### in order to ensure coherence and transparency in relation to proposed citizens ' initiatives , it should be mandatory to register such initiatives on a website made available by the commission prior to collecting the necessary statements of support from citizens ; proposals that are abusive or devoid of seriousness should not be registered and the commission should reject the registration of proposals which would be manifestly against the values of the union . the commission should deal with registration in accordance with the general principles of good administration . ### in order to ensure coherence and transparency in relation to proposed citizens ' initiatives and to avoid a situation in which signatures are collected for a proposal which does not fall within the scope of this regulation , it should be mandatory to register such initiatives on a website made available by the commission prior to collecting the necessary statements of support from citizens . proposals that are not citizens ' initiatives within the meaning of this regulation should not be registered . registration is an administrative procedure aimed at selecting those initiatives that fall within the scope of this regulation ; therefore any refusal of registration should be based only on legal grounds and not , on any account , on grounds of political expediency . the commission should deal with registration in accordance with the general principles of good administration , and should therefore be obliged to inform the organisers of an initiative of the reasons for any refusal to register that initiative and of all possible judicial and extrajudicial remedies available to them . it should also be made clear by the commission that registration and the collection of the required number of statements of support will not necessarily result in the commission adopting a proposal for a legal act and that the registration of an initiative does not constitute a formal decision on competence issues .


### prior to initiating the collection of statements of support from signatories for a proposed citizens ' initiative , the organiser shall be required to register it with the commission , providing the information set out in annex ii , in particular on the subject - matter and objectives as well as on the sources of funding and support for the proposed citizens ' initiative . this information shall be provided in one of the official languages of the union , in an online register made available for that purpose by the commission . ### prior to initiating the collection of statements of support from signatories for a proposed citizens ' initiative , the organisers shall be required to register it with the commission , providing the information set out in annex ii , in particular on the subject - matter and objectives of the proposed citizens ' initiative . the organisers shall provide , for the register defined in the third subparagraph and where appropriate on their website , regularly updated information on the sources of support and funding for the initiative . this information shall be provided in one or more official languages of the union , in an online register made available for that purpose by the commission . information in an official language other the language in which it was originally provided may be provided subsequently for entry in the register . the translation of the initiative into other official languages of the union shall be the responsibility of the organisers .


### the treaty on european union reinforces the citizenship of the union and enhances further the democratic functioning of the union by providing inter alia that every citizen shall have the right to participate in the democratic life of the union and that not less than one million citizens who are nationals of a significant number of member states may take the initiative of inviting the european commission , within the framework of its powers , to submit any appropriate proposal on matters where citizens consider that a legal act of the union is required for the purpose of implementing the treaties . ### the treaty on european union reinforces the citizenship of the union and enhances further the democratic functioning of the union by providing inter alia that every citizen shall have the right to participate in the democratic life of the union by way of a european citizens ' initiative . that procedure affords citizens the possibility of directly approaching the commission , conferring on them a right of initiative similar to that exercised by the european parliament and the council .


### where the commission receives a citizens ' initiative in accordance with article 10 it shall : publish the citizens ' initiative without delay on its website ; b . examine the citizens ' initiative and , within 4 months , set out in a communication its conclusions on the initiative , the action it intends to take , if any , and its reasons for doing so ### where the commission receives a citizens ' initiative in accordance with article 10 it shall : publish the citizens ' initiative without delay on its website ; ab . receive the organisers at an appropriate level to allow them to explain in detail the matters raised by the initiative and organise a public hearing on the subject - matter of the initiative , if appropriate jointly with other institutions or bodies of the eu ; b . within three months , set out in a communication its final legal and political conclusions on the initiative , the action it intends to take , if any , and its reasons for doing or not doing so .


### except in the cases foreseen in paragraphs 3 and 4 , the commission shall register without delay the proposed initiative under a unique registration number and send a confirmation to the organiser . ### if it is established that the proposed initiative qualifies as a citizens ' initiative pursuant to this regulation , the commission shall register it under a unique registration number and send a confirmation to the organisers .


### the organiser of a proposed citizens ' initiative should be responsible for the collection of the necessary statements of support from citizens . ### once a proposal is registered as a citizens ' initiative , statements of support from citizens may be collected by the organisers .


