### the european insurance and occupational pensions authority should act with a view to improving the functioning of the internal market , including in particular by ensuring a high , effective and consistent level of regulation and supervision taking account of the varying interests of all member states , to protect policyholders and other beneficiaries , to ensure the integrity , efficiency and orderly functioning of financial markets , to safeguard the stability of the financial system , and to strengthen international supervisory coordination , for the benefit of the economy at large , including financial institutions and other stakeholders , consumers and employees . in order to be able to fulfil its objectives , it is necessary and appropriate that the authority should be a community body having legal personality and it should have legal , administrative and financial autonomy . ### the authority should act with a view to improving the functioning of the internal market , including in particular by ensuring a high , effective and consistent level of regulation and supervision taking account of the varying interests of all member states , to prevent regulatory arbitrage and guarantee a level playing field , to protect policyholders and other beneficiaries , to ensure the integrity , efficiency and orderly functioning of financial markets , to safeguard the stability of the financial system , and to strengthen international supervisory coordination while taking account of the need to enhance competition and innovation within the internal market and to ensure global competitiveness , for the benefit of the economy at large , including financial institutions and other stakeholders , consumers and employees . in order to be able to fulfil its objectives , it is necessary and appropriate that the authority should be a union body having legal personality and it should have legal , administrative and financial autonomy .


### for that purpose , the authority shall have appropriate powers of investigation and enforcement as specified in the relevant legislation , as well as the possibility of charging fees . ### for that purpose , the authority shall have appropriate union powers of investigation and enforcement as specified in the relevant legislation , as well as the possibility of charging fees .


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


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


### the authority shall , with a view to establishing consistent , efficient and effective supervisory practices within the esfs , and to ensuring the common , uniform and consistent application of community legislation , issue guidelines and recommendations addressed to national supervisory authorities or financial institutions . the national supervisory authorities shall make every effort to comply with those guidelines and recommendations . where the national supervisory authority does not apply those guidelines or recommendations it shall inform the authority of its reasons . ### the authority shall , with a view to establishing consistent , efficient and effective supervisory practices within the esfs , and to ensuring the common , uniform and consistent application of union legislation , issue guidelines and recommendations addressed to competent authorities or financial institutions . the authority shall conduct open public consultations on guidelines and recommendations and analyse the potential related costs and benefits . the guidelines shall be published on the authority ' s website . the competent authorities shall make every effort to comply with those guidelines and recommendations . where a competent authority does not apply those guidelines or recommendations it shall inform the authority of its reasons . the authority shall publish those reasons , giving the competent authority due notice of its intention to do so .


### before submitting them to the commission , the authority shall , where appropriate , conduct open public consultations on technical standards and analyse the potential related costs and benefits . ### the authority shall conduct open public consultations with all stakeholders before issuing guidelines and recommendations and shall analyse the potential related costs and benefits before adopting draft technical standards , in line with established best practices among national authorities . the authority shall request an opinion or advice from the insurance , reinsurance and occupational pension funds stakeholder group as referred to in article 22 .


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


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


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


### the council , acting by qualified majority as defined in article 205 of the treaty , shall , within ten working days , decide whether the authority ' s decision is maintained or revoked . ### the council , acting by qualified majority as defined in article 16 of the eu treaty , shall , within ten working days , decide whether the authority ' s decision is maintained or revoked .


### consistent application of community rules where a national supervisory authority has not correctly applied the legislation referred to in article 1 , in particular by failing to ensure that a financial institution satisfies the requirements laid down in that legislation , the authority shall have the powers set out in paragraphs 2 , 3 and 6 of this article . 2 . upon request from one or more national supervisory authorities , from the commission or on its own initiative and after having informed the national supervisory authority concerned , the authority may investigate the alleged incorrect application of community law . without prejudice to the powers laid down in article 20 , the national supervisory authority shall provide the authority with all information which the authority considers necessary for its investigation without delay . 3 . the authority may , at the latest within two months from initiating its investigation , address to the national supervisory authority concerned a recommendation setting out the action necessary to comply with community law . the national supervisory authority shall , within ten working days of the receipt of the recommendation , inform the authority of the steps it has taken or intends to take to ensure compliance with community law . 4 . where the national supervisory authority has not complied with community law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the national supervisory authority to take the action necessary to comply with community law . the commission shall take such a decision no later than three months from the adoption of the recommendation . the commission may extend this period by one month . the commission shall ensure that the right to be heard of the addressees of the decision is respected . the authority and the national supervisory authorities shall provide the commission with all necessary information . 5 . the national supervisory authority shall , within ten working days of receipt of the decision referred to in paragraph 4 , inform the commission and the authority of the steps it has taken or intends to take to implement the commission ' s decision . 6 . without prejudice to the powers of the commission under article 226 of the treaty , where a national supervisory authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non compliance by the national supervisory authority in order to maintain or restore neutral conditions of competition in the market or ensure the orderly functioning and integrity of the financial system , the authority may , where the relevant requirements of the legislation referred to in article 1 are directly applicable to financial institutions , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under community law including the cessation of any practice . the decision of the authority shall be in conformity with the decision adopted by the commission pursuant to paragraph 4 . 7 . decisions adopted under paragraph 6 shall prevail over any previous decision adopted by the national supervisory authorities on the same matter . any action by the national supervisory authorities in relation to facts which are subject to a decision pursuant to paragraph 4 or 6 shall be compatible with those decisions . ### non - application of union law where a competent authority has not applied the legislation referred to in article 1 , in particular by failing to ensure that a financial market participant satisfies the requirements laid down in that legislation , the authority shall have the powers set out in paragraphs 2 , 3 and 6 of this article . 2 . upon request from one or more competent authorities , from the european , parliament , the council or the commission , or on its own initiative , and after having informed the competent authority concerned , the authority may investigate the alleged non - application of union law . without prejudice to the powers laid down in article 20 , the competent authority shall provide the authority with all information which the authority considers necessary for its investigation without delay . 3 . the authority may , at the latest within two months from initiating its investigation , address to the competent authority concerned a recommendation setting out the action necessary to comply with union law . the competent authority shall , within ten working days of the receipt of the recommendation , inform the authority of the steps it has taken or intends to take to ensure compliance with union law . 4 . where the competent authority has not complied with union law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the competent authority to take the action necessary to comply with union law . the commission shall take such a decision no later than three months from the adoption of the recommendation . the commission may extend this period by one month . the commission shall ensure that the right to be heard of the addressees of the decision is respected . the authority and the competent authorities shall provide the commission with all necessary information . 5 . the competent authority shall , within ten working days of receipt of the decision referred to in paragraph 4 , inform the commission and the authority of the steps it has taken or intends to take to implement the commission ' s decision . 6 . without prejudice to the powers of the commission under article 258 of the treaty on the functioning of the european union , where a competent authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non - compliance by the competent authority in order to maintain or restore neutral conditions of competition in the internal market or ensure the orderly functioning and integrity of the financial system in cross - border activities , the authority may , where the relevant requirements of the legislation referred to in article 1 are directly applicable to financial market participants , adopt an individual decision addressed to a financial market participant requiring the necessary action to comply with its obligations under union law including the cessation of any practice . before adopting an individual decision , the authority shall inform the commission thereof . the commission shall ensure that the right to be heard of the addressees of the decision is respected . the authority and the competent authorities shall provide the commission with all necessary information . the commission shall decide whether to endorse the authority ' s draft decision within two weeks of receipt . the commission shall not extend that period . the commission may endorse the draft decision only in part or with amendments , where the union interest so requires . where the commission does not endorse the draft decision or endorses it in part or with amendments , it shall inform the authority without delay in the form of a formal opinion . within one week of receipt of that formal opinion , the authority shall review and adapt its decision to the commission ' s formal opinion and transmit it without delay to the commission . within one week of receipt of the amended decision of the authority , the commission shall decide whether to endorse it or reject it . if the amended decision is rejected by the commission , the decision shall be deemed not to have been adopted . the decision of the authority shall be in conformity with the decision adopted by the commission pursuant to paragraph 4 . any action by the competent authorities in relation to facts which are subject to a decision pursuant to paragraph 4 or 6 shall be compatible with those decisions .


