### in the first paragraph of article 50 , the following sentence is added : ' however , detailed rules may be agreed with the commission in order to facilitate the implementation of the union delegations ' operating appropriations entered in the eeas and the council sections of the budget . ' ### in the first paragraph of article 50 , the following sentence and the following subparagraph are added : ' however , detailed rules may be agreed with the commission in order to facilitate the implementation of the union delegations ' appropriations entered in the eeas section of the budget . within the eeas a director general for budget and administration shall be responsible to the high representative for the administrative and internal budgetary management of the eeas . he shall work within the existing format and follow the same administrative rules as applicable to the part of section iii of the eu budget which falls under heading v of the multiannual financial framework . '


### however , detailed rules may be agreed with the commission in order to facilitate the implementation of the union delegations ' operating appropriations entered in the eeas and the council sections of the budget . ### however , detailed rules may be agreed with the commission in order to facilitate the implementation of the union delegations ' operating appropriations entered in the eeas section of the budget .


### in the first paragraph of article 50 , the following sentence is added : “however , detailed rules may be agreed with the commission in order to facilitate the implementation of the union delegations’ operating appropriations entered in the eeas and the council sections of the budget . ” ### article 50 is replaced by the following : “the commission shall confer on the other institutions the requisite powers for the implementation of the sections of the budget relating to them . however , detailed rules may be agreed with the commission in order to facilitate the implementation of the union delegations’ appropriations entered in the eeas section of the budget . within the eeas , a director general for budget and administration shall be responsible to the high representative for the administrative and internal budgetary management of the eeas . he shall work within the existing format and follow the same administrative rules which are applicable to the part of section iii of the eu budget which falls under heading 5 of the multiannual financial framework . each institution shall exercise these powers in accordance with this regulation and within the limits of the appropriations authorised . ”


### given that the eeas should be treated as an institution for the purposes of the financial regulation , the european parliament is to grant discharge to the eeas for the implementation of the appropriations voted in the eeas section of the budget . the european parliament should also continue to grant discharge to the commission for the implementation of commission ' s section of the budget , including operational appropriations implemented by heads of delegations who are sub - delegated authorising officers of the commission . ### given that the eeas should be treated as an institution for the purposes of the financial regulation , the european parliament is to grant discharge to the eeas for the implementation of the appropriations voted in the eeas section of the budget . in this context , the eeas should be fully subject to the procedures provided for in article 319 of the treaty on the functioning of the european union and in articles 145 to 147 of the financial regulation . the eeas should fully cooperate with institutions involved in the discharge procedure and provide , as appropriate , the additional necessary information , including through attendance in meetings of the relevant bodies . the european parliament should also continue to grant discharge to the commission for the implementation of commission ' s section of the budget , including operational appropriations implemented by heads of delegations who are sub - delegated authorising officers of the commission . given the complexity of this structure , high - standard provisions on traceability and budgetary and financial accountability need to be applied .


### in article 59 , the following paragraph 5 is added : ' 5 . where heads of union delegations act as authorising officers by sub - delegation in accordance with the second paragraph of article 51 , they shall refer , where their duties as authorising officer so require , to the commission as their institution . ' ### in article 59 , the following paragraph 5 is added : ' 5 . where heads of union delegations act as authorising officers by sub - delegation in accordance with the second paragraph of article 51 , they shall be subject to the commission as the institution responsible for the definition , exercise , control and appraisal of their duties and responsibilities as authorising officers by sub - delegation . '


### “1 . where heads of union delegations act as authorising officers by subdelegation in accordance with the second paragraph of article 51 , they shall cooperate closely with the commission for the proper implementation of the funds , in order to ensure in particular the legality and regularity of financial transactions , the respect of the principle of sound financial management in the management of the funds and the effective protection the financial interests of the union . to this effect , they shall take the measures necessary to prevent any situation susceptible to put at stake the responsibility of the commission for the implementation of the budget sub - delegated to them as well as any conflict of interest or priorities having impact on the implementation of the financial management tasks sub - delegated to them . where a situation or conflict referred to in the second subparagraph arise , the heads of union delegations shall inform the responsible commission department and the high representative of the union for foreign affairs and security policy thereof without delay . 2 . when a head of a union delegation finds himself in a situation referred to in article 60 , he shall refer to the specialised financial irregularities panel set up pursuant to article 66 . in the event of any illegal activity , fraud or corruption which may harm the interests of the union , he shall inform the authorities and bodies designated by the applicable legislation . 3 . heads of union delegations acting as authorising officers by subdelegation in accordance with the second paragraph of article 51 shall report twice a year to their authorising officer by delegation so that the latter can integrate their reports in his annual activity report referred to in article 60 . that biannual report submitted by the heads of union delegation shall include information on the efficiency and effectiveness of internal management and control systems put in place in their delegation , as well as the management of operations subdelegated to them . 4 . heads of union delegations acting as authorising officers by subdelegation in accordance with the second paragraph of article 51 shall reply to any request by the authorising officer by delegation of commission . ” ### “1 . where heads of union delegations act as authorising officers by subdelegation in accordance with the second paragraph of article 51 , they shall cooperate closely with the commission for the proper implementation of the funds , in order to ensure in particular the legality and regularity of financial transactions , the respect of the principle of sound financial management in the management of the funds and the effective protection the financial interests of the union . to this effect , they shall take the measures necessary to prevent any situation susceptible to put at stake the responsibility of the commission for the implementation of the budget sub - delegated to them as well as any conflict of interest or priorities having impact on the implementation of the financial management tasks sub - delegated to them . where a situation or conflict referred to in the second subparagraph arises , the heads of union delegations shall inform the responsible directors - general of the commission and of the eeas thereof without delay . they shall take appropriate steps to remedy the situation . 2 . when a head of a union delegation finds himself in a situation referred to in article 60 , he shall refer to the specialised financial irregularities panel set up pursuant to article 66 . in the event of any illegal activity , fraud or corruption which may harm the interests of the union , he shall inform the authorities and bodies designated by the applicable legislation . 3 . heads of union delegations acting as authorising officers by subdelegation in accordance with the second paragraph of article 51 shall report twice a year to their authorising officer by delegation so that the latter can integrate their reports in his annual activity report referred to in article 60 . that biannual report submitted by the heads of union delegation shall include information on the efficiency and effectiveness of internal management and control systems put in place in their delegation , as well as the management of operations subdelegated to them . upon request , and in the context of discharge , the european parliament’s competent committee may obtain the declaration of assurance made by heads of union delegations on the internal management and control systems in their delegation . 4 . heads of union delegations acting as authorising officers by subdelegation in accordance with the second paragraph of article 51 shall reply to any request by the authorising officer by delegation of the commission . 4a . the commission shall ensure that sub - delegating powers are not detrimental to the discharge procedure in the european parliament , in the context of which the commission bears full responsibility for the operating budget of the eeas . ”