### by 31 december 2014 , the commission shall review the specific emissions targets , modalities and other aspects of this regulation in order to establish the co2 emission targets for new light commercial vehicles for the period beyond 2020 . ### by 31 december 2014 , the commission shall review the specific emissions targets , modalities and other aspects of this regulation in order to establish the co2 emission targets for new light commercial vehicles for the period beyond 2020 , with the aim of reaching , by the year 2025 , a target within a range of 100 g co2 / km to 115 g co2 / km , unless a lower target is duly justified in the light of the use of low - emission technologies and their uptake by the market . on the basis of this review , which shall include an overall assessment of the impact on the automotive industry and its dependent industries , the commission shall , if appropriate , make a proposal to amend this regulation in a way which is cost - effective and as neutral as possible from the point of view of competition and ensures the achievement of the union ' s long term objectives in combating climate change .


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


### no later than [ 2 years after the date of the entry into force of this regulation ] , the commission shall establish and subsequently update a union list of permitted substances that meet the conditions of paragraph 1 , by means of implementing regulations . the entry of a substance in the union list shall include a specification of the substance , and , where appropriate , specify the conditions of use and the applicable purity criteria . those implementing regulations shall be adopted in accordance with the examination procedure referred to in article 14 . on duly justified grounds of extreme urgency relating to emerging health risks , the commission shall adopt immediately applicable implementing acts updating the union list in accordance with article 14 . ### no later than 6 months after the date of the entry into force of this regulation , the commission shall establish and subsequently update a union list of permitted substances that meet the conditions of paragraph 1 , by means of implementing regulations . the entry of a substance in the union list shall include a specification of the substance , and , where appropriate , specify the conditions of use and the applicable purity criteria . those implementing regulations shall be adopted in accordance with the examination procedure referred to in article 14 . on duly justified grounds of extreme urgency relating to emerging health risks , the commission shall adopt immediately applicable implementing acts updating the union list in accordance with article 14 .


### it is appropriate to establish and update a union list of vitamins , minerals , amino acids and other substances that may be added to infant formula , follow - on formula , processed cereal - based food and baby food , and food for special medical purposes , subject to certain criteria laid down in this regulation . given the fact that the adoption of the list implies the application of criteria set out in this regulation , implementing powers should be conferred on the commission in that respect . those powers should be exercised in accordance with regulation no 182 / 2011 of the european parliament and of the council of 16 february 2011 laying down the rules and general principles concerning mechanisms for control by member states of the commission ' s exercise of implementing powers . the commission should adopt immediately applicable implementing acts updating the union list , where , in duly justified cases relating to public health , imperative grounds of urgency so require . ### it is appropriate to establish and update a union list of substances that may be added for specific nutritional purposes to infant formula , follow - on formula , processed cereal - based food and baby food , food for special medical purposes and food intended for weight reduction and control , taking into account regulation 953 / 2009 , commission directive 2006 / 141 / ec and commission directive 2006 / 125 / ec , subject to certain criteria laid down in this regulation . given the fact that the adoption of the list implies the application of criteria set out in this regulation , implementing powers should be conferred on the commission in that respect . those powers should be exercised in accordance with regulation no 182 / 2011 of the european parliament and of the council of 16 february 2011 laying down the rules and general principles concerning mechanisms for control by member states of the commission ' s exercise of implementing powers . the commission should adopt immediately applicable implementing acts updating the union list , where , in duly justified cases relating to public health , imperative grounds of urgency so require .


### to ensure legal certainty , definitions laid down in commission directive 2006 / 141 / ec , commission directive 2006 / 125 / ec and commission directive 1999 / 21 / ec should be transferred to this regulation . however , the definitions of infant formulae and follow - on formulae , processed cereal - based food and baby food , and food for special medical purposes should be regularly adapted taking into account technical and scientific progress and relevant developments at international level , as appropriate . ### to ensure legal certainty , definitions laid down in commission directive 2006 / 141 / ec , commission directive 2006 / 125 / ec , commission directive 1999 / 21 / ec and commission directive 96 / 8 / ec should be transferred to this regulation .