### any action by the national supervisory authorities in relation to facts which are subject to a decision pursuant to paragraph 4 or 6 shall be compatible with those decisions . ### when taking action in relation to issues which are subject to a formal opinion pursuant to paragraph 4 or a decision pursuant to paragraph 6 , the competent authorities shall comply with the formal opinion or the decision , as the case may be .


### the process for the development of technical standards in this regulation is without prejudice to the commission ' s powers to adopt on its own initiative implementing measures under comitology procedures at level 2 of the lamfalussy structure as laid out in the relevant community legislation . the matters concerned by the technical standards do not involve policy decisions , and their content is framed by the community acts adopted at level 1 . development of the draft standards by the authority ensures that they fully benefit from the specialised expertise of national supervisory authorities . ### the commission should endorse those draft technical standards in order to give them binding legal effect . it can choose to reject them in part or in whole if , for example , the draft technical standards were incompatible with european union law , do not respect the principle of proportionality or run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of european union financial services legislation . to ensure a smooth and expeditious adoption process for those standards , the commission should be subject to a time limit when deciding when to endorse , partially endorse or reject them . the process for the development of technical standards in this regulation is without prejudice to the commission ' s powers to adopt delegated acts in accordance with article 290 of the treaty . the matters concerned by the technical standards do not involve policy decisions , and their content is framed by the union acts adopted at level 1 . development of the draft standards by the authority ensures that they fully benefit from the specialised expertise of national supervisory authorities .


### a subsidy from the community , entered in the general budget of the european union ; ### a subsidy from the union , entered in the general budget of the european union , subject to an agreement by the budgetary authority as provided for in point 47 of the iia ;


### if , at the end of the conciliation phase , the national supervisory authorities concerned have failed to reach an agreement , the authority may take a decision requiring them to take specific action or to refrain from action in order to settle the matter , in compliance with community law . ### if , at the end of the conciliation phase , the national supervisory authorities concerned have failed to reach an agreement , the authority may take a decision requiring them to take specific action or to refrain from action in order to settle the matter , with binding effects for the competent authorities concerned , in order to ensure compliance with union law .


### the decision of the authority shall be in conformity with the decision adopted by the commission pursuant to paragraph 4 . ### the decision of the authority shall be in conformity with the decision adopted pursuant to paragraph 4 .


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


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


### upon request from one or more national supervisory authorities , from the commission or on its own initiative and after having informed the national supervisory authority concerned , the authority may investigate the alleged incorrect application of community law . ### upon request from one or more competent authorities , from the european parliament , the commission , the council , the insurance and reinsurance stakeholder group or on its own initiative and after having informed the competent authority concerned , the authority may investigate the alleged breach of , or failure to apply , union law .


### upon request from one or more national supervisory authorities , from the commission or on its own initiative and after having informed the national supervisory authority concerned , the authority may investigate the alleged incorrect application of community law . ### upon request from one or more national supervisory authorities , from the commission , the european parliament , the council or the insurance , reinsurance and occupational pension funds stakeholder group , or on its own initiative , and after having informed the national supervisory authority concerned , the authority may investigate the alleged incorrect application of union law .


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


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


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


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


### within three months of receipt of the draft standards , the commission shall decide whether to endorse the draft standards . the commission may extend that period by one month . the commission may endorse the draft standards only in part or with amendments where the community interest so requires . ### within three months of receipt of the draft technical standards , the commission shall endorse the draft supervisory standards if they comply with union legislation . within the same period , the commission may adopt the draft technical standards with amendments where they were drawn up as regulatory standards . in both cases , the commission may extend that period by one month .


