Proposal for a Directive of the European Parliament and of the Council Amending Directive 2003/6/EC on insider dealing and market manipulation (market abuse), as regards the implementing powers conferred on the Commission
Date: 2006-12-22
Institutions: European Commission
Subjects: EU law, approximation of laws, dissemination of information, financial legislation, financial market, insider trading, operation of the Institutions, securities

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 22.12.2006 
COM(2006) 913 final 

2006/0301 (COD) 

Proposal for a  

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

Amending  
Directive 2003/6/EC on insider dealing and market manipulation (market abuse), as 
regards the implementing powers conferred on the Commission 

(presented by the Commission) 

EN 

   EN 

 
 
 
  
2006/0301 (COD) 

Proposal for a  

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

Amending  
Directive 2003/6/EC on insider dealing and market manipulation (market abuse), as 
regards the implementing powers conferred on the Commission 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
95 thereof, 

Having regard to the proposal of the Commission1, 

Having regard to the opinion of the European Economic and Social Committee2, 

Having regard to the opinion of the European Central Bank, 

Acting in accordance with the procedure laid down in Article 251 of the Treaty3, 

Whereas: 

(1) 

(2) 

Directive  2003/6/EC  of  the  European  Parliament  and  of  the  Council  4  provides  that 
certain measures are to be adopted in accordance with Council Decision 1999/468/EC 
of 28 June 1999 laying down the procedures for the exercise of implementing powers 
conferred on the Commission5. 

Decision 1999/468/EC has been amended by Decision 2006/512/EC which introduced 
a regulatory procedure with scrutiny to be used for the adoption of measures of general 
scope  which  seek  to  amend  non-essential  elements  of  a  basic  instrument  adopted  in 
accordance  with  the  procedure  referred  to  in  Article  251  of  the  Treaty,  inter  alia  by 
deleting some of those elements or by supplementing the instrument by the addition of 
new non-essential elements. 

(3) 

In accordance with the joint statement of the European Parliament, the Council and the 
Commission6 on Decision 2006/512/EC, instruments which are already in force must 
be  adjusted  in  accordance  with  the  applicable  procedures.  That  statement  indicates  a 

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3 
4 
5 

6 

EN 

OJ L 96, 12.4.2003, p.16. 
OJ  L184,  17.7.1999,  p.23 .  Decision  as  amended  by  Decision  2006/512/EC  (OJ  L  200 ,  22.7.2006, 
p.11). 
OJ C255, 21.10.2006, p. 1 

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(4) 

(5) 

list  of  instruments  which  should  be  adjusted  as  a  matter  of  urgency,  including 
Directive 2003/6/EC. 

In  particular  power  should  be  conferred  on  the  Commission  to  adopt  measures 
necessary for the implementation of Directive 2003/6/EC, in order to take account of 
technical developments on financial markets and to ensure uniform application of that 
Directive  and  to  supplement  it  with  the  procedure  and  detailed  provisions  for  the 
exercise by the competent authorities of competences for exchange of information and 
cross-border inspections.. Since those measures are of general scope, and are designed 
to  supplement  that  Directive  by  the  addition  of  new  non-essential  elements  and 
designed to adapt definitions, to elaborate upon  or supplement the  provisions of  that 
Directive  by  technical  modalities  for  disclosure  of  inside  information,  insider  lists, 
reporting  of  managerial  and  suspicious  transactions  to  competent  authorities  and  for 
the  fair  presentation  of  research,  they  should  be  adopted  in  accordance  with  the 
regulatory  procedure  with  scrutiny  provided  for 
in  Article  5a  of  Decision 
1999/468/EC. 

Directive  2003/6/EC  provided  for  a  time  restriction  concerning  the  implementing 
powers  conferred  to  the  Commission.  In  their  joint  statement  on  Decision 
2006/512/EC, the European Parliament, the Council and the Commission have stated 
that  Decision  2006/512/EC  provides  a  horizontal  and  satisfactory  solution  to  the 
European  Parliament's  wish  to  scrutinise  the  implementation  of  instruments  adopted 
under the co-decision procedure and that, accordingly, implementing powers should be 
conferred  on  the  Commission  without  time-limit.  The  European  Parliament  and 
Council also declared that they would make sure that the proposals aimed at repealing 
the  provisions  in  the  instruments  that  provide  for  a  time-limit  on  the  delegation  of 
implementing powers to the Commission are adopted as rapidly as possible. Following 
the  introduction  of  the  regulatory  procedure with  scrutiny,  the  provision  establishing 
that time restriction in Directive 2003/6/EC should be deleted 

(6) 

Directive 2003/6/EC should be amended accordingly. 

(7) 

Since  the  amendments  to  be  made  to  Directive  2003/6/EC  are  adjustments  of  a 
technical nature which only concern the committee procedure they do not need to be 
transposed by the Member States. It is therefore not necessary to lay down provisions 
to that effect,  

HAVE ADOPTED THIS DIRECTIVE: 

Article 1 

Directive 2003/6/EC is hereby amended as follows: 

(1) The second subparagraph of Article 1 is amended as follows:  

(a) 

the  terms  ",  acting  in  accordance  with  the  procedure  laid  down  in  Article 
17(2)," are deleted; 

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(b) 

the following sentence is added: 

"Those  measures,  designed  to  amend  non-essential  elements  of  this  directive  by 
supplementing it, shall be adopted in accordance with the regulatory procedure with 
scrutiny referred to in Article 17(2a)." 

(2) Article 6(10) is amended as follows: 

(a) 

the  terms  ",in  accordance  with  the  procedure  referred  to  in  Article  17(2)"  are 
deleted; 

(b) 

the following subparagraph is added: 

"Those  measures,  designed  to  amend  non-essential  elements  of  this  directive  by 
supplementing it, shall be adopted in accordance with the regulatory procedure with 
scrutiny referred to in Article 17(2a)." 

(3) Article 8 is amended as follows: 

(a) 

the  terms  "adopted  in  accordance  with  the  procedure  laid  down  in  Article 
17(2)" are deleted; 

(b) 

the following sentence is added: 

"Those  measures,  designed  to  amend  non-essential  elements  of  this  directive  by 
supplementing it, shall be adopted in accordance with the regulatory procedure with 
scrutiny referred to in Article 17(2a)" 

(4) Article 16(5) is amended as follows: 

the  terms  "In  accordance  with  the  procedure  laid  down  in  Article  17(2),"  are 

(a) 
deleted; 

(b) 

the following sentence is added: 

"Those  measures,  designed  to  amend  non-essential  elements  of  this  directive  by 
supplementing it shall be adopted in accordance with the regulatory procedure with 
scrutiny referred to in Article 17(2a)" 

(5) Article 17 is amended as follows: 

(a) 

the following paragraph 2a is inserted: 

"2a. Where reference is made to this paragraph, Article 5a(1) to (4), and Article 7 of 
Decision  1999/468/EC  shall  apply,  having  regard  to  the  provisions  of  Article  8 
thereof." 

(b)  paragraphs 3 and 4 are deleted 

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This  Directive  shall  enter  into  force  on  the  [..]  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

Article 2 

Article 3 

This Directive is addressed to the Member States. 

Done at Brussels, […] 

For the European Parliament 
The President 

For the Council 
The President 

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   EN