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


### food referred to in article 1 may be placed on the market only if it complies with the provisions of this regulation . ### food referred to in article 1 may be placed on the market only if it complies with the provisions of this regulation and union law applicable to food . 2 . food imported into the union for the purpose of being placed on the market there shall comply with the applicable provisions of union food law . food exported or re - exported from the union for the purpose of being placed on the market in a third country shall comply with the applicable provisions of union food law . food exported to a third country shall be labelled in a language appropriate to that country . 3 . food referred to in article 1 may be placed on the market only in pre - packaged form , as defined in article 2 of regulation no 1169 / 2011 . 4 . member states may not , for reasons related to their composition , manufacturing , presentation or labelling , restrict or forbid the placing on the market of food which complies with this regulation .


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


### this regulation establishes compositional and information requirements for the following categories of food : ### this regulation establishes compositional and information requirements for the following categories of food for specialised nutrition :


### to ensure legal certainty , definitions laid down in commission directive 2006 / 141 / ec , commission directive 2006 / 125 / ec and commission directive 1999 / 21 / ec should be transferred to this regulation . however , the definitions of infant formulae and follow - on formulae , processed cereal - based food and baby food , and food for special medical purposes should be regularly adapted taking into account technical and scientific progress and relevant developments at international level , as appropriate . ### to ensure legal certainty , definitions laid down in commission directive 2006 / 141 / ec , commission directive 2006 / 125 / ec , commission directive 1999 / 21 / ec , and commission regulation 41 / 2009 should be transferred to this regulation . however , the definitions of infant formulae and follow - on formulae , processed cereal - based food and baby food , food for special medical purposes , and foods for people intolerant to gluten should be regularly adapted taking into account technical and scientific progress and relevant developments at international level , as appropriate .


### the dissemination of any useful information or recommendations with reference to the categories of food referred to in article 1 may be made exclusively by persons having qualifications in medicine , nutrition , pharmacy or other professionals responsible for maternal and child health care . ### responsibility for disseminating any useful information or recommendations with reference to the categories of food referred to in article 1 shall lie exclusively with persons having qualifications in medicine , nutrition , pharmacy or other professionals responsible for maternal and child health care and shall be based on scientific data that can be independently verified .


### a limited number of categories of food constitutes the sole source of nourishment of certain groups of the population or represent a partial source of nourishment ; such categories of food are vital for the management of certain conditions and / or are essential to maintain the intended nutritional adequacy for certain well - established vulnerable groups of the population . those categories of food include infant formulae and follow - on formulae , processed cereal - based food and baby food and food for special medical purposes . experience has shown that the provisions laid down in commission directive 2006 / 141 / ec , commission directive 2006 / 125 / ec , as well as commission directive 1999 / 21 / ec ensure the free movement of such food in a satisfactory manner , while ensuring a high level of protection of public health . it is therefore appropriate that this regulation focuses on the general compositional and information requirements for infant formula and follow - on formulae , processed cereal based food and baby food for infants and young children and to food for special medical purposes , taking into account commission directive 2006 / 141 / ec , commission directive 2006 / 125 / ec , and commission directive 1999 / 21 / ec . ### a limited number of categories of food constitutes the sole source of nourishment of certain groups of the population or represent a partial source of nourishment ; such categories of food are vital for the management of certain conditions and / or are essential to maintain the intended nutritional adequacy for certain well - established vulnerable groups of the population . those categories of food include infant formulae and follow - on formulae , processed cereal - based food and baby food , food for special medical purposes and food intended for use in energy - restricted diets and they are presently covered by provisions laid down in commission directive 2006 / 141 / ec , commission directive 2006 / 125 / ec , as well as commission directive 1999 / 21 / ec and commission directive 96 / 8 / ec respectively . experience has shown that those provisions ensure the free movement of such food in a satisfactory manner , while ensuring a high level of protection of public health . it is therefore appropriate that this regulation focus on the general compositional and information requirements for , infant formula and follow - on formulae , processed cereal based food and baby food for infants and young children and to food for special medical purposes and food intended for use in energy - restricted diets and that the specific compositional and information requirements for these categories of food should be laid down by the commission in delegated regulations adopted pursuant to this regulation , which take into account and replace directive 2006 / 141 / ec , directive 2006 / 125 / ec , directive 1999 / 21 / ec and directive 96 / 8 / ec . the power to adopt acts in accordance with article 290 of the treaty should be delegated to the commission in respect of laying down the specific compositional and information requirements for the categories of food covered by this regulation , including additional labelling requirements to , or derogations from , the provisions of directive 2000 / 13 / ec and the authorisation of nutrition and health claims . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . the commission , when preparing and drawing up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and to the council .