### contribute to developing high quality and uniform supervisory standards , including reporting standards ; ### contribute to developing high quality and uniform supervisory standards , including reporting and accounting standards ;


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


### where the national supervisory authority has not complied with community law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the national supervisory authority to take the action necessary to comply with community law . ### where the national supervisory authority has not complied with union law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority , take a decision requiring the national supervisory authority to take the action necessary to comply with union law .


### the standards shall be adopted by the commission by means of regulations or decisions and published in the official journal of the european union . ### having completed the due procedure , the standards shall be published in the official journal of the european union with the title eu delegated standards or eu implementing standards respectively .


### for the purposes of article 11 , the board of supervisors shall convoke a panel to facilitate the settlement of the disagreement , consisting of the chairperson and two of its members , who are not representatives of the national supervisory authorities which are parties to the disagreement . ### for the purposes of article 11 , the board of supervisors shall convoke an independent panel to facilitate an impartial settlement of the disagreement , consisting of the chairperson , two members of the board of supervisors and four people drawn from an expert list that the chairperson shall maintain . no member of the panel from the board of supervisors shall be drawn from a national supervisory authority to the disagreement , nor shall they have any interest in the conflict . the panel shall reach a decision by simple majority .


### the european system of financial supervisors should be a network of national and community supervisory authorities , leaving day - to - day supervision of financial institutions at the national level , and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and the coherent application of rules for financial institutions and markets across the community should also be achieved . a european insurance and occupational pensions authority should be established , along with a european banking authority and a european securities and markets authority . ### the european system of financial supervision should be a network of national and union supervisory authorities , leaving day - to - day supervision of financial institutions at the national level and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and the coherent application of rules for financial institutions and markets across the union should also be achieved . a european supervisory authority should be established , along with a european supervisory authority and a european supervisory authority as well as a european supervisory authority .


### where the commission does not endorse the standards or endorses them in part or with amendments , it shall inform the authority of its reasons . ### where the commission intends not to endorse the standards , it shall send the draft standards back to the authority , explaining in writing the reasons why they are in conflict with the public interest of the union , the principle of proportionality or the integration of the internal . within a period of six weeks of receipt of the commission ' s written reasons , the authority shall amend the draft standards duly taking into account the commission’s concerns .


### consistent application of community rules where a national supervisory authority has not correctly applied the legislation referred to in article 1 , in particular by failing to ensure that a financial institution satisfies the requirements laid down in that legislation , the authority shall have the powers set out in paragraphs 2 , 3 and 6 of this article . 2 . upon request from one or more national supervisory authorities , from the commission or on its own initiative and after having informed the national supervisory authority concerned , the authority may investigate the alleged incorrect application of community law . without prejudice to the powers laid down in article 20 , the national supervisory authority shall provide the authority with all information which the authority considers necessary for its investigation without delay . 3 . the authority may , at the latest within two months from initiating its investigation , address to the national supervisory authority concerned a recommendation setting out the action necessary to comply with community law . the national supervisory authority shall , within ten working days of the receipt of the recommendation , inform the authority of the steps it has taken or intends to take to ensure compliance with community law . 4 . where the national supervisory authority has not complied with community law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the national supervisory authority to take the action necessary to comply with community law . the commission shall take such a decision no later than three months from the adoption of the recommendation . the commission may extend this period by one month . the commission shall ensure that the right to be heard of the addressees of the decision is respected . the authority and the national supervisory authorities shall provide the commission with all necessary information . 5 . the national supervisory authority shall , within ten working days of receipt of the decision referred to in paragraph 4 , inform the commission and the authority of the steps it has taken or intends to take to implement the commission ' s decision . 6 . without prejudice to the powers of the commission under article 226 of the treaty , where a national supervisory authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non compliance by the national supervisory authority in order to maintain or restore neutral conditions of competition in the market or ensure the orderly functioning and integrity of the financial system , the authority may , where the relevant requirements of the legislation referred to in article 1 are directly applicable to financial institutions , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under community law including the cessation of any practice . the decision of the authority shall be in conformity with the decision adopted by the commission pursuant to paragraph 4 . 7 . decisions adopted under paragraph 6 shall prevail over any previous decision adopted by the national supervisory authorities on the same matter . any action by the national supervisory authorities in relation to facts which are subject to a decision pursuant to paragraph 4 or 6 shall be compatible with those decisions . ### non - application of union law where a competent authority has not applied the legislation referred to in article 1 , in particular by failing to ensure that a financial market participant satisfies the requirements laid down in that legislation , the authority shall have the powers set out in paragraphs 2 , 3 and 6 of this article . 2 . upon request from one or more competent authorities , from the european , parliament , the council or the commission , or on its own initiative , and after having informed the competent authority concerned , the authority may investigate the alleged non - application of union law . without prejudice to the powers laid down in article 20 , the competent authority shall provide the authority with all information which the authority considers necessary for its investigation without delay . 3 . the authority may , at the latest within two months from initiating its investigation , address to the competent authority concerned a recommendation setting out the action necessary to comply with union law . the competent authority shall , within ten working days of the receipt of the recommendation , inform the authority of the steps it has taken or intends to take to ensure compliance with union law . 4 . where the competent authority has not complied with union law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the competent authority to take the action necessary to comply with union law . the commission shall take such a decision no later than three months from the adoption of the recommendation . the commission may extend this period by one month . the commission shall ensure that the right to be heard of the addressees of the decision is respected . the authority and the competent authorities shall provide the commission with all necessary information . 5 . the competent authority shall , within ten working days of receipt of the decision referred to in paragraph 4 , inform the commission and the authority of the steps it has taken or intends to take to implement the commission ' s decision . 6 . without prejudice to the powers of the commission under article 258 of the treaty on the functioning of the european union , where a competent authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non - compliance by the competent authority in order to maintain or restore neutral conditions of competition in the internal market or ensure the orderly functioning and integrity of the financial system in cross - border activities , the authority may , where the relevant requirements of the legislation referred to in article 1 are directly applicable to financial market participants , adopt an individual decision addressed to a financial market participant requiring the necessary action to comply with its obligations under union law including the cessation of any practice . before adopting an individual decision , the authority shall inform the commission thereof . the commission shall ensure that the right to be heard of the addressees of the decision is respected . the authority and the competent authorities shall provide the commission with all necessary information . the commission shall decide whether to endorse the authority ' s draft decision within two weeks of receipt . the commission shall not extend that period . the commission may endorse the draft decision only in part or with amendments , where the union interest so requires . where the commission does not endorse the draft decision or endorses it in part or with amendments , it shall inform the authority without delay in the form of a formal opinion . within one week of receipt of that formal opinion , the authority shall review and adapt its decision to the commission ' s formal opinion and transmit it without delay to the commission . within one week of receipt of the amended decision of the authority , the commission shall decide whether to endorse it or reject it . if the amended decision is rejected by the commission , the decision shall be deemed not to have been adopted . the decision of the authority shall be in conformity with the decision adopted by the commission pursuant to paragraph 4 . any action by the competent authorities in relation to facts which are subject to a decision pursuant to paragraph 4 or 6 shall be compatible with those decisions .