### given that the eeas should be treated as an institution for the purposes of the financial regulation , the european parliament is to grant discharge to the eeas for the implementation of the appropriations voted in the eeas section of the budget . the european parliament should also continue to grant discharge to the commission for the implementation of commission’s section of the budget , including operational appropriations implemented by heads of delegations who are sub - delegated authorising officers of the commission . ### given that the eeas should be treated as an institution for the purposes of the financial regulation , the european parliament is to grant discharge to the eeas for the implementation of the appropriations voted in the eeas section of the budget . in this context , the eeas shall be fully subject to the procedures provided for in article 319 of the treaty on the functioning of the european union and in articles 145 to 147 of the financial regulation . the eeas shall fully cooperate with institutions involved in the discharge procedure and provide , as appropriate , the additional necessary information , including through attendance in meetings of the relevant bodies . the european parliament should also continue to grant discharge to the commission for the implementation of commission’s section of the budget , including operational appropriations implemented by heads of delegations who are sub - delegated authorising officers of the commission . given the complexity of this structure , high - standard provisions on traceability and budgetary and financial accountability need to be applied .


### the treaty of lisbon establishes a european external action service . according to the conclusions of the european council of 29 and 30 october 2009 , the eeas is a service of a sui generis nature and should be treated as an institution for the purposes of the financial regulation . ### the treaty of lisbon establishes a european external action service . according to the council decision 2010 / . . . / eu of . . . establishing the organisation and functioning of the european external action service , the eeas is a service of a sui generis nature and is to be treated as an institution for the purposes of the financial regulation .


### in section 2 , the following article 60a is added : ' article 60a where heads of union delegations act as authorising officers by subdelegation in accordance with the second paragraph of article 51 , they shall cooperate closely with the commission for the proper implementation of the funds , in order to ensure in particular the legality and regularity of financial transactions , the respect of the principle of sound financial management in the management of the funds and the effective protection the financial interests of the union . to this effect , they shall take the measures necessary to prevent any situation susceptible to put at stake the responsibility of the commission for the implementation of the budget sub - delegated to them as well as any conflict of interest or priorities having impact on the implementation of the financial management tasks sub - delegated to them . where a situation or conflict referred to in the second subparagraph arise , the heads of union delegations shall inform the responsible commission department and the high representative of the union for foreign affairs and security policy thereof without delay . 2 . when a head of a union delegation finds himself in a situation referred to in article 60 , he shall refer to the specialised financial irregularities panel set up pursuant to article 66 . in the event of any illegal activity , fraud or corruption which may harm the interests of the union , he shall inform the authorities and bodies designated by the applicable legislation . 3 . heads of union delegations acting as authorising officers by subdelegation in accordance with the second paragraph of article 51 shall report twice a year to their authorising officer by delegation so that the latter can integrate their reports in his annual activity report referred to in article 60 . that biannual report submitted by the heads of union delegation shall include information on the efficiency and effectiveness of internal management and control systems put in place in their delegation , as well as the management of operations subdelegated to them . 4 . heads of union delegations acting as authorising officers by subdelegation in accordance with the second paragraph of article 51 shall reply to any request by the authorising officer by delegation of commission . ' ### in section 2 , the following article 60a is added : ' article 60a where heads of union delegations act as authorising officers by subdelegation in accordance with the second paragraph of article 51 , they shall cooperate closely with the commission for the proper implementation of the funds , in order to ensure in particular the legality and regularity of financial transactions , the respect of the principle of sound financial management in the management of the funds and the effective protection the financial interests of the union . to this effect , they shall take the measures necessary to prevent any situation susceptible to put at stake the responsibility of the commission for the implementation of the budget sub - delegated to them as well as any conflict of priorities which is likely to have an impact on the implementation of the financial management tasks sub - delegated to them . where a situation or conflict referred to in the second subparagraph arise , the heads of union delegations shall inform the responsible directors - general of the commission and of the eeas thereof without delay . the latter shall take appropriate steps to remedy the situation . 2 . when a head of a union delegation finds himself in a situation referred to in article 60 , he shall refer to the specialised financial irregularities panel set up pursuant to article 66 . in the event of any illegal activity , fraud or corruption which may harm the interests of the union , he shall inform the authorities and bodies designated by the applicable legislation . 3 . heads of union delegations acting as authorising officers by subdelegation in accordance with the second paragraph of article 51 shall report to their authorising officer by delegation in the form of an annual activity report in application , mutatis mutandis , of article 60 so that the latter can integrate their reports in his annual activity report . the heads of delegations ' annual activity reports shall be annexed , together with the statement of assurance pursuant to article 66 , to the annual activity report of the authorising officer by delegation , which shall be transmitted to the european parliament in accordance with article 60 . upon request , the heads of delegations shall report on the execution of their budgetary duties to the european parliament ' s competent committee . an annual intermediate report submitted by the heads of union delegations shall include information on the efficiency and effectiveness of internal management and control systems put in place in their delegation , as well as the management of operations subdelegated to them . 4 . heads of union delegations acting as authorising officers by subdelegation in accordance with the second paragraph of article 51 shall reply to any request by the authorising officer by delegation of commission as well as the european parliament ' s competent committee . '