### a limited number of categories of food constitutes the sole source of nourishment of certain groups of the population or represent a partial source of nourishment ; such categories of food are vital for the management of certain conditions and / or are essential to maintain the intended nutritional adequacy for certain well - established vulnerable groups of the population . those categories of food include infant formulae and follow - on formulae , processed cereal - based food and baby food and food for special medical purposes . experience has shown that the provisions laid down in commission directive 2006 / 141 / ec , commission directive 2006 / 125 / ec , as well as commission directive 1999 / 21 / ec ensure the free movement of such food in a satisfactory manner , while ensuring a high level of protection of public health . it is therefore appropriate that this regulation focuses on the general compositional and information requirements for infant formula and follow - on formulae , processed cereal - based food and baby food for infants and young children and to food for special medical purposes , taking into account commission directive 2006 / 141 / ec , commission directive 2006 / 125 / ec and commission directive 1999 / 21 / ec . ### a limited number of categories of food constitutes the sole source of nourishment of certain groups of the population or represent a partial source of nourishment ; such categories of food are vital for the management of certain conditions and / or are essential to maintain the intended nutritional adequacy for certain well - established vulnerable groups of the population . those categories of food include infant formulae and follow - on formulae , processed cereal - based food and baby food , food for special medical purposes , food intended for weight reduction and control , and food intended to meet the expenditure of intense muscular effort . experience has shown that the provisions laid down in commission directive 2006 / 141 / ec , commission directive 2006 / 125 / ec , commission directive 1999 / 21 / ec , as well as commission directive 96 / 8 / ec ensure the free movement of such food in a satisfactory manner , while ensuring a high level of protection of public health . it is therefore appropriate that this regulation focuses on the general compositional and information requirements for infant formula and follow - on formulae , processed cereal - based food and baby food for infants and young children , food for special medical purposes , food intended for weight reduction and control , and food intended to meet the expenditure of intense muscular effort , taking into account commission directive 2006 / 141 / ec , commission directive 2006 / 125 / ec , commission directive 1999 / 21 / ec and commission directive 96 / 8 / ec . in addition , the concept of ' specialised nutrition ' should be maintained and strictly limited to products that demonstrate their unique ability to fulfil the specific nutritional needs of vulnerable groups of the population , which otherwise could not be placed on the market using current union acts .


### the dissemination of any useful information or recommendations with reference to the categories of food referred to in article 1 may be made exclusively by persons having qualifications in medicine , nutrition , pharmacy or other professionals responsible for maternal and child health care . ### paragraph 3 shall not prevent the dissemination of any useful information or recommendations exclusively intended for persons having qualifications in medicine , nutrition and pharmacy or other professionals responsible for maternal and child health care .


### the dissemination of any useful information or recommendations with reference to the categories of food referred to in article 1 may be made exclusively by persons having qualifications in medicine , nutrition , pharmacy or other professionals responsible for maternal and child health care . ### the drawing up and dissemination of any useful information or recommendations with reference to the categories of food referred to in article 1 may be made exclusively by persons having qualifications in medicine , nutrition , pharmacy or other professionals responsible for maternal and child health care and must be based on scientific data that can be independently verified .