### national supervisory authorities may , by bilateral agreement , delegate tasks and responsibilities to other national supervisory authorities . ### competent authorities may , by agreement , delegate tasks and responsibilities to other competent authorities .


### without prejudice to the powers of the commission under article 226 of the treaty , where a national supervisory authority does not comply with the decision of the authority , and thereby fails to ensure that a financial institution complies with requirements directly applicable to it by virtue of the legislation referred to in article 1 , the authority may adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under community law , including the cessation of any practice . ### without prejudice to the powers of the commission under article 258 of the treaty , where a national supervisory authority does not comply with the decision of the authority , and thereby fails to ensure that a financial institution complies with requirements directly applicable to it by virtue of the legislation referred to in article 1 , the authority may adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under union law , including the cessation of any practice .


### before submitting them to the commission , the authority shall , where appropriate , conduct open public consultations on technical standards and analyse the potential related costs and benefits . ### the authority shall conduct open public consultations with all stakeholders before issuing guidelines and recommendations and shall analyse the potential related costs and benefits before adopting draft technical standards , in line with established best practices among national authorities . the authority shall request an opinion or advice from the insurance , reinsurance and occupational pension funds stakeholder group as referred to in article 22 .


### the chairperson shall be appointed by the board of supervisors on the basis of merit , skills , knowledge of financial institutions and markets , and experience relevant to financial supervision and regulation , following an open selection procedure . before appointment , the candidate selected by the board of supervisors shall be subject to confirmation by the european parliament . the board of supervisors shall also elect from among its members an alternate who shall carry out the functions of the chairperson in his absence . ### the chairperson shall be appointed by the european parliament on the basis of merit , skills , knowledge of financial institutions and markets , and experience relevant to financial supervision and regulation , following an open selection procedure managed by the board of supervisors who shall select the three strongest candidates for consideration by the european parliament . before appointment , the three candidates selected by the board of supervisors shall be subject to confirmation by the european parliament , who shall appoint one of them as chairperson . the board of supervisors shall also elect from among its members an alternate who shall carry out the functions of the chairperson in his absence .


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


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


### where appropriate , the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . for reasons of efficiency , a insurance , reinsurance and occupational pension funds stakeholder group should be established for that purpose , representing in balanced proportions community insurance and reinsurance firms as well as occupational pension funds and consumers and other retail users of the insurance , reinsurance and occupational pension services , including smes . the insurance , reinsurance and occupational pension funds stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or community legislation . ### the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . before adopting draft technical standards , guidelines and recommendations the authority should carry out an impact assessment with a view to ensuring that the best practices for high - quality regulation are met . to provide effective external assistance , an insurance , reinsurance and occupational pension funds stakeholder group should be established , representing in appropriate proportions union insurance and reinsurance firms and insurance intermediaries as well as occupational pension funds , trade unions , academics and consumers and other retail users of the insurance , reinsurance and occupational pension services , including smes . the insurance , reinsurance and occupational pension funds stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or by eu legislation .


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


### two members of the board of appeal and two alternates shall be appointed by the management board of the authority from a short - list proposed by the commission , following a public call for expression of interest published in the official journal of the european union , and after consultation of the board of supervisors . ### the members of the board of appeal and the alternates shall be appointed , after consultation with the authorities ' management boards , as follows : - two members and two alternates by the council ; - two members and two alternates by the commission ; - two members and two alternates by the european parliament .


### where the national authority does not comply with the recommendation , the commission should be empowered to address a decision to the national supervisory authority concerned in order to ensure compliance with community law , creating direct legal effects which can be invoked before national courts and authorities and enforced under article 226 of the treaty . ### where the national authority does not comply with the recommendation within one month of receiving it , the commission should be able to address a decision to the national supervisory authority concerned in order to ensure compliance with union law , creating direct legal effects which can be invoked before national courts and authorities and enforced under article 258 of the treaty .


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


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


### the authority shall form part of a european system of financial supervisors , hereinafter referred to as ' esfs ' , which shall function as a network of supervisors , as further specified in article 39 . ### the authority shall form part of a european system of financial supervision , hereinafter referred to as ' esfs ' .


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


### at the request of the authority , national supervisory authorities and other public authorities of the member states shall provide the authority with all the necessary information to carry out the duties assigned to it by this regulation . the authority may also request information to be provided at recurring intervals . ### at the request of the authority , the competent authorities of the member states shall provide the authority with all the necessary information to carry out the duties assigned to it by this regulation , fully respecting the applicable confidentiality and data protection provisions laid down in the relevant union law . the authority may also request information to be provided at recurring intervals . any such request shall , where possible , use a common reporting format .


