Text · Amendment list
On the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) No 1095/2010, No 648/2012, No 600/2014, No 909/2014, 2015/2365, 2019/1156, 2021/23, 2022/858, 2023/1114, No 1060/2009, 2016/1011, 2017/2402, 2023/2631 and 2024/3005 as regards the further development of capital market integration and supervision within the Union
Full title
On the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) No 1095/2010, No 648/2012, No 600/2014, No 909/2014, 2015/2365, 2019/1156, 2021/23, 2022/858, 2023/1114, No 1060/2009, 2016/1011, 2017/2402, 2023/2631 and 2024/3005 as regards the further development of capital market integration and supervision within the Union
Document ECON-AM-791134 · COM(2025)0943 – C100328/2025 – 2025/0383(COD)
- Kind
- Amendment list ECON-AM-791134
- Date
- 31 July 2026
- Committee
- Committee on Economic and Monetary Affairs
- Dossier
- 2025-0383
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- Official page PDF Word
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- COM(2025)0943 – C100328/2025 – 2025/0383(COD)
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Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Present text | Amendment |
|---|---|
| (f) coordinating mystery shopping activities of competent authorities if applicable | (f) regulary coordinating mystery shopping activities of competent authorities on an annual basis. |
| Text proposed by the Commission | Amendment |
|---|---|
| (7a) In article 9, the following paragraph 5a is added: | |
| '5a. The Authority may temporarily suspend certain requirements set out in one of the legislative acts referred to in Article 1(2) where significant market developments and/or stressed market conditions lead to a disproportionate burden of compliance with such requirements, and under the conditions set out, in the legislative acts referred to in Article 1(2). | |
| The Authority shall review the decision referred to in the first subparagraph at appropriate intervals and at least every year. Following at least two consecutive renewals, and based on proper analysis which aims to assess the impact, including from the perspective of competitiveness, the Authority may decide on the renewal of the suspension every three years. | |
| A Member State may request the Authority to reconsider its decision. In that case, the Authority shall decide, in accordance with the procedure set out in the second subparagraph of Article 46a(5), whether to maintain that decision.' |
| Text proposed by the Commission | Amendment |
|---|---|
| (1) the introductory wording is replaced by the following: | deleted |
| ‘The Authority shall take the measures referred to in paragraph 2 of this Article only in urgent and unforeseen circumstances when it considers that the application of one of the legislative acts referred to in Article 1(2), or of any delegated or implementing acts based on those legislative acts, is liable to raise significant issues, for one of the following reasons:;’ |
| Text proposed by the Commission | Amendment |
|---|---|
| The Authority shall take the measures referred to in paragraph 2 of this Article only in urgent and unforeseen circumstances when it considers that the application of one of the legislative acts referred to in Article 1(2), or of any delegated or implementing acts based on those legislative acts, is liable to raise significant issues, for one of the following reasons:; | The Authority shall take the measures referred to in paragraph 2 of this Article only in urgent or clearly defined and limited situations when it considers that the application of one of the legislative acts referred to in Article 1(2), or of any delegated or implementing acts based on those legislative acts, is liable to raise significant issues, for one of the following reasons:; |
The objective is to remove any ambiguity and to introduce more flexibility given the critical role of no action letters in situations where existing rules prove inadequate or misaligned with rapidly evolving market conditions or regulatory developments. Such flexibility is essential for the attractiveness of EU capital markets and the competitiveness of EU market participants.
| Text proposed by the Commission | Amendment |
|---|---|
| The Authority shall take the measures referred to in paragraph 2 of this Article only in urgent and unforeseen circumstances when it considers that the application of one of the legislative acts referred to in Article 1(2), or of any delegated or implementing acts based on those legislative acts, is liable to raise significant issues, for one of the following reasons:; | The Authority shall take the measures referred to in paragraph 2 of this Article in circumstances when it considers that the application of one of the legislative acts referred to in Article 1(2), or of any delegated or implementing acts based on those legislative acts, is liable to raise significant issues, for one of the following reasons:; |
| Text proposed by the Commission | Amendment |
|---|---|
| The Authority shall take the measures referred to in paragraph 2 of this Article only in urgent and unforeseen circumstances when it considers that the application of one of the legislative acts referred to in Article 1(2), or of any delegated or implementing acts based on those legislative acts, is liable to raise significant issues, for one of the following reasons: | The Authority shall take the measures referred to in paragraph 2 of this Article only in urgent circumstances when it considers that the application of one of the legislative acts referred to in Article 1(2), or of any delegated or implementing acts based on those legislative acts, is liable to raise significant issues, for one of the following reasons: |
| Present text | Amendment |
|---|---|
| (1a) point (b) is replaced by the following: | |
| (b) where the act is one of the legislative acts referred to in Article 1(2), the absence of delegated or implementing acts that would complement or specify the act in question would raise legitimate doubts concerning the legal consequences flowing from the legislative act or its proper application; | ‘(b) where the act is one of the legislative acts referred to in Article 1(2), the absence of delegated or implementing acts that would complement or specify the act in question, or where the adoption of those acts, or their suspension pursuant to Article 10, is likely to raise legitimate doubts concerning the legal consequences flowing from the legislative act or its proper application; ’ |
| Present text | Amendment |
|---|---|
| (1a) Point (b) is replaced by the following: | |
| (b) where the act is one of the legislative acts referred to in Article 1(2), the absence of delegated or implementing acts that would complement or specify the act in question would raise legitimate doubts concerning the legal consequences flowing from the legislative act or its proper application; | "(b) where the act is one of the legislative acts referred to in Article 1(2), the absence of delegated or implementing acts that would complement or specify the act in question would raise legitimate doubts concerning the legal consequences flowing from the legislative act, its proper application, or the effective and consistent application of the relevant Union law;" |
| Text proposed by the Commission | Amendment |
|---|---|
| (e) where significant market developments lead to a disproportionate burden of compliance with a specific requirement set out in one of the legislative acts referred to in Article 1(2).; | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| (e) where significant market developments lead to a disproportionate burden of compliance with a specific requirement set out in one of the legislative acts referred to in Article 1(2). | (e) where significant market developments lead to a disproportionate burden of compliance with a specific requirement set out in one of the legislative acts referred to in Article 1(2), or where such market developments are likely to undermine a level playing field between undertakings established in the Union and those established in third countries. |
| Text proposed by the Commission | Amendment |
|---|---|
| (e) where significant market developments lead to a disproportionate burden of compliance with a specific requirement set out in one of the legislative acts referred to in Article 1(2).; | (e) where significant market developments lead to a disproportionate burden of compliance with a specific requirement set out in one of the legislative acts referred to in Article 1(2) or where such market developments risk undermining a level playing field or creating competitive distortions.; |
| Text proposed by the Commission | Amendment |
|---|---|
| (ea) where the application of such acts places disproportionate operational burdens and implementation challenges on EEA firms such that they would face a competitive disadvantage via-a-vis third country firms. |
| Text proposed by the Commission | Amendment |
|---|---|
| (2a) In Article 9a, paragraph 1, the following subparagraph is added: | |
| 'One or more national competent authorities may request the Authority to exercise the power referred to in paragraph 1. If the Authority refuses to act, it shall adopt a reasoned decision to that effect.' |
Allowing NCAs to request a noaction letter would create a structured way for them to escalate urgent legalinterpretation problems to ESMA, enabling a coherent EUwide approach.
| Text proposed by the Commission | Amendment |
|---|---|
| (aa) in Article 9a, the following paragraph is inserted: | |
| ‘1a. A national competent authority may ask ESMA to exercise the power referred to in paragraph 1. Where ESMA decides not to act on such a request, it shall justify its decision by providing a full assessment of the situation, so as to make it possible for a clear and transparent appraisal to be made of the circumstances at hand.’ |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| In the cases referred to in paragraph 1, points (a), (b), (d) and (e), the Authority shall provide the Commission with an opinion on any action it considers appropriate, in the form of a new legislative proposal or a proposal for a new delegated or implementing act, and on the urgency that, in the Authority’s judgment, is attached to the issue. The Authority shall make its opinion public.; | In the cases referred to in paragraph 1, points (a), (b) and (d), the Authority shall provide the Commission with an opinion on any action it considers appropriate, in the form of a new legislative proposal or a proposal for a new delegated or implementing act, and on the urgency that, in the Authority’s judgment, is attached to the issue. The Authority shall make its opinion public.; |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Present text | Amendment |
|---|---|
| (ba) paragraph 3 is replaced by the following: | |
| 3. Where necessary in the cases referred to in paragraph 1, and pending the adoption and application of new measures following the steps referred to in paragraph 2, the Authority shall issue opinions regarding specific provisions of the acts referred to in paragraph 1 with a view to furthering consistent, efficient and effective supervisory and enforcement practices, and the common, uniform and consistent application of Union law. | "3. Where necessary in the cases referred to in paragraph 1, and, as the case may be, pending the adoption and application of new measures following the steps referred to in paragraph 2, the Authority shall issue opinions regarding specific provisions of the acts referred to in paragraph 1 with a view to furthering consistent, efficient and effective supervisory and enforcement practices, and the common, uniform and consistent application of Union law." |
| Text proposed by the Commission | Amendment |
|---|---|
| (ba) in Article 9a, the following paragraph is inserted: | |
| (3a) Each national competent authority shall publish the opinion referred to in paragraph 3 on its website as soon as possible. |
| Text proposed by the Commission | Amendment |
|---|---|
| 2. Where the Authority has not submitted a draft regulatory technical standard within the time limit set out in the legislative acts referred to in Article 1(2) or the legislative acts referred to in Article 1(2) do not set out such a time limit, the Commission may request such a draft within a new time limit. The Commission shall inform the European Parliament and the Council about the new timeline. The Authority shall inform the European Parliament, the Council and the Commission, in due time, where it will not comply with the new time limit.; | 2. Where the Authority has not submitted a draft regulatory technical standard within the time limit set out in the legislative acts referred to in Article 1(2) or the legislative acts referred to in Article 1(2) do not set out such a time limit, the Commission may request such a draft within a new time limit of no more than 6 months. The Commission shall inform the European Parliament and the Council about the new timeline. The Authority shall inform the European Parliament, the Council and the Commission, in due time, where it will not comply with the new time limit. |
| Text proposed by the Commission | Amendment |
|---|---|
| 6. Where there is the need to address an immediate threat to investor protection, to the orderly functioning and integrity of financial markets, the stability of the whole or part of the financial system in the Union, or fair competition between firms based in the Union and those based in third countries, the Commission may suspend a regulatory technical standard on its own initiative, without a draft from the Authority, by means of a delegated act pursuant to Article 290 TFEU. In the preparation of such delegated act, the Commission may consult the Authority or request its input. | deleted |
| The Commission may adopt the regulatory technical standards referred to in this paragraph using the urgency procedure. When using the urgency procedure, the Commission shall notify the European Parliament and the Council of the adopted regulatory technical standards, stating the reasons for the use of the urgency procedure. Those standards shall be published in the Official Journal of the European Union and shall enter into force without delay. The European Parliament or the Council may object to the adopted regulatory technical standards within a period of one month from the date of notification of the regulatory technical standard adopted by the Commission and if an objection is expressed, the Commission shall repeal the regulatory technical standards immediately following notification of the decision to object. | |
| The suspension of provisions of a regulatory technical standard shall be temporary and limited to a maximum period of 12 months, renewable once. The Authority shall review the delegated act referred to in this paragraph and shall submit a report to the Commission on the application of the suspension at least two months before the expiration of the suspension, including an assessment of whether the suspension remains necessary.; |
| Text proposed by the Commission | Amendment |
|---|---|
| Where there is the need to address an immediate threat to investor protection, to the orderly functioning and integrity of financial markets, the stability of the whole or part of the financial system in the Union, or fair competition between firms based in the Union and those based in third countries, the Commission may suspend a regulatory technical standard on its own initiative, without a draft from the Authority, by means of a delegated act pursuant to Article 290 TFEU. In the preparation of such delegated act, the Commission may consult the Authority or request its input. | Where there is the need to address an immediate threat to investor protection, to the orderly functioning and integrity of financial markets, the stability of the whole or part of the financial system in the Union, or fair competition between firms based in the Union and those based in third countries, the Commission, either on its own initiative or on the initiative of one or more national competent authorities, may suspend a regulatory technical standard, without a draft from the Authority, by means of a delegated act pursuant to Article 290 TFEU. In the preparation of such delegated act, the Commission may consult the Authority or request its input. |
Gives national competent authorities a direct trigger for suspending a regulatory technical standard in an emergency, without altering the Commission's discretion under Article 290 TFEU. This strengthens the framework's responsiveness to market developments and supports the competitiveness of EU capital markets vis-à-vis third-country venues.
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| Where there is the need to address an immediate threat to investor protection, to the orderly functioning and integrity of financial markets, the stability of the whole or part of the financial system in the Union, or fair competition between firms based in the Union and those based in third countries, the Commission may suspend a regulatory technical standard on its own initiative, without a draft from the Authority, by means of a delegated act pursuant to Article 290 TFEU. In the preparation of such delegated act, the Commission may consult the Authority or request its input. | Where there is the need to address an immediate threat to investor protection, to the orderly functioning and integrity of financial markets, the stability of the whole or part of the financial system in the Union, or fair competition between firms based in the Union and those based in third countries, the Commission may suspend a regulatory technical standard by means of a delegated act pursuant to Article 290 TFEU. In the preparation of such delegated act, the Commission shall consult the Authority or request its input. |
| Text proposed by the Commission | Amendment |
|---|---|
| The Commission may adopt the regulatory technical standards referred to in this paragraph using the urgency procedure. When using the urgency procedure, the Commission shall notify the European Parliament and the Council of the adopted regulatory technical standards, stating the reasons for the use of the urgency procedure. Those standards shall be published in the Official Journal of the European Union and shall enter into force without delay. The European Parliament or the Council may object to the adopted regulatory technical standards within a period of one month from the date of notification of the regulatory technical standard adopted by the Commission and if an objection is expressed, the Commission shall repeal the regulatory technical standards immediately following notification of the decision to object. | The Commission may adopt the regulatory technical standards referred to in this paragraph using the urgency procedure. When using the urgency procedure, the Commission shall notify the European Parliament and the Council of the adopted regulatory technical standards, stating the reasons for the use of the urgency procedure. Those standards shall be published in the Official Journal of the European Union and shall enter into force without delay. The European Parliament or the Council may object to the adopted regulatory technical standards within a period of one month from the date of notification of the regulatory technical standard adopted by the Commission and if an objection is expressed, the Commission shall repeal the regulatory technical standards immediately following notification of the decision to object. Where regulatory technical standards adopted under this paragraph are repealed, the Commission should ensure an orderly transition to avoid undue disruptions for market participants and competent authorities. |
| Text proposed by the Commission | Amendment |
|---|---|
| The suspension of provisions of a regulatory technical standard shall be temporary and limited to a maximum period of 12 months, renewable once. The Authority shall review the delegated act referred to in this paragraph and shall submit a report to the Commission on the application of the suspension at least two months before the expiration of the suspension, including an assessment of whether the suspension remains necessary. | The suspension of provisions of a regulatory technical standard shall be temporary and limited to a maximum period of 12 months, renewable once. The Authority shall review the delegated act referred to in this paragraph and shall submit a report to the Commission on the application of the suspension at least two months before the expiration of the suspension, including an assessment of whether the suspension remains necessary. In the event of a suspension, the Authority may issue opinions in accordance with Article 9a(1) concerning specific provisions of the acts referred to in Article 1(2), where the application of those acts is likely to be affected by the suspension of the provisions of a regulatory technical standard. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Present text | Amendment |
|---|---|
| (-a) In paragraph 1, the third subparagraph is replaced by the following: | |
| Within three months of receipt of a draft implementing technical standard, the Commission shall decide whether to adopt it. The Commission may extend that period by one month. The Commission shall inform the European Parliament and the Council in due time where the adoption cannot take place within the three-month period. The Commission may adopt the draft implementing technical standard in part only, or with amendments, where the Union’s interests so require. | ‘The draft implementing technical standards shall be adopted by the Commission as submitted by the Authority, within one month of their receipt, unless the Commission formally objects to the content of those technical standards within the same time period. Where the Commission formally objects to the content of the draft technical standards submitted by the Authority, it shall provide reasons for the exercise of its power of objection. When the Commission, exercising its power of objection under this subparagraph, intends not to adopt a draft implementing technical standard or intends to adopt it in part or with amendments, it shall promptly inform the European Parliament and the Council. The Commission may adopt the draft implementing technical standard in part only, or with amendments, where the Union’s interests so require.’ |
| Text proposed by the Commission | Amendment |
|---|---|
| 2. Where the Authority has not submitted a draft implementing technical standard within the time limit set out in the legislative acts referred to in Article 1(2) or the legislative acts referred to in Article 1(2) do not set out such a time limit, the Commission may request such a draft within a new time limit. The Authority shall inform the European Parliament, the Council and the Commission, in due time, that it will not comply with the new time limit.; | 2. Where the Authority has not submitted a draft implementing technical standard within the time limit set out in the legislative acts referred to in Article 1(2) or the legislative acts referred to in Article 1(2) do not set out such a time limit, the Commission may request such a draft within a new time limit of no more than 6 months. The Authority shall inform the European Parliament, the Council and the Commission, in due time, that it will not comply with the new time limit. |
| Text proposed by the Commission | Amendment |
|---|---|
| 6. Where there is the need to address an immediate threat to investor protection, to the orderly functioning and integrity of financial markets, the stability of the whole or part of the financial system in the Union, or fair competition between firms based in the Union and those based in third countries, the Commission may suspend an implementing technical standard on its own initiative, without a draft from the Authority, by means of an implementing act pursuant to Article 291 TFEU. In the preparation of such implementing act, the Commission may consult the Authority or request its input. | deleted |
| The suspension of provisions of an implementing technical standard shall be temporary and limited to a maximum period of 12 months, renewable once. The Authority shall review the implementing act referred to in this paragraph and shall submit a report to the Commission on the application of the suspension at least two months before the expiration of the suspension, including an assessment of whether the suspension remains necessary.; |
| Text proposed by the Commission | Amendment |
|---|---|
| Where there is the need to address an immediate threat to investor protection, to the orderly functioning and integrity of financial markets, the stability of the whole or part of the financial system in the Union, or fair competition between firms based in the Union and those based in third countries, the Commission may suspend an implementing technical standard on its own initiative, without a draft from the Authority, by means of an implementing act pursuant to Article 291 TFEU. In the preparation of such implementing act, the Commission may consult the Authority or request its input. | Where there is the need to address an immediate threat to investor protection, to the orderly functioning and integrity of financial markets, the stability of the whole or part of the financial system in the Union, or fair competition between firms based in the Union and those based in third countries, the Commission, either on its own initiative or on the initiative of one or more national competent authorities, may suspend an implementing technical standard, without a draft from the Authority, by means of an implementing act pursuant to Article 291 TFEU. In the preparation of such implementing act, the Commission may consult the Authority or request its input. |
Extends the same national-authority trigger to the implementing technical standard suspension power, preserving the Commission's discretion under Article 291 TFEU while giving national competent authorities a direct channel to raise urgent market concerns.
| Text proposed by the Commission | Amendment |
|---|---|
| Where implementing technical standards adopted under this paragraph are repealed, the Commission should ensure an orderly transition to avoid undue disruptions for market participants and competent authorities. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| (10a) The following article is inserted: | |
| 'Article 15a | |
| ESMA technical specifications | |
| 1. Where provided in the legislative acts referred to in Article 1(2), the Authority may adopt acts of general application of a technical nature (‘ESMA technical specifications’). The Authority shall adopt such acts in accordance with the conditions laid down in those legislative acts. | |
| ESMA technical specifications shall detail specific reporting requirements in those legislative acts, which require the Authority’s technical expertise and continuous update or revision. | |
| 2. ESMA technical specifications shall be adopted by means of decisions. The words ‘ESMA technical specifications’ shall appear in the title of such decisions. Those acts shall be published in the Official Journal of the European Union and shall enter into force on the date stated therein. | |
| Unless specified otherwise, ESMA technical specifications shall apply to all financial market participants.' |
| Present text | Amendment |
|---|---|
| (10 a) in Article 16, paragraph 2 is replaced by the following: | |
| The Authority shall, where appropriate, conduct open public consultations regarding the guidelines and recommendations which it issues and analyse the related potential costs and benefits of issuing such guidelines and recommendations. Those consultations and analyses shall be proportionate in relation to the scope, nature and impact of the guidelines or recommendations. The Authority shall, where appropriate, also request advice from the Securities and Markets Stakeholder Group referred to in Article 37. Where the Authority does not conduct open public consultations or does not request advice from the Securities and Markets Stakeholder Group, the Authority shall provide reasons. | "The Authority shall, where appropriate, conduct open public consultations regarding the guidelines and recommendations which it issues and analyse the related potential costs and benefits of issuing such guidelines and recommendations, including the impact on the international competitiveness of Union market participants and Union capital markets, taking into account equivalent or comparable regulatory requirements in relevant third-country jurisdictions. Those consultations and analyses shall be proportionate in relation to the scope, nature and impact of the guidelines or recommendations. The Authority shall, where appropriate, also request advice from the Securities and Markets Stakeholder Group referred to in Article 37. Where the Authority does not conduct open public consultations or does not request advice from the Securities and Markets Stakeholder Group, the Authority shall provide reasons. The Authority shall publish the results of the competitiveness assessment as part of its consultation documentation." |
Guidelines and recommendations shape day-to-day supervisory expectations across the internal market. A cost-benefit analysis that omits the effect on Union market competitiveness cannot capture the full impact of a given guideline. Requiring ESMA to assess and publish that effect, alongside its existing consultation obligations, embeds competitiveness consideration into Level 3 supervisory convergence tools and supports informed engagement by market participants.
| Text proposed by the Commission | Amendment |
|---|---|
| (11) Article 16b is deleted. | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| (11) Article 16b is deleted. | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| (11) Article 16b is deleted. | deleted |
Questions and Answers have proven to be an effective convergence tool. The currently existing in article 16b should therefore be reinstated.