### a limited number of categories of food constitutes the sole source of nourishment of certain groups of the population or represent a partial source of nourishment ; such categories of food are vital for the management of certain conditions and / or are essential to maintain the intended nutritional adequacy for certain well - established vulnerable groups of the population . those categories of food include infant formulae and follow - on formulae , processed cereal - based food and baby food and food for special medical purposes . experience has shown that the provisions laid down in commission directive 2006 / 141 / ec , commission directive 2006 / 125 / ec , as well as commission directive 1999 / 21 / ec ensure the free movement of such food in a satisfactory manner , while ensuring a high level of protection of public health . it is therefore appropriate that this regulation focuses on the general compositional and information requirements for infant formula and follow - on formulae , processed cereal - based food and baby food for infants and young children and to food for special medical purposes , taking into account commission directive 2006 / 141 / ec , commission directive 2006 / 125 / ec and commission directive 1999 / 21 / ec . ### a limited number of categories of food constitutes the sole source of nourishment of certain groups of the population or represent a partial source of nourishment ; such categories of food are vital for the management of certain conditions and / or are essential to maintain the intended nutritional adequacy for certain well - established vulnerable groups of the population . those categories of food include infant formulae and follow - on formulae , processed cereal - based food and baby food , food for special medical purposes , and foods for people intolerant to gluten . experience has shown that the provisions laid down in commission directive 2006 / 141 / ec , commission directive 2006 / 125 / ec , commission directive 1999 / 21 / ec , and commission regulation 41 / 2009 ensure the free movement of such food in a satisfactory manner , while ensuring a high level of protection of public health . it is therefore appropriate that this regulation focuses on the general compositional and information requirements for infant formula and follow - on formulae , processed cereal - based food and baby food for infants and young children , food for special medical purposes , and foods for people intolerant to gluten , taking into account commission directive 2006 / 141 / ec , commission directive 2006 / 125 / ec commission directive 1999 / 21 / ec , and commission regulation no 41 / 2009 .


### this regulation should provide the criteria for the establishment of the specific compositional and information requirements for infant formula , follow - on formula , processed cereal - based food and baby food , and food for special medical purposes , taking into account commission directive 2006 / 141 / ec , commission directive 2006 / 125 / ec and commission directive 1999 / 21 / ec . in order to adapt the definitions of infant formula , follow - on formula , processed cereal - based food and baby food , and food for special medical purposes laid down in this regulation taking into account technical and scientific progress and relevant developments at international level , to lay down the specific compositional and information requirements with respect to the categories of food covered by this regulation , including for additional labelling requirements to , or derogations from , the provisions of directive 2000 / 13 / ec and for the authorisation of nutrition and health claims , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission . it is of particular importance that the commission carries out appropriate consultations during its preparatory work , including at expert level . the commission , when preparing and drawing - up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and council . ### this regulation should provide the criteria for the establishment of the specific compositional and information requirements for infant formula , follow - on formula , processed cereal - based food and baby food , food for special medical purposes , food intended for weight reduction and control , and food intended to meet expenditure of intense muscular effort , taking into account commission directive 2006 / 141 / ec , commission directive 2006 / 125 / ec , commission directive 1999 / 21 / ec and commission directive 96 / 8 / ec . in order to adapt the definitions of infant formula , follow - on formula , processed cereal - based food and baby food , food for special medical purposes , food intended for weight reduction and control , and food intended to meet the expenditure of intense muscular effort laid down in this regulation taking into account technical and scientific progress and relevant developments at international level , to lay down the specific compositional and information requirements and the process for placing on the market of food resulting from scientific and technological innovations with respect to the categories of food covered by this regulation , including for additional labelling requirements to , or derogations from , the provisions of directive 2000 / 13 / ec and for the authorisation of nutrition and health claims , the power to adopt acts in accordance with article 290 of the treaty on the functioning of the european union should be delegated to the commission . it is of particular importance that the commission carries out appropriate consultations during its preparatory work , including at expert level . the commission , when preparing and drawing - up delegated acts , should ensure a simultaneous , timely and appropriate transmission of relevant documents to the european parliament and council .


### proposal for a regulation of the european parliament and of the council on food intended for infants and young children and on food for special medical purposes ### proposal for a regulation of the european parliament and of the council on food intended for infants and young children , on food for special medical purposes and on foodstuffs for people intolerant to gluten


### the labelling , presentation and advertising of food referred to in article 1 shall provide adequate consumer information and must not be misleading . ### the labelling , presentation and advertising of food referred to in article 1 shall provide adequate consumer information , must not be misleading and shall neither attribute to such products properties for the prevention , treatment or cure of human disease nor imply such properties .


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


### 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 and in article 3 of the protocol on transitional provisions annexed to the treaty on european union and to the treaty on the functioning of the european union .