### for the purposes of article 11 , the board of supervisors shall convoke a panel to facilitate the settlement of the disagreement , consisting of the chairperson and two of its members , who are not representatives of the national supervisory authorities which are parties to the disagreement . ### for the purposes of article 11 , the board of supervisors shall convoke an independent panel to facilitate an impartial settlement of the disagreement , consisting of the chairperson , two members of the board of supervisors and four people drawn from an expert list that the chairperson shall maintain . no member of the panel from the board of supervisors shall be drawn from a national supervisory authority to the disagreement , nor shall they have any interest in the conflict . the panel shall reach a decision by simple majority .


### the authority and the national supervisory authorities shall provide the commission with all necessary information . ### the national supervisory authorities shall provide the authority with all necessary information .


### without prejudice to the powers of the commission under article 226 of the treaty , where a national supervisory authority does not comply with the decision of the authority , and thereby fails to ensure that a financial institution complies with requirements directly applicable to it by virtue of the legislation referred to in article 1 , the authority may adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under community law , including the cessation of any practice . ### without prejudice to the powers of the commission under article 258 of the treaty on the functioning of the european union , where a competent authority does not comply with the decision of the authority , and thereby fails to ensure that a financial market participant complies with requirements directly applicable to it by virtue of the legislation referred to in article 1 , the authority may adopt an individual decision , in accordance with the procedure laid down in article 9 , addressed to a financial market participant requiring the necessary action to comply with its obligations under union law , including the cessation of any practice .


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


### the board of appeal shall be composed of six members and six alternates , who shall be individuals with relevant knowledge and experience , excluding current staff of the national supervisory authorities or other national or community institutions involved in the activities of the authority . ### the board of appeal shall be composed of six members and six alternates , who shall be individuals of high repute with a proven record of relevant knowledge and professional , including supervisory , experience at a sufficiently high level in the fields of banking , insurance , securities markets or other financial services , excluding current staff of the competent authorities or other national or union institutions involved in the activities of the authority .


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


### the insurance , reinsurance and occupational pension funds stakeholder group shall meet at least twice a year . ### the insurance , reinsurance and occupational pension funds stakeholder group shall meet at least four times a year .


### without prejudice to the powers laid down in article 9 , where a national supervisory authority disagrees on the procedure or content of an action or inaction by another national supervisory authority in areas where the legislation referred to in article 1 requires cooperation , coordination or joint decision making by national supervisory authorities from more than one member state , the authority , at the request of one or more of the national supervisory authorities concerned , may assist the authorities in reaching an agreement in accordance with the procedure set out in ### without prejudice to the powers laid down in article 9 , where a national supervisory authority disagrees on the procedure or content of an action or inaction by another national supervisory authority in areas where the legislation referred to in article 1 requires cooperation , coordination or joint decision making by national supervisory authorities from more than one member state , and does not assign ultimate responsibility to the group supervisor , the authority , at the request of one or more of the national supervisory authorities concerned , may assist the authorities in reaching an agreement in accordance with the procedure set out in paragraph 2 .


### the chairperson shall be appointed by the board of supervisors on the basis of merit , skills , knowledge of financial institutions and markets , and experience relevant to financial supervision and regulation , following an open selection procedure . before appointment , the candidate selected by the board of supervisors shall be subject to confirmation by the european parliament . the board of supervisors shall also elect from among its members an alternate who shall carry out the functions of the chairperson in his absence . ### the chairperson and the vice - chair shall be appointed by the board of supervisors on the basis of merit , skills , knowledge of financial institutions and markets , and experience relevant to financial supervision and regulation , following an open selection procedure . before appointment , the candidates selected by the board of supervisors shall be subject to confirmation by the european parliament . in the absence of the chairperson and the vice - chair , the board of supervisors shall elect from among its members a temporary substitute who shall carry out the functions of the chairperson or the vice - chair in their absence .