### where a situation or conflict referred to in the second subparagraph arise , the heads of union delegations shall inform the responsible commission department and the high representative of the union for foreign affairs and security policy thereof without delay . ### where a situation or conflict referred to in the second subparagraph arise , the heads of union delegations shall inform the responsible directors - general of the commission and of the eeas and , where appropriate , the specialised financial irregularities panel set up pursuant to article 66 or the european anti - fraud office thereof without delay .


### member states may maintain or lay down national rules concerning restrictions on the content of phosphates and of other phosphorous compounds in detergents for which no restrictions on the content are set out in annex via where justified on grounds of protection of the aquatic environment and where technically and economically feasible alternatives are available . ### member states may maintain national rules concerning limitations on the content of phosphates and of other phosphorous compounds in detergents for which no limitations on the content are set out in annex via where justified on grounds of protection of the aquatic environment and where technically and economically feasible alternatives are available .


### by 31 december 2014 , the commission shall evaluate , submit a report to the european parliament and to the council on the use of phosphates and other phosphorous compounds in household automatic dishwasher detergents and , if justified , present a legislative proposal with a view to their gradual phase - out or restriction to specific applications . ### by 31 december 2014 , the commission shall evaluate , submit a report to the european parliament and to the council on the use of phosphates and other phosphorous compounds in household automatic dishwasher detergents following a study based on the life cycle of household automatic dishwasher detergents , available alternatives , their performance , their cost effectiveness and limits in terms of access to technology and , if justified , present a legislative proposal with a view to their gradual phase - out or restriction to specific applications .


### it is not appropriate to extend limitations of the use of phosphates and other phosphorous compounds in household laundry detergents to household automatic dishwasher detergents or to industrial and institutional detergents because suitable technically and economically feasible alternatives to the use of phosphates in those detergents are not yet available . ### it is not appropriate to extend limitations of the use of phosphates and other phosphorous compounds in household laundry detergents to household automatic dishwasher detergents or to industrial and institutional detergents because suitable technically and economically feasible alternatives to the use of phosphates in those detergents are not yet available and because an impact assessment is not yet available evaluating the impacts of extending limitations to household automatic dishwasher detergents , in particular evaluating reformulation costs and the impact of chemicals used in phosphate - free formulations , household water and energy consumption in the consumer use phase , and the economic costs to consumers .


### the commission shall receive annual implementation reports from the international financial institutions referred to in article 5 setting out the supported activities in terms of financial implementation , distribution of funding with regard to sectors and type of beneficiaries , applications submitted , contracts concluded , actions funded , results and , where possible , impact . ### the commission shall receive annual implementation reports from the international financial institutions referred to in article 5 setting out the supported activities in terms of financial implementation , distribution of funding with regard to sectors and type of beneficiaries , applications accepted or rejected , contracts concluded , actions funded , results and , where possible , impact .


### for the first time in 2011 and before 31 december of each year , the commission shall present to the european parliament and to the council a quantitative and qualitative annual report on the activities under this decision in the previous year . the annual report shall be based on the implementation reports referred to in paragraph 1 and focus mainly on the results achieved and shall in particular contain information relating to applications submitted , contracts concluded , actions funded including their complementarity with other community interventions , notably the esf . ### before 31 may of each year , the commission shall present to the european parliament and to the council a quantitative and qualitative annual report on the activities under this decision in the previous year . the annual report shall be based on the implementation reports referred to in paragraph 1 and focus mainly in what proportion the facility has been used by member states and on the results achieved and shall in particular contain information relating to applications accepted or rejected , contracts concluded , actions funded including their complementarity with other community interventions , notably the esf .


### the financial contribution from the community budget for the facility for the period from 1 january 2010 to 31 december 2013 shall be eur 100 million . ### the financial contribution from the community budget for the facility for the period from 1 january 2010 to 31 december 2013 shall be eur 150 million .