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| (11) Article 16b is deleted. | (11) Article 16b is replaced by the following: |
| '1. Without prejudice to paragraph 3 of this Article, the Authority may develop “Questions & Answers” to address issues relating to the practical application or implementation of the provisions of legislative acts referred to in Article 1(2), associated delegated and implementing acts, and guidelines and recommendations, adopted pursuant to those legislative acts. | |
| 2. Answers by the Authority to questions as referred to in paragraph 1 shall be non-binding. | |
| 3. The Authority shall forward questions that require the interpretation of Union law to the Commission. The Authority shall publish any answers provided by the Commission on its website.' |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| Where the investigation concludes that the competent authority is not complying with Union law, the Authority shall, not later than 4 months from initiating its investigation, address a recommendation to the competent authority concerned setting out the action necessary to comply with Union law. The Authority shall, as soon as possible, share its recommendation with the Commission.; | Where the investigation concludes that the competent authority is not complying with Union law, the Authority shall, not later than 1 month from initiating its investigation, address a recommendation to the competent authority concerned setting out the action necessary to comply with Union law. The Authority shall, as soon as possible, share its recommendation with the Commission.; |
| Text proposed by the Commission | Amendment |
|---|---|
| (12a) The following Article is inserted: | |
| ‘Article 17-a | |
| Fundamental Rights Officer | |
| 1. The Executive Board shall designate a Fundamental Rights Officer. The Fundamental Rights Officer may be a member of the existing staff of the Authority. | |
| 2. The Fundamental Rights Officer shall perform the following tasks: | |
| (a) advise the staff of the Authority on any activity carried out by the Authority, where the Officer deems it necessary or where requested by the staff without impeding or delaying those activities; | |
| (b) promote and monitor the Authority’s compliance with fundamental rights; | |
| (c) provide non-binding opinions on the compliance of the Authority’s activities with fundamental rights; | |
| (d) inform the Executive Board about possible violations of fundamental rights in the course of the Authority’s activities. | |
| 3. The Executive Board shall ensure that the Fundamental Rights Officer does not seek or take any instructions regarding the exercise of the Officer’s tasks. | |
| 4. The Fundamental Rights Officer shall report directly to the Executive Board and prepare regular reports on the performance of the tasks referred to in paragraph 2.'; |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| The following Article is inserted: | |
| 'Article 17 -aa | |
| Shortcomings in supervision on approval of financial products, services or entities | |
| 1. Where the Authority has established, after hearing the competent authority concerned, that this competent authority may be failing to effectively supervise financial market participants in a specific sector and that such supervisory shortcomings could jeopardize the integrity of all or part of financial markets, financial stability or investor protection in the Union, the Authority may require this competent authority to seek its opinion before granting approval to financial products, services, activities or entities in that sector. | |
| Without prejudice to the powers laid down in Article 35, the competent authority shall provide the Authority with the relevant information. If the Authority needs additional information, it may also request it directly from other competent authorities after informing the competent authority concerned. The addressee of such a request shall provide the Authority with clear, accurate and complete information without undue delay. | |
| 2. Before requiring the competent authority concerned to seek its opinion before granting approval to financial products, services, activities or entities and where it deems it necessary and proportionate, the Authority shall engage with the competent authority concerned to address the identified supervisory shortcomings and may set a reasonable timeline to reach a mutually agreed solution taking into account the urgency and the potential adverse consequences on financial markets, financial stability or investors. The Authority may propose corrective actions to be taken by the competent authority in relation to existing financial products, services, activities or entities that have been affected by the identified supervisory shortcomings. | |
| Where no mutually acceptable solution is reached in accordance with the conditions set out in the first subparagraph, the Authority shall require the competent authority to seek its opinion before granting approval to financial products, services, activities or entities. The Authority may provide a comprehensive explanation for its decision, including a detailed analysis of the identified supervisory shortcomings and the rationale for its requirement for an opinion. The Authority may also publish that explanation and shall record the requirement for an opinion in the register maintained by the Authority, pursuant to the legislative acts referred to Article 1(2) and where this Union law is composed of Directives, the national legislation transposing those Directives interpreted in a manner consistent with it. | |
| 3. Where a requirement to seek the Authority’s opinion before granting approval to financial products, services, activities or entities has been established, the competent authority shall, upon receipt and without undue delay, share with the Authority requests for authorisation subject to an opinion together with all supporting documentation as well as any relevant information subsequently received. Upon completion of its assessment, the competent authority shall submit a detailed proposal for the approval of the financial product, service, activity or entity subject to the Authority’s opinion, including a thorough justification for the proposal and any additional relevant information. | |
| Within fifteen working days from the receipt of relevant information by the Authority, it shall issue its opinion, which shall include a thorough explanation for any objection or concern it may have regarding the proposal. The period for issuing the Authority’s opinion shall suspend the applicable timeframe for granting approval to the financial products, services, activities or entities concerned. The competent authority shall, within fifteen working days from the receipt of the opinion, inform the Authority of the steps it has taken or intends to take to implement the opinion. Where the competent authority has not taken the necessary steps to implement the opinion, the Authority shall take a decision according to paragraph 4. | |
| Where a requirement to seek the Authority’s opinion before granting approval to financial products, services, activities or entities has been established in accordance with the second subparagraph of paragraph 2, the competent authority shall not adopt a decision on granting approval to the financial products, services, activities or entities concerned until such an opinion has been issued by the Authority, unless the Authority has not adopted that opinion within the timeframe specified in the second subparagraph of this paragraph. Where a requirement to seek the Authority’s opinion has been established according to the first sentence, any provision providing for an automatic approval of the financial products, services, activities or entities concerned upon the expiry of the timeframe for the competent authority to adopt its decision shall be suspended. | |
| 4. The Authority’s decision taken pursuant to the second subparagraph of paragraph 2 may include corrective actions to be implemented by the competent authority, which may include actions in relation to existing financial products, services, activities or entities that have been affected by the identified supervisory shortcomings. If the corrective actions are not implemented within the deadline specified by the Authority or where the opinion is not implemented as referred under the second subparagraph of paragraph 3, the Authority shall take a decision requiring the competent authority to revoke or amend a decision that it has adopted or to make use of the powers which it has under the relevant Union law. The Authority shall notify the decision to the relevant host competent authorities where the financial products, services or activities concerned by the decision are provided. The decision of the Authority shall be binding on the competent authority concerned and shall enable the host competent authorities to take appropriate measures to suspend the provision of such products, services or activities in their territory. | |
| 5. The Authority shall review the decision referred to in the second subparagraph of paragraph 2 within an appropriate timeframe depending on the particular circumstances of the case, including the type of supervisory shortcomings concerned and shall revoke it where the reasons for the decision are no longer valid.' |
| Text proposed by the Commission | Amendment |
|---|---|
| [...] | deleted |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| [...] | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| Where a peer review or an inquiry under Article 22(4) reveals that a competent authority may be failing to effectively supervise market participants in the sector subject to the peer review or inquiry, and that such supervisory failure could jeopardize the integrity of financial markets, financial stability or investor protection, the Authority may require a competent authority to seek its opinion before granting approval to financial products, services, activities or entities in that sector. | Where a peer review or an inquiry under Article 22(4) reveals that a competent authority is failing to effectively supervise market participants in the sector subject to the peer review or inquiry, and that such supervisory failure poses a serious and demonstrable risk to the integrity of financial markets, financial stability or investor protection, the Authority may require a competent authority to seek its opinion before granting approval to financial products, services, activities or entities in that sector. Such requirement shall be exceptional, proportionate, limited in time and based on objective criteria set out in a reasoned decision. |
| Text proposed by the Commission | Amendment |
|---|---|
| Where a peer review or an inquiry under Article 22(4) reveals that a competent authority may be failing to effectively supervise market participants in the sector subject to the peer review or inquiry, and that such supervisory failure could jeopardize the integrity of financial markets, financial stability or investor protection, the Authority may require a competent authority to seek its opinion before granting approval to financial products, services, activities or entities in that sector. | Where a peer review or an inquiry under Article 22(4) reveals that a competent authority may be failing to effectively supervise market participants in the sector subject to the peer review or inquiry, and that such supervisory failure could jeopardize the integrity of financial markets, financial stability or investor protection, the Authority may recommend a competent authority to seek its opinion before granting approval to financial products, services, activities or entities in that sector. Where the competent authority decides not to seek such an opinion, it shall provide the Authority with a reasoned explanation. |
| Text proposed by the Commission | Amendment |
|---|---|
| Where a peer review or an inquiry under Article 22(4) reveals that a competent authority may be failing to effectively supervise market participants in the sector subject to the peer review or inquiry, and that such supervisory failure could jeopardize the integrity of financial markets, financial stability or investor protection, the Authority may require a competent authority to seek its opinion before granting approval to financial products, services, activities or entities in that sector. | Where an inquiry under Article 22(4) reveals that a competent authority has continuously failed to effectively supervise market participants in the sector subject to the inquiry, and that such supervisory failure poses a serious and demonstrable risk to, or result into a significant threat to the integrity or the stability of financial markets or the protection of customers or investors, the Authority may require a competent authority to seek its opinion before granting approval to new financial products, new services, new activities or new entities in that sector. |
Article 17aa shall be substantially reframed to focus on situations where there is clear evidence of consistent and repeated supervisory failures by a NCA. This provision is intended to capture situations where the risk is real, concrete and reasonably foreseeable, rather than merely theoretical or hypothetical. NCAs should only be required to seek ESMA’s opinion in relation to new financial products, new services, new activities or new entities, and not in relation to existing ones to avoid legal uncertainty for market participants and to protect their legitimate expectations.
| Text proposed by the Commission | Amendment |
|---|---|
| Without prejudice to the powers laid down in Article 35, the competent authority shall provide the Authority with the necessary information to make a decision how the acts referred to in Article 1(2) and where that Union law is composed of Directives, the national legislation transposing those Directives interpreted in a manner consistent with it are applied in accordance with Union law. If the Authority needs additional information, it may also request it directly from other competent authorities after informing the competent authority concerned. The addressee of such a request shall provide the Authority with clear, accurate and complete information without undue delay. | Without prejudice to the powers laid down in Article 35, the competent authority shall provide the Authority with the necessary information to make a decision how the acts referred to in Article 1(2) and where that Union law is composed of Directives, the national legislation transposing those Directives interpreted in a manner consistent with it are applied in accordance with Union law. If the Authority needs additional information, it may also request it directly from other competent authorities after informing the competent authority concerned. This additional information shall not exceed the information submitted or reported in accordance with the relevant Union law referred to in Article 1(2). The addressee of such a request shall provide the Authority with clear, accurate and complete information without undue delay. |
| Text proposed by the Commission | Amendment |
|---|---|
| Without prejudice to the powers laid down in Article 35, the competent authority shall provide the Authority with the necessary information to make a decision how the acts referred to in Article 1(2) and where that Union law is composed of Directives, the national legislation transposing those Directives interpreted in a manner consistent with it are applied in accordance with Union law. If the Authority needs additional information, it may also request it directly from other competent authorities after informing the competent authority concerned. The addressee of such a request shall provide the Authority with clear, accurate and complete information without undue delay. | Without prejudice to the powers laid down in Article 35, the competent authority shall provide the Authority with the relevant information to make a decision on how the acts referred to in Article 1(2) and where that Union law is composed of Directives, the national legislation transposing those Directives interpreted in a manner consistent with it are applied in accordance with Union law. If the Authority needs additional information, it may also request it directly from other competent authorities after informing the competent authority concerned. The addressee of such a request shall provide the Authority with clear, accurate and complete information within a reasonable timeframe, subject to the availability of this information with the addressee. |
| Text proposed by the Commission | Amendment |
|---|---|
| Before requiring the competent authority concerned to seek its opinion before granting approval to financial products, services, activities or entities and where it deems it necessary and proportionate, the Authority shall engage with the competent authority concerned to address the identified supervisory shortcomings and reach a mutually agreed solution. The Authority may propose corrective actions to be taken by the competent authority in relation to existing financial products, services, activities or entities that have been affected by the identified supervisory shortcomings. | Before recommending the competent authority concerned to seek its opinion before granting approval to financial products, services, activities or entities and where it deems it necessary and proportionate, the Authority shall engage with the competent authority concerned to address the identified supervisory divergencies and inconsistencies and reach a mutually agreed solution. The Authority may propose corrective actions to be taken by the competent authority in relation to existing financial products, services, activities or entities that have been affected by the identified supervisory divergences or inconsistencies. |
| Text proposed by the Commission | Amendment |
|---|---|
| Before requiring the competent authority concerned to seek its opinion before granting approval to financial products, services, activities or entities and where it deems it necessary and proportionate, the Authority shall engage with the competent authority concerned to address the identified supervisory shortcomings and reach a mutually agreed solution. The Authority may propose corrective actions to be taken by the competent authority in relation to existing financial products, services, activities or entities that have been affected by the identified supervisory shortcomings. | Before requiring the competent authority concerned to seek its opinion before granting approval to the new financial products, new services, new activities or new entities and where it deems it necessary and proportionate, the Authority shall engage with the competent authority concerned to address the identified supervisory shortcomings and reach a mutually agreed solution. The Authority may also propose corrective actions to be taken by the competent authority in relation to existing financial products, services, activities or entities that have been affected by the identified supervisory shortcomings. |
NCAs should only be required to seek ESMA’s opinion in relation to new financial products, new services, new activities or new entities, and not in relation to existing ones to avoid legal uncertainty for market participants and to protect their legitimate expectations.
| Text proposed by the Commission | Amendment |
|---|---|
| Where attempts to find such a mutually acceptable solution are not successful, the Authority shall require the competent authority to seek its opinion before granting approval to financial products, services, activities or entities. The Authority shall provide a comprehensive explanation for its decision, including a detailed analysis of the identified supervisory failures and the rationale for its requirement for an opinion. The Authority may also publish that explanation and shall record the requirement for an opinion in the register maintained by the Authority, pursuant to the legislative acts referred to Article 1(2) and where this Union law is composed of Directives, the national legislation transposing those Directives interpreted in a manner consistent with it. | Where attempts to find such a mutually acceptable solution are not successful, the Authority shall require the competent authority to seek its opinion before granting approval to new financial products, new services, new activities or new entities. The Authority shall provide a comprehensive explanation for its decision, including a detailed analysis of the continuous supervisory failures identified by the Authority and the rationale for its requirement for an opinion. The Authority may also publish that explanation, only where strictly necessary and proportionate, or otherwise with the agreement of the competent authority concerned, and shall record the requirement for an opinion in the register maintained by the Authority, pursuant to the legislative acts referred to Article 1(2) and where this Union law is composed of Directives, the national legislation transposing those Directives interpreted in a manner consistent with it. |
NCAs should only be required to seek ESMA’s opinion in relation to new financial products, new services, new activities or new entities, and not in relation to existing ones to avoid legal uncertainty for market participants and to protect their legitimate expectations.
| Text proposed by the Commission | Amendment |
|---|---|
| Where attempts to find such a mutually acceptable solution are not successful, the Authority shall require the competent authority to seek its opinion before granting approval to financial products, services, activities or entities. The Authority shall provide a comprehensive explanation for its decision, including a detailed analysis of the identified supervisory failures and the rationale for its requirement for an opinion. The Authority may also publish that explanation and shall record the requirement for an opinion in the register maintained by the Authority, pursuant to the legislative acts referred to Article 1(2) and where this Union law is composed of Directives, the national legislation transposing those Directives interpreted in a manner consistent with it. | Where attempts to find such a mutually acceptable solution are not successful, the Authority shall recommend the competent authority to seek its opinion before granting approval to financial products, services, activities or entities. The Authority shall provide a comprehensive explanation for its decision, including a detailed analysis of the identified supervisory failures and the rationale for its recommendation for an opinion. The Authority may also publish that explanation and shall record the recommendation for an opinion in the register maintained by the Authority, pursuant to the legislative acts referred to Article 1(2) and where this Union law is composed of Directives, the national legislation transposing those Directives interpreted in a manner consistent with it. |
| Text proposed by the Commission | Amendment |
|---|---|
| Where a requirement to seek the Authority’s opinion before granting approval to financial products, services, activities or entities has been established, the competent authority shall submit a detailed proposal for the approval of the financial product, service, activity or entity subject to the Authority’s opinion, including a thorough justification for the proposal and all relevant supporting documentation. | Where a requirement to seek the Authority’s opinion before granting approval to new financial products, new services, new activities or new entities has been established, the competent authority shall submit a detailed proposal for the approval of the new financial product, new service, a new activity or new entity subject to the Authority’s opinion, including a thorough justification for the proposal and all relevant supporting documentation. |
NCAs should only be required to seek ESMA’s opinion in relation to new financial products, new services, new activities or new entities, and not in relation to existing ones to avoid legal uncertainty for market participants and to protect their legitimate expectations.
| Text proposed by the Commission | Amendment |
|---|---|
| Where a requirement to seek the Authority’s opinion before granting approval to financial products, services, activities or entities has been established, the competent authority shall submit a detailed proposal for the approval of the financial product, service, activity or entity subject to the Authority’s opinion, including a thorough justification for the proposal and all relevant supporting documentation. | Where a recommendation to seek the Authority’s opinion before granting approval to financial products, services, activities or entities has been established, the competent authority shall submit a detailed proposal for the approval of the financial product, service, activity or entity subject to the Authority’s opinion, including a thorough justification for the proposal and all relevant supporting documentation. |
| Text proposed by the Commission | Amendment |
|---|---|
| Within fifteen working days, the Authority shall issue its opinion, which shall include a thorough explanation for any objection or concern it may have regarding the proposal. Should the Authority fail to issue its opinion within the specified timeframe, the competent authority may adopt the proposal without an opinion. The competent authority shall, within fifteen working days from the receipt of the opinion, inform the Authority of the steps it has taken or intends to take to implement the opinion. Where the competent authority has not taken the necessary steps to implement the opinion, the Authority shall take a decision according to paragraph 4. | Within fifteen working days, the Authority shall issue its opinion, which shall include a thorough explanation for any objection or concern it may have regarding the proposal. The Authority’s opinion shall not create additional supervisory obligations beyond Union law. Should the Authority fail to issue its opinion within the specified timeframe, the competent authority may adopt the proposal without an opinion. The competent authority shall, within fifteen working days from the receipt of the opinion, inform the Authority of the steps it has taken or intends to take to implement the opinion. Where the competent authority has not taken the necessary steps to implement the opinion, the Authority shall take a decision according to paragraph 4. |
| Text proposed by the Commission | Amendment |
|---|---|
| Where a new financial product, new service, new activity or new entity seeking approval is broadly identical to one that has previously been the subject of an Authority’s opinion and the competent authority has made its decision in accordance with the Authority’s previous opinion, the competent authority shall not be required to request a further opinion from the Authority with respect to the matter at hand. |
To streamline the process, reduce unnecessary administrative burden and avoid repetitive exchanges between ESMA and NCAs where an identical matter has already been assessed and addressed in a previous ESMA opinion, a specific provision should be inserted to exempt NCA to seek ESMA’s opinion.
| Text proposed by the Commission | Amendment |
|---|---|
| 4. The Authority’s decision taken pursuant to the second subparagraph of paragraph 2 may include corrective actions to be implemented by the competent authority, which may include actions in relation to existing financial products, services, activities or entities that have been affected by the identified supervisory shortcomings. If the corrective actions are not implemented within the deadline specified by the Authority, the Authority shall take a decision requiring the competent authority to revoke or amend a decision that it has adopted or to make use of the powers which it has under the relevant Union law. The Authority shall notify the decision to the relevant host competent authorities where the financial products, services or activities concerned by the decision are provided. The decision of the Authority shall be binding on the competent authority concerned and shall enable the host competent authorities to take appropriate measures to suspend the provision of such products, services or activities in their territory.; | 4. The Authority’s decision taken pursuant to the second subparagraph of paragraph 2 may issue recommendations for corrective actions to be implemented by the competent authority, which may include actions in relation to existing financial products, services, activities or entities that have been affected by the identified supervisory divergencies or inconsistencies. The competent authority shall comply with the recommendations or provide the Authority with a reasoned explanation for not doing so. Where the Authority considers that the identified supervisory divergences or inconsistencies persist, it may issue a follow-up opinion. The Authority may communicate its recommendations, opinions and follow-up opinions to the relevant host competent authorities where the financial products, services or activities concerned are provided.; |
| Text proposed by the Commission | Amendment |
|---|---|
| 4. The Authority’s decision taken pursuant to the second subparagraph of paragraph 2 may include corrective actions to be implemented by the competent authority, which may include actions in relation to existing financial products, services, activities or entities that have been affected by the identified supervisory shortcomings. If the corrective actions are not implemented within the deadline specified by the Authority, the Authority shall take a decision requiring the competent authority to revoke or amend a decision that it has adopted or to make use of the powers which it has under the relevant Union law. The Authority shall notify the decision to the relevant host competent authorities where the financial products, services or activities concerned by the decision are provided. The decision of the Authority shall be binding on the competent authority concerned and shall enable the host competent authorities to take appropriate measures to suspend the provision of such products, services or activities in their territory.; | 4. The Authority’s decision taken pursuant to the second subparagraph of paragraph 2 may include reasonable and proportionate corrective actions to be implemented by the competent authority, which may include actions in relation to existing financial products, services, activities or entities that have been affected by the identified supervisory failures referred to in paragraph 1. If the corrective actions are not implemented within the deadline specified by the Authority, the Authority shall take a decision requiring the competent authority to make use of the powers which it has under the relevant Union law. The Authority shall notify the decision to the relevant host competent authorities where the financial products, services or activities concerned by the decision are or will be provided. The decision of the Authority shall be binding on the competent authority concerned and shall enable the host competent authorities to take appropriate measures to suspend the provision of such products, services or activities in their territory.; |
NCAs should only be required to seek ESMA’s opinion in relation to new financial products, new services, new activities or new entities, and not in relation to existing ones to avoid legal uncertainty for market participants and to protect their legitimate expectations. For the same reason, NCAs cannot be required to revoke authorisations previously granted.
| Text proposed by the Commission | Amendment |
|---|---|
| 4a. Before adopting a measure under this Regulation, ESMA shall: | |
| a) provide the competent authority concerned with a detailed statement of reasons; | |
| b) allow the competent authority a reasonable period to submit observations; | |
| c) assess whether less intrusive supervisory convergence measures would adequately address the identified shortcomings. | |
| Measures adopted under this Article shall be proportionate, reasoned and subject to an effective right of appeal. |
| Text proposed by the Commission | Amendment |
|---|---|
| 4a. Where the competent authority complies with a decision of the Authority pursuant to the second subparagraph of paragraph 2 and thereby reaches a mutually acceptable solution with the Authority, the Authority shall notify the competent authority of its satisfaction and shall also notify the host competent authorities referred to in paragraph 4 accordingly. In such cases, the competent authority shall no longer be required to seek a prior opinion of the Authority. |
To streamline the process, reduce unnecessary administrative burden and avoid repetitive exchanges between ESMA and NCAs where an identical matter has already been assessed and addressed in a previous ESMA opinion, a specific provision should be inserted to exempt NCA to seek ESMA’s opinion. It is also important to contemplate the case where a NCA ceases to be required to seek ESMA’s opinion.
| Text proposed by the Commission | Amendment |
|---|---|
| [...] | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| [...] | deleted |
The power for ESMA to suspend the provision of cross-border services that have already been authorised by a NCA should be removed. Such a power undermines legal certainty by effectively shifting the consequences of supervisory or regulatory shortcomings from the responsible NCA to the market participant, despite the latter having relied on a valid authorisation. This runs counter to the legitimate expectations of regulated entities.
