the territory of another member state and is not subject to supervision there , or when the computers of a provider are located in the territory of another member state than the one where it is established , a mutual assistance system between supervisory bodies in the member states should be set up .


### this regulation lays down rules for electronic identification and electronic trust services for electronic transactions with a view to ensuring the proper functioning of the internal market . ### this regulation lays down rules for certain electronic authentication or identification and electronic trust services for electronic transactions with a view to ensuring the proper functioning of the internal market .


### this regulation lays down the conditions under which member states shall recognise and accept electronic identification means of natural and legal persons falling under a notified electronic identification scheme of another member state . ### this regulation lays down the conditions under which member states shall recognise and accept electronic authentication or identification means for natural and legal persons falling under a notified electronic authentication or identification scheme of another member state .


### this regulation establishes a legal framework for electronic signatures , electronic seals , electronic time stamps , electronic documents , electronic delivery services and website authentication . ### this regulation establishes a legal framework for certain electronic signatures , associated trust services and the authentication of certain aspects of networked services .


### this regulation applies to electronic identification provided by , on behalf or under the responsibility of member states and to trust service providers established in the union . ### this regulation applies to electronic authentication and identification provided by , on behalf or under the responsibility of member states and to the associated trust service providers .


### ‘ electronic identification means’ means a material or immaterial unit containing data as referred to in point 1 of this article , and which is used to access services online as referred to in article 5 ; ### ' electronic authentication means ' means a material or immaterial unit containing data as referred to in point 1a of this article , and which is used to access services online as referred to in article 5 ;


### ‘ authentication’ means an electronic process that allows the validation of the electronic identification of a natural or legal person ; or of the origin and integrity of an electronic data ; ### ' electronic validation ' means an electronic process that allows the validation of the electronic authentication of a natural or legal person ; or of the origin and integrity of an electronic data ;


### ‘ trust service provider’ means a natural or a legal person who provides one or more trust services ; ### ' trust service provider ' means a natural or a legal person who provides one or more trust services as defined in this regulation ;


### when an electronic identification using an electronic identification means and authentication is required under national legislation or administrative practice to access a service online , any electronic identification means issued in another member state falling under a scheme included in the list published by the commission pursuant to the procedure referred to in article 7 shall be recognised and accepted for the purposes of accessing this service . ### when an electronic authentication using an electronic authentication means is required under national legislation or administrative practise to access a service online , a notified electronic authentication means of the same or higher assurance level issued in another member state shall be recognised under national legislation or administrative practice to access a service of the same sector online . additionally , any electronic authentication means issued in another member state falling under a scheme included in the list published by the commission pursuant to the procedure referred to in article 7 shall be recognised and accepted for the purposes of accessing this service . 2 . a member state may limit recognition and acceptance of notified electronic authentication means to a specific sector or sectors . 3 . a member state may withdraw recognition and acceptance of electronic authentication means in the event of security compromise , including the issuance of certificates to impostors or a technical vulnerability in the mechanism .


### electronic identification schemes shall be eligible for notification pursuant to article 7 if all the following conditions are met : ### electronic authentication or identification schemes shall be eligible for notification pursuant to article 7 if all the following conditions are met :


### the electronic identification means are issued by , on behalf of or under the responsibility of the notifying member state ; ### the electronic authentication or identification means are issued by , on behalf of or under the responsibility of the notifying member state ;


### the electronic identification means can be used to access at least public services requiring electronic identification in the notifying member state ; ### the electronic authentication or identification means can be used to access at least public services requiring electronic identification in the notifying member state ;


### the notifying member state ensures the availability of an authentication possibility online , at any time and free of charge so that any relying party can validate the person identification data received in electronic form . member states shall not impose any specific technical requirements on relying parties established outside of their territory intending to carry out such authentication . when either the notified identification scheme or authentication possibility is breached or partly compromised , member states shall suspend or revoke without delay the notified identification scheme or authentication possibility or the compromised parts concerned and inform the other member states and the commission pursuant to article 7 ; ### the notifying member state ensures the availability of an authentication possibility free of charge . the notifying member state ensures the availability of end - to - end authentication services online , available on the basis of open standards for the use of relying parties to validate the person authentication or identification data received in electronic form . member states shall make efforts to allow for unlinkable electronic authentication . for this member states must either provide for an authentication possibility online or otherwise provide all necessary specifications and reference implementations for relying parties to verify an electronic authentication or an electronic identification with proportionate effort . if a member state becomes aware that a notified identification scheme or authentication possibility is breached or partly compromised , then regardless of whether that scheme or possibility is operated under its own responsibility or that of another member state , it shall immediately notify the commission and all other member states of the security failure pursuant to article 7 . member states shall suspend or revoke reliance on the notified identification scheme or authentication possibility or the compromised parts concerned ; other affected parties shall be notified in accordance with the obligations laid out in article 15 .


### a description of the notified electronic identification scheme ; ### a description of the notified electronic authentication or identification scheme ;


### the authorities responsible for the notified electronic identification scheme ; ### the authorities responsible for the notified electronic authentication or identification scheme ;