### the commission shall carry out interim and final evaluations at its own initiative and in close cooperation with the international financial institutions referred to in article 5 . the interim evaluation shall be completed four years after the start of the facility and the final evaluation at the latest one year after the end of the mandate given to the international financial institutions referred to in article 5 . the final evaluation shall , in particular , examine the extent to which the facility as a whole has achieved its objectives . ### the commission shall carry out interim and final evaluations at its own initiative and in close cooperation with the international financial institutions referred to in article 5 . the interim evaluation shall be completed every second year after the start of the facility and the final evaluation at the latest one year after the end of the mandate given to the international financial institutions referred to in article 5 . the final evaluation shall , in particular , examine the extent to which the facility as a whole has achieved its objectives .


### the ongoing community and national efforts need to be strengthened to increase the supply of micro - credits to a sufficient scale and within a reasonable time - frame so as to address the high demand of those who need it most in this period of crisis i . e . unemployed or vulnerable people , including the young who want to start or develop a micro enterprise including self - employment but do not have access to credit . ### the ongoing community and national efforts need to be strengthened to increase the supply of micro - credits to a sufficient scale and within a reasonable time - frame so as to address the high demand of those who need it most in this period of crisis and those who are excluded from the conventional credit market i . e . unemployed or vulnerable people who want to start or develop a micro enterprise including self - employment but do not have access to credit .


### a european microfinance facility for employment and social inclusion , called the progress microfinance facility , is hereby established . ### a european microfinance facility for employment and social inclusion , called the european microfinance facility , is hereby established .


### the commission shall carry out interim and final evaluations at its own initiative and in close cooperation with the international financial institutions referred to in article 5 . the interim evaluation shall be completed four years after the start of the facility and the final evaluation at the latest one year after the end of the mandate given to the international financial institutions referred to in article 5 . the final evaluation shall , in particular , examine the extent to which the facility as a whole has achieved its objectives . ### the commission shall carry out interim and final evaluations at its own initiative and in close cooperation with the international financial institutions referred to in article 5 . the interim evaluation shall be completed every second year after the start of the facility as an addition to the annual reports and the final evaluation at the latest one year after the end of the mandate given to the international financial institutions referred to in article 5 . the final evaluation shall , in particular , examine the extent to which the facility as a whole has achieved its objectives .


### the risks related to these matters and how the company manages those risks . ### the risks related to the company in relation to its operations , products , services and business relationships and how the company manages those risks ;


### a description of the policy pursued by the company in relation to these matters ; ### a description of the policy and a strategy plan for achieving the targets pursued by the company in relation to these matters ;


### a description of the company ' s diversity policy for its administrative , management and supervisory bodies with regard to aspects such as age , gender , geographical diversity , educational and professional background , the objectives of this diversity policy , how it has been implemented and the results in the reporting period . if the company has no such policy , the statement shall contain a clear and reasoned explanation as to why this is the case . ### a description of the company ' s diversity policy for its administrative , management and supervisory bodies with regard to aspects such as age , gender , geographical diversity , disability , racial or ethnic origin , educational and professional background , the objectives of this diversity policy , how it has been implemented and the results in the reporting period . if the company has no such policy , the statement shall contain a clear and reasoned explanation as to why this is the case .


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


### to the extent necessary for an understanding of the company ' s development , performance or position , the analysis shall include both financial and non - financial key performance indicators relevant to the particular business . ### to the extent necessary for an understanding of the company ' s development , performance or position , and employment rights as well as social rights , the analysis shall include both financial and non - financial key performance indicators relevant to the particular business .


### a description of the company ' s diversity policy for its administrative , management and supervisory bodies with regard to aspects such as age , gender , geographical diversity , educational and professional background , the objectives of this diversity policy , how it has been implemented and the results in the reporting period . if the company has no such policy , the statement shall contain a clear and reasoned explanation as to why this is the case . ### a description of the company ' s diversity policy for its administrative , management and supervisory bodies with regard to aspects such as age , gender , geographical diversity , educational and professional background , the objectives of this diversity policy , how it has been implemented and the results in the reporting period and the strategy to obtain the targets in the diversity policy . if the company has no such policy , the statement shall contain a clear and reasoned explanation as to why this is the case .


### for companies whose average number of employees during the financial year exceeds 500 and , on their balance sheet dates , exceed either a balance sheet total of eur 20 million or a net turnover of eur 40 million , the review shall also include a non - financial statement containing information relating to at least environmental , social and employee matters , respect for human rights , anti - corruption and bribery matters , including : ### for companies whose average number of employees during the financial year exceeds 500 and , on their balance sheet dates , exceed either a balance sheet total of eur 20 million or a net turnover of eur 40 million , the review shall also integrate a non - financial statement containing information relating to at least environmental , social and employee matters , respect for human rights , anti - corruption and bribery matters , taking into account the companies ' complete value chain , including :


### if the commissioning of a project of common interest is delayed by more than two years compared to the implementation plan without sufficient justification : ### if the construction and commissioning of a project of common interest is delayed compared to the implementation plan , other than for overriding reasons beyond the control of the project promoter :


### any other measure deemed necessary and appropriate . ### any other measure deemed necessary and appropriate , including mitigation of the risk of higher operational costs of implemented energy infrastructure projects .