| Text proposed by the Commission | Amendment |
|---|---|
| [...] | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| [...] | deleted |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| 1. Where the Authority has reasonable grounds for considering that an entity authorised under Union law that provides the services or activities, for which it is authorised, on a cross-border basis has committed a serious infringement of the obligations set out in this Regulation or any Union act referred to in Article 1(2) or obligations set out in the provisions adopted pursuant to Union law referred to in Article 1(2) that could jeopardise the integrity of financial markets, financial stability or investor protection, it shall refer those findings to the competent authority that has granted the authorisation to that entity. The competent authority shall provide the Authority with clear, accurate and complete information that demonstrate the absence of the alleged infringement, or, where the competent authority agrees with the findings of the Authority, sets out the measures already adopted by that competent authority to stop the infringement. That information shall be provided within a reasonable timeline set by the Authority. | 1. Where the Authority has reasonable grounds for considering that an entity authorised under Union law that provides the services or activities, for which it is authorised, on a cross-border basis under the freedom to provide services or the freedom of establishment has committed an infringement of the obligations set out in this Regulation or any Union act referred to in Article 1(2) or obligations set out in the provisions adopted pursuant to Union law referred to in Article 1(2) that could jeopardise the integrity of financial markets, financial stability or investor protection, it shall refer those findings to the competent authority that has granted the authorisation to that entity. The competent authority shall provide the Authority with clear, accurate and complete information that demonstrate the absence of the alleged infringement, or, where the competent authority agrees with the findings of the Authority, sets out the measures already adopted by that competent authority to stop the infringement. That information shall be provided within a reasonable timeline set by the Authority taking into account the urgency and the potential adverse consequences on financial markets, financial stability or investors. |
| Text proposed by the Commission | Amendment |
|---|---|
| 1. Where the Authority has reasonable grounds for considering that an entity authorised under Union law that provides the services or activities, for which it is authorised, on a cross-border basis has committed a serious infringement of the obligations set out in this Regulation or any Union act referred to in Article 1(2) or obligations set out in the provisions adopted pursuant to Union law referred to in Article 1(2) that could jeopardise the integrity of financial markets, financial stability or investor protection, it shall refer those findings to the competent authority that has granted the authorisation to that entity. The competent authority shall provide the Authority with clear, accurate and complete information that demonstrate the absence of the alleged infringement, or, where the competent authority agrees with the findings of the Authority, sets out the measures already adopted by that competent authority to stop the infringement. That information shall be provided within a reasonable timeline set by the Authority. | 1. Where the Authority has reasonable grounds for considering that an entity authorised under Union law that provides the services or activities, for which it is authorised, on a cross-border basis has committed a serious infringement of the obligations set out in this Regulation or any Union act referred to in Article 1(2) or obligations set out in the provisions adopted pursuant to Union law referred to in Article 1(2) that could jeopardise the orderly functioning and integrity of financial markets, financial stability or investor protection, it shall refer those findings to the competent authority that has granted the authorisation to that entity. The competent authority shall provide the Authority with clear, accurate and complete information that demonstrate the absence of the alleged infringement, or, where the competent authority agrees with the findings of the Authority, sets out the measures already adopted by that competent authority to stop the infringement. That information shall be provided within a reasonable timeline set by the Authority. |
| Text proposed by the Commission | Amendment |
|---|---|
| 2. Where, despite the information provided by the competent authority pursuant to paragraph 1, the Authority continues to have reasonable grounds for considering that the infringement persists, the Authority shall, within 10 working days from the receipt of the information pursuant to paragraph 1 or from the expiry of the period referred to in that paragraph, take a decision requiring that competent authority to order the relevant entity to suspend the provision of services or activities on a cross-border basis. | 2. Where, despite the information provided by the competent authority pursuant to paragraph 1, the Authority continues to have reasonable grounds for considering that the serious infringement persists and that measures taken or available at national level would be insufficient to address the risk to the integrity of financial markets, financial stability or investor protection, the Authority shall, within 10 working days from the receipt of the information pursuant to paragraph 1 or from the expiry of the period referred to in that paragraph, take a decision requiring that competent authority to order the relevant entity to suspend the provision of services or activities on a cross-border basis. The decision shall be a measure of last resort, shall be proportionate to the nature and gravity of the infringement, shall state the reasons why less intrusive measures would be insufficient and shall specify the conditions under which the suspension is to be lifted. |
| Text proposed by the Commission | Amendment |
|---|---|
| 2. Where, despite the information provided by the competent authority pursuant to paragraph 1, the Authority continues to have reasonable grounds for considering that the infringement persists, the Authority shall, within 10 working days from the receipt of the information pursuant to paragraph 1 or from the expiry of the period referred to in that paragraph, take a decision requiring that competent authority to order the relevant entity to suspend the provision of services or activities on a cross-border basis. | 2. Where, on the basis of the information provided pursuant to paragraph 1, the Authority establishes that there are objective and verifiable grounds indicating that the infringement persists, the Authority shall, within 10 working days from the receipt of the information pursuant to paragraph 1 or from the expiry of the period referred to in that paragraph, take a decision requiring that competent authority to order the relevant entity to suspend the provision of services or activities on a cross-border basis. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| In instances where, based on the information provided by the competent authority pursuant to paragraph 1, the Authority considers that the circumstances of the case do not justify requiring the suspension of the provision of services or activities on a cross-border basis in accordance with the first subparagraph but that the issue has not been sufficiently remediated by the relevant entity, the Authority may use any of the powers conferred on it by this Regulation and/or require the competent authority to make use of any of the powers it has under the relevant Union law to address the situation. |
| Text proposed by the Commission | Amendment |
|---|---|
| 3. Where the relevant competent authority does not comply with the decision referred to in paragraph 2 within 2 working days, the Authority shall adopt within 5 working days a decision requiring the relevant entity to suspend its provision of services or activities on a cross-border basis. The Authority shall simultaneously inform the competent authority referred to in paragraph 1 as well as all other competent authorities of the Member States where the entity provided its services or activities of that decision. Those competent authorities shall take all appropriate measures to ensure that the decision of the Authority is applied within their respective territories. | 3. Where the relevant competent authority does not comply with the decision referred to in the first subparagraph of paragraph 2 within 2 working days from its receipt, the Authority shall within 10 working days from the expiry of this 2 working days period, adopt a decision requiring the relevant entity to suspend its provision of services or activities on a cross-border basis. The Authority shall simultaneously inform the competent authority referred to in paragraph 1 as well as all other competent authorities of the Member States where the entity provided its services or activities of that decision. Those competent authorities shall take all appropriate measures to ensure that the decision of the Authority is applied within their respective territories and prevails over any previous decision to suspend the provision of services or activities by the same entity taken by the competent authorities. |
| Text proposed by the Commission | Amendment |
|---|---|
| 7a. ESMA shall not implement a measure related to cross-border services unless it has demonstrated that the measure is necessary to address a material Union-level risk and that consultation with the competent authority concerned has taken place. |
| Text proposed by the Commission | Amendment |
|---|---|
| 4. Without prejudice to the powers of the Commission pursuant to Article 258 TFEU, where a competent authority does not comply with the decision of the Authority, and thereby fails to ensure that a financial market participant complies with requirements directly applicable to it by virtue of the legislative acts referred to in Article 1(2) of this Regulation, and where this Union law is composed of Directives, the national legislation transposing those Directives interpreted in a manner consistent with it, the Authority may adopt an individual decision addressed to that financial market participant requiring it to take all necessary action to comply with its obligations under Union law, including the cessation of any practice.; | 4. Without prejudice to the powers of the Commission pursuant to Article 258 TFEU, where a competent authority does not comply with the decision of the Authority, and thereby fails to ensure that a financial market participant complies with requirements directly applicable to it by virtue of the legislative acts referred to in Article 1(2) of this Regulation, and where this Union law is composed of Directives, the national legislation transposing those Directives interpreted in a manner consistent with it, the Authority may adopt an individual decision addressed to that financial market participant requiring it to take all necessary action to comply with its obligations under Union law, including the cessation of any practice. The Authority shall inform the Commission about its decision. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| In the case of justified concerns about negative effects on investors, financial stability or in the case it has reasonable grounds to suspect an issue of compliance with Union law, or the existence of diverging or deficient supervisory practices related to the freedom to provide services, to pursue the activities of financial market participants or the freedom of establishment provided for in the legislative acts referred to Article 1(2), the Authority may, on its own initiative or at the request of one or more of the relevant competent authorities, set up and coordinate a collaboration platform to strengthen the exchange of information, propose solutions and to enhance collaboration between the relevant competent authorities. | In the case of justified concerns about negative effects on investors, financial stability or the integrity of financial markets or in the case it has reasonable grounds to suspect an issue of compliance with Union law, or the existence of diverging or deficient supervisory practices related to the freedom to provide services, to pursue the activities of financial market participants or the freedom of establishment provided for in the legislative acts referred to Article 1(2), the Authority may, on its own initiative or at the request of one or more of the relevant competent authorities, set up and coordinate a collaboration platform to strengthen the exchange of information, propose solutions and to enhance collaboration between the relevant competent authorities. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| After the conclusion of a joint on-site inspection, the relevant competent authorities concerned shall reach joint conclusions, including on the most appropriate supervisory actions, within two months or a shorter timeframe set out by the Authority taking into account the complexity and urgency of the matter. The competent authorities shall take those joint conclusions into account when deciding on adequate supervisory actions. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| 5. Where two or more relevant competent authorities of a collaboration platform disagree about the content of an action to be taken, or inaction, in relation to a market participant or about information sharing pursuant to this Article, the Authority may exercise the power conferred on it under Article 19(1).; | 5. Where the relevant competent authorities cannot reach joint conclusions following the on-site inspection referred in the second subparagraph of paragraph 4 or where two or more relevant competent authorities of a collaboration platform disagree about the procedure or about the content of an action to be taken, or inaction, in relation to a financial market participant or about information sharing pursuant to this Article, the Authority may exercise the power conferred on it under Article 19(1). |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| 5a. Where appropriate in the interests of investor protection, financial stability or the integrity of financial markets, the Authority may publish information on findings, recommendations or measures arising from supervisory work carried out in the context of the collaboration platform. Where the Authority intends to publish the name of the financial market participant concerned, it shall notify that participant without delay and give it sufficient time to submit written comments and provide any relevant information or arguments to the Authority and the other relevant competent authorities participating in the collaboration platform. The Authority shall duly assess and take into account the position of the participant concerned when deciding whether to publish its name. It shall not publish the financial market participant’s name where such publication would jeopardise an ongoing investigation or, insofar as can be determined, cause disproportionate damage to that participant, or in the circumstances referred to in Article 39 (6). |
| Text proposed by the Commission | Amendment |
|---|---|
| 5a. Where the dispute concerns supervisory activities carried out by the Executive Board acting as the competent authority under this Regulation, the members of the Executive Board who participated in or were responsible for those supervisory activities shall not participate in the settlement of the dispute. For the purposes of that dispute, they shall be replaced by five members of the Board of Supervisors who are not connected to the competent authorities of the home or host Member States concerned. Those members shall be appointed by the Board of Supervisors on an ad hoc basis for that case. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| (16a) The following Article 19aa is inserted: | |
| 'Article 19aa | |
| Inquiries | |
| 1. Upon request from one or more competent authorities, the European Parliament, the Council or the Commission, or on its own initiative, the Authority may conduct an inquiry into a particular type of financial institution, or type of financial activity or service, or type of product, or type of conduct in order to assess potential threats to the integrity of the financial markets, the stability of the financial system or the protection of customers or investors. | |
| The inquiry referred to under the first subparagraph may be carried out in respect of one or more specific financial market participant providing services on a cross-border basis. | |
| 2. For those purposes, the Authority may use the powers conferred on it under this Regulation, including Article 35. In particular, it may conduct the inquiry off-site or on-site, or a combination of both, as appropriate. It may also request the assistance of national competent authorities concerned. | |
| 3. Following an inquiry conducted pursuant to the first subparagraph, the Executive Board may make appropriate recommendations for action to the competent authorities concerned, after granting these authorities an opportunity to comment, and/or use any of the powers conferred on it under this Regulation or any other acts referred to in Article 1(2).' |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| (18) in Article 22(4), the second subparagraph is replaced by the following: | deleted |
| ‘Following an inquiry conducted pursuant to the first subparagraph, the Executive Board may make appropriate recommendations for action to the competent authorities concerned.;’ |
| Text proposed by the Commission | Amendment |
|---|---|
| 2. The amount recovered from enforcing the decision to impose the administrative fine shall accrue to the Member State of the applicant authority in its own currency, unless otherwise agreed between the Member State of the applicant authority and the Member State of the requested authority. The requested authority shall, if necessary for the recovery, convert the administrative fine into the currency of its Member State at the euro foreign exchange reference rate published by the European Central Bank applying on the date when the administrative fine was imposed. | 2. The amount recovered from enforcing the decision to impose the administrative fine shall accrue to the Member State of the applicant authority in its own currency, unless otherwise agreed between the Member State of the applicant authority and the Member State of the requested authority. The requested authority shall, if necessary for the recovery, convert the administrative fine into the currency of its Member State at a foreign exchange benchmark rate, which complies with Regulation (EU) 2016/1011 of the European Parliament and of the Council, applying on the date when the administrative fine was imposed. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| (aba) reporting at least annually on administrative and criminal sanctions and other enforcement measures imposed in Member States for infringements of Union law within the Authority’s remit; |
| Text proposed by the Commission | Amendment |
|---|---|
| For the purpose of establishing a common supervisory culture, the Authority shall develop and maintain an up-to-date Union supervisory handbook on the supervision of financial markets participants and enforcement of the rules regulating their activities in the Union, which duly takes into account the nature, scale and complexity of risks, business practices, business models and size of financial institutions and of markets, including changes due to technological innovation, of financial market participants and markets. The Union supervisory handbook shall set out best practices and shall specify high-quality methodologies and processes. Where a competent authority decides not to comply with the Union supervisory handbook or substantial elements thereof, it shall communicate this fact to the Authority and provide its reasons for doing so.; | For the purpose of establishing a common supervisory culture, the Authority shall develop and maintain an up-to-date Union supervisory handbook on the supervision of financial markets participants and enforcement of the rules regulating their activities in the Union, which duly takes into account the nature, scale and complexity of risks, business practices, business models and size of financial institutions and of markets, including changes due to technological innovation, of financial market participants and markets. In developing and updating the Union supervisory handbook, the Authority shall take due account of the impact of the identified best practices, methodologies and processes on the competitiveness and international attractiveness of Union capital markets, and shall avoid supervisory practices that impose disproportionate burdens without a commensurate improvement in investor protection, market integrity or financial stability. The Union supervisory handbook shall set out best practices and shall specify high-quality methodologies and processes. Where a competent authority decides not to comply with the Union supervisory handbook or substantial elements thereof, it shall communicate this fact to the Authority and provide its reasons for doing so.; |
The supervisory handbook drives day-to-day NCA practice more directly than high-level objectives. Anchoring competitiveness and proportionality in its development ensures ESMA's convergence work strengthens the attractiveness of Union capital markets alongside investor protection and market integrity, turning the Regulation's competitiveness objective into a practical supervisory outcome.
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| For the purpose of establishing a common supervisory culture, the Authority shall develop and maintain an up-to-date Union supervisory handbook on the supervision of financial markets participants and enforcement of the rules regulating their activities in the Union, which duly takes into account the nature, scale and complexity of risks, business practices, business models and size of financial institutions and of markets, including changes due to technological innovation, of financial market participants and markets. The Union supervisory handbook shall set out best practices and shall specify high-quality methodologies and processes. Where a competent authority decides not to comply with the Union supervisory handbook or substantial elements thereof, it shall communicate this fact to the Authority and provide its reasons for doing so.; | For the purpose of establishing a common supervisory culture, the Authority shall develop and maintain an up-to-date Union supervisory handbook on the supervision of financial markets participants and enforcement of the rules regulating their activities in the Union, which duly takes into account the nature, scale and complexity of risks, business practices, business models and size of financial institutions and of markets, including changes due to technological innovation, of financial market participants and markets. The Union supervisory handbook shall set out best practices and shall specify high-quality methodologies and processes. |
| Text proposed by the Commission | Amendment |
|---|---|
| (d) the following paragraph (3) is added: | deleted |
| ‘3. The Authority shall forward questions that require the interpretation of Union law to the Commission. The Authority shall publish any answers provided by the Commission.;’ |
| Text proposed by the Commission | Amendment |
|---|---|
| (d) the following paragraph (3) is added: | deleted |
| ‘3. The Authority shall forward questions that require the interpretation of Union law to the Commission. The Authority shall publish any answers provided by the Commission.;’ |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| (d) the following paragraph (3) is added: | deleted |
| ‘3. The Authority shall forward questions that require the interpretation of Union law to the Commission. The Authority shall publish any answers provided by the Commission.;’ |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| (21a) the following article is inserted: | |
| ‘Article 29aa | |
| Reporting of sanctions and enforcement measures to the Authority | |
| 1. Competent authorities of the Member States shall, on a going concern basis, provide the Authority with information on all administrative sanctions and other administrative enforcement measures imposed for infringements of Union law within the Authority’s remit. | |
| 2. Where Member States have chosen to lay down criminal sanctions for the infringements of the provisions of Union law within the Authority’s remit, their competent authorities shall provide the Authority, on a going concern basis, with data regarding all criminal sanctions imposed. | |
| 3. Member States shall ensure that competent authorities receive all information necessary to comply with this Article, including, where relevant, information relating to criminal sanctions, and shall ensure effective cooperation and information exchange between competent authorities, judicial authorities and other national bodies. | |
| 4. Competent authorities shall report all administrative sanctions, other administrative enforcement measures and criminal sanctions imposed without undue delay, whether disclosed to the public or not published under grounds provided in Union law. Reporting shall include any appeal in Page 42 of 88 relation thereto and the outcome thereof. | |
| 5. The Authority shall maintain a central data platform of all administrative sanctions and other administrative enforcement measures imposed for infringements of Union law within the Authority’s remit in accordance with Article 35c, communicated to it solely for the purposes of exchanging information between competent authorities and the Authority. That database shall be only accessible to the Authority and the competent authorities and shall be updated based on the information provided by the competent authorities. | |
| 6. For the purpose of ensuring the efficient collection and management of information submitted, ESMA may develop draft implementing technical standards to specify the information to be reported under this Article, the format and timing of such reporting, and the procedures to be applied by competent authorities for the transmission, correction and updating of data on sanctions, other enforcement measures and criminal sanctions. | |
| ESMA shall submit those draft implementing technical standards to the Commission. | |
| Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph of this paragraph in accordance with Article 15.’ |
| Text proposed by the Commission | Amendment |
|---|---|
| 2. For the purposes of this Article, the Authority shall establish ad hoc peer review committees, which shall be composed of staff from the Authority and members of the competent authorities. The peer review committees shall be chaired by a member of the Authority’s staff. The Chairperson, following an open call for participation, shall propose the chair and the members of a peer review committee which shall be approved by the Executive Board. The proposal shall be deemed to be approved unless, within 10 days of the Chairperson proposing it, the Executive Board adopts a decision to reject it.; | 2. For the purposes of this Article, the Authority shall establish ad hoc peer review committees, which shall be composed of staff from the Authority and members of the competent authorities. The peer review committees shall be chaired by a member of the Authority’s staff. The Chairperson, following an open call for participation, shall propose the chair and the members of a peer review committee which shall be approved by the Board of Supervisors. The proposal shall be deemed to be approved unless, within 10 days of the Chairperson proposing it, the Board of Supervisors adopts a decision to reject it.; |
The selection of the member of the peer review committees is instrumental to achieve supervisory convergence and, accordingly, their composition must provide a fair reflection of the diversity of supervisory practices/views, which should be ascertained by the Board of Supervisors.