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


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


### on the basis of the peer review the authority may issue recommendations to the competent authorities concerned . ### on the basis of the peer review the authority may issue guidelines and recommendations to the national supervisory authorities concerned .


### members of the board of supervisors and the management board , the executive director , and members of the staff of the authority including officials seconded by member states on a temporary basis shall be subject to the requirements of professional secrecy pursuant to article&#160 ; 287 of the treaty and the relevant provisions in the relevant community legislation , even after their duties have ceased . ### members of the board of supervisors and the management board , the executive director , and members of the staff of the authority including officials seconded by member states on a temporary basis shall be subject to the requirements of professional secrecy pursuant to article&#160 ; 339 of the treaty and the relevant provisions in the relevant community legislation , even after their duties have ceased .


### in order to ensure efficient and effective supervision and a balanced consideration of the positions of the competent authorities in different member states , the authority should be able to settle disagreements between those competent authorities with binding effect , including within colleges of supervisors . a conciliation phase should be provided for , during which the competent authorities may reach an agreement . the authority’s competence should cover disagreements on procedural obligations in the cooperation process as well as on the interpretation and application of community law in supervisory decisions . existing conciliation mechanisms provided for in sectoral legislation have to be respected . in the event of inaction by the national supervisory authorities concerned , the authority should be empowered to adopt , as a last resort , decisions directly addressed to financial institutions in areas of community law directly applicable to them . ### in order to ensure efficient and effective supervision and a balanced consideration of the positions of the competent authorities in different member states , the authority should be able to settle disagreements between those competent authorities with binding effect , including within colleges of supervisors . a conciliation phase should be provided for , during which the competent authorities may reach an agreement . the authority’s competence should cover disagreements on procedural obligations in the cooperation process as well as on the interpretation and application of european law in supervisory decisions ; compliance with binding decisions adopted does not prevent the exercise of additional prudential discretion by the competent authority in conformity with international principles on cross - border supervision . existing conciliation mechanisms provided for in sectoral legislation have to be respected . in the event of inaction by the national supervisory authorities concerned , the authority should be empowered to adopt , as a last resort , decisions directly addressed to financial institutions in areas of european law directly applicable to them .


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


### where a competent 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 . ### where a competent authority has not applied the legally binding acts and legislation referred to in article 1 or has applied them in a way which appears to be in breach of union law , including the technical standards established in accordance with article 7 , 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 .


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


### in the case of adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system in the community , the commission , upon its own initiative or following a request by the authority , the council , or the esrb , may adopt a decision addressed to the authority , determining the existence of an emergency situation for the purposes of this regulation . ### 1 in the case of adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system in the community , the council , following appropriate consultations with the commission , the esrb , and where appropriate , the european supervisory authorities , may adopt a decision addressed to the authority , determining the existence of an emergency situation for the purposes of this regulation .


### before taking the decisions provided for in article 9 , article 10 and and article 11 and , the authority shall inform the addressee of its intention to adopt the decision , setting a time limit within which the addressee may express its views on the matter , taking full account of the urgency of the matter . ### before taking the decisions provided for in this regulation , the authority shall inform the addressee of its intention to adopt the decision , setting a time limit within which the addressee may express its views on the matter , taking full account of the urgency of the matter .


### the objective of the authority shall be to contribute to : improving the functioning of the internal market , including in particular a high , effective and consistent level of regulation and supervision , protecting depositors and investors , ensuring the integrity , efficiency and orderly functioning of financial markets , safeguarding the stability of the financial system , and strengthening international supervisory coordination . for this purpose , the authority shall contribute to ensuring the consistent , efficient and effective application of the community law referred to in article 1 above , fostering supervisory convergence and providing opinions to the european parliament , the council , and the commission . ### the objective of the authority shall be to contribute to : improving the functioning of the internal market , including in particular a high , effective and consistent level of regulation and supervision , protecting depositors and investors , ensuring the integrity , efficiency and orderly functioning of financial markets , safeguarding the stability of the financial system , and strengthening international supervisory coordination whilst taking account of the need to enhance competition and innovation within the internal market and to ensure global competitiveness . 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 .