### as regards council regulation no 1224 / 2009 of 20 november 2009 establishing a community control system for ensuring compliance with the rules of the common fisheries policy , amending regulations no 847 / 96 , no 2371 / 2002 , no 811 / 2004 , no 768 / 2005 , no 2115 / 2005 , no 2166 / 2005 , no 388 / 2006 , no 509 / 2007 , no 676 / 2007 , no 1098 / 2007 , no 1300 / 2008 , no 1342 / 2008 and repealing regulations no 2847 / 93 , no 1627 / 94 and no 1966 / 20069 , it appears that france will not be in a position to comply with all union control obligations for the segment ' mayotte . pelagic and demersal species . length __________________ 9 oj l 343 , 22 . 12 . 09 , p . 1 . ### as regards council regulation no 1224 / 2009 of 20 november 2009 establishing a community control system for ensuring compliance with the rules of the common fisheries policy , amending regulations no 847 / 96 , no 2371 / 2002 , no 811 / 2004 , no 768 / 2005 , no 2115 / 2005 , no 2166 / 2005 , no 388 / 2006 , no 509 / 2007 , no 676 / 2007 , no 1098 / 2007 , no 1300 / 2008 , no 1342 / 2008 and repealing regulations no 2847 / 93 , no 1627 / 94 and no 1966 / 20069 , it appears that france will not be in a position to comply with all union control obligations for the segment ' mayotte . pelagic and demersal species . length 10m ' of the fleet of mayotte by the date on which mayotte becomes an outermost region . the vessels of that segment , dispersed around the island , have no specific landing sites and still need to be identified . in addition , it is necessary to train fishermen and controllers and to set up the appropriate administrative and physical infrastructure . it is therefore necessary to provide for a temporary derogation from certain rules concerning the control of fishing vessels and their characteristics , their activities at sea , their gear and their catches at all stages from the vessel to the market in respect of that segment of the fleet . however , in order to attain at least some of the most important objectives of regulation no 1224 / 2009 , france should establish a national control system allowing it to control and monitor the activities of that segment of the fleet and to comply with the international reporting obligations of the union . __________________ 9 oj l 343 , 22 . 12 . 2009 , p . 1 .


### as regards council regulation no 1224 / 2009 of 20 november 2009 establishing a community control system for ensuring compliance with the rules of the common fisheries policy , amending regulations no 847 / 96 , no 2371 / 2002 , no 811 / 2004 , no 768 / 2005 , no 2115 / 2005 , no 2166 / 2005 , no 388 / 2006 , no 509 / 2007 , no 676 / 2007 , no 1098 / 2007 , no 1300 / 2008 , no 1342 / 2008 and repealing regulations no 2847 / 93 , no 1627 / 94 and no 1966 / 20069 , it appears that france will not be in a position to comply with all union control obligations for the segment ' mayotte . pelagic and demersal species . length __________________ 9 oj l 343 , 22 . 12 . 2009 , p . 1 . ### as regards council regulation no 1224 / 2009 of 20 november 2009 establishing a community control system for ensuring compliance with the rules of the common fisheries policy , amending regulations no 847 / 96 , no 2371 / 2002 , no 811 / 2004 , no 768 / 2005 , no 2115 / 2005 , no 2166 / 2005 , no 388 / 2006 , no 509 / 2007 , no 676 / 2007 , no 1098 / 2007 , no 1300 / 2008 , no 1342 / 2008 and repealing regulations no 2847 / 93 , no 1627 / 94 and no 1966 / 20069 , it appears that france will not be in a position to comply with all union control obligations for the segment ' mayotte . pelagic and demersal species . length 10m ' of the fleet of mayotte by the date on which mayotte becomes an outermost region . the vessels of that segment , dispersed around the island , have no specific landing sites and still need to be identified . in addition , it is necessary to train fishermen and controllers and to set up the appropriate administrative and physical infrastructure . it is therefore necessary to provide for a temporary derogation from certain rules concerning the control of fishing vessels and their characteristics , their activities at sea , their gear and their catches at all stages from the vessel to the market in respect of that segment of the fleet . however , in order to attain at least some of the most important objectives of regulation no 1224 / 2009 , france should establish a national control system allowing it to control and monitor the activities of that segment of the fleet and to comply with the international reporting obligations of the union . __________________ 9 oj l 343 , 22 . 12 . 2009 , p . 1 .


### first , an important part of the fleet flying the flag of france and operating from the french department of mayotte is composed by vessels of less than 9 meters which are dispersed around the island , have no specific landing sites and still need to be identified , measured and equipped with minimum safety implements in order to be included in the register of union fishing vessels ; as a consequence , france will not be able to complete this register until 31 december 2016 . france should , however , install a provisional fleet register guaranteeing minimum identification of the vessels of this segment in order to avoid proliferation of informal fishing vessels . ### first , an important part of the fleet flying the flag of france and operating from the french department of mayotte is composed by vessels of less than 10 meters which are dispersed around the island , have no specific landing sites and still need to be identified , measured and equipped with minimum safety implements in order to be included in the register of union fishing vessels ; as a consequence , france will not be able to complete this register until 31 december 2021 . france should , however , install a provisional fleet register guaranteeing minimum identification of the vessels of this segment in order to avoid proliferation of informal fishing vessels .


### where the competent authority has not complied with community law within one month from receipt of the authority ' s recommendation , the commission may , after having been informed by the authority or on its own initiative , take a decision requiring the competent authority to take the action necessary to comply with community law . ### where the competent authority has not complied with union law within ten working days from receipt of the authority ' s recommendation , the authority shall take a decision setting the correct application of the legislation put under investigation by the authority .


