REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the exercise of the power to adopt delegated acts conferred on the Commission pursusant Directive 2004/109/EC of 15 December 2004
Date: 2015-12-17
Institutions: Directorate-General for Financial Stability, Financial Services and Capital Markets Union, European Commission
Subjects: consumer information, delegated legislation, delegation of power, dissemination of information, international standard, issue of securities, standardised accounting system, stock-exchange listing, third country

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   EUROPEAN COMMISSION  Brussels, 17.12.2015  COM(2015) 655 final   REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the exercise of the power to adopt delegated acts conferred on the Commission pursusant Directive 2004/109/EC of 15 December 2004  
 
 
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND 
THE COUNCIL 

on the exercise of the power to adopt delegated acts conferred on the Commission 
pursuant to Directive 2004/109/EC of 15 December 2004 

1.  Introduction 

Directive 2004/109/EC1 of the European Parliament and of the Council of 15 December 2004 
on  the  harmonisation  of  transparency  requirements  in  relation  to  information  about  issuers 
whose  securities  are  admitted  to  trading  on  a  regulated  market  and  amending  Directive 
2001/34/EC  established  requirements  in  relation  to  the  disclosure  of  periodic  and  ongoing 
information about issuers whose securities are admitted to trading on a regulated market in the 
EU.  

Directive  2010/78/EU  of  24  November  2010  amended  the  Directive  2004/109/EC  and 
conferred powers on the Commission to adopt delegated acts as referred to in Articles 2(3), 
5(6),  9(7),  12(8),  13(2),  14(2),  17(4),  18(5),  19(4),  21(4),  23(4),  23(5),  23(7)  of  Directive 
2004/109/EC. These powers have been conferred on the Commission for a period of 4 years 
from 4 January 2011 until 3 January 2015.  

2.  Legal Basis  

This report is required under Article 27(2a) of Directive 2004/109/EC. Pursuant to this article, 
the  Commission  shall  draw  up  a  report  in  respect  to  the  delegation  of  power  in  the  last  six 
months  before  the  end  of  the  four-year  period.  This  report  will  cover  the  period  4  January 
2011 to 3 October 2015.  

3.  Exercise of the delegation 

Throughout  the  reporting  period,  the  Commission  exercised  only  the  empowerments  under 
Article 23(4). The following delegated acts have been adopted: 

  Commission  Delegated  Regulation  (EU)  No  310/2012  of  21  December  2011 
amending  Regulation  (EC)  No  1569/2007  establishing  a  mechanism  for  the 
determination of equivalence of accounting standards applied by third country issuers 
of  securities  pursuant  to  Directives  2003/71/EC  and  2004/109/EC  of  the  European 
Parliament and of the Council2; 

By  this  delegated  regulation,  the  Commission  updated  the  conditions,  set  out  in  the 
Regulation  (EC)  No  1569/2007,  for  the  acceptance  of  third  country  accounting 
standards for a limited period. The delegated regulation also extended the period, for 

1 OJ L 390, 31.12.2004, p. 38 
2 OJ L 103, 13.4.2012, p. 11-12 

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which  a  mechanism  for  the  recognition  of  equivalence  of  third  country's  Generally 
Accepted Accounting Principles (GAAP) for a limited period may be applied, until 31 
December 2014.   

  Commission  Delegated  Regulation  (EU)  2015/1605  of  12  June  2015  amending 
Regulation  (EC)  No  1569/2007  establishing  a  mechanism  for  the  determination  of 
equivalence  of  accounting  standards  applied  by  third  country  issuers  of  securities 
pursuant to Directives 2003/71/EC and 2004/109/EC of the European Parliament and 
of the Council3.  

By  this  delegated  regulation  the  Commission  extended  the  period,  for  which  a 
mechanism  for the recognition of equivalence of third  country's GAAP  for a limited 
period may be applied, until 31 March 2016.   

Based  on  the  mechanism  set  out  in  Regulation  1569/2007,  the  Commission  recognised  the 
GAAP of the Republic of India as equivalent to IFRS in the Union for a limited period of time 
until 31 March 2016.   

It  must  be  noted  that  the  Commission  adopted  most  of  the  implementing  provisions  to 
Directive  2004/109/EC  by  a  Commission  Directive  2007/14/EC  of  8  March  20074.  In  the 
reporting  period,  the  Commission  did  not  find  it  necessary  to  amend  the  provisions  of 
Directive  2007/14/EC.  Therefore,  most  of  the  powers  referred  to  in  Article  27(2a)  have  not 
been  used.  However,  it  is  necessary  that  the  Commission  retains  the  current  scope  of  the 
empowerment  to  adopt  delegated  acts  in  order  to  improve  the  functioning  of  Directive 
2004/109/EC if necessary, and to be able to react quickly to potential market developments.     

4.  Conclusion 

The  Commission  has  exercised  its  delegated  powers  correctly  to  ensure  that  the  necessary 
provisions were in place. The Commission invites the European Parliament and the Council to 
take note of this report. 

3 OJ L 249, 25.9.2015, p. 3–4 
4 Commission Directive 2007/14/EC of 8 March 2007 laying down detailed rules for the implementation of 
certain provisions of Directive 2004/109/EC on the harmonisation of transparency requirements in relation to 
information about issuers whose securities are admitted to trading on a regulated market;  OJ L 69, 9.3.2007, p. 
27–36 

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