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| Without prejudice to the respective competences of the Member States and the Union institutions, the Authority may develop contacts and enter into administrative arrangements with third country regulatory and supervisory authorities and international organisations for the purpose of fostering international supervisory cooperation, including through the exchange of information and/or staff. | Without prejudice to the respective competences of the Member States and the Union institutions, the Authority may develop contacts and enter into administrative arrangements with third country regulatory and supervisory authorities and international organisations for the purpose of fostering international supervisory and enforcement cooperation, including through the exchange of information and/or staff. In this context, the Authority may use its own powers to obtain and share with third country authorities information necessary for the enforcement of their laws and regulations. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| Before entering into negotiations on any administrative arrangement referred to in the first subparagraph, the Authority shall inform the Commission in writing of its intention to do so, including the envisaged scope and objectives of such arrangement. | deleted |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| Under the conditions set out in administrative arrangements referred to in the first subparagraph and which shall include provisions governing professional secrecy and take due account of applicable data protection legislation, the Authority may in particular exchange information and documents to support the identification, monitoring and mitigation of cross border risks, including risks to financial stability and market integrity. | Under the conditions set out in administrative arrangements referred to in the first subparagraph and which shall include provisions governing professional secrecy and take due account of applicable data protection legislation, the Authority may in particular exchange information and documents to support the identification, monitoring and mitigation of cross border risks, including risks to financial stability and market integrity as well as to support supervisory and enforcement activities of the Authority and of the third country regulatory and supervisory authorities. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| (24a) In Article 35, the following paragraph is inserted: | |
| ‘1a. Member States shall ensure effective cooperation and information exchange between competent authorities and other national authorities, including judicial authorities, where necessary to ensure compliance with this Article.’ |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| (24b) In Article 35, the following paragraph is inserted: | |
| ‘5a. Where information is not available or is not made available by the competent authorities in a timely fashion, the Authority may address a duly justified and reasoned request to another public authority or body designated by the Member State concerned as holding or having access to the relevant information necessary for the performance of the Authority’s tasks under this Regulation. | |
| Member States shall ensure that the designated authorities and bodies cooperate with the Authority and provide the requested information without undue delay.’ |
| Text proposed by the Commission | Amendment |
|---|---|
| Where the analysis referred to in the first subparagraph identifies significant supervisory inconsistencies or risks, ESMA shall make use of the supervisory convergence powers conferred upon it by this Regulation. |
| Text proposed by the Commission | Amendment |
|---|---|
| 3a. The data platform shall not itself create new reporting obligations for financial market participants. Any new categories of information to be provided by such participants must be provided for in this Regulation or in other Union legislative acts and must be proportionate to the objective pursued. |
| Text proposed by the Commission | Amendment |
|---|---|
| 3b. The Authority and the competent authorities shall apply the ‘report once’ principle. Financial market participants shall not be requested to provide information that is already in the possession of the Authority, a competent authority or the data platform, except where necessary for duly justified reasons that are communicated to the recipient of the request. |
| Text proposed by the Commission | Amendment |
|---|---|
| 6a. Within one year of the date on which the data platform becomes operational, ESMA shall submit a report to the Commission assessing: | |
| (a) the functioning of the platform; | |
| (b) its contribution to supervisory convergence and the effectiveness and efficiency of supervisory cooperation among national competent authorities; | |
| (c) the feasibility of extending the scope of the platform to data collected by national competent authorities and/or ESMA pursuant to Union financial services legislation within ESMA’s remit, in particular Regulation (EU) No 600/2014, Directive 2014/65/EU, Regulation (EU) No 648/2012 and Regulation (EU) No 909/2014. |
| Text proposed by the Commission | Amendment |
|---|---|
| 1. The Authority shall act in accordance with paragraphs 2 to 6 of this Article when adopting decisions pursuant to Articles 17, 17aa, 17aaa, 18, 19 and 19a. | 1. The Authority shall act in accordance with paragraphs 2 to 6 of this Article when adopting decisions pursuant to Articles 17, 17aa, 18, 19 and 19a. |
| Text proposed by the Commission | Amendment |
|---|---|
| 6. The decisions which the Authority takes pursuant to Article 17, 17aa, 17aaa, 18, 19 or 19a shall be made public. The publication shall disclose the identity of the competent authority or financial market participant concerned and the main content of the decision, unless such publication is in conflict with the legitimate interest of those financial market participants, or with the protection of their business secrets, or could seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system of the Union. | 6. The decisions which the Authority takes pursuant to Article 17, 17aa, 18, 19 or 19a shall be made public. The publication shall disclose the identity of the competent authority or financial market participant concerned and the main content of the decision, unless such publication is in conflict with the legitimate interest of those financial market participants, or with the protection of their business secrets, or could seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system of the Union. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| Article 39aa | |
| Ongoing administrative procedures | |
| 1. A competent authority shall continue to be competent for administrative procedures which were initiated before a shift in supervision further to the end of the transition period or in accordance with Article 39ne. | |
| 2. An administrative procedure shall be considered as having been initiated at the moment at which that national competent authority has referred an investigation for sanctioning proceedings or the Authority has appointed an independent investigating officer in accordance with Article 39ne. | |
| 3. The previously competent authority shall provide the newly competent authority with a list of all individual ongoing administrative procedures that fall within the scope of paragraph 1 within 1 month after the end of the transition period or the notification in accordance with Article 39ne. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| 1. For the purpose of exercising its tasks, the Authority may request financial market participants under the Authority’s supervision, persons involved in the activities of financial market participants under the Authority’s supervision or affected by them, related third parties, third parties to whom the financial market participants under the Authority’s supervision have outsourced operational functions or activities and persons otherwise closely and substantially related or connected to the financial market participants under the Authority’s supervision or their activities and any other persons as provided for in other Union acts, to provide all information necessary in order to carry out its duties under this Regulation and other Union acts. | 1. For the purpose of exercising its tasks, the Authority may request financial market participants under the Authority’s supervision, persons involved in the activities of financial market participants under the Authority’s supervision or affected by them, related third parties, third parties to whom the financial market participants under the Authority’s supervision have outsourced operational functions or activities and persons otherwise closely and substantially related or connected to the financial market participants under the Authority’s supervision or their activities or any other natural or legal persons as provided for in other Union acts, to provide all information necessary in order to carry out its duties under this Regulation and other Union acts. |
| Text proposed by the Commission | Amendment |
|---|---|
| 3a. Any requests for information shall be necessary, proportionate, specific in terms of their subject matter and purpose, and shall limit the information requested to what is strictly necessary for the performance of the relevant function of the authority. The authority shall not request information already provided to the authority or a competent authority, except where it explains in writing why such information cannot be obtained by other means or needs to be updated. |
| Text proposed by the Commission | Amendment |
|---|---|
| (ba) obtain access to internal audit reports and certification of accounts; |
| Text proposed by the Commission | Amendment |
|---|---|
| (bb) obtain access to documents and information relating to decision-making processes, including those developed by algorithms or other digital processes; |
| Text proposed by the Commission | Amendment |
|---|---|
| 1. Where the Authority finds that there are serious indications of the existence of facts liable to constitute one or more infringements of this Regulation or other Union acts under its competence, it shall launch an investigation in accordance with Article 39c and appoint an independent investigating officer within the Authority to investigate the matter. The investigating officer shall not be involved or shall not have been involved in the direct or indirect supervision of the financial market participant under the Authority’s supervision concerned and shall perform his functions independently from the Executive Board. | 1. Where the Authority finds that there are serious indications of the existence of facts liable to constitute one or more infringements of this Regulation or other Union acts under its competence, it shall launch an investigation in accordance with Article 39c and appoint an independent investigating officer within the Authority to investigate the matter. The investigating officer may be supported by a dedicated team when performing their functions. The investigating officer and members of his investigating team shall not be involved or shall not have been involved in the direct or indirect supervision of the financial market participant under the Authority’s supervision concerned and shall perform his functions independently from the Executive Board. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| 1. Where the Authority finds that there are serious indications of the existence of facts liable to constitute one or more infringements of this Regulation or other Union acts under its competence, it shall launch an investigation in accordance with Article 39c and appoint an independent investigating officer within the Authority to investigate the matter. The investigating officer shall not be involved or shall not have been involved in the direct or indirect supervision of the financial market participant under the Authority’s supervision concerned and shall perform his functions independently from the Executive Board. | 1. Where the Authority finds that there are serious indications of the existence of facts liable to constitute one or more infringements of this Regulation or other Union acts under its competence, it shall launch an investigation in accordance with Article 39c and appoint an independent investigating officer within the Authority to investigate the matter. The investigating officer shall not be involved or shall not have been involved in the past five years in the direct or indirect supervision of the financial market participant under the Authority’s supervision concerned and shall perform his functions independently from the Executive Board. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| 6. The investigating officer shall not participate in deliberations of the Executive Board or in any other way intervene in the decision-making process of the Executive Board. | 6. The investigating officer may be asked by the Executive Board to explain his or her findings but shall not participate in deliberations of the Executive Board or in any other way intervene in the decision-making process of the Executive Board. |
| Text proposed by the Commission | Amendment |
|---|---|
| (a) in the case of a legal person, EUR 1 000 000, or, in the Member States whose currency is not the euro, the corresponding value in the national currency according to euro foreign exchange reference rate published by the European Central Bank applying on the date when the fine is imposed. | (a) in the case of a legal person, EUR 1 000 000, or, in the Member States whose currency is not the euro, the corresponding value in the national currency according a foreign exchange benchmark rate that complies with Regulation (EU) 2016/1011 and which applies on the date when the fine is imposed. |
| Text proposed by the Commission | Amendment |
|---|---|
| (c) in the case of a natural person, EUR 500 000, or, in the Member States whose currency is not the euro, the corresponding value in the national currency according to euro foreign exchange reference rate published by the European Central Bank applying on the date when the fine was imposed. | (c) in the case of a natural person, EUR 500 000, or, in the Member States whose currency is not the euro, the corresponding value in the national currency according to a foreign exchange benchmark rate that complies with Regulation (EU) 2016/1011 and which applies on the date when the fine was imposed. |
| Text proposed by the Commission | Amendment |
|---|---|
| 2a. The amount of the fine shall be at least EUR 500 000. |
| Text proposed by the Commission | Amendment |
|---|---|
| 3. Notwithstanding paragraph 2, the amount of a periodic penalty payment shall be 3 % of the average daily turnover in the preceding business year or, in the case of natural persons, 2 % of the average daily income in the preceding calendar year. It shall be calculated from the date stipulated in the decision imposing the periodic penalty payment. | 3. Notwithstanding paragraph 2, the amount of a periodic penalty payment shall be 3 % of the average daily turnover in the preceding business year or, in the case of natural persons, 2 % of the average daily income in the preceding calendar year. It shall be calculated from the date stipulated in the decision imposing the periodic penalty payment. Where, upon the expiry of that period, the financial market participant or the person concerned has not yet complied with the administrative measure, the Authority may impose periodic penalty payments for an additional period of no more than six months. |
| Text proposed by the Commission | Amendment |
|---|---|
| (f) the impact of the infringement on the interests of investors; | (f) the impact of the infringement on the interests of investors and on the financial stability of the EU; |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| 3. Where the Authority has reasonable grounds to suspect that a financial market participant under its supervision may be engaging, or may be about to engage, in conduct that could amount to an infringement under this Regulation or other relevant Union acts under its competence, it may adopt by decision any of the measures referred to in points (b), (h), (j), (k) and (l) of paragraph 1, as appropriately adjusted for use in situations involving only suspected, not yet established, infringements. | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| Without undue delay, the Authority shall notify any action taken pursuant to paragraphs 1 and 4 to the financial market participant under the Authority’s supervision responsible for the infringement and shall communicate it to the relevant competent authorities of the Member State and to the Commission. It shall publicly disclose any such action on its website within 10 working days from the date of adoption of the decision referred to in paragraph 1 or 4. | Without undue delay, the Authority shall notify any action taken pursuant to paragraphs 1 and 4 to the financial market participant under the Authority’s supervision responsible for the infringement and shall communicate it to the relevant competent authorities of the Member State and to the Commission. It shall publicly disclose any such action on its website within 10 working days from the date of adoption of the decision referred to in paragraph 1 or 3. |
| Text proposed by the Commission | Amendment |
|---|---|
| 4a. Without prejudice to paragraphs 1 to 3 the Authority by way of a decision may temporarily exempt one or more financial market participants under its supervision from certain requirements of Union acts under its competence where compliance with such requirements will be unduly burdensome or disproportionate taking into account the specific circumstances of the financial market participant or participants. | |
| The Authority shall review the decision referred to in the first subparagraph at appropriate intervals to assess the evolution of the circumstances which the exemption is granted for and, at least, every year. Following at least two consecutive renewals, and based on proper analysis which aims to assess the impact, including from the perspective of competitiveness, the Authority may decide on the renewal of the exemption every three years. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| 1. Before taking any decision under Articles 39k, 39h and 39i, the Executive Board shall give the financial market participant under the Authority’s supervision or the person subject to the proceedings the opportunity to be heard on the Authority's findings. The Executive Board shall base its decisions only on findings on which the financial market participant under the Authority’s supervision or the person subject to the proceedings had the opportunity to comment. | 1. Before taking any decision under Articles 39k, 39h and 39i and 39na, paragraph 8 of Article 39n and paragraph 4 of Article 39nb, a refusal decision under paragraph 5 of Article 39nd and an objection decision under paragraph 6 of Article 39nf, the Executive Board shall give the financial market participant under the Authority’s supervision or the person subject to the proceedings the opportunity to be heard on the Authority's findings. The Executive Board shall base its decisions only on findings on which the financial market participant under the Authority’s supervision or the person subject to the proceedings had the opportunity to comment. |
| Text proposed by the Commission | Amendment |
|---|---|
| 1. The Authority shall disclose to the public every fine and periodic penalty payment that has been imposed pursuant to Articles 39f 39g and 39i, unless such disclosure to the public would seriously jeopardise the financial markets or cause disproportionate damage to the parties involved. Such disclosure shall not contain personal data within the meaning of Regulation (EU) 2018/1725 of the European Parliament and of the Council. | 1. The Authority shall disclose to the public every measure that has been imposed pursuant to Articles 39f to 39i, unless such disclosure to the public would seriously jeopardise the financial markets or cause disproportionate damage to the parties involved. Such disclosure shall not contain personal data within the meaning of Regulation (EU) 2018/1725 of the European Parliament and of the Council. The disclosure shall include at least the information on the type and nature of the infringement, the identity of the person responsible, and, for fines or periodic penalty payments, their amount. |
| Text proposed by the Commission | Amendment |
|---|---|
| 2a. The fees shall cover only the direct and necessary costs incurred by the authority in relation to the particular authorisation, registration, certification, recognition, supervision or enforcement activity concerned. These fees shall not finance general costs of supervisory convergence or the development of tools or infrastructures that are not considered to be directly linked to the supervision of the financial market participant to which the fee applies. |
| Text proposed by the Commission | Amendment |
|---|---|
| 2a. The Authority shall monitor the evolution of national supervisory fees in the sectors concerned and shall report annually to the Commission, the European Parliament and the Council on whether the transfer of supervisory tasks has resulted in a duplication or increase of supervisory costs for supervised entities. |
| Text proposed by the Commission | Amendment |
|---|---|
| 4. Supervisory fees shall be proportionate to the annual turnover of the financial market participant under the Authority’s supervision concerned. | 4. Supervisory fees shall be proportionate to the annual turnover and to the risks posed by the financial market participant under the Authority’s supervision concerned. |
| Text proposed by the Commission | Amendment |
|---|---|
| 4a. Where a national competent authority levies fees or charges for the same entity, activity or period of supervision, the Authority and that competent authority shall take the necessary steps to avoid the double charging of fees for the same supervisory cost. |
| Text proposed by the Commission | Amendment |
|---|---|
| 5a. The delegated acts adopted pursuant to paragraph 8 shall provide for fee exemptions or reductions for small or medium-sized financial market participants, taking into account their turnover, assets under management, complexity, risk profile and cross-border activity. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| 7. The Authority shall on an annual basis publish on its website a fee transparency report setting out the categories of financial market participants under the Authority’s supervision and the methodology applied for the allocation of cost. | 7. The Authority shall publish on an annual basis on a dedicated page of its website information on supervisory fees setting out the categories of financial market participants under the Authority’s supervision and the methodology applied for the allocation of cost. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| 7a. The Authority may withdraw the registration or authorisation of a financial market participant where that participant fails to pay supervisory fees. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| 8. The Commission is empowered to adopt a delegated act in accordance with Article 75a by further specifying the type of fees, the matters for which fees are due, the amount of the fees and the manner in which they are to be paid. | 8. The Commission shall adopt a delegated act in accordance with Article 75a by further specifying the type of fees, the matters for which fees are due, the amount of the fees and the manner in which they are to be paid by 30 June 2028. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| Article 39na | |
| Early supervention tools: | |
| 1. For the purpose of carrying out its tasks with respect to the financial market participants under the Authority’s supervision and without prejudice to other powers conferred on the Authority, the Authority shall have the powers set out in paragraph 2 of this Article to require any such financial market participant to take the necessary measures at an early stage to address relevant issues in any of the following circumstances: | |
| (a) the financial market participant does not meet the requirements of this Regulation and of the relevant legislative acts referred to in Article 1(2) governing its operations; | |
| (b) the Authority has obtained evidence, either through periodic information provided pursuant to Article 39nc or through a request for information under Article 39b, suggesting that the financial market participant may be at risk of non-compliance with the requirements governing its operations within the next 12 months; | |
| (c) the Authority has evidence that the arrangements, strategies, processes and mechanisms implemented by the financial market participant do not ensure a sound management and coverage of its risks. | |
| 2. For the purposes of paragraph 1, the Authority shall have, in particular, the powers to: | |
| (a) require that the financial market participant’s arrangements, processes, mechanisms and strategies are properly adjusted to ensure the sound management and coverage of its risks; | |
| (b) require financial market participants to present a plan to restore compliance with supervisory requirements and set a deadline for its implementation, including improvements to the cope and deadline of that plan; | |
| (c) restrict or limit the business, operations or network of the financial market participant, or request the divestment of activities that pose excessive risks to its soundness; | |
| (d) require the reduction of the risk inherent in the activities, products and systems of the financial market participant; | |
| (e) impose additional or more frequent reporting requirements; | |
| (f) require additional disclosures; | |
| (g) require the suspension of members from the management body of the financial market participants who do not fulfil the requirements set out in this Regulation and in the relevant legislative acts referred to in Article 1(2) governing their operations; | |
| (h) suspend the registration or authorisation of a financial market participant and | |
| (i) adopt any type of measure to ensure that the financial market participant, continue to comply with legal requirements. | |
| 3. Article 39e shall not apply. The decisions of the Authority shall state the reasons on which they are based. | |
| 4. The measures referred to in paragraph 2 shall have temporary nature. The Authority shall review the measures imposed under paragraph 2 at appropriate intervals. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| Article 39nb | |
| Requirements for the management body and key function holders | |
| 1. The management body of the financial market participants shall at all times be of sufficiently good repute, possess sufficient knowledge, skills and experience and commit sufficient time to perform their duties. Such individuals shall possess adequate collective knowledge, skills and experience to be able to understand the activities of the financial market participant. Each member of the management body shall act with honesty, integrity and independence of mind to effectively challenge the decisions of the senior management where necessary and to effectively oversee and monitor management decision-making where necessary. A financial market participant shall ensure that any person appointed to a key function possesses the necessary integrity, competence, and independence to perform their duties effectively and in accordance with applicable Union law. | |
| 2. A financial market participant shall notify the Authority in advance of the names of all members of its management body and key function holders, as well as any changes thereto. The financial market participant shall provide all information necessary the Authority to assess its compliance with paragraph 1. | |
| 3. The management body of the financial market participant shall define and oversee the implementation of the governance arrangements ensuring effective and prudent management of the financial market participant, including segregation of duties, prevention of conflicts of interest, and promotion of market integrity and the interests of its clients. | |
| 4. The Authority shall refuse or subsequently withdraw the appointment of the person or persons referred to in paragraph 1 if it is not satisfied that the person is of sufficiently good repute, or if there are objective and demonstrable grounds for believing that the appointment or proposed changes would pose a threat to the sound and prudent management of the financial market participant, the adequate consideration of the clients’ interest and integrity of the market. | |
| 5. Article 39e shall not apply. The decisions of the Authority shall state the reasons on which they are based. The Authority shall develop draft regulatory technical standards by 2028 for the assessment of the suitability of the persons described in paragraph 1, taking into account different roles and functions carried out by them and the need to avoid conflicts of interest. The Authority already holds powers to assess the suitability of members of the management body of data reporting services providers pursuant to Article 27f of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| Article 39nc | |
| Periodic reporting | |
| ESMA may require the persons referred to in paragraph 1 of Article 39b to provide at recurring intervals and in specified formats all information that is necessary in order to carry out the tasks conferred by this Regulation and the relevant legislative acts referred to in Article 1(2). |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| Article 39nd | |
| Application for registration, authorisation, certification or recognition | |
| 1. A financial market participant shall apply to the Authority for registration, authorisation, certification or recognition. The application shall contain information on the matters set out in the relevant legislative acts referred to in Article 1(2). | |
| 2. Within 25 working days of receipt of the application, the Authority shall assess whether the application is complete. If the application is not complete, the Authority shall set a deadline by which the financial market participant is to provide additional information. Each time additional information is requested, the Authority shall have 25 working days from the date of receipt of such information to assess whether the application is complete. Where an application remains incomplete or of poor quality after the deadline set by the Authority, the Authority may refuse to review the application and, in the event of such refusal, shall return the submitted documents to the applicant. | |
| 3. After assessing an application as complete, the Authority shall notify the financial market accordingly. | |
| 4. The Authority shall, within 90 working days of the notification referred to in paragraph 3 of this Article, examine the compliance of the application for registration, authorisation, certification or recognition of a financial market participant with the conditions set out in the relevant legislative acts referred to in Article 1(2). | |
| 5. The Authority shall, within 90 working days of the notification referred to in paragraph 4 of this Article, adopt a reasoned decision to register, authorise, certify or recognise, or to refuse registration, authorisation, certification or recognition. The Authority may attach conditions to a registration, authorisation, certification or recognition decision. Such conditions may be suspensive, in which case the decision shall take effect only upon their fulfilment, or resolutive, in which case the decision shall take effect immediately but may be withdrawn where the conditions are not fulfilled within the specified period. | |
| 6. The Authority shall refuse an application for registration, authorisation, certification or recognition where the applicant fails to pay the applicable fees within the time limits specified in the request for payment issued by the Authority. | |
| 7. The Authority shall specify the date of entry into effect of the decision adopted pursuant to paragraph 5 of this Article. | |
| 8. Within five working days of the adoption of a decision pursuant to paragraph 5 of this Article, the Authority shall inform the financial market participant concerned of its decision | |
| 9. For any matter not explicitly addressed in the present Article, the relevant provisions of the legislative acts referred to in Article 1(2) shall apply. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| Article 39ne | |
| Determination of the competent supervisory authority | |
| 1. Where the supervision of a financial market participant is shared between the Authority and a competent authority, the identification of the authority in charge of this supervision shall be based on specific thresholds laid down in the sectoral legislation. | |
| 2. The identification of the competent authority in charge of supervision shall be based on an assessment undertaken by the financial market participants and submitted to the Authority every three years. | |
| 3. Financial market participants shall notify the Authority and, where applicable, the competent authority without undue delay of any change affecting the assessment referred to in paragraph 2, including where such change results in the relevant thresholds laid down in the sectoral legislation being met or no longer being met before the expiry of the two-year period. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| Article 39nf | |
| Notification of material changes | |
| 1. Financial market participants shall comply at all times with the conditions for registration laid down in this Regulation and in the relevant legislative acts referred to in Article 1(2). | |
| 2. Financial market participants shall, without undue delay, notify the Authority of any material change affecting the conditions for registration. | |
| 3. Within 15 working days of receipt of a notification pursuant to paragraph 2, the Authority shall assess whether that notification is complete. Where the Authority considers that the notification is incomplete, it shall request additional information and set a deadline for its submission. Within 15 working days of receipt of the additional information, the Authority shall assess whether the notification is complete. | |
| 4. Where the Authority considers that the notification is complete, it shall inform the financial market participant and proceed with the assessment of the notified material change. | |
| 5. The Authority shall assess the notified material change within 45 working days from the date on which the notification is considered complete in accordance with paragraphs 3 and 4. | |
| 6. The Authority may object to the notified material change where it considers that the change would result in the financial market participant no longer complying with the conditions for registration. Where the Authority objects to the notified material change, it shall provide reasons for its decision. | |
| 7. Where the Authority does not object to the notified material change within the period referred to in paragraph 5, the material change shall be deemed to be approved. |
| Present text | Amendment |
|---|---|
| (-a) in paragraph 1, point b is replaced by the following: | |
| (b) the head of the national public authority competent for the supervision of financial market participants in each Member State, who shall meet in person at least twice a year; | (b) the heads of the national public authorities competent for the supervision of financial market participants in each Member State, who shall meet in person at least twice a year; the heads of the supervisory authorities referred to in this subparagraph in each Member State shall share a single vote’; |
| (This amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout.) |
In some Member States more than one authority can be competent for the supervision of financial market participants under ESMA direct supervision. In that case, the rules on the participation of national authorities to the Board of Supervisors should be adjusted to foresee that those authorities agree on a common representative who shall have one single vote within the Board of Supervisors.