### where the authority maintains its decision , the council , acting by qualified majority as defined in article 205 of the treaty , shall , within two months , decide whether the authority ' s decision is maintained or revoked . ### where the authority maintains its decision , the council shall take a decision whether the authority ' s decision is maintained or revoked on the basis of a qualified majority of its members , as defined in article 16 of the treaty on european union and in article 3 of the protocol no 36 on transitional provisions annexed to the treaty on european union and to the treaty on the functioning of the european union , at one of its meetings at the latest two months after the authority has informed the member state as set out in the previous subparagraph .


### the competent authorities shall make every effort to comply with those guidelines and recommendations . ### the competent authorities and financial market participants shall make every effort to comply with those guidelines and recommendations .


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


### where the commission does not endorse the standards or endorses them in part or with amendments , it shall inform the authority of its reasons . ### in any case , the commission shall inform the authority , the european parliament and the council of its decision , stating the reasons .


### 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 .


### 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 european union , the commission or the chair of the authority , upon its own initiative or following a request by the council , or the esrb , the european parliament or the stakeholder group may adopt a decision determining the existence of an emergency situation for the purposes of this regulation .


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


### 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 joint committee of european supervisory authorities as well as the sub - committees mentioned in article 43 as observers .


### 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 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 market participants 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 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 market participants and competent authorities satisfy the requirements laid down in that legislation .


### the authority , the european banking authority , and the european insurance and occupational pensions authority shall ensure adequate operational and secretarial support for the board of appeal . ### the authority , the european supervisory authority , and the european supervisory authority shall ensure adequate operational and secretarial support for the board of appeal through the joint committee .


### the management board shall be composed of the chairperson , a representative of the commission , and four members elected by the board of supervisors from among its members . ### the management board shall be composed of the six independent members appointed by common accord of the heads of states or governments .


### 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 standards , the commission shall decide whether to endorse , reject or amend the draft standards . 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 .


### contribute to a consistent application of community legislation , in particular by contributing to a common supervisory culture , ensuring consistent , efficient and effective application of the legislation referred to in article 1 , preventing regulatory arbitrage , mediating and settling disagreements between competent authorities , promoting a coherent functioning of colleges of supervisors and taking actions in emergency situations ; ### contribute to a consistent application of union law , in particular by contributing to a common supervisory culture , ensuring consistent , efficient and effective application of the legislation referred to in article 1 , preventing regulatory arbitrage , mediating and settling disagreements between competent authorities , ensuring a coherent functioning of colleges of supervisors and taking actions , inter alia , in emergency situations ;


### 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 market participants , adopt an individual decision addressed to a financial market participant 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 formal opinion 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 market participants , adopt an individual decision addressed to a financial market participant requiring the necessary action to comply with its obligations under union law including the cessation of any practice .


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


### 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 union law .


### in its notification , the member state shall justify why and clearly demonstrate how the decision impinges on its fiscal responsibilities . ### in its notification , the member state shall justify why and provide an impact assessment on how much the decision impinges on its fiscal responsibilities .


### where a competent authority has not correctly applied the legislation referred to in article 1 , in particular by failing to ensure that a financial market participant satisfies the requirements laid down in that legislation , the authority shall have the powers set out in paragraphs 2 , 3 and 6 of this article . ### where a competent authority has not correctly applied the legislation referred to in article 1 , including the technical standards adopted in accordance with article 7 , in particular by failing to ensure that a financial market participant satisfies the requirements laid down in that legislation , the authority shall have the powers set out in paragraphs 2 , 3 and 6 of this article .


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


### the commission shall ensure that the right to be heard of the addressees of the decision is respected . ### the authority shall ensure that the right to be heard of the addressees of the decision is respected .


### 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 market participants , adopt an individual decision addressed to a financial market participant 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 market participant requiring the necessary action to comply with its obligations under union law including the cessation of any practice .


### serious threats to the orderly functioning and integrity of financial markets or the stability of the financial system in the community require a swift and concerted response at community level . the authority should therefore be able to require national supervisory authorities to take specific actions to remedy an emergency situation . as the determination of an emergency situation involves a significant degree of discretion , this power should be conferred on the commission . to ensure an effective response to the emergency situation , in the event of inaction by the competent national supervisory authorities , the authority should be empowered to adopt , as a last resort , decisions directly addressed to financial market participants in areas of community law directly applicable to them aimed at mitigating the effects of the crisis and restoring confidence in the markets . ### serious threats to the orderly functioning and integrity of financial markets or the stability of the financial system in the union require a swift and concerted response at union level . the authority should therefore be able to require national supervisory authorities to take specific actions to remedy an emergency situation . the european systemic risk board should establish when there is an emergency situation . as the determination of an emergency situation involves a significant degree of discretion , this power should be conferred on the commission . to ensure an effective response to the emergency situation , in the event of inaction by the competent national supervisory authorities , the authority should be empowered to adopt , as a last resort , decisions directly addressed to financial market participants in areas of union law directly applicable to them aimed at mitigating the effects of the crisis and restoring confidence in the markets .


### where the authority maintains its decision , the council , acting by qualified majority as defined in article 205 of the treaty , shall , within two months , decide whether the authority ' s decision is maintained or revoked . ### where the authority maintains its decision , the council shall take a decision whether the authority ' s decision is maintained or revoked on the basis of a qualified majority of its members , as defined in article 16 of the treaty on european union and in article 3 of the protocol no 36 on transitional provisions annexed to the treaty on european union and to the treaty on the functioning of the european union , at one of its meetings at the latest two months after the authority has informed the member state as set out in the previous subparagraph .