### consistent application of community rules where a national supervisory authority has not correctly applied the legislation referred to in article 1 , in particular by failing to ensure that a financial institution satisfies the requirements laid down in that legislation , the authority shall have the powers set out in paragraphs 2 , 3 and 6 of this article . 2 . upon request from one or more national supervisory authorities , from the commission or on its own initiative and after having informed the national supervisory authority concerned , the authority may investigate the alleged incorrect application of community law . without prejudice to the powers laid down in article 20 , the national supervisory authority shall provide the authority with all information which the authority considers necessary for its investigation without delay . 3 . the authority may , at the latest within two months from initiating its investigation , address to the national supervisory authority concerned a recommendation setting out the action necessary to comply with community law . the national supervisory authority shall , within ten working days of the receipt of the recommendation , inform the authority of the steps it has taken or intends to take to ensure compliance with community law . 4 . where the national supervisory authority has not complied with community law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the national supervisory authority to take the action necessary to comply with community law . the commission shall take such a decision no later than three months from the adoption of the recommendation . the commission may extend this period by one month . the commission shall ensure that the right to be heard of the addressees of the decision is respected . the authority and the national supervisory authorities shall provide the commission with all necessary information . 5 . the national supervisory authority shall , within ten working days of receipt of the decision referred to in paragraph 4 , inform the commission and the authority of the steps it has taken or intends to take to implement the commission ' s decision . 6 . without prejudice to the powers of the commission under article 226 of the treaty , where a national supervisory authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non compliance by the national supervisory authority in order to maintain or restore neutral conditions of competition in the market or ensure the orderly functioning and integrity of the financial system , the authority may , where the relevant requirements of the legislation referred to in article 1 are directly applicable to financial institutions , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under community law including the cessation of any practice . the decision of the authority shall be in conformity with the decision adopted by the commission pursuant to paragraph 4 . 7 . decisions adopted under paragraph 6 shall prevail over any previous decision adopted by the national supervisory authorities on the same matter . any action by the national supervisory authorities in relation to facts which are subject to a decision pursuant to paragraph 4 or 6 shall be compatible with those decisions . ### non - application of union law where a competent authority has not applied the legislation referred to in article 1 , in particular by failing to ensure that a financial market participant satisfies the requirements laid down in that legislation , the authority shall have the powers set out in paragraphs 2 , 3 and 6 of this article . 2 . upon request from one or more competent authorities , from the european , parliament , the council or the commission , or on its own initiative , and after having informed the competent authority concerned , the authority may investigate the alleged non - application of union law . without prejudice to the powers laid down in article 20 , the competent authority shall provide the authority with all information which the authority considers necessary for its investigation without delay . 3 . the authority may , at the latest within two months from initiating its investigation , address to the competent authority concerned a recommendation setting out the action necessary to comply with union law . the competent authority shall , within ten working days of the receipt of the recommendation , inform the authority of the steps it has taken or intends to take to ensure compliance with union law . 4 . where the competent authority has not complied with union law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the competent authority to take the action necessary to comply with union law . the commission shall take such a decision no later than three months from the adoption of the recommendation . the commission may extend this period by one month . the commission shall ensure that the right to be heard of the addressees of the decision is respected . the authority and the competent authorities shall provide the commission with all necessary information . 5 . the competent authority shall , within ten working days of receipt of the decision referred to in paragraph 4 , inform the commission and the authority of the steps it has taken or intends to take to implement the commission ' s decision . 6 . without prejudice to the powers of the commission under article 258 of the treaty on the functioning of the european union , where a competent authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non - compliance by the competent authority in order to maintain or restore neutral conditions of competition in the internal market or ensure the orderly functioning and integrity of the financial system in cross - border activities , the authority may , where the relevant requirements of the legislation referred to in article 1 are directly applicable to financial market participants , adopt an individual decision addressed to a financial market participant requiring the necessary action to comply with its obligations under union law including the cessation of any practice . before adopting an individual decision , the authority shall inform the commission thereof . the commission shall ensure that the right to be heard of the addressees of the decision is respected . the authority and the competent authorities shall provide the commission with all necessary information . the commission shall decide whether to endorse the authority ' s draft decision within two weeks of receipt . the commission shall not extend that period . the commission may endorse the draft decision only in part or with amendments , where the union interest so requires . where the commission does not endorse the draft decision or endorses it in part or with amendments , it shall inform the authority without delay in the form of a formal opinion . within one week of receipt of that formal opinion , the authority shall review and adapt its decision to the commission ' s formal opinion and transmit it without delay to the commission . within one week of receipt of the amended decision of the authority , the commission shall decide whether to endorse it or reject it . if the amended decision is rejected by the commission , the decision shall be deemed not to have been adopted . the decision of the authority shall be in conformity with the decision adopted by the commission pursuant to paragraph 4 . any action by the competent authorities in relation to facts which are subject to a decision pursuant to paragraph 4 or 6 shall be compatible with those decisions .


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


### take individual decisions addressed to financial institutions , in the specific cases referred to in article 9 , article 10 , and article 11 ; ### take individual decisions addressed to financial institutions , in the specific cases referred to in article 9 , article 10 , and article 11 in cases concerning directly applicable union law ;


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


### the authority shall , with a view to establishing consistent , efficient and effective supervisory practices within the esfs , and to ensuring the common , uniform and consistent application of community legislation , issue guidelines and recommendations addressed to national supervisory authorities or financial institutions . the national supervisory authorities shall make every effort to comply with those guidelines and recommendations . where the national supervisory authority does not apply those guidelines or recommendations it shall inform the authority of its reasons . ### the authority shall , with a view to establishing consistent , efficient and effective supervisory practices within the esfs , and to ensuring the common , uniform and consistent application of union legislation , issue guidelines and recommendations addressed to competent authorities or financial institutions . the authority shall conduct open public consultations on guidelines and recommendations and analyse the potential related costs and benefits . the guidelines shall be published on the authority ' s website . the competent authorities shall make every effort to comply with those guidelines and recommendations . where a competent authority does not apply those guidelines or recommendations it shall inform the authority of its reasons . the authority shall publish those reasons , giving the competent authority due notice of its intention to do so .


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


### the board of supervisors shall act on the basis of qualified majority of its members , as defined in article 205 of the treaty , for acts specified in articles 7 , 8 and all measures and decisions adopted under chapter vi . ### the board of supervisors shall act on the basis of qualified majority of its members , as defined in article 16 of the eu treaty , for acts specified in articles 7 , 8 and all measures and decisions adopted under chapter vi .


### the decisions of the board of appeal shall be adopted on the basis of a majority of at least four of its six members . ### the decisions of the board of appeal shall be adopted on the basis of a simple majority vote , with a casting vote for the president .


### before submitting them to the commission , the authority shall , where appropriate , conduct open public consultations on technical standards and analyse the potential related costs and benefits . ### the authority shall conduct open public consultations with all stakeholders before issuing guidelines and recommendations and shall analyse the potential related costs and benefits before adopting draft technical standards , in line with established best practices among national authorities . the authority shall request an opinion or advice from the insurance , reinsurance and occupational pension funds stakeholder group as referred to in article 22 .


### the objective of the authority shall be to contribute to : improving the functioning of the internal market , including in particular a high , effective and consistent level of regulation and supervision , protecting policyholders and other beneficiaries , ensuring the integrity , efficiency and orderly functioning of financial markets , safeguarding the stability of the financial system , and strengthening international supervisory coordination . for this purpose , the authority shall contribute to ensuring the consistent , efficient and effective application of the community law referred to in article 1 above , fostering supervisory convergence and providing opinions to the european parliament , the council , and the commission . ### the objective of the authority shall be to contribute to : improving the functioning of the internal market , including in particular a high , effective and consistent level of regulation and supervision , protecting policyholders and other beneficiaries , ensuring the integrity , efficiency and orderly functioning of financial markets , safeguarding the stability of the financial system , strengthening international supervisory coordination , whilst taking account of the need to enhance competition and innovation within the internal market and to ensure global competitiveness , and preventing regulatory arbitrage and contributing to a level playing field . for this purpose , the authority shall contribute to ensuring the consistent , efficient and effective application of the eu legislation referred to in article 1 above , fostering supervisory convergence and providing opinions to the european parliament , the council , and the commission , and undertaking economic analyses of markets to promote the achievement of the authority’s objectives . it shall have regard to internationally agreed standards and practices .