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


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


### 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 .


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


### ' financial institutions ' means ' credit institutions ' as defined in directive 2006 / 48 / ec , ' investment firms ' as defined in directive 2006 / 49 / ec , and ' financial conglomerates ' as defined in directive 2002 / 87 / ec ; ### ' financial institutions ' means ' credit institutions ' as defined in directive 2006 / 48 / ec , ' investment firms ' as defined in directive 2006 / 49 / ec , ' financial conglomerates ' as defined in directive 2002 / 87 / ec and in general all kinds of undertakings and entities subject to any of the legislative acts mentioned in article&#160 ; 1 ;


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


### where a competent 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 . ### where a competent authority has not applied or has applied the legally binding acts and legislation referred to in article 1 in a way which appears to be a breach of european union law , 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 .


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


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


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


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


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


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


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


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


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


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


### the european system of financial supervisors should be a network of national and community supervisory authorities , leaving day - to - day supervision of financial institutions at the national level , and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and the coherent application of rules for financial institutions and markets across the community should also be achieved . a european banking authority should be established , along with a european insurance and occupational pensions authority and a european securities and markets authority . ### the european system of financial supervision should be an integrated network of national and european supervisory authorities , leaving ordinary day - to - day supervision of financial institutions at the competent authorities of member states , and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and consistent and coherent application of european rules and standards for financial institutions and markets across the european should also be achieved . a european supervisory authority on banking should be established , along with a european supervisory authority on insurance and occupational pensions and a european supervisory authority on securities and markets as well as a joint committee among them . the european systemic risk board , as european authority in macro supervision , completes the esfs . the authority shall evolve according to the best practices recognised at european and international level . one such approach could be the establishment of a new level of direct supervision by the authority . to avoid international distortions and to strengthen the european system of financial supervision , the introduction of direct supervision should be carefully evaluated and considered in order to add value to the supervision of large financial institutions , many of which are global in nature and operate in the eu . this applies above all to those large financial institutions with wholesale banking or other activities that could pose systemic risk to the internal market , and those systemic financial institutions defined and identified at an international level . this issue shall be further studied in the first revision of the present regulation , as set out in article 66 , which should take place not later than three years from its entry into force .


### there is a need to introduce an effective instrument to establish harmonised technical standards in financial services to ensure , also through a single rulebook , a level playing field and an adequate protection of depositors , investors and consumers across europe . as a body with highly specialised expertise , it is efficient and appropriate to entrust the authority , in areas defined by community law , with the elaboration of draft technical standards , which do not involve policy choices . the commission should endorse those draft technical standards in accordance with community law in order to give them binding legal effect . the draft technical standards have to be adopted by the commission . they would be subject to amendment if , for example , the draft technical standards were incompatible with community law , would not respect the principle of proportionality or would run counter to the fundamental principles of the internal market for financial services as reflected in the acquis of community financial services legislation . to ensure a smooth and expedited adoption process for those standards , the commission should be subject to a time limit for its decision on the endorsement . ### as a body with highly specialised expertise , it is efficient and appropriate to entrust the authority , in level 2 lamfalussy regulations and in level 3 lamfalussy supervisory measures , with the elaboration of draft technical standards , which do not involve policy choices and must respect the principle of proportionality . the draft technical standards to be adopted by the commission as regulatory standards could be subject to amendment by the commission . in the case of supervisory standards , the commission shall endorse those draft technical standards when they are in accordance with european law in order to give them binding legal effect . the commission is empowered to adopt regulatory standards in financial services as delegated acts in accordance with the article 290 of the treaty on the functioning of the european union . the supervisory standards should be endorsed as implementing acts in accordance with a procedure following the article 291 of the treaty on the functioning of the european union . to ensure a smooth and expedited adoption process for those standards , the commission could be subject to a time limit for both its resolution on adoption or for its decision on the endorsement .


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


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


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


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


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


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


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


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


### the authority shall execute any exclusive supervisory powers over entities with community - wide reach or economic activities with community - wide reach entrusted to it in the legislation referred to in article 1 . ### the authority shall execute any exclusive european supervisory powers over entities with european - wide reach or economic activities with european - wide reach entrusted to it in the legislation referred to in article 1 .