### 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 banking 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 european supervisory authorities 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 esrb . 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 .


### 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 . ### before submitting them to the commission , the authority shall conduct open public consultations with all stakeholders and analyse the potential related costs and benefits unless such consultations and analyses are disproportionate in relation to the scope and impact of the technical standards concerned or in relation to the particular urgency of the matter . the authority shall also request an opinion or advice of the securities and markets stakeholder group referred to in article 22 .


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


### where the commission does not endorse the standards or endorses them in part or with amendments , it shall inform the authority of its reasons . ### where the commission intends not to endorse the standards , it shall send the draft standards back to the authority , explaining in writing the reasons why they are in conflict with the european union public interest , would not respect the principle of proportionality or hamper the integration of the european single market . within a period of 6 weeks , the authority shall amend the draft standards duly taking into account the commission’s concerns .


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


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


### the authority shall contribute to promote the efficient and consistent functioning of colleges of supervisors and foster the coherence of the application of community legislation across colleges . ### the system of colleges of supervisors may apply to key financial market participants , in the conditions defined by union law . where applicable , the authority shall contribute to promote the efficient and consistent functioning of colleges of supervisors and control the coherence of the application of union legislation across colleges .


### member states have a core responsibility in preserving financial stability in crisis management , in particular with regard to stabilising and resolving individual ailing financial market participants . measures by the authority in emergency or settlement situations affecting the stability of a financial market participant 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 decision . it is appropriate to confer on the council a role in this matter given the particular responsibilities of the member states in this respect . ### member states have a core responsibility in ensuring coordinated crisis management and in preserving financial stability in crisis situations , in particular with regard to stabilising and resolving individual ailing financial market participants . measures by the authority in emergency or settlement situations affecting the stability of a financial market participant 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 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 .


### 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 the administrative , infrastructure , and operational expenses .


### where the commission does not endorse the standards or endorses them in part or with amendments , it shall inform the authority of its reasons . ### in any case , the commission shall inform the authority , the european parliament and the council of its decision , stating the reasons .


### the authority , the european banking authority , and the european insurance and occupational pensions authority shall ensure adequate operational and secretarial support for the board of appeal . ### the authority , the european supervisory authority , and the european supervisory authority shall ensure adequate operational and secretarial support for the board of appeal through the joint committee .


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


### in particular , the authority shall , in cooperation with the esrb , initiate and coordinate community - wide assessments of the resilience of key financial market participants to adverse market developments to that end , it shall develop the following , for application by the competent authorities : ### in particular , the authority shall , in cooperation with the esrb , initiate and coordinate union - wide assessments of the resilience of key financial market participants to adverse market developments , and of threats arising from financial products’ characteristics and distribution processes . to that end , it shall develop the following , for application by the competent authorities :


### 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 . ### members of the board of appeal and two alternates shall be appointed , after consultation with the authorities ' management boards , as follows : – two members and two alternates by the council ; – two members and two alternates by the commission ; – two members and two alternates by the european parliament .


### 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 european parliament , the council , the commission or the securities and markets stakeholder group , or on its own initiative and after having informed the competent authority concerned , the authority may investigate the alleged breach or non - application of union law .


### 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 , investor protection or the stability of the whole or part of the financial system in the union , the esrb , upon its own initiative or following a request by the authority , the european parliament , the council or the commission , may issue a warning declaring the existence of an emergency situation for the purposes of this regulation , in order to enable the authority without further requirements to adopt the individual decisions referred to in paragraph 3 .


### 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 securities and markets stakeholder group should be established for that purpose , representing in balanced proportions community financial market participants , their employees , and consumers and other retail users of financial services , including smes . the securities and markets 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 securities and markets stakeholder group should be established for that purpose , representing in balanced proportions union financial market participants , their employees , academia and consumers and other retail users of financial services , including smes . the securities and markets stakeholder group should actively work as an interface with other user groups in the financial services area established by the commission or by eu legislation .


### the authority shall , with a view to establishing consistent , efficient and effective supervisory practices within the esfs , and to ensuring the common , uniform and consistent application of community legislation , issue guidelines and recommendations addressed to competent authorities or financial market participants . ### the authority shall , with a view to establishing consistent , efficient and effective supervisory practices within the esfs , in order to prevent a possible ' race to the bottom ' of national authorities concerning deliberately relaxing supervisory standards to increase the competitiveness of their financial centres and to ensuring the common , uniform and consistent application of union legislation , issue guidelines and recommendations addressed to competent authorities or financial market participants .


### 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 market participants , adopt an individual decision addressed to a financial market participant 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 shall , pursuant to the relevant requirements laid down in the legislation referred to in article 1 adopt an individual decision addressed to a financial market participant 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 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 market participants , adopt an individual decision addressed to a financial market participant 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 on the functioning of the european union , 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 legislation referred to in article 1 , adopt an individual decision addressed to a financial market participant requiring the necessary action to comply with its obligations under that legislation , including the cessation of any practice .


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


### the 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 of 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 .


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


### 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 the european parliament , the council , the securities and markets stakeholder group or on its own initiative and after having informed the competent authority concerned , the authority may investigate the alleged breach or non - application of union law .