| Text proposed by the Commission | Amendment |
|---|---|
| (ba) 5 independent members of the Executive Board;; | (ba) 5 independent members of the Executive Board who shall not have voting rights; |
| Text proposed by the Commission | Amendment |
|---|---|
| (ba) 5 independent members of the Executive Board;; | (ba) 5 independent members of the Executive Board who shall be non-voting;’; |
| Text proposed by the Commission | Amendment |
|---|---|
| (ba) 5 independent members of the Executive Board;; | (ba) 5 independent members of the Executive Board, who shall be non-voting; |
While Executive Board members’ participation in the Board of Supervisors may foster collegiality and information-sharing, granting them voting rights would undermine the checks and balances between the two bodies established by the current proposal. Executive Board members should therefore participate without voting rights.
| Text proposed by the Commission | Amendment |
|---|---|
| (ba) 5 independent members of the Executive Board;; | (ba) 9 independent members of the Executive Board;; |
| Text proposed by the Commission | Amendment |
|---|---|
| (baa) one representative of the ECB, who shall be non-voting; |
| Text proposed by the Commission | Amendment |
|---|---|
| (baa) one representative of the ECB without voting rights |
| Text proposed by the Commission | Amendment |
|---|---|
| 3. Each competent authority shall be responsible for nominating a high-level alternate from its authority, who may replace the member of the Board of Supervisors referred to in paragraph 1(b), where that person is prevented from attending. | 3. Each of the authorities referred to in paragraph 1 shall be responsible for nominating a high-level alternate from its authority, who may replace the member of the Board of Supervisors referred to in paragraph 1(b), where that person is prevented from attending.; |
| (This amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout.) |
In some Member States more than one authority can be competent for the supervision of financial market participants under ESMA direct supervision. In that case, the rules on the participation of national authorities to the Board of Supervisors should be adjusted to foresee that those authorities agree on a common representative who shall have one single vote within the Board of Supervisors.
| Present text | Amendment |
|---|---|
| (ba) paragraph 4 is replaced by the following: | |
| 4. In Member States where more than one authority is responsible for the supervision according to this Regulation, those authorities shall agree on a common representative. Nevertheless, when an item to be discussed by the Board of Supervisors does not fall within the competence of the national authority being represented by the member referred to in paragraph 1(b), that member may bring a representative from the relevant national authority, who shall be non-voting. | “4. In Member States where more than one authority is responsible for the supervision according to this Regulation, those authorities shall agree on a common representative who shall have one single vote. Where items to be discussed concern the competence of several supervisory authorities, the common representative may bring a representative from the other national supervisory authority.;” |
| (This amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout.) |
In some Member States more than one authority can be competent for the supervision of financial market participants under ESMA direct supervision. In that case, the rules on the participation of national authorities to the Board of Supervisors should be adjusted to foresee that those authorities agree on a common representative who shall have one single vote within the Board of Supervisors.
| Present text | Amendment |
|---|---|
| (ba) paragraph 4 is replaced by the following: | |
| 4. In Member States where more than one authority is responsible for the supervision according to this Regulation, those authorities shall agree on a common representative. Nevertheless, when an item to be discussed by the Board of Supervisors does not fall within the competence of the national authority being represented by the member referred to in paragraph 1(b), that member may bring a representative from the relevant national authority, who shall be non-voting." | “4. In Member States where supervisory responsibilities are shared between more than one authority, those authorities shall be represented at the Board of Supervisory by a common representative with one single vote designated, by mutual agreement, between the relevant national authorities. A representative from each national supervisory authority may participate as observer to decisions that fall within its remit of competences at national level.;” |
| Present text | Amendment |
|---|---|
| (ba) paragraph 4 is replaced by the following: | |
| 4. In Member States where more than one authority is responsible for the supervision according to this Regulation, those authorities shall agree on a common representative. Nevertheless, when an item to be discussed by the Board of Supervisors does not fall within the competence of the national authority being represented by the member referred to in paragraph 1(b), that member may bring a representative from the relevant national authority, who shall be non-voting. | "4. In Member States where more than one authority is responsible for the supervision according to this Regulation, those authorities shall agree on a common representative. Nevertheless, when an item to be discussed by the Board of Supervisors falls within the competence of a national central bank, a representative from the relevant national central bank shall be invited to attend the item, in addition to the member of the Board of Supervisors referred to in paragraph 1(b). For the purposes of voting, the representatives of the authorities of any one Member State shall, together, be considered as one member." |
In some Member States, the responsibility for supervision of certain entities is exercised by a NCB not represented on the ESMA Board of Supervisors, whether alone or jointly with another authority. These NCBs should be able to attend the ESMA Board of Supervisors and vote when items falling within their field of competence are discussed and should be invited by ESMA accordingly.
| Text proposed by the Commission | Amendment |
|---|---|
| Where an internal committee discusses matters in relation to a central counterparty or central securities depository, the European Central Bank and the other relevant central banks of issue of the Union currencies shall have the right to be non-voting members .; | Where an internal committee discusses matters in relation to a central counterparty, central securities depository or crypto-asset service providers, the European Central Bank and the other relevant central banks of issue of the Union currencies shall have the right to be non-voting members.; |
| Text proposed by the Commission | Amendment |
|---|---|
| 1. The Board of Supervisors shall give guidance to the work of the Authority and shall be in charge of taking the decisions in accordance with Articles 9a to 16a of this Regulation. The Board of Supervisors shall adopt all decisions of the Authority, including those specifically attributed to it in the other Union acts, with the exception of the decisions that are to be taken by the Executive Board in accordance with Article 46a. If applicable, the Board of Supervisors shall adopt the opinions, recommendations, guidelines and decisions of the Authority, and issue the advice referred to in Chapter II, based on a proposal of the relevant internal committee, the Chairperson, or of the Executive Board, as applicable.; | 1. The Board of Supervisors shall give guidance to the work of the Authority and shall be in charge of taking the decisions in accordance with Articles 9a to 16a of this Regulation. The Board of Supervisors shall also adopt the decisions pursuant to Article 9(5), Article 17(3) and (6), Article 17aa, Article 17aaa, Article 18(3) and (4), Article 19, Article 19a(1) and (4), Article 22(4), and Article 30. In addition, the Board of Supervisors shall carry out tasks or take measures in relation to individual national competent authorities and individual financial market participants which are not under the Authority’s supervision, where specified in this Regulation or other Union acts. The Board of Supervisors shall finally adopt all decisions of the Authority, including those specifically attributed to it in the other Union acts, with the exception of the decisions that are to be taken by the Executive Board in accordance with Article 46a. If applicable, the Board of Supervisors shall adopt the opinions, recommendations, guidelines and decisions of the Authority, and issue the advice referred to in Chapter II, based on a proposal of the relevant internal committee, the Chairperson, or of the Executive Board, as applicable.; |
Given their purpose of promoting consistent supervisory approaches and practices across the Union, convergence tools and powers should be exercised by the Board of Supervisors. Their effective use requires the direct and inclusive involvement of all NCAs and NCBs.
| Text proposed by the Commission | Amendment |
|---|---|
| 1. The Board of Supervisors shall give guidance to the work of the Authority and shall be in charge of taking the decisions in accordance with Articles 9a to 16a of this Regulation. The Board of Supervisors shall adopt all decisions of the Authority, including those specifically attributed to it in the other Union acts, with the exception of the decisions that are to be taken by the Executive Board in accordance with Article 46a. If applicable, the Board of Supervisors shall adopt the opinions, recommendations, guidelines and decisions of the Authority, and issue the advice referred to in Chapter II, based on a proposal of the relevant internal committee, the Chairperson, or of the Executive Board, as applicable.; | 1. The Board of Supervisors shall give guidance to the work of the Authority and shall be in charge of taking and adopting the decisions of the Authority, in accordance with Article 8, Articles 17 (3) and (6), 17aa, 18(3) and (4), article 19, Article 19a(1) and (4), 22(4), Article 30, Chapter IIa and Article 65 as well as those specifically attributed to it in the other Union acts. If applicable, the Board of Supervisors shall finally adopt the opinions, recommendations, guidelines and decisions of the Authority, and issue the advice referred to in Chapter II, based on a proposal of the relevant internal committee, the Chairperson, or of the Executive Board, as applicable. The Board of Supervisors may delegate certain day-to-day decisions relating to Chapter IIa to the Executive Board in accordance with the rules of procedure adopted by the Board of Supervisors under Article 44, paragraph 1, sub-paragraph 3.; |
The Board of Supervisors should be vested with the ultimate responsibility and decision powers. Where deemed appropriate, the Board of Supervisors may delegate certain day-to-day decisions to the Executive Board.
| Text proposed by the Commission | Amendment |
|---|---|
| 1. The Board of Supervisors shall give guidance to the work of the Authority and shall be in charge of taking the decisions in accordance with Articles 9a to 16a of this Regulation. The Board of Supervisors shall adopt all decisions of the Authority, including those specifically attributed to it in the other Union acts, with the exception of the decisions that are to be taken by the Executive Board in accordance with Article 46a. If applicable, the Board of Supervisors shall adopt the opinions, recommendations, guidelines and decisions of the Authority, and issue the advice referred to in Chapter II, based on a proposal of the relevant internal committee, the Chairperson, or of the Executive Board, as applicable.; | 1. The Board of Supervisors shall give guidance to the work of the Authority and holding the Executive Board to account in respect of its supervisory duties. The Board of Supervisors shall be in charge of taking the decisions in accordance with Articles 9a to 16a of this Regulation. The Board of Supervisors shall adopt all decisions of the Authority, including those specifically attributed to it in the other Union acts, with the exception of the decisions that are to be taken by the Executive Board in accordance with Article 46a. If applicable, the Board of Supervisors shall adopt the opinions, recommendations, guidelines and decisions of the Authority, and issue the advice referred to in Chapter II, based on a proposal of the relevant internal committee, the Chairperson, or of the Executive Board, as applicable.; |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| 1. The Board of Supervisors shall give guidance to the work of the Authority and shall be in charge of taking the decisions in accordance with Articles 9a to 16a of this Regulation. The Board of Supervisors shall adopt all decisions of the Authority, including those specifically attributed to it in the other Union acts, with the exception of the decisions that are to be taken by the Executive Board in accordance with Article 46a. If applicable, the Board of Supervisors shall adopt the opinions, recommendations, guidelines and decisions of the Authority, and issue the advice referred to in Chapter II, based on a proposal of the relevant internal committee, the Chairperson, or of the Executive Board, as applicable.; | 1. The Board of Supervisors shall give guidance to the work of the Authority. The Board of Supervisors shall adopt all decisions of the Authority, including those specifically attributed to it in the other Union acts, with the exception of the decisions that are to be taken by the Executive Board in accordance with Article 46a. If applicable, the Executive Board shall adopt the opinions, recommendations, guidelines and decisions of the Authority, and issue the advice referred to in Chapter II, based on a proposal of the relevant internal committee or the Chairperson, as applicable. |
| Present text | Amendment |
|---|---|
| (-1) the second subparagraph is replaced by the following: | |
| With regard to the acts specified in Articles 10 to 16 of this Regulation and measures and decisions adopted under the third subparagraph of Article 9(5) of this Regulation, and Chapter VI of this Regulation and, by way of derogation from the first subparagraph of this paragraph, the Board of Supervisors shall take decisions on the basis of a qualified majority of its members, as defined in Article 16(4) TEU and in Article 3 of the Protocol No 36 on transitional provisions. | With regard to measures and decisions adopted under Chapter VI of this Regulation and, by way of derogation from the first subparagraph of this paragraph, the Board of Supervisors shall take decisions on the basis of a qualified majority of its members, as defined in Article 16(4) TEU and in Article 3 of the Protocol No 36 on transitional provisions. |
| Text proposed by the Commission | Amendment |
|---|---|
| (2a) the following subparagraph is added: | |
| ‘With regard to the composition of the internal committees in accordance with Article 41, and the members of the peer review committee referred to in Article 30(2), the Board of Supervisors, when considering the proposals by the Chairperson, shall strive for consensus. In the absence of consensus, decisions of the Board of Supervisors shall be taken by a majority of three quarters of its voting members. Each voting member shall have one vote.’ |
| Text proposed by the Commission | Amendment |
|---|---|
| (2b) the following subparagraph is added: | |
| ‘With regard to decisions adopted under Article 18(3) and (4), and by way of derogation from the first subparagraph of this paragraph, the Board of Supervisors shall take decisions on the basis of a simple majority of its voting members.’ |
| Text proposed by the Commission | Amendment |
|---|---|
| (3) the following subparagraph is added: | deleted |
| ‘With regard to decisions specified in Article 44b(2) , by way of derogation of the first sub-paragraph of this paragraph, the Board of Supervisors shall decide with a two thirds majority of its voting members.;’ |
| Text proposed by the Commission | Amendment |
|---|---|
| (3) the following subparagraph is added: | deleted |
| ‘With regard to decisions specified in Article 44b(2) , by way of derogation of the first sub-paragraph of this paragraph, the Board of Supervisors shall decide with a two thirds majority of its voting members.;’ |
The proposed non-objection procedure by the Board of Supervisors under Article 44b(2) constitutes an important element of the checks and balances within the new ESMA governance framework. Striking the right balance between the need to preserve a meaningful role for the Board of Supervisors in relation to clearly defined key supervisory and enforcement decisions and to ensure the efficiency of ESMA’s decision model is indeed essential. In this perspective, a two-thirds majority threshold may limit significantly the possibility for the Board of Supervisors to effectively exercise meaningful oversight in practice. This is particularly critical for key decisions taken by the Executive Board that may have a substantial impact on financial markets; since these decisions are submitted solely through a non-objection procedure, they are not subject to debate in a formal Board meeting. Consequently, a simple majority threshold would constitute a more proportionate solution, aligning with the general rule established in Article 44, paragraph 1, ESMAR.
| Text proposed by the Commission | Amendment |
|---|---|
| (3) the following subparagraph is added: | deleted |
| ‘With regard to decisions specified in Article 44b(2) , by way of derogation of the first sub-paragraph of this paragraph, the Board of Supervisors shall decide with a two thirds majority of its voting members.;’ |
The current voting rules should continue to apply given the fact that the ultimate decision-making should remain at Board of Supervisors’ level as per article 43(1).
| Text proposed by the Commission | Amendment |
|---|---|
| (3) the following subparagraph is added: | deleted |
| ‘With regard to decisions specified in Article 44b(2), by way of derogation of the first sub-paragraph of this paragraph, the Board of Supervisors shall decide with a two thirds majority of its voting members.;’ |
The proposed two-thirds majority threshold undermines the effectiveness of the non-objection procedure. It is therefore suggested to delete this voting requirement and apply the Board of Supervisors’ ordinary voting rules, namely a simple majority.
| Text proposed by the Commission | Amendment |
|---|---|
| (b) 5 independent, full-time members | (b) 9 independent, full-time members |
| Text proposed by the Commission | Amendment |
|---|---|
| 2. Where the decisions referred to in Article 8 paragraph 1, point l in relation to a directly supervised entity are deliberated upon, the member of the Board of Supervisors from the Member State where the relevant entity is established may participate in the deliberations during the relevant meetings of the Executive Board. | deleted |
| Where supervisory matters in relation to a central counterparty or central securities depository are discussed, a representative of the ECB shall have the right to attend the discussion. | |
| The observers specified in subparagraphs 1 and 2 shall not be present during the vote following such deliberations. | |
| The Executive Board may decide to admit other observers to the deliberations. |
The decisions relating to direct supervision shall be vested with the Board of Supervisors. Accordingly, this paragraph should be deleted.
| Text proposed by the Commission | Amendment |
|---|---|
| Where the decisions referred to in Article 8 paragraph 1, point l in relation to a directly supervised entity are deliberated upon, the member of the Board of Supervisors from the Member State where the relevant entity is established may participate in the deliberations during the relevant meetings of the Executive Board. | Where the decisions referred to in Article 8 paragraph 1, point l in relation to a directly supervised entity are deliberated upon, the member of the Board of Supervisors from the Member State where the relevant entity is established shall have the right to participate in the deliberations during the relevant meetings of the Executive Board, submit written observations and make a reasoned statement about the draft decision. The Executive Board shall duly consider that reasoned statement and, where it does not follow its observations, explain the reasons for doing so in the final decision. That member shall not be present during the vote following those deliberations. |
| Text proposed by the Commission | Amendment |
|---|---|
| Where the decisions referred to in Article 8 paragraph 1, point l in relation to a directly supervised entity are deliberated upon, the member of the Board of Supervisors from the Member State where the relevant entity is established may participate in the deliberations during the relevant meetings of the Executive Board. | Where the decisions referred to in Article 8 paragraph 1, point l in relation to a directly supervised entity are deliberated upon, the member of the Board of Supervisors from the Member State where the relevant entity is established may participate in the deliberations during the relevant meetings of the Executive Board. Such decisions shall be taken by an extended Executive Board composed of the Executive Board members and the members from the national competent authorities or, where ESMA is the competent authority in the area of trading venues, the market surveillance authorities, from the Member States where the relevant entity is established, acting by simple majority. |
| (This amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout.) |
Supervisory decision should be taken by the Executive Board in an extended format, whereby national authorities from the Member States where the relevant entity is established have a vote
| Text proposed by the Commission | Amendment |
|---|---|
| Where the decisions referred to in Article 8 paragraph 1, point l in relation to a directly supervised entity are deliberated upon, the member of the Board of Supervisors from the Member State where the relevant entity is established may participate in the deliberations during the relevant meetings of the Executive Board. | Where the decisions referred to in Article 8 paragraph 1, point l in relation to a directly supervised entity are deliberated upon, the member of the Board of Supervisors from the Member State where the relevant entity is established may participate in the deliberations during the relevant meetings of the Executive Board. Where the national central bank of the same Member State has competence in respect of the relevant entity, a representative of that national central bank shall also be invited to participate in these deliberations. |
In some Member States, the responsibility for supervision of certain entities (e.g. CCPs, CSDs and trading venues) is exercised by a national central bank (NCB) that is not represented on the ESMA Board of Supervisors. Such NCBs should be able to attend the relevant meetings of the Executive Board when items falling within their fields of competence are discussed, and should be invited by ESMA accordingly, in the same manner as is already provided for the member of the Board of Supervisors from the Member State concerned.
| Text proposed by the Commission | Amendment |
|---|---|
| Where the decisions referred to in Article 8 paragraph 1, point l in relation to a directly supervised entity are deliberated upon, the member of the Board of Supervisors from the Member State where the relevant entity is established may participate in the deliberations during the relevant meetings of the Executive Board. | Where the decisions referred to in Article 8 paragraph 1, point l in relation to a directly supervised entity are deliberated upon, the member of the Board of Supervisors from the Member State where the relevant entity is established may participate in the deliberations during the relevant meetings of the Executive Board. Where the national central bank of the same Member State has competence in respect of the relevant entity, a representative of that national central bank may also participate. |
In some Member States, the responsibility for supervision of certain entities (e.g. CCPs, CSDs and trading venues) is exercised by a national central bank (NCB) that is not represented on the ESMA Board of Supervisors. Such NCBs should be able to attend the relevant meetings of the Executive Board when items falling within their fields of competence are discussed, and should be invited by ESMA accordingly, in the same manner as is already provided for the member of the Board of Supervisors from the Member State concerned.