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


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


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


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


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


### the head of the national public authority competent for the supervision of credit institutions in each member state ; ### the head of the national public authority competent for the supervision of credit institutions in each member state . where there is more than one competent authority in the territory for which the member state is responsible for the application of eu law , the heads of those organisations shall be joint representatives on the board of supervisors and shall decide between themselves how to exercise their representation , including any votes under article 29 , which shall be shared ;


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


### 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 .


### on the basis of the peer review the authority may issue recommendations to the competent authorities concerned . ### on the basis of the peer review the authority may issue recommendations or adopt other appropriated measures to the competent authorities concerned .


### when carrying out the tasks conferred upon it by this regulation , the chairperson and the voting members of the board of supervisors shall act independently and objectively in the community interest and shall neither seek nor take instructions from community institutions or bodies , from a government of a member state or from any other public or private body . ### when carrying out the tasks conferred upon it by this regulation , the chairperson and the voting members of the board of supervisors shall act independently and objectively in the sole interest of the european union as a whole interest and shall neither seek nor take instructions from european union institutions or bodies , from a government of a member state or from any other public or private body .


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


### the european system of financial supervisors should be a network of national and community supervisory authorities , leaving day - to - day supervision of financial institutions at the national level , and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and the coherent application of rules for financial institutions and markets across the community should also be achieved . a european banking authority should be established , along with a european insurance and occupational pensions authority and a european securities and markets authority . ### the european system of financial supervision should be an integrated network of national and european supervisory authorities , leaving ordinary day - to - day supervision of financial institutions at the competent authorities of member states , and according a central role in the supervision of cross - border groups to colleges of supervisors . greater harmonisation and consistent and coherent application of european rules and standards for financial institutions and markets across the european should also be achieved . a european supervisory authority on banking should be established , along with a european supervisory authority on insurance and occupational pensions and a european supervisory authority on securities and markets as well as a joint committee among them . the european systemic risk board , as european authority in macro supervision , completes the esfs . the authority shall evolve according to the best practices recognised at european and international level . one such approach could be the establishment of a new level of direct supervision by the authority . to avoid international distortions and to strengthen the european system of financial supervision , the introduction of direct supervision should be carefully evaluated and considered in order to add value to the supervision of large financial institutions , many of which are global in nature and operate in the eu . this applies above all to those large financial institutions with wholesale banking or other activities that could pose systemic risk to the internal market , and those systemic financial institutions defined and identified at an international level . this issue shall be further studied in the first revision of the present regulation , as set out in article 66 , which should take place not later than three years from its entry into force .


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


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


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


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


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


### in making its decision , the board of supervisors shall , to the extent possible , ensure an appropriate geographical balance and representation of stakeholders across the community . ### in making its decision , the board of supervisors shall , to the extent possible , ensure an appropriate geographical and gender balance and representation of stakeholders across the community .


### where the commission has adopted a decision pursuant to paragraph 1 , the authority may adopt individual decisions requiring competent authorities to take the necessary action in accordance with the legislation referred to in article 1 to address any risks that may jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system by ensuring that financial institutions and competent authorities satisfy the requirements laid down in that legislation . ### where the esrb has issued a warning pursuant to paragraph 1 , or when the commission or the council , upon its own initiative or following a request by the authority , the european parliament or a member state , adopts a decision determining the existence of similar or justified circumstances where co - ordinated action by national authorities is necessary to respond to adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system in the european union ; the authority may adopt , without further requirements , individual decisions in accordance with the legislation referred to in article 1 to address any risks that may jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system by ensuring that financial institutions and competent authorities satisfy the requirements laid down in that legislation .


### 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 european powers of investigation and enforcement as specified in the relevant legislation , as well as the possibility of charging fees .


### 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 .


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


### the banking stakeholder group shall meet at least twice a year . ### the banking stakeholder group shall meet at least four times a year .


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


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


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


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


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


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


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


### in the case of adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system in the community , the commission , upon its own initiative or following a request by the authority , the council , or the esrb , may adopt a decision addressed to the authority , determining the existence of an emergency situation for the purposes of this regulation . ### in the case of adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system in the union , the commission , upon its own initiative or following a request by the authority , the european parliament , the council or the esrb , may adopt a decision addressed to the authority , determining the existence of an emergency situation for the purposes of this regulation .


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


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


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