### the authority shall act within the scope of directive 97 / 9 / ec , directive 98 / 26 / ec , directive 2001 / 34 / ec , directive 2002 / 47 / ec , directive 2002 / 87 / ec , directive 2003 / 6 / ec , directive 2003 / 71 / ec , directive 2004 / 25 / ec , directive 2004 / 39 / ec , directive 2004 / 109 / ec , directive 2005 / 60 / ec , directive 2009 / 65 / ec , directive 2002 / 65 / ec , directive 2006 / 49 / ec , directive … [ future aifm directive ] , and regulation … [ future cra regulation ] , 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 97 / 9 / ec , directive 98 / 26 / ec , directive 2001 / 34 / ec , directive 2002 / 47 / ec , directive 2002 / 87 / ec , directive 2003 / 6 / ec , directive 2003 / 71 / ec , directive 2004 / 39 / ec , directive 2004 / 109 / ec , directive 2005 / 60 / ec , directive 2009 / 65 / ec , directive 2002 / 65 / ec , directive 2006 / 49 / ec , directive … [ future aifm directive ] , and regulation … [ future cra regulation ] , including all directives , regulations , and decisions based on these acts , and of any further union act which confers tasks on the authority .


### there is a need to introduce an effective instrument to establish harmonised technical standards in financial services to ensure , also through a single rulebook , a level playing field and an adequate protection 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 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 union law , with the elaboration of draft technical standards , which do not involve policy choices . the commission should be empowered to adopt delegated acts in accordance with article 290 of the treaty on the functioning of the european union concerning technical standards in financial services .


### 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 institution who appointed him / her takes a decision to that effect after consulting the board of supervisors .


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


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


### 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 market participants , adopt an individual decision addressed to a financial market participant 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 market participant requiring the necessary action to comply with its obligations under union law including the cessation of any practice .


### 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 banking 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 european supervisory authorities 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 esrb . the joint committee should have a permanent secretariat , staffed on secondment from the three european supervisory authorities , to allow for informal information - sharing and the development of a common cultural approach across the three european supervisory authorities .


### in 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 , investor protection or the stability of the whole or part of the financial system in the union , the esrb , upon its own initiative or following a request by the authority , the european parliament , the council or the commission , may issue a warning declaring the existence of an emergency situation for the purposes of this regulation , in order to enable the authority without further requirements to adopt the individual decisions referred to in paragraph 3 .


### 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 simple majority of its members , according to the principle where each member has one vote . for acts specified in articles 7 , 8 and all measures and decisions adopted under chapter vi and by way of derogation from the first sentence of this subparagraph , the board of supervisors shall take decisions on the basis of a qualified majority of its members , as defined in article 16 of the treaty on european union .


### where the competent authority does not apply those guidelines or recommendations it shall inform the authority of its reasons . ### where the competent authority does not apply those guidelines or recommendations it shall state its reasons to the authority , which shall make them public .


### member states have a core responsibility in preserving financial stability in crisis management , in particular with regard to stabilising and resolving individual ailing financial market participants . measures by the authority in emergency or settlement situations affecting the stability of a financial market participant 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 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 situations , in particular with regard to stabilising and resolving individual ailing financial institutions . measures by the authority in emergency or settlement situations affecting the stability of a financial institution should not impinge on the fiscal responsibilities of member states . a mechanism should be established whereby member states may request that the decision of the authority be reconsidered .


### 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 the administrative , infrastructure , and operational expenses .


### the authority shall contribute to promote the efficient and consistent functioning of colleges of supervisors and foster the coherence of the application of community legislation across colleges . ### the authority shall contribute to promote and monitor the efficient , effective and consistent functioning of colleges of supervisors referred to in directives 2006 / 49 / ec and 2009 / 111 / ec and foster the coherence of the application of union legislation across colleges .


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


### the management board shall be composed of the chairperson , a representative of the commission , and four members elected by the board of supervisors from among its members . ### the management board shall be composed of the six independent members appointed by common accord of the heads of states or governments .


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


### 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 competent authority shall , within ten working days of receipt of the decision referred to in paragraph 4 , inform the commission and the authority of the steps it has taken or intends to take to implement the commission ' s decision . ### the competent authority shall , within ten working days of receipt of the decision referred to in paragraph 4 , inform the commission and the authority of the steps it has taken or intends to take to implement the authority ' s decision .


### 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 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 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 union 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 union 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 .


### 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 . ### members of the board of appeal and two alternates shall be appointed , after consultation with the authorities ' management boards , as follows : – two members and two alternates by the council ; – two members and two alternates by the commission ; – two members and two alternates by the european parliament .


### contribute to a consistent application of community legislation , in particular by contributing to a common supervisory culture , ensuring consistent , efficient and effective application of the legislation referred to in article 1 , preventing regulatory arbitrage , mediating and settling disagreements between competent authorities , promoting a coherent functioning of colleges of supervisors and taking actions in emergency situations ; ### contribute to a consistent application of standards and legislation , in particular by contributing to a common supervisory culture , ensuring consistent , efficient and effective application of this regulation and the legislation referred to in article 1 , preventing regulatory arbitrage , mediating and settling disagreements between competent authorities , ensuring effective and consistent supervision of financial institutions with a union dimension and a coherent functioning of colleges of supervisors and taking actions , inter alia , in emergency situations ;


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


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