| Text proposed by the Commission | Amendment |
|---|---|
| Where the decisions referred to in Article 8 paragraph 1, point l in relation to a directly supervised entity are deliberated upon, the member of the Board of Supervisors from the Member State where the relevant entity is established may participate in the deliberations during the relevant meetings of the Executive Board. | Where the decisions referred to in Article 8 paragraph 1, point l in relation to a directly supervised entity are deliberated upon, the Chair of the Authority may inform the member of the Board of Supervisors from the Member State where the relevant entity is established and provide this member the opportunity to send written remarks prior to the Executive Board meeting. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| Where the decisions referred to in Article 8 paragraph 1, point l in relation to a directly supervised entity are deliberated upon, the member of the Board of Supervisors from the Member State where the relevant entity is established may participate in the deliberations during the relevant meetings of the Executive Board. | Where the decisions referred to in Article 8 paragraph 1, point l in relation to a directly supervised entity are deliberated upon, the member of the Board of Supervisors from the Member State where the relevant entity is established should be consulted before the relevant meetings of the Executive Board. |
| Text proposed by the Commission | Amendment |
|---|---|
| Where supervisory matters in relation to a central counterparty or central securities depository are discussed, a representative of the ECB shall have the right to attend the discussion. | Where matters in relation to a central counterparty, central securities depository or crypto-asset service provider are discussed, a representative of the ECB shall have the right to attend the discussion. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| The observers specified in subparagraphs 1 and 2 shall not be present during the vote following such deliberations. | deleted |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| The Executive Board may decide to admit other observers to the deliberations. | The Executive Board may decide to admit other observers to its deliberations. The observers shall not be present during the vote following such deliberations. |
| Text proposed by the Commission | Amendment |
|---|---|
| The Executive Board members referred to in paragraph 1, point (b), shall be selected on the basis of merit, skills, knowledge, integrity, recognised experience in the area of supervision of financial markets, and other relevant qualifications, following an open selection procedure which shall be published in the Official Journal of the European Union. The Commission shall prepare a shortlist of candidates for the position of the Executive Board members referred to in paragraph 1, point (b). The European Parliament may conduct hearings of the candidates on that shortlist. | The Executive Board members referred to in paragraph 1, point (b), shall be selected on the basis of merit, skills, knowledge, integrity, recognised experience in the area of supervision of financial markets, and other relevant qualifications, following an open selection procedure which shall be published in the Official Journal of the European Union. The composition of the Executive Board shall ensure that the members collectively possess knowledge, expertise and professional experience covering all sectors in which entities are subject to the direct supervision of the Authority. The Commission shall prepare a shortlist of candidates for the position of the Executive Board members referred to in paragraph 1, point (b). The European Parliament may conduct hearings of the candidates on that shortlist. |
| Text proposed by the Commission | Amendment |
|---|---|
| The Executive Board members referred to in paragraph 1, point (b), shall be selected on the basis of merit, skills, knowledge, integrity, recognised experience in the area of supervision of financial markets, and other relevant qualifications, following an open selection procedure which shall be published in the Official Journal of the European Union. The Commission shall prepare a shortlist of candidates for the position of the Executive Board members referred to in paragraph 1, point (b). The European Parliament may conduct hearings of the candidates on that shortlist. | The Executive Board members referred to in paragraph 1, point (b), shall be selected on the basis of merit, skills, knowledge, integrity, recognised experience in the area of supervision of financial markets, and other relevant qualifications, following an open selection procedure which shall be published in the Official Journal of the European Union. The Commission shall prepare a gender-balanced shortlist of candidates for the position of the Executive Board members referred to in paragraph 1, point (b). The European Parliament may conduct hearings of the candidates on that shortlist. |
| Text proposed by the Commission | Amendment |
|---|---|
| The Executive Board members referred to in paragraph 1, point (b), shall be selected on the basis of merit, skills, knowledge, integrity, recognised experience in the area of supervision of financial markets, and other relevant qualifications, following an open selection procedure which shall be published in the Official Journal of the European Union. The Commission shall prepare a shortlist of candidates for the position of the Executive Board members referred to in paragraph 1, point (b). The European Parliament may conduct hearings of the candidates on that shortlist. | The Executive Board members referred to in paragraph 1, point (b), shall be selected on the basis of merit, skills, knowledge, integrity, recognised experience in the area of supervision of financial markets, and other relevant qualifications, following an open selection procedure which shall be published in the Official Journal of the European Union. The Board of Supervisors shall prepare a shortlist of candidates for the position of the Executive Board members referred to in paragraph 1, point (b). The European Parliament may conduct hearings of the candidates on that shortlist. |
| Text proposed by the Commission | Amendment |
|---|---|
| The Board of Supervisors shall submit a proposal for the appointment of the Executive Board members referred to in paragraph 1, point (b), to the European Parliament, based on the shortlist prepared by the Commission. Following the European Parliament’s approval of that proposal, the Council shall adopt an implementing decision to appoint those Executive Board members. The Council shall act by qualified majority. | The Board of Supervisors shall submit a proposal for the appointment of the Executive Board members referred to in paragraph 1, point (b), to the European Parliament, based on the shortlist prepared by the Commission and on the feedback provided by the European Parliament following the hearings conducted in accordance with the previous subparagraph. Following the European Parliament’s approval of that proposal, the Council shall adopt an implementing decision to appoint those Executive Board members. The Council shall act by qualified majority |
| Text proposed by the Commission | Amendment |
|---|---|
| 4. Throughout the appointment process, the principles of gender and geographical balance shall be taken into account to the extent possible. The Executive Board members should represent different types of supervisory experiences, including in prudential supervision, and, to the extent possible, should have collectively an appropriate understanding of the sectors in which the Authority exercises direct supervisory tasks. | 4. Throughout the appointment process, the principles of gender and geographical balance shall be taken into account to the extent possible. Geographical balance should adequately reflect different structure, specificities and size of the national capital markets, including in relative terms. The Executive Board members should represent different types of supervisory experiences, including in prudential supervision, and, to the extent possible, should have collectively an appropriate understanding of the sectors in which the Authority exercises direct supervisory tasks. |
| Text proposed by the Commission | Amendment |
|---|---|
| 4. Throughout the appointment process, the principles of gender and geographical balance shall be taken into account to the extent possible. The Executive Board members should represent different types of supervisory experiences, including in prudential supervision, and, to the extent possible, should have collectively an appropriate understanding of the sectors in which the Authority exercises direct supervisory tasks. | 4. Throughout the appointment process, the principles of gender and geographical balance shall be taken into account. The Executive Board members should represent different types of supervisory experiences, including in prudential supervision, and should have collectively an appropriate understanding and relevant experience of the sectors in which the Authority exercises direct supervisory tasks. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| 6. No individual may serve more than seven years in which ever role of Chair, Executive Director, or independent member of the Executive Board. Prior office in one role shall count toward the term limit for another role regardless of the order of the positions held. | 6. No individual may serve more than eight years in which ever role of Chair, Executive Director, or independent member of the Executive Board. Prior office in one role shall count toward the term limit for another role regardless of the order of the positions held. |
| Text proposed by the Commission | Amendment |
|---|---|
| 6a. To ensure geographical balance in the composition of the Executive Board, no individual who is a national of a given Member State may serve more than one term as an independent member of the Executive Board until such time as at least one national of every Member State has completed a full term in that capacity. Once this condition has been met, the rotation system shall allow subsequent appointments of nationals from Member States that have already been represented, provided that overall geographical balance is maintained. |
To ensure that the process remains sufficiently democratic, a rotation mechanism should be established to guarantee that NCAs from every Member State have the opportunity to be represented at least once.
| Text proposed by the Commission | Amendment |
|---|---|
| 1a. Before adopting any decision as referred to in Article 8(1), point (l), in respect of a directly supervised entity during Phase 2 of the framework set out in Article 8b, the Authority shall transmit the draft decision, together with the supporting documentation, to the relevant national authority of the Member State in which the entity is established and to the relevant national authorities of the Member States in which, based on the assessment of the Authority carried out in accordance with Article 8b(9), the entity carries out significant operations or where its activities have significant relevance for the orderly functioning of financial markets. Those competent national authorities may provide the Authority with a reasoned opinion within 15 working days from the date of receipt of the relevant documentation. |
This amendment is re-calibrated to support the Structurally Coordinated Supervisory Framework by introducing a structured pre-decision consultation mechanism specifically for Phase 2 (Direct Supervision). While national proximity and expertise are leveraged through joint/coordinated teams in Phase 1, this mechanism ensures that once direct ESMA supervision commences, national authorities in jurisdictions where an entity has significant operations (as identified through the objective criteria in Article 8b, paragraph 9) remain effectively involved in the process.By requiring the transmission of draft decisions and supporting documentation prior to their adoption, the amendment ensures that national fiscal risks and local market knowledge are fully considered, thereby improving the quality, consistency, and legitimacy of Union-level supervisory decisions. The possibility for national authorities to provide a reasoned opinion within a 15-day timeframe strengthens supervisory accountability and preserves the "Hub-and-Spoke" continuity while maintaining procedural efficiency.
| Text proposed by the Commission | Amendment |
|---|---|
| 2. Decision in accordance with Articles 17 (3) and (6), 17aa, 17aaa, 18(3) and (4), 22(4), Article 30 (4) and (8), Article 39h (a), (b, (f), (g), (i), Article 39i, and Article 65 and any decisions based on sectoral legislation referring to this paragraph, shall be deemed adopted unless the Board of Supervisors objects within a period to be defined in the rules of procedure but not exceeding a maximum period of ten working days, unless duly justified by the complexity of the decision and agreed by the two Boards. In emergency situations the aforementioned period shall not exceed 48 hours. | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| 2. Decision in accordance with Articles 17 (3) and (6), 17aa, 17aaa, 18(3) and (4), 22(4), Article 30 (4) and (8), Article 39h (a), (b, (f), (g), (i), Article 39i, and Article 65 and any decisions based on sectoral legislation referring to this paragraph, shall be deemed adopted unless the Board of Supervisors objects within a period to be defined in the rules of procedure but not exceeding a maximum period of ten working days, unless duly justified by the complexity of the decision and agreed by the two Boards. In emergency situations the aforementioned period shall not exceed 48 hours. | 2. Decision in accordance with Articles 8a, 8aa, 17 (3) and (6), 17aa, 17aaa, 18(3) and (4), 22(4), Article 30 (4) and (8), Article 39h (a), (b, (f), (g), (i), and (l), Article 39i, and Article 65, supervisory decisions based on sectoral legislation concerning the registration, the recognition or the authorisation of a financial market participant or the withdrawal thereof and those decisions directly referring to this paragraph, shall be deemed adopted unless the Board of Supervisors objects within a period to be defined in the rules of procedure but not exceeding a maximum period of ten working days. Such period may be extended once, in duly justified and particularly complex cases, by approval of a majority of the voting members of the Board of Supervisors, for an additional period not exceeding ten working days. In emergency situations the aforementioned period shall not exceed 48 hours. |
The amendment clarifies the scope of the non-objection procedure by specifying that it should cover also decisions adopted by the Executive Board pursuant to Article 8a concerning cooperation arrangements, Article 39h (l), given the discretionary nature of such supervisory measures, as well as the supervisory decisions adopted by the Executive Board based on sectoral legislation, such as the authorisation of a regulated market, the withdrawal of such authorization, and other decisions with significant impact on supervised entities or on the orderly functioning of financial markets. This clarification strengthens legal certainty and ensures that the Board of Supervisors can effectively exercise its oversight role in relation to decisions that may have significant regulatory, supervisory or market consequences, while preserving the efficiency of ESMA’s decision-making process. Lastly, to ensure legal clarity, the procedure to grant an extension of the period in which the Board of Supervisors may object decisions adopted by the Executive Board is clarified directly by the Regulation. Article 8b is added in the list of decisions subject to the non-objection procedure. This ensures that any binding decisions taken by ESMA within the Hub-and-Spoke framework (Phase 1) or decisions regarding the transition of entities (Phase 2) are not shielded from oversight by the Board of Supervisors.
| Text proposed by the Commission | Amendment |
|---|---|
| 2. Decision in accordance with Articles 17 (3) and (6), 17aa, 17aaa, 18(3) and (4), 22(4), Article 30 (4) and (8), Article 39h (a), (b, (f), (g), (i), Article 39i, and Article 65 and any decisions based on sectoral legislation referring to this paragraph, shall be deemed adopted unless the Board of Supervisors objects within a period to be defined in the rules of procedure but not exceeding a maximum period of ten working days, unless duly justified by the complexity of the decision and agreed by the two Boards. In emergency situations the aforementioned period shall not exceed 48 hours. | 2. Decision in accordance with Articles 17 (3) and (6), 17aa, 17aaa, 18(3) and (4), 22(4), Article 30 (4) and (8), Article 39h (a), (b, (f), (g), (i), Article 39i, and Article 65 and any decisions based on sectoral legislation referring to this paragraph, shall be deemed adopted unless the Board of Supervisors objects within a period to be defined in the rules of procedure but not exceeding a maximum period of ten working days, unless duly justified by the complexity of the decision and agreed by the two Boards. In emergency situations the aforementioned period shall not exceed 48 hours. This procedure shall also apply to all material supervisory decisions with cross-border implications, and in such case the Executive Board shall provide complete documentation and statement of reasons to the Board of Supervisors at the time of notification. |
| Text proposed by the Commission | Amendment |
|---|---|
| 2. Decision in accordance with Articles 17 (3) and (6), 17aa, 17aaa, 18(3) and (4), 22(4), Article 30 (4) and (8), Article 39h (a), (b, (f), (g), (i), Article 39i, and Article 65 and any decisions based on sectoral legislation referring to this paragraph, shall be deemed adopted unless the Board of Supervisors objects within a period to be defined in the rules of procedure but not exceeding a maximum period of ten working days, unless duly justified by the complexity of the decision and agreed by the two Boards. In emergency situations the aforementioned period shall not exceed 48 hours. | 2. Decision in accordance with Articles 17 (3) and (6), 17aa, 17aaa, 18(3) and (4), 22(4), Article 30 (4) and (8), Article 39h (a), (b, (f), (g), (i), Article 39i, and Article 65 and any decisions based on sectoral legislation referring to this paragraph, shall be deemed adopted unless the Board of Supervisors objects within a period to be defined in the rules of procedure but not exceeding a maximum period of ten working days, unless duly justified by the complexity of the decision and agreed by the two Boards. In cases of emergency, decisions of the Executive Board shall take effect immediately, without prejudice to the right of the supervisory authorities council to request an ex post review thereof, under the conditions set out in the internal rules of procedure; |
| Text proposed by the Commission | Amendment |
|---|---|
| 2. Decision in accordance with Articles 17 (3) and (6), 17aa, 17aaa, 18(3) and (4), 22(4), Article 30 (4) and (8), Article 39h (a), (b, (f), (g), (i), Article 39i, and Article 65 and any decisions based on sectoral legislation referring to this paragraph, shall be deemed adopted unless the Board of Supervisors objects within a period to be defined in the rules of procedure but not exceeding a maximum period of ten working days, unless duly justified by the complexity of the decision and agreed by the two Boards. In emergency situations the aforementioned period shall not exceed 48 hours. | 2. Decisions in respect of peer reviews, cooperation arrangements, and intervention measures shall be deemed adopted where the Board of Supervisors approves within a period to be defined in the rules of procedure but not exceeding a maximum period of ten working days, unless duly justified by the complexity of the decision and agreed by the two Boards. In emergency situations the aforementioned period shall not exceed 48 hours. |
| Text proposed by the Commission | Amendment |
|---|---|
| 2. Decision in accordance with Articles 17 (3) and (6), 17aa, 17aaa, 18(3) and (4), 22(4), Article 30 (4) and (8), Article 39h (a), (b, (f), (g), (i), Article 39i, and Article 65 and any decisions based on sectoral legislation referring to this paragraph, shall be deemed adopted unless the Board of Supervisors objects within a period to be defined in the rules of procedure but not exceeding a maximum period of ten working days, unless duly justified by the complexity of the decision and agreed by the two Boards. In emergency situations the aforementioned period shall not exceed 48 hours. | 2. Decision in accordance with Articles 39h, Article 39i, and Article 65 and any decisions based on sectoral legislation referring to this paragraph, shall be deemed adopted unless the Board of Supervisors objects within a period to be defined in the rules of procedure but not exceeding a maximum period of ten working days, unless duly justified by the complexity of the decision and agreed by the two Boards. In emergency situations the aforementioned period shall not exceed 48 hours. |
Any references to convergence tools and powers should be deleted, since these functions should fall within the remit of the Board of Supervisors. Furthermore, Article 39h should be included in its entirety to guarantee that the non-objection mechanism applies to all supervisory decisions that have legal consequences.
| Text proposed by the Commission | Amendment |
|---|---|
| 2. Decision in accordance with Articles 17 (3) and (6), 17aa, 17aaa, 18(3) and (4), 22(4), Article 30 (4) and (8), Article 39h (a), (b, (f), (g), (i), Article 39i, and Article 65 and any decisions based on sectoral legislation referring to this paragraph, shall be deemed adopted unless the Board of Supervisors objects within a period to be defined in the rules of procedure but not exceeding a maximum period of ten working days, unless duly justified by the complexity of the decision and agreed by the two Boards. In emergency situations the aforementioned period shall not exceed 48 hours. | 2. Decision in accordance with Article 39h, Article 39i, and Article 65 and any decisions based on sectoral legislation referring to this paragraph, shall be deemed adopted unless the Board of Supervisors objects within a period to be defined in the rules of procedure but not exceeding a maximum period of ten working days, unless duly justified by the complexity of the decision and agreed by the two Boards. In emergency situations the aforementioned period shall not exceed 48 hours. |
Agendas and documents should be provided promptly to give the Board sufficient information and time to exercise its objection rights effectively.
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| 2. Decision in accordance with Articles 17 (3) and (6), 17aa, 17aaa, 18(3) and (4), 22(4), Article 30 (4) and (8), Article 39h (a), (b, (f), (g), (i), Article 39i, and Article 65 and any decisions based on sectoral legislation referring to this paragraph, shall be deemed adopted unless the Board of Supervisors objects within a period to be defined in the rules of procedure but not exceeding a maximum period of ten working days, unless duly justified by the complexity of the decision and agreed by the two Boards. In emergency situations the aforementioned period shall not exceed 48 hours. | 2. Decision in accordance with Articles 10, 15, 15a, 16, 16a, 17 (2), (3) and (6), 17aa, 17aaa, 18(3) and (4), 22(4), Article 30 (4) and (8), Article 39h (a), (b, (f), (g), (i), Article 39i, and Article 65 and any decisions based on sectoral legislation referring to this paragraph, shall be deemed adopted unless the Board of Supervisors objects with a two third majority within a period to be defined in the rules of procedure but not exceeding a maximum period of 5 working days, unless duly justified by the complexity of the decision and agreed by the two Boards. In emergency situations the aforementioned period shall not exceed 48 hours. |
| Text proposed by the Commission | Amendment |
|---|---|
| Executive Board agendas and documents shall be provided to the Board of Supervisors as soon as they are available, enabling prior discussion of relevant items. |
References to convergence tools and powers should be deleted, as these should be allocated to the Board of Supervisors. Article 39h should also be covered in full to ensure that the non-objection mechanism applies to all relevant supervisory decisions with legal effects.
| Text proposed by the Commission | Amendment |
|---|---|
| 2a. Executive Board agendas and documents shall be provided to the Board of Supervisors as soon as they are available, enabling prior discussion of relevant items. |
Agendas and relevant documentation should also be provided sufficiently in advance to allow the Board to assess decisions properly and exercise its objection rights effectively.
| Text proposed by the Commission | Amendment |
|---|---|
| 3. The representative of the Commission shall have the right to vote on matters referred to in Article 63. In the event that the Commission raises serious concerns on a decision proposal presented to the Executive Board on matters related to the Financial Framework Regulation and the Staff Regulations of Officials and the Conditions of Employment of Other Servants of the European Union, the Executive Board shall postpone the adoption of the decision. Within 15 days, the Executive Board shall re-examine and adopt it, possibly amended, in second reading with a two-thirds majority, including the Commission representative where applicable. The Executive Board shall adopt and make public its rules of procedure.; | 3. The representative of the Commission shall have the right to vote on matters referred to in Article 63. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| 3. The representative of the Commission shall have the right to vote on matters referred to in Article 63. In the event that the Commission raises serious concerns on a decision proposal presented to the Executive Board on matters related to the Financial Framework Regulation and the Staff Regulations of Officials and the Conditions of Employment of Other Servants of the European Union, the Executive Board shall postpone the adoption of the decision. Within 15 days, the Executive Board shall re-examine and adopt it, possibly amended, in second reading with a two-thirds majority, including the Commission representative where applicable. The Executive Board shall adopt and make public its rules of procedure.; | 3. The representative of the Commission shall have the right to vote on matters referred to in Article 63. The executive board shall adopt and make public its rules of procedure. |
| Text proposed by the Commission | Amendment |
|---|---|
| 3a. The coordination groups shall not take individual supervisory decisions or change the allocation of powers between the Authority and the competent authorities laid down in this Regulation or in other Union acts. Their activity shall be limited to the exchange of information, identification of supervisory divergences, drawing up of common priorities and support for supervisory convergence. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| The Executive Board, on its own initiative, at the request of the Chairperson or where specified in other Union acts, may establish internal committees for specific tasks attributed to it. The Executive Board may provide for the delegation of certain clearly defined tasks and decisions to internal committees, to the Executive Director or to the Chairperson. | The Executive Board, on its own initiative, at the request of the Chairperson or where specified in other Union acts, may establish internal committees for specific tasks attributed to it. The Executive Board may provide for the delegation of certain clearly defined tasks and decisions to internal committees, to the Executive Director, to an individual Executive Board Member or to the Chairperson. |
| Text proposed by the Commission | Amendment |
|---|---|
| The members of the Executive Board shall act independently and objectively in the sole interest of the Union as a whole and shall neither seek nor take instructions from the Union institutions or bodies, from any government or from any other public or private body. | The members of the Executive Board shall act independently and objectively in the sole interest of the Union as a whole and shall neither seek nor take instructions from the Union institutions or bodies, from any government or from any other public or private body, or in any way place national or industry interests above Union interests. |
| Text proposed by the Commission | Amendment |
|---|---|
| During a period of 18 months after ceasing to hold office, the former Executive Board members, including the Chair of the Authority, shall be prohibited from engaging in a gainful occupational activity with: | During a period of 36 months after ceasing to hold office, the former Executive Board members, including the Chair of the Authority, shall be prohibited from engaging in a gainful occupational activity with: |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| (aa) a consultancy, law firm, trade association, or any other professional intermediary representing, advising, or lobbying on behalf of an entity directly supervised by the Authority; |
| Text proposed by the Commission | Amendment |
|---|---|
| 2. The Executive Board may examine, give an opinion and make a proposal on all matters to be decided by the Board of Supervisors. | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| 3. The Executive Board may ask the Board of Supervisors for an opinion on all supervisory matters. The Board of Supervisors shall provide its opinion at its next meeting following the request or as agreed with the Executive Board. | deleted |
To the extent that supervisory task should remain with the Board of supervisors, this paragraph should be deleted.