### the authority may also request information to be provided at recurring intervals . ### the authority may also request information to be provided at recurring intervals . the requests shall use common reporting formats .


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


### the chairperson shall be appointed by the board of supervisors on the basis of merit , skills , knowledge of financial institutions and markets , and experience relevant to financial supervision and regulation , following an open selection procedure . before appointment , the candidate selected by the board of supervisors shall be subject to confirmation by the european parliament . the board of supervisors shall also elect from among its members an alternate who shall carry out the functions of the chairperson in his absence . ### the chairperson shall be appointed by the european parliament on the basis of merit , skills , knowledge of financial institutions and markets , and experience relevant to financial supervision and regulation , following an open selection procedure managed by the board of supervisors who shall select the three strongest candidates for consideration by the european parliament . before appointment , the three candidates selected by the board of supervisors shall be subject to confirmation by the european parliament , who shall appoint one of them as chairperson . the board of supervisors shall also elect from among its members an alternate who shall carry out the functions of the chairperson in his absence .


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


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


### the board of appeal shall be composed of six members and six alternates , who shall be individuals with relevant knowledge and experience , excluding current staff of the national supervisory authorities or other national or community institutions involved in the activities of the authority . ### the board of appeal shall be composed of six members and six alternates . it shall comprise individuals of high repute with a proven record of relevant knowledge and professional expertise , including supervisory experience at a sufficiently high level in the fields of banking , insurance and occupational pensions , securities markets or other financial services , and at least two members with sufficient legal expertise to provide expert legal advice on the authority ' s exercise of its powers .


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


### consistent application of community rules where a national supervisory authority has not correctly applied the legislation referred to in article 1 , in particular by failing to ensure that a financial institution satisfies the requirements laid down in that legislation , the authority shall have the powers set out in paragraphs 2 , 3 and 6 of this article . 2 . upon request from one or more national supervisory authorities , from the commission or on its own initiative and after having informed the national supervisory authority concerned , the authority may investigate the alleged incorrect application of community law . without prejudice to the powers laid down in article 20 , the national supervisory authority shall provide the authority with all information which the authority considers necessary for its investigation without delay . 3 . the authority may , at the latest within two months from initiating its investigation , address to the national supervisory authority concerned a recommendation setting out the action necessary to comply with community law . the national supervisory authority shall , within ten working days of the receipt of the recommendation , inform the authority of the steps it has taken or intends to take to ensure compliance with community law . 4 . where the national supervisory authority has not complied with community law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the national supervisory authority to take the action necessary to comply with community law . the commission shall take such a decision no later than three months from the adoption of the recommendation . the commission may extend this period by one month . the commission shall ensure that the right to be heard of the addressees of the decision is respected . the authority and the national supervisory authorities shall provide the commission with all necessary information . 5 . the national supervisory authority shall , within ten working days of receipt of the decision referred to in paragraph 4 , inform the commission and the authority of the steps it has taken or intends to take to implement the commission ' s decision . 6 . without prejudice to the powers of the commission under article 226 of the treaty , where a national supervisory authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non compliance by the national supervisory authority in order to maintain or restore neutral conditions of competition in the market or ensure the orderly functioning and integrity of the financial system , the authority may , where the relevant requirements of the legislation referred to in article 1 are directly applicable to financial institutions , adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under community law including the cessation of any practice . the decision of the authority shall be in conformity with the decision adopted by the commission pursuant to paragraph 4 . 7 . decisions adopted under paragraph 6 shall prevail over any previous decision adopted by the national supervisory authorities on the same matter . any action by the national supervisory authorities in relation to facts which are subject to a decision pursuant to paragraph 4 or 6 shall be compatible with those decisions . ### non - application of union law where a competent authority has not applied the legislation referred to in article 1 , in particular by failing to ensure that a financial market participant satisfies the requirements laid down in that legislation , the authority shall have the powers set out in paragraphs 2 , 3 and 6 of this article . 2 . upon request from one or more competent authorities , from the european , parliament , the council or the commission , or on its own initiative , and after having informed the competent authority concerned , the authority may investigate the alleged non - application of union law . without prejudice to the powers laid down in article 20 , the competent authority shall provide the authority with all information which the authority considers necessary for its investigation without delay . 3 . the authority may , at the latest within two months from initiating its investigation , address to the competent authority concerned a recommendation setting out the action necessary to comply with union law . the competent authority shall , within ten working days of the receipt of the recommendation , inform the authority of the steps it has taken or intends to take to ensure compliance with union law . 4 . where the competent authority has not complied with union law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the competent authority to take the action necessary to comply with union law . the commission shall take such a decision no later than three months from the adoption of the recommendation . the commission may extend this period by one month . the commission shall ensure that the right to be heard of the addressees of the decision is respected . the authority and the competent authorities shall provide the commission with all necessary information . 5 . the competent authority shall , within ten working days of receipt of the decision referred to in paragraph 4 , inform the commission and the authority of the steps it has taken or intends to take to implement the commission ' s decision . 6 . without prejudice to the powers of the commission under article 258 of the treaty on the functioning of the european union , where a competent authority does not comply with the decision referred to in paragraph 4 of this article within the period of time specified therein , and where it is necessary to remedy in a timely manner the non - compliance by the competent authority in order to maintain or restore neutral conditions of competition in the internal market or ensure the orderly functioning and integrity of the financial system in cross - border activities , the authority may , where the relevant requirements of the legislation referred to in article 1 are directly applicable to financial market participants , adopt an individual decision addressed to a financial market participant requiring the necessary action to comply with its obligations under union law including the cessation of any practice . before adopting an individual decision , the authority shall inform the commission thereof . the commission shall ensure that the right to be heard of the addressees of the decision is respected . the authority and the competent authorities shall provide the commission with all necessary information . the commission shall decide whether to endorse the authority ' s draft decision within two weeks of receipt . the commission shall not extend that period . the commission may endorse the draft decision only in part or with amendments , where the union interest so requires . where the commission does not endorse the draft decision or endorses it in part or with amendments , it shall inform the authority without delay in the form of a formal opinion . within one week of receipt of that formal opinion , the authority shall review and adapt its decision to the commission ' s formal opinion and transmit it without delay to the commission . within one week of receipt of the amended decision of the authority , the commission shall decide whether to endorse it or reject it . if the amended decision is rejected by the commission , the decision shall be deemed not to have been adopted . the decision of the authority shall be in conformity with the decision adopted by the commission pursuant to paragraph 4 . any action by the competent authorities in relation to facts which are subject to a decision pursuant to paragraph 4 or 6 shall be compatible with those decisions .