Johan Van Overtveldt, Giovanni Crosetto, Francesco Ventola, Mariateresa Vivaldini, Marco Squarta, Denis Nesci
| Text proposed by the Commission | Amendment |
|---|---|
| 3. The Executive Board may ask the Board of Supervisors for an opinion on all supervisory matters. The Board of Supervisors shall provide its opinion at its next meeting following the request or as agreed with the Executive Board. | 3. The Executive Board may ask the Board of Supervisors for an opinion on all supervisory matters. The Board of Supervisors shall provide its opinion at its next meeting following the request or as agreed with the Executive Board. The Board of Supervisors, acting on its own initiative, may also render an opinion in respect of any draft decision of the Executive Board, including decisions addressed to individual financial market participants, and in particular those bearing significant implications at national level. The Executive Board shall take due account of any such opinion in the adoption of its decision. |
| Text proposed by the Commission | Amendment |
|---|---|
| 3. The Executive Board may ask the Board of Supervisors for an opinion on all supervisory matters. The Board of Supervisors shall provide its opinion at its next meeting following the request or as agreed with the Executive Board. | 3. The Executive Board may ask the Board of Supervisors for an opinion on all supervisory matters. The Board of Supervisors shall provide its opinion at its next meeting following the request or as agreed with the Executive Board. The Board of Supervisors may also give an opinion on its own initiative on any draft decision of the Executive Board, including decisions addressed to individual financial market participants, in particular those with significant national implications. The Executive Board shall take due account of such opinions when adopting its decision. |
The amendment allows the Board of Supervisors to issue opinions to the Executive Board on its own initiative. This would ensure that the Board of Supervisors can participate in the Executive Board’s decision-making process.
| Text proposed by the Commission | Amendment |
|---|---|
| 3. The Executive Board may ask the Board of Supervisors for an opinion on all supervisory matters. The Board of Supervisors shall provide its opinion at its next meeting following the request or as agreed with the Executive Board. | 3. The Executive Board may ask the Board of Supervisors for an opinion on all supervisory matters. The Board of Supervisors shall provide its non-binding opinion at its next meeting following the request or as agreed with the Executive Board. The failure of the Board of Supervisors to issue an opinion shall not prevent the Executive Board from adopting any decision on supervisory matters. |
| Text proposed by the Commission | Amendment |
|---|---|
| 4. The Executive Board shall adopt decisions in accordance with Chapter IIa and carry out supervisory tasks in relation to individual financial market participants under the Authority’s supervision pursuant to this Regulation and other Union acts. | deleted |
To the extent that supervisory task should remain with the Board of supervisors, this paragraph should be deleted.
| Text proposed by the Commission | Amendment |
|---|---|
| 5. The Executive Board shall adopt the decisions pursuant to Article 9(5), Article 17(3) and (6), Article 17aa, Article 17aaa, Article18(3) and (4), Article19, Article 19a (1) and (4), Article 22(4), and Article 30. In addition, the Executive Board shall carry out tasks or take measures in relation to individual national competent authorities and individual financial market participants which are not under the Authority’s supervision, where specified in this Regulation or other Union acts. . | deleted |
| By derogation to the first sub-paragraph in cases set out in Regulation (EU) 2021/23 the decisions based on Article 19 shall be taken by the Board of Supervisors. |
To the extent that supervisory task should remain with the Board of supervisors, this paragraph should be deleted.
| Text proposed by the Commission | Amendment |
|---|---|
| 5. The Executive Board shall adopt the decisions pursuant to Article 9(5), Article 17(3) and (6), Article 17aa, Article 17aaa, Article18(3) and (4), Article19, Article 19a (1) and (4), Article 22(4), and Article 30. In addition, the Executive Board shall carry out tasks or take measures in relation to individual national competent authorities and individual financial market participants which are not under the Authority’s supervision, where specified in this Regulation or other Union acts. . | deleted |
| By derogation to the first sub-paragraph in cases set out in Regulation (EU) 2021/23 the decisions based on Article 19 shall be taken by the Board of Supervisors. |
Given their purpose of promoting consistent supervisory approaches and practices across the Union, convergence tools and powers should be exercised by the Board of Supervisors. Their effective use requires the direct and inclusive involvement of all NCAs and NCBs.
| Text proposed by the Commission | Amendment |
|---|---|
| The Executive Board shall adopt the decisions pursuant to Article 9(5), Article 17(3) and (6), Article 17aa, Article 17aaa, Article18(3) and (4), Article19, Article 19a (1) and (4), Article 22(4), and Article 30. In addition, the Executive Board shall carry out tasks or take measures in relation to individual national competent authorities and individual financial market participants which are not under the Authority’s supervision, where specified in this Regulation or other Union acts. . | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| The Executive Board shall adopt the decisions pursuant to Article 9(5), Article 17(3) and (6), Article 17aa, Article 17aaa, Article18(3) and (4), Article19, Article 19a (1) and (4), Article 22(4), and Article 30. In addition, the Executive Board shall carry out tasks or take measures in relation to individual national competent authorities and individual financial market participants which are not under the Authority’s supervision, where specified in this Regulation or other Union acts. . | The Executive Board shall carry out tasks or take measures in relation to individual national competent authorities and individual financial market participants which are not under the Authority’s supervision, where specified in this Regulation or other Union acts. . |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| The Executive Board shall adopt the decisions pursuant to Article 9(5), Article 17(3) and (6), Article 17aa, Article 17aaa, Article18(3) and (4), Article19, Article 19a (1) and (4), Article 22(4), and Article 30. In addition, the Executive Board shall carry out tasks or take measures in relation to individual national competent authorities and individual financial market participants which are not under the Authority’s supervision, where specified in this Regulation or other Union acts. . | The Executive Board shall adopt the decisions pursuant to Article 9, Article 10, Article 15, Article 15a, Article 16, Article 16a, Article 17(2), (3) and (6), Article 17aa, Article 17aaa, Article18(3) and (4), Article19, Article 19a (1), (4) and (5a), Article 19aa, Article 22(4), and Article 30. In addition, the Executive Board shall carry out tasks or take measures in relation to individual national competent authorities and individual financial market participants which are not under the Authority’s supervision, where specified in this Regulation or other Union acts. . |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| 3. The Chairperson’s term of office shall be 5 years and may be extended once for two years.; | 3. The Chairperson’s term of office shall be 4 years and may be extended once for 4 years.; |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| The Council, acting on a proposal from the Board of Supervisors and with the assistance of the Commission, and taking into account the evaluation referred to in the first subparagraph, may extend the term of office of the Chairperson once for two years.; | The Council, acting on a proposal from the Board of Supervisors and with the assistance of the Commission, and taking into account the evaluation referred to in the first subparagraph, may extend the term of office of the Chairperson once for four years.; |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| 6. No individual may serve more than 7 years in which ever role of Chair, Executive Director, or independent member of the Executive Board. Prior office in one role shall count toward the term limit for another role regardless of the order of the positions held. | 6. No individual may serve more than 8 years in which ever role of Chair, Executive Director, or independent member of the Executive Board. Prior office in one role shall count toward the term limit for another role regardless of the order of the positions held. |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| The Executive Director’s term of office shall be 5 years and may be extended once for two years.; | The Executive Director’s term of office shall be 4 years and may be extended once for 4 years.; |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| The Board of Supervisors, taking into account the evaluation referred to in the first subparagraph, may extend the term of office of the Executive Director once for two years.’, | The Board of Supervisors, taking into account the evaluation referred to in the first subparagraph, may extend the term of office of the Executive Director once for 4 years.’, |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| 6. No individual may serve more than 7 years in which ever role of Chair, Executive Director, or independent member of the Executive Board. Prior office in one role shall count toward the term limit for another role regardless of the order of the positions held.; | 6. No individual may serve more than 8 years in which ever role of Chair, Executive Director, or independent member of the Executive Board. Prior office in one role shall count toward the term limit for another role regardless of the order of the positions held.; |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| 1. The Executive Director shall be in charge of overseeing day-to-day operations of the Authority and ensuring its objectives and decisions are duly implemented. It shall assist the Executive Board and the Board of Supervisors in setting the strategic direction for the Authority. The Executive Director shall prepare the work of the Executive Board on matters specified in Article 46a(7). | 1. The Executive Director shall be in charge of overseeing day-to-day operations of the Authority and ensuring its objectives and decisions are duly implemented. It shall assist the Executive Board and the Board of Supervisors in setting the strategic direction for the Authority. The Executive Director shall prepare the work of the Executive Board on matters specified in Article 46a(8). |
| Present text | Amendment |
|---|---|
| (-a) point (a) is replaced by the following: | |
| (a) obligatory contributions from the national public authorities competent for the supervision of financial market participants which shall be made in accordance with a formula based on the weighting of votes set out in Article 3(3) of Protocol (No 36) on transitional provisions. For the purposes of this Article, Article 3(3) of Protocol (No 36) on transitional provisions shall continue to apply beyond the deadline of 31 October 2014 therein established; | "(a) obligatory contributions from the national public authorities competent for the supervision of financial market participants which shall be made in accordance with a formula based on the relative size of the national financial market of each Member State. The Commission shall adopt a delegated act in accordance with Article 75a specifying the methodology for calculating the contribution key, including the relevant indicators or combination of indicators reflecting the size of national financial markets, any weighting between indicators and any transitional arrangements. Until the delegated act referred to in this point applies, contributions shall be provided in accordance with a formula based on the weighting of votes provided for in Article 3(3) of Protocol (No 36) on transitional provisions." |
The allocation of mandatory contributions from national competent authorities to the ESMA budget should reflect the size and structure of Member States’ financial markets, rather than the voting weights under Protocol No 36. A contribution key based on objective market indicators, such as market capitalisation, trading volumes, fund net asset value and the number of supervised entities, would better align contributions with market size, the benefits from ESMA’s activities and the capacity to contribute.
| Text proposed by the Commission | Amendment |
|---|---|
| (50a) the following article is inserted: | |
| Article 63a | |
| 'Multiannual budget cap for administrative expenditure | |
| 1. Without prejudice to the annual budgetary procedure referred to in Article 63, the Commission shall set a multiannual cap on the administrative expenditure of the Authority, covering the multiannual financial programming period referred to in Article 63(1). | |
| 2. The Commission is empowered to adopt delegated acts to amend this Regulation by adjusting the multiannual cap referred to in paragraph 1 whenever the mandate of the Authority is expanded. | |
| 3. In its annual report referred to in Article 43(5), the Authority shall demonstrate how its budget has been implemented during the relevant financial year and, where applicable, how any operating surplus has been redistributed among the entities under its supervision.'; |
The proposed strengthening of ESMA's executive functions should be accompanied by equally robust mechanisms for budgetary oversight and expenditure control. This amendment therefore introduces a multiannual budget cap for ESMA's administrative expenditure. Such a cap respects ESMA's flexibility for annual budget planning, supervisory effectiveness and resource allocation, while ensuring budgetary discipline. The cap is set by the Commission. Through its annual report, ESMA should demonstrate how its budget was spent and how any operating surplus is redistributed amongst the entities under supervision. This mechanism strengthens confidence that the expansion of ESMA's responsibilities is matched by sound financial governance.
| Text proposed by the Commission | Amendment |
|---|---|
| 2. The Executive Board, in agreement with the Commission, shall adopt the necessary implementing measures, in accordance with the arrangements provided for in Article 110 of the Staff Regulations.; | 2. The Executive Board, in agreement with the Commission, shall adopt the necessary implementing measures, in accordance with the arrangements provided for in Article 110 of the Staff Regulations. These implementing measures should prohibit staff from working for an entity in respect of which they have exercised direct or indirect supervisory responsibilities for a period of two years after leaving the Authority. The implementing measures should be proportionate and include stricter rules for management positions in order to avoid any conflict of interest. ; |
Eero Heinäluoma, Francisco Assis, Jonás Fernández, César Luena, Evelyn Regner, Aurore Lalucq, Nikos Papandreou, Claire Fita
| Text proposed by the Commission | Amendment |
|---|---|
| (58a) The following article is inserted: | |
| ‘Article 80a | |
| By 12 months after date of entry into force of this Regulation the European Commission shall evaluate the rationale for extending the supervisory powers, including the enhanced decision-making powers and governance structure set out in this Regulation to the European Insurance and Occupational Pensions Authority. As part of this evaluation, the Commission shall assess at least the following: | |
| (a) the extent to which current supervisory and regulatory fragmentation in the insurance and pension sectors act as a barrier to the cross-border provision of financial services and inhibits the objectives of the Capital Markets Union and market integration; | |
| (b) the appropriateness of entrusting EIOPA with direct supervisory responsibilities for certain types of insurance undertakings, reinsurance undertakings, institutions for occupational retirement provision, providers of pan-European products and insurance intermediaries; | |
| (c) the corresponding changes needed in EIOPA’s supervisory powers, decision-making powers and governance structures and the level of resources required for the Authority to carry out these responsibilities; | |
| Following the evaluation, the Commission shall, where appropriate, submit a legislative proposal to ensure that the European System of Financial Supervision operates on a consistent basis, including by aligning the powers of the European Supervisory Authorities.’ |
| Text proposed by the Commission | Amendment |
|---|---|
| (a) the following points (1a) and (1b) are inserted: | deleted |
| ‘(1a) ‘significant CCP’ means a CCP authorised under Article 14 that qualifies as significant pursuant to Article 22a(1); | |
| (1b) ‘less significant CCP’ means a CCP authorised under Article 14 that is not a significant CCP;;’ |
| Text proposed by the Commission | Amendment |
|---|---|
| (13) ‘competent authority’ means the competent authority referred to in the legislation referred to in point (8) of this Article, the competent authority referred to in Article 10(5), the national competent authority or, the CCP’s competent authority;; | (13) ‘competent authority’ means ESMA |
| (This amendment applies throughout the text) |
| Text proposed by the Commission | Amendment |
|---|---|
| (13) ‘competent authority’ means the competent authority referred to in the legislation referred to in point (8) of this Article, the competent authority referred to in Article 10(5), the national competent authority or, the CCP’s competent authority;; | (13) ‘competent authority’ means ESMA; |
| Text proposed by the Commission | Amendment |
|---|---|
| (13) ‘competent authority’ means the competent authority referred to in the legislation referred to in point (8) of this Article, the competent authority referred to in Article 10(5), the national competent authority or, the CCP’s competent authority;; | (13) ‘competent authority’ means ESMA; |
| Text proposed by the Commission | Amendment |
|---|---|
| (c) the following points (13a), (13b) and (13c) are inserted: | deleted |
| ‘(13a) ‘CCP’s competent authority’ means the national competent authority for less significant CCPs or ESMA for significant CCPs; | |
| (13b) ‘national competent authority’ means the national authority of the Member State in which a CCP is established, designated pursuant to Article 22(1); | |
| (13c) ‘relevant authority’ means any authority referred to in Article 22d;;’ |
| Text proposed by the Commission | Amendment |
|---|---|
| (13a) ‘CCP’s competent authority’ means the national competent authority for less significant CCPs or ESMA for significant CCPs; | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| For the purposes of point (c) of the first subparagraph, before the request referred to in the first subparagraph, ESMA shall consult the ESRB and the CCP’s competent authorities.; | For the purposes of point (c) of the first subparagraph, before the request referred to in the first subparagraph, ESMA shall consult the ESRB; |
| Text proposed by the Commission | Amendment |
|---|---|
| For the purposes of point (c) of the first subparagraph of paragraph 1 of this Article, ESMA shall consult the ESRB and the CCP’s competent authorities.; | For the purposes of point (c) of the first subparagraph of paragraph 1 of this Article, ESMA shall consult the ESRB ; |
| Text proposed by the Commission | Amendment |
|---|---|
| Where the CCP fails to provide a written response to the trading venue within the time limit referred to in paragraph 3, ESMA may notify the CCP and request additional information from the CCP. | Where the CCP fails to provide a written response to the trading venue within the time limit referred to in paragraph 3, or where there is no indication that the conditions for denial of request as referred to in paragraph 7 are met, ESMA may issue a decision requiring that CCP to grant access to its services within one month of the notification of that decision. |
| Text proposed by the Commission | Amendment |
|---|---|
| Where there is no indication that the conditions for denial of request as referred to in paragraph 7 are met, ESMA may issue a decision requiring that CCP to grant access to its services within one month of the notification of that decision. | deleted |
| Present text | Amendment |
|---|---|
| (4a) Article 7a is amended as follows: | |
| (a) paragraph 1 is replaced by the following: | |
| 1.Financial counterparties and non-financial counterparties that are subject to the clearing obligation in accordance with Articles 4a and 10 on 24 December 2024, or that become subject to the clearing obligation thereafter, and that exceed the clearing threshold in any of the categories of derivative contracts referred to in paragraph 6 of this Article, in an individual category listed in that paragraph or on aggregate across all categories listed in that paragraph, shall hold, for those categories of derivative contracts referred to in paragraph 6 of this Article, at least one active account at a CCP authorised under Article 14, where clearing services for the derivatives concerned are provided by that CCP, and clear at least a representative number of trades in that active account. | 1. Financial counterparties and non-financial counterparties that are subject to the clearing obligation in accordance with Articles 4a and 10 on 24 December 2024, or that become subject to the clearing obligation thereafter, and that exceed the clearing threshold in any of the categories of derivative contracts referred to in paragraph 6 of this Article, in an individual category listed in that paragraph or on aggregate across all categories listed in that paragraph, shall hold, for those categories of derivative contracts referred to in paragraph 6 of this Article, at least one active account at a CCP authorised under Article 14, where clearing services for the derivatives concerned are provided by that CCP, and clear at least 40% of its derivative contracts in that active account by [insert date one years following entry into force of this Regulation]. |
| Where a financial counterparty or a non-financial counterparty becomes subject to the obligation to hold an active account in accordance with the first subparagraph, that financial counterparty or non-financial counterparty shall notify ESMA and its relevant competent authority thereof and shall establish such an active account within six months of becoming subject to that obligation. |
| Present text | Amendment |
|---|---|
| (b) paragraph 3, point (d), and paragraph 4 are deleted. |
| Present text | Amendment |
|---|---|
| (c) paragraph 9, first and second subparagraphs are replaced by the following: | |
| 9. Competent authorities shall monitor and calculate on an entity, group and aggregate average basis the level of activity in the derivative contracts referred to in paragraph 6 of this Article and shall transmit that information to the Joint Monitoring Mechanism. | 9. ESMA shall monitor and calculate on an entity, group and aggregate average basis the level of activity in the derivative contracts referred to in paragraph 6 of this Article and shall transmit that information to the Joint Monitoring Mechanism. |
| Without prejudice to the right of Member States to provide for and impose criminal penalties, where a financial or non-financial counterparty is found to be in breach of its obligations under this Article, its competent authority shall, by decision, impose administrative penalties or periodic penalty payments, or request competent judicial authorities to impose penalties or periodic penalty payments, in order to compel that counterparty to put an end to its infringement. | Without prejudice to the right of Member States to provide for and impose criminal penalties, where a financial or non-financial counterparty is found to be in breach of its obligations under this Article, ESMA shall, by decision, impose administrative penalties or periodic penalty payments, or request competent judicial authorities to impose penalties or periodic penalty payments, in order to compel that counterparty to put an end to its infringement. |
| Text proposed by the Commission | Amendment |
|---|---|
| (4b) Article 7b is replaced by the following: | |
| Article 7b | Article 7b |
| Monitoring of the active account obligation | Monitoring of the active account obligation |
| 1. A financial counterparty or a non-financial counterparty that is subject to the obligation referred to in Article 7a shall calculate its activities and risk exposures in the categories of derivative contracts referred to in paragraph 6 of that Article, and report every six months to its competent authority the information necessary to assess compliance with that obligation. The competent authority shall transmit that information to ESMA without undue delay. | 1. A financial counterparty or a non-financial counterparty that is subject to the obligation referred to in Article 7a shall calculate its activities and risk exposures in the categories of derivative contracts referred to in paragraph 6 of that Article, and report every six months to ESMA and its competent authority the information necessary to assess compliance with that obligation. ESMA shall audit the reported information and conduct on-site inspections to verify the operational reality of the active accounts in accordance with Article 7a. The competent authority shall transmit that information to ESMA without undue delay. |
| The counterparties referred to in the first subparagraph of this paragraph shall use the information reported under Article 9 where relevant. The reporting shall also include a demonstration to the competent authority that the legal documentation, IT connectivity and internal processes associated to the active accounts are in place. | The counterparties referred to in the first subparagraph of this paragraph shall use the information reported under Article 9 where relevant. The reporting shall also include a demonstration to the competent authority that the legal documentation, IT connectivity and internal processes associated to the active accounts are in place. |
| 2. Financial counterparties and non-financial counterparties subject to the obligation referred to in paragraph 1 of this Article which hold, for the derivative contracts referred to in Article 7a(6), accounts at a Tier 2 CCP in addition to active accounts, shall also report every six months to their competent authority information on the resources and systems that they have in place to ensure that the condition referred to in Article 7a(3), point (b), is met. The competent authority shall transmit that information to ESMA without undue delay. | 2. Financial counterparties and non-financial counterparties subject to the obligation referred to in paragraph 1 of this Article which hold, for the derivative contracts referred to in Article 7a(6), accounts at a Tier 2 CCP in addition to active accounts, shall also report every six months to ESMA and their competent authority information on the resources and systems that they have in place to ensure that the condition referred to in Article 7a(3), point (b), is met. The competent authority shall transmit that information to ESMA without undue delay. |
| 3. The competent authorities referred to in the first paragraph of this Article shall ensure that the financial and non-financial counterparties subject to the obligation referred to in Article 7a take the appropriate steps to fulfil that obligation, including using their supervisory powers under their sectoral legislation, where appropriate, or imposing penalties as referred to in Article 12 where necessary. Competent authorities may require more frequent reporting in particular where, based on the information reported, insufficient steps have been taken to meet the requirements set out in this Regulation as regards active accounts. | 3. ESMA shall ensure that the financial and non-financial counterparties subject to the obligation referred to in Article 7a take the appropriate steps to fulfil that obligation, including using their supervisory powers under their sectoral legislation, where appropriate, or imposing penalties as referred to in Article 12 where necessary. ESMA and competent authorities may require more frequent reporting in particular where, based on the information reported, insufficient steps have been taken to meet the requirements set out in this Regulation as regards active accounts. |
| Text proposed by the Commission | Amendment |
|---|---|
| Where the trading venue fails to provide a written response to the CCP within the time limit referred to in paragraph 3, ESMA may notify the trading venue and request additional information. | Where the trading venue fails to provide a written response to the CCP within the time limit referred to in paragraph 3 or where there is no indication that the conditions for denial of request as referred to in paragraph 7 are met, ESMA may issue a decision requiring that trading venue to grant access to its services within one month of the notification of the decision. |
| Text proposed by the Commission | Amendment |
|---|---|
| Where there is no indication that the conditions for denial of request as referred to in paragraph 7 are met, ESMA may issue a decision requiring that trading venue to grant access to its services within one month of the notification of the decision. | deleted |
| Present text | Amendment |
|---|---|
| (5a) Article 9 is amended as follows: | |
| (a)the title and paragraph 1 are replaced by the following: | |
| ‘Article 9 | ‘Article 9 |
| Reporting obligation | Reporting obligation for OTC derivative contracts |
| 1. Counterparties and CCPs shall ensure that the details of any derivative contract they have concluded and of any modification or termination of the contract are reported in accordance with paragraphs 1a to 1f of this Article to a trade repository registered in accordance with Article 55 or recognised in accordance with Article 77. The details shall be reported no later than the working day following the conclusion, modification or termination of the contract. | 1. Counterparties and CCPs shall ensure that the details of an OTC derivative contract they have concluded and of any modification or termination of the contract are reported in accordance with paragraphs 1a to 1f of this Article to a trade repository registered in accordance with Article 55 or recognised in accordance with Article 77. The details shall be reported no later than the working day following the conclusion, modification or termination of the contract. |
| Financial counterparties, non-financial counterparties and CCPs subject to the reporting obligation shall put in place appropriate procedures and arrangements to ensure the quality of the data they report in accordance with this Article. | Financial counterparties, non-financial counterparties and CCPs subject to the reporting obligation shall put in place appropriate procedures and arrangements to ensure the quality of the data they report in accordance with this Article. |
| Where a non-financial counterparty that is part of a group meets the conditions set out in Article 10(1), second subparagraph, and benefits from the exemption set out in the fifth subparagraph of this paragraph, the Union parent undertaking of that non-financial counterparty shall report the net aggregate positions by class of derivatives of that non-financial counterparty to its competent authority on a weekly basis. For a counterparty established in the Union, the competent authority of the parent undertaking shall share the information with ESMA and with the competent authority of that counterparty. | Where a non-financial counterparty that is part of a group meets the conditions set out in Article 10(1), second subparagraph, and benefits from the exemption set out in the fifth subparagraph of this paragraph, the Union parent undertaking of that non-financial counterparty shall report the net aggregate positions by class of OTC derivatives of that non-financial counterparty to its competent authority on a weekly basis. For a counterparty established in the Union, the competent authority of the parent undertaking shall share the information with ESMA and with the competent authority of that counterparty. |
| The reporting obligation shall apply to derivative contracts which: | The reporting obligation shall apply to OTC derivative contracts which: |
| (a) were entered into before 12 February 2014 and remain outstanding on that date; | (a) were entered into before 12 February 2014 and remain outstanding on that date; |
| (b) were entered into on or after 12 February 2014. | (b) were entered into on or after 12 February 2014; |
| (c) have at least one party established in the Union. | |
| Notwithstanding Article 3, the reporting obligation shall not apply to derivative contracts within the same group where at least one of the counterparties is a non-financial counterparty or would be qualified as a non-financial counterparty if it were established in the Union, provided that: | Notwithstanding Article 3, the reporting obligation shall not apply to OTC derivative contracts within the same group where at least one of the counterparties is a non-financial counterparty or would be qualified as a non-financial counterparty if it were established in the Union, provided that: |
| (a) both counterparties are included in the same consolidation on a full basis; | (a) both counterparties are included in the same consolidation on a full basis; |
| (b) both counterparties are subject to appropriate centralised risk evaluation, measurement and control procedures; and | (b) both counterparties are subject to appropriate centralised risk evaluation, measurement and control procedures; and |
| (c) the parent undertaking is not a financial counterparty. | (c) the parent undertaking is not a financial counterparty. |
| Counterparties shall notify their competent authorities of their intention to apply the exemption referred to in the third subparagraph. The exemption shall be valid unless the notified competent authorities do not agree upon fulfilment of the conditions referred to in the third subparagraph within three months of the date of notification. | Counterparties shall notify their competent authorities of their intention to apply the exemption referred to in the third subparagraph. The exemption shall be valid unless the notified competent authorities do not agree upon fulfilment of the conditions referred to in the third subparagraph within three months of the date of notification. |
Centrally cleared contracts are subject to robust CCP risk management, so reporting individual transactions adds limited supervisory value. Sole OTC reporting preserves systemic risk oversight.