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


### for the purposes of article 11 , the board of supervisors shall convoke a panel to facilitate the settlement of the disagreement , consisting of the chairperson and two of its members , who are not representatives of the national supervisory authorities which are parties to the disagreement . ### for the purposes of article 11 , the board of supervisors shall convoke an independent panel to facilitate the impartial settlement of the disagreement , consisting of the chairperson and four members of the board of supervisors . the chairperson shall select the members of the panel drawn from the board of supervisors . no member of the panel from the board of supervisors shall be drawn from a national supervisory authority which is party to the disagreement , nor shall they have any interest in the conflict .


### the insurance , reinsurance and occupational pension funds stakeholder group shall be composed of 30 members , representing in balanced proportions community insurance and reinsurance firms as well as occupational pension funds , their employees as well as consumers and users of the insurance , reinsurance and occupational pension services . ### the insurance , reinsurance and occupational pension funds stakeholder group shall be composed of 30 members , representing in balanced proportions union insurance and reinsurance firms and insurance intermediaries as well as occupational pension funds , representatives of employees as well as consumers and users of the insurance , reinsurance and occupational pension services . not less than five of the members shall be independent top - ranking academics .


### without prejudice to the powers of the commission under article 226 of the treaty , where a national supervisory authority does not comply with the decision of the authority , and thereby fails to ensure that a financial institution complies with requirements directly applicable to it by virtue of the legislation referred to in article 1 , the authority may adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under community law , including the cessation of any practice . ### without prejudice to the powers of the commission under article 258 of the treaty on the functioning of the european union , where a competent authority does not comply with the decision of the authority , and thereby fails to ensure that a financial market participant complies with requirements directly applicable to it by virtue of the legislation referred to in article 1 , the authority may adopt an individual decision , in accordance with the procedure laid down in article 9 , addressed to a financial market participant requiring the necessary action to comply with its obligations under union law , including the cessation of any practice .


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


### where a member state considers that a decision taken under article 11 impinges on its fiscal responsibilities , it may notify the authority and the commission within one month after notification of the authority ' s decision to the national supervisory authority that the decision will not be implemented by the national supervisory authority . ### where a member state does not accept a decision taken under article 11 because it impinges on its fiscal responsibilities , it shall notify the authority and the commission and the european parliament within twenty working days after notification of the authority ' s decision to the national supervisory authority that the decision will not be implemented by the national supervisory authority .


### the european insurance and occupational pensions authority should act with a view to improving the functioning of the internal market , including in particular by ensuring a high , effective and consistent level of regulation and supervision taking account of the varying interests of all member states , to protect policyholders and other beneficiaries , to ensure the integrity , efficiency and orderly functioning of financial markets , to safeguard the stability of the financial system , and to strengthen international supervisory coordination , for the benefit of the economy at large , including financial institutions and other stakeholders , consumers and employees . in order to be able to fulfil its objectives , it is necessary and appropriate that the authority should be a community body having legal personality and it should have legal , administrative and financial autonomy . ### the authority should act with a view to improving the functioning of the internal market , including in particular by ensuring a high , effective and consistent level of regulation and supervision taking account of the varying interests of all member states , to prevent regulatory arbitrage and guarantee a level playing field , to protect policyholders and other beneficiaries , to ensure the integrity , efficiency and orderly functioning of financial markets , to safeguard the stability of the financial system , and to strengthen international supervisory coordination while taking account of the need to enhance competition and innovation within the internal market and to ensure global competitiveness , for the benefit of the economy at large , including financial institutions and other stakeholders , consumers and employees . in order to be able to fulfil its objectives , it is necessary and appropriate that the authority should be a union body having legal personality and it should have legal , administrative and financial autonomy .


### where appropriate , the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . for reasons of efficiency , an insurance , reinsurance and occupational pension funds stakeholder group should be established for that purpose , representing in balanced proportions community insurance and reinsurance firms as well as occupational pension funds , their employees and consumers and other retail users of the insurance , reinsurance and occupational pension services , including smes . the insurance , reinsurance and occupational pension funds stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or community legislation . ### the authority should consult interested parties on technical standards , guidelines and recommendations and provide them with a reasonable opportunity to comment on proposed measures . before adopting draft technical standards , guidelines and recommendations the authority should carry out an impact assessment with a view to ensuring that the best practices for high - quality regulation are met . to provide effective external assistance , an insurance , reinsurance and occupational pension funds stakeholder group should be established , representing in balanced proportions union insurance and reinsurance firms and insurance intermediaries as well as occupational pension funds , trade unions , academics and consumers and other retail users of the insurance , reinsurance and occupational pension services , including smes . the insurance , reinsurance and occupational pension funds stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or by eu legislation .


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


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