| Present text | Amendment |
|---|---|
| (b) paragraph 1e is replaced by the following: | |
| 1e. Counterparties and CCPs that are required to report the details of derivative contracts shall ensure that such details are reported correctly and without duplication, including where the reporting obligation has been delegated in accordance with paragraph 1f. | 1e. Counterparties and CCPs that are required to report the details of OTC derivative contracts shall ensure that such details are reported correctly and without duplication, including where the reporting obligation has been delegated in accordance with paragraph 1f. |
Centrally cleared contracts are subject to robust CCP risk management, so reporting individual transactions adds limited supervisory value. Sole OTC reporting preserves systemic risk oversight.
| Present text | Amendment |
|---|---|
| (c) paragraphs 2, 3 and 4 are replaced by the following: | |
| 2. Counterparties shall keep a record of any derivative contract they have concluded and any modification for at least five years following the termination of the contract. | 2. Counterparties shall keep a record of an OTC derivative contract they have concluded and any modification for at least five years following the termination of the contract. |
| 3. Where a trade repository is not available to record the details of a derivative contract, counterparties and CCPs shall ensure that such details are reported to ESMA. | 3. Where a trade repository is not available to record the details of an OTC derivative contract, counterparties and CCPs shall ensure that such details are reported to ESMA. |
| In this case ESMA shall ensure that all the relevant entities referred to in Article 81(3) have access to all the details of derivative contracts they need to fulfil their respective responsibilities and mandates. | In this case ESMA shall ensure that all the relevant entities referred to in Article 81(3) have access to all the details of OTC derivative contracts they need to fulfil their respective responsibilities and mandates. |
| 4. A counterparty or a CCP that reports the details of a derivative contract to a trade repository or to ESMA, or an entity that reports such details on behalf of a counterparty or a CCP shall not be considered in breach of any restriction on disclosure of information imposed by that contract or by any legislative, regulatory or administrative provision. | 4. A counterparty or a CCP that reports the details of an OTC derivative contract to a trade repository or to ESMA, or an entity that reports such details on behalf of a counterparty or a CCP shall not be considered in breach of any restriction on disclosure of information imposed by that contract or by any legislative, regulatory or administrative provision. |
| No liability resulting from that disclosure shall lie with the reporting entity or its directors or employees. | No liability resulting from that disclosure shall lie with the reporting entity or its directors or employees. |
Centrally cleared contracts are subject to robust CCP risk management, so reporting individual transactions adds limited supervisory value. Sole OTC reporting preserves systemic risk oversight.
| Present text | Amendment |
|---|---|
| (d) paragraphs 5 and 6 are replaced by the following: | |
| 5. In order to ensure consistent application of this Article, ESMA shall develop draft regulatory technical standards specifying the details and type of the reports referred to in paragraphs 1 and 3 for the different classes of derivatives. | 5. In order to ensure consistent application of this Article, ESMA shall develop draft regulatory technical standards specifying the details and type of the reports referred to in paragraphs 1 and 3 for OTC derivatives. |
| The reports referred to in paragraphs 1 and 3 shall specify at least: | The reports referred to in paragraphs 1 and 3 shall specify at least: |
| (a) the parties to the derivative contract and, where different, the beneficiary of the rights and obligations arising from it; | (a) the parties to the OTC derivative contract and, where different, the beneficiary of the rights and obligations arising from it; |
| (b) the main characteristics of the derivative contracts, including their type, underlying maturity, notional value, price, and settlement date. | (b) the main characteristics of the OTC derivative contracts, including their type, underlying maturity, notional value, price, and settlement date. |
| ESMA shall submit those draft regulatory technical standards to the Commission by 30 September 2012. | ESMA shall submit those draft regulatory technical standards to the Commission by 30 September 2012. |
| Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010. | Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010. |
| 6. To ensure uniform conditions of application of paragraphs 1 and 3, ESMA shall, in close cooperation with the ESCB, develop draft implementing technical standards specifying: | 6. In order to ensure uniform conditions of application of paragraphs 1 and 3, ESMA shall, in close cooperation with the ESCB, develop draft implementing technical standards specifying: |
| (a) the data standards and formats for the information to be reported, which shall include at least the following: | (a) the data standards and formats for the information to be reported, which shall include at least the following: |
| (i) global legal entity identifiers (LEIs); | (i) global legal entity identifiers (LEIs); |
| (ii) international securities identification numbers (ISINs); | (ii) international securities identification numbers (ISINs); |
| (iii) unique trade identifiers (UTIs); | (iii) unique trade identifiers (UTIs); |
| (b) the methods and arrangements for reporting; | (b) the methods and arrangements for reporting; |
| (c) the frequency of the reports; | (c) the frequency of the reports; |
| (d) the date by which derivative contracts are to be reported. | (d) the date by which OTC derivative contracts are to be reported. |
| In developing those draft implementing technical standards, ESMA shall take into account international developments and standards agreed upon at Union or global level, and their consistency with the reporting requirements laid down in Article 4 of Regulation (EU) 2015/236517 and Article 26 of Regulation (EU) No 600/2014. | In developing those draft implementing technical standards, ESMA shall take into account international developments and standards agreed upon at Union or global level, and their consistency with the reporting requirements laid down in Article 4 of Regulation (EU) 2015/23651a and Article 26 of Regulation (EU) No 600/2014. |
| ESMA shall submit those draft implementing technical standards to the Commission by 18 June 2020. | ESMA shall submit those draft implementing technical standards to the Commission by 18 June 2020. |
| Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) No 1095/2010. | Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) No 1095/2010.’; |
| 17 Regulation (EU) 2015/2365 of the European Parliament and of the Council of 25 November 2015 on transparency of securities financing transactions and of reuse and amending Regulation (EU) No 648/2012 (OJ L 337, 23.12.2015, p. 1). | 1a Regulation (EU) 2015/2365 of the European Parliament and of the Council of 25 November 2015 on transparency of securities financing transactions and of reuse and amending Regulation (EU) No 648/2012 (OJ L 337, 23.12.2015, p. 1). |
Centrally cleared contracts are subject to robust CCP risk management, so reporting individual transactions adds limited supervisory value. Sole OTC reporting preserves systemic risk oversight.
| Text proposed by the Commission | Amendment |
|---|---|
| (5a) In Article 9(1), the following subparagraph is inserted after the first subparagraph: | |
| 'The reporting obligation laid down in the first subparagraph shall be deemed to be complied with where the details of the derivative contract have been reported in accordance with Article 26a of Regulation (EU) No 600/2014.' |
Derivative contracts are frequently reportable under both EMIR and MiFIR, requiring parallel submissions of substantially identical data. This amendment ensures that a single submission under the integrated report-once framework discharges the EMIR reporting obligation, eliminating duplicative reporting. To be read in conjunction with the amendment for a proposed new Article 26a in MiFIR.
| Text proposed by the Commission | Amendment |
|---|---|
| (5b) in Article 10, a new paragraph 3a is inserted: | |
| '3a. By way of derogation from paragraph 3, for OTC derivative contracts with a remaining maturity exceeding twelve months, the non-financial counterparty shall, for the purposes of calculating the positions referred to in paragraph 1, take into account only the notional value attributable to the twelve-month period following the date of calculation, rather than the full notional value of the contract calculated as at the date of its conclusion.' |
Long-dated OTC derivatives, including virtual Power Purchase Agreements financing the low-carbon transition, currently count at full lifetime notional from conclusion, front-loading threshold consumption regardless of actual rolling exposure. A twelve-month rolling calculation aligns EMIR with the equivalent US Dodd-Frank methodology and removes this unintended barrier, while amending measurement rather than the threshold itself.
| Text proposed by the Commission | Amendment |
|---|---|
| (5c) in Article 11, the third and fourth subparagraphs of paragraph 3a are deleted. |
Deletion recommended by ESMA in its letter on prioritisation of 2026 ESMA deliverables (ESMA22-50751485-1672). Concerns the report on the treatment of equity options in third-country jurisdictions.
| Text proposed by the Commission | Amendment |
|---|---|
| 1b. ESMA shall have the power to impose fines and periodic penalty payments applicable to significant CCPs that infringed the rules under this Title in accordance with Chapter IIa of Regulation (EU) No 1095/2010 and shall take all measures necessary to ensure that those rules are implemented. In addition, ESMA shall, impose fines or periodic penalty payments on the significant CCPs subject to the reporting obligation pursuant to Article 9 where the details reported repeatedly contain systematic manifest errors.; | 1b. ESMA shall have the power to impose fines and periodic penalty payments applicable to CCPs that infringed the rules under this Title in accordance with Chapter IIa of Regulation (EU) No 1095/2010 and shall take all measures necessary to ensure that those rules are implemented. In addition, ESMA shall, impose fines or periodic penalty payments on the CCPs subject to the reporting obligation pursuant to Article 9 where the details reported repeatedly contain systematic manifest errors.; |
| Text proposed by the Commission | Amendment |
|---|---|
| (b) by the college referred to in Article 18, pursuant to Article 19, where the CCP’s competent authority intends to adopt a decision, report or other measure in relation to Articles 20, 21, 30, 31, 32, 35, 37, 41, 49 and 51.; | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| ESMA shall establish and maintain a central database in accordance with Article 35c of Regulation (EU) No 1095/2010. Separately for each CCP, the CCP’s competent authority, the relevant authorities of the CCP and ESMA as well as the members of the CCP’s college referred to in Article 18, where required under a relevant article (‘registered recipients’), shall have access to all information and documents referred to in paragraph 2 registered within the central database for that CCP where relevant or necessary for the performance of their duties. A CCP shall have access to the central database as regards the information and documents it submitted to that central database or the documents transmitted to it through that central database by any of the registered recipients. Other recipients shall also submit and have access to certain specific documents or information, where specified under this Regulation, that is registered in the central database. ESMA shall ensure that the central database performs the functions under this Article. ESMA shall make available the information shared via the central database under this Regulation to any authority relevant for the purpose of Regulation (EU) No 909/2014 and Regulation (EU) […/… on settlement finality], where relevant or necessary for the performance of their duties.; | ESMA shall establish and maintain a central database in accordance with Article 35c of Regulation (EU) No 1095/2010. Separately for each CCP, the CCP’s competent authority, the relevant authorities of the CCP and ESMA as well as the members of the CCP’s college referred to in Article 18, where required under a relevant article (‘registered recipients’), shall have access to all information and documents referred to in paragraph 2 registered within the central database for that CCP where relevant or necessary for the performance of their duties. A CCP shall have access to the central database as regards the information and documents it submitted to that central database or the documents transmitted to it through that central database by any of the registered recipients. Other recipients shall also submit and have access to certain specific documents or information, where specified under this Regulation, that is registered in the central database. ESMA shall ensure that the central database performs the functions under this Article. ESMA shall make available the information shared via the central database under this Regulation to any authority relevant for the purpose of Regulation (EU) No 909/2014 and Regulation (EU) […/… on settlement finality], where relevant or necessary for the performance of their duties, and to the ESRB and relevant members of the ESCB, where relevant or necessary for the performance of their duties, including their financial stability and macroprudential responsibilities.; |
| Text proposed by the Commission | Amendment |
|---|---|
| ESMA shall establish and maintain a central database in accordance with Article 35c of Regulation (EU) No 1095/2010. Separately for each CCP, the CCP’s competent authority, the relevant authorities of the CCP and ESMA as well as the members of the CCP’s college referred to in Article 18, where required under a relevant article (‘registered recipients’), shall have access to all information and documents referred to in paragraph 2 registered within the central database for that CCP where relevant or necessary for the performance of their duties. A CCP shall have access to the central database as regards the information and documents it submitted to that central database or the documents transmitted to it through that central database by any of the registered recipients. Other recipients shall also submit and have access to certain specific documents or information, where specified under this Regulation, that is registered in the central database. ESMA shall ensure that the central database performs the functions under this Article. ESMA shall make available the information shared via the central database under this Regulation to any authority relevant for the purpose of Regulation (EU) No 909/2014 and Regulation (EU) […/… on settlement finality], where relevant or necessary for the performance of their duties.; | ESMA shall establish and maintain a central database in accordance with Article 35c of Regulation (EU) No 1095/2010. Separately for each CCP, the CCP’s competent authority, the relevant authorities of the CCP and ESMA as well as the members of the CCP’s college referred to in Article 18, where required under a relevant article (‘registered recipients’), shall have access to all information and documents referred to in paragraph 2 registered within the central database for that CCP where relevant or necessary for the performance of their duties. A CCP shall have access to the central database as regards the information and documents it submitted to that central database or the documents transmitted to it through that central database by any of the registered recipients. Other recipients shall also submit and have access to certain specific documents or information, where specified under this Regulation, that is registered in the central database. ESMA shall ensure that the central database performs the functions under this Article. ESMA shall make available the information shared via the central database under this Regulation to any authority relevant for the purpose of Regulation (EU) No 909/2014 and Regulation (EU) […/… on settlement finality], where relevant or necessary for the performance of their duties and to the ESRB and relevant ESCB members where necessary for the performance of their duties, including their financial stability and macroprudential responsibilities.; |
| Text proposed by the Commission | Amendment |
|---|---|
| ESMA shall establish and maintain a central database in accordance with Article 35c of Regulation (EU) No 1095/2010. Separately for each CCP, the CCP’s competent authority, the relevant authorities of the CCP and ESMA as well as the members of the CCP’s college referred to in Article 18, where required under a relevant article (‘registered recipients’), shall have access to all information and documents referred to in paragraph 2 registered within the central database for that CCP where relevant or necessary for the performance of their duties. A CCP shall have access to the central database as regards the information and documents it submitted to that central database or the documents transmitted to it through that central database by any of the registered recipients. Other recipients shall also submit and have access to certain specific documents or information, where specified under this Regulation, that is registered in the central database. ESMA shall ensure that the central database performs the functions under this Article. ESMA shall make available the information shared via the central database under this Regulation to any authority relevant for the purpose of Regulation (EU) No 909/2014 and Regulation (EU) […/… on settlement finality], where relevant or necessary for the performance of their duties.; | ESMA shall establish and maintain a central database in accordance with Article 35c of Regulation (EU) No 1095/2010. Separately for each CCP, the CCP’s competent authority, the relevant authorities of the CCP and ESMA, where required under a relevant article (‘registered recipients’), shall have access to all information and documents referred to in paragraph 2 registered within the central database for that CCP where relevant or necessary for the performance of their duties. A CCP shall have access to the central database as regards the information and documents it submitted to that central database or the documents transmitted to it through that central database by any of the registered recipients. Other recipients shall also submit and have access to certain specific documents or information, where specified under this Regulation, that is registered in the central database. ESMA shall ensure that the central database performs the functions under this Article. ESMA shall make available the information shared via the central database under this Regulation to any authority relevant for the purpose of Regulation (EU) No 909/2014 and Regulation (EU) […/… on settlement finality], where relevant or necessary for the performance of their duties.; |
| Text proposed by the Commission | Amendment |
|---|---|
| CCPs and registered recipients shall upload to the central database, in electronic format, all information and documents, including applications, decisions, recommendations, information, requests, questions, answers and notifications, referred to in this Regulation, unless stated otherwise. | CCPs and registered recipients shall upload to the central database, in electronic format, all information and documents, including applications, decisions, recommendations, information, requests, questions, answers, notifications and other material supporting supervisory assessments, referred to in this Regulation, unless stated otherwise. |
| Text proposed by the Commission | Amendment |
|---|---|
| (11) Article 18 is amended as follows: | (11) Article 18 is deleted. |
| (This amendment applies throughout the text. References Supervisory Colleges in Regulation (EU) No 648/2012 and Article 18 should be deleted.) |
| Text proposed by the Commission | Amendment |
|---|---|
| (11a) Article 19 is deleted. |
| Text proposed by the Commission | Amendment |
|---|---|
| (12) in Article 20, paragraphs 3 and 4 are replaced by the following: | deleted |
| ‘3. | |
| Before the CCP’s competent authority takes a decision to withdraw the authorisation of the CCP in full or in part, including for one or more clearing services or activities in one or more classes of derivatives, securities, other financial instruments or non-financial instruments under paragraph 1, it shall take one of the following steps: | |
| (a) for a less significant CCP, it shall, in accordance with Article 17b, request the opinion of ESMA and of the college referred to in Article 18 on the necessity of withdrawing the authorisation, in full or in part, of the CCP; | |
| (b) for a significant CCP, it shall consult the relevant authorities of that CCP on the necessity of withdrawing the CCP’s authorisation, in full or in part. | |
| The first subparagraph shall not apply where a decision is required urgently. | |
| 4. For less significant CCPs, ESMA, or any member of the college referred to in Article 18, and for significant CCPs, any of the relevant authorities, may, at any time, request that the CCP’s competent authority examine whether the CCP remains in compliance with the conditions under which the authorisation was granted.;’ |
| Text proposed by the Commission | Amendment |
|---|---|
| (a) for a less significant CCP, it shall, in accordance with Article 17b, request the opinion of ESMA and of the college referred to in Article 18 on the necessity of withdrawing the authorisation, in full or in part, of the CCP; | (a) for a less significant CCP, it shall, in accordance with Article 17b, request the opinion of ESMA on the necessity of withdrawing the authorisation, in full or in part, of the CCP; |
| Text proposed by the Commission | Amendment |
|---|---|
| 4. For less significant CCPs, ESMA, or any member of the college referred to in Article 18, and for significant CCPs, any of the relevant authorities, may, at any time, request that the CCP’s competent authority examine whether the CCP remains in compliance with the conditions under which the authorisation was granted.; | 4. For less significant CCPs, ESMA, or any of the relevant authorities, and for significant CCPs, any of the relevant authorities, may, at any time, request that the CCP’s competent authority examine whether the CCP remains in compliance with the conditions under which the authorisation was granted.; |
| Text proposed by the Commission | Amendment |
|---|---|
| Competent authorities designated by the Member States; | Competent authority designated for the supervision of CCPs in the Union; |
| Text proposed by the Commission | Amendment |
|---|---|
| Competent authorities designated by the Member States; | Competent authority for CCP supervision; |
| Text proposed by the Commission | Amendment |
|---|---|
| Each Member State shall designate one or more national competent authorities to carry out the tasks and duties laid down under this Regulation for the authorisation and supervision of less significant CCPs established or to be established in its territory and the support and assistance functions referred to in Article 23(3). Each Member State shall inform the Commission and ESMA thereof. | ESMA shall be competent to supervise CCPs established or to be established in the Union. |
| Text proposed by the Commission | Amendment |
|---|---|
| Each Member State shall designate one or more national competent authorities to carry out the tasks and duties laid down under this Regulation for the authorisation and supervision of less significant CCPs established or to be established in its territory and the support and assistance functions referred to in Article 23(3). Each Member State shall inform the Commission and ESMA thereof. | ESMA is the competent authority for the supervision of CCPs in the Union and shall carry out the tasks and duties laid down under this Regulation. |
| Text proposed by the Commission | Amendment |
|---|---|
| Where a Member State designates more than one national competent authority in accordance with the first subparagraph, it shall determine the respective roles and shall designate a single authority to be responsible for coordinating cooperation and the exchange of information with the Commission, ESMA, other Member States’ competent authorities, EBA and the relevant members of the ESCB, where specifically referred to in this Regulation.; | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| 1a. Without prejudice to Article 22a(1), a Member State may designate ESMA as the competent authority for one or more less significant CCPs established in its territory. Where it exercises this option, the Member State shall notify the Commission, ESMA and the national competent authority thereof via the central database.; | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| 1a. Without prejudice to Article 22a(1), a Member State may designate ESMA as the competent authority for one or more less significant CCPs established in its territory. Where it exercises this option, the Member State shall notify the Commission, ESMA and the national competent authority thereof via the central database.; | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| (ca) the following paragraph is inserted: | |
| 1aa. Without prejudice to Article 22a(1), a less significant CCP may designate ESMA as its competent authority. Where it exercises this option, the less significant CCP shall notify the Commission, ESMA and the national competent authority thereof via the central database. |
This amendment complements the one proposed by the Commission in paragraph 1a to ensure that both Member States and the CCP itself can opt-in to be supervised centrally by ESMA.
| Text proposed by the Commission | Amendment |
|---|---|
| (d) paragraph 2 is replaced by the following: | deleted |
| ‘2. Each Member State shall ensure that the national competent authority has the supervisory and investigatory powers necessary for the exercise of its functions.;’ |
| Text proposed by the Commission | Amendment |
|---|---|
| (e) paragraph 4 is replaced by the following: | deleted |
| ‘4. ESMA shall publish on its website a list of the CCP’s competent authorities for each CCP, designated in accordance with this Article or identified in accordance with Article 22a(1).;’ |
| Text proposed by the Commission | Amendment |
|---|---|
| Article 22a […] | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| (ii) a CSD or a trading venue for which ESMA is the competent authority. | (ii) a CSD or a trading venue. |
| Text proposed by the Commission | Amendment |
|---|---|
| (da) it has established an interoperability arrangement with a CCP established in another Member State and authorised under Article 14 or recognised under Article 25; |
| Text proposed by the Commission | Amendment |
|---|---|
| (da) it has established an interoperability arrangement with a CCP authorised under Article 14 or recognised under Article 25; |
A further condition for considering a CCP to be significant, and thus subject to direct supervision by ESMA, should be added, namely where the CCP has established an interoperability arrangement with another CCP. This additional condition reflects the fact that interoperability links are a source of cross-border relevance for interoperable CCPs, which would justify their direct supervision by ESMA.
| Text proposed by the Commission | Amendment |
|---|---|
| (da) it has established an interoperability arrangement with a CCP authorised under Article 14 or recognised under Article 25; |
| Text proposed by the Commission | Amendment |
|---|---|
| Article 22b […] | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| 1. By way of derogation from Article 18, no college shall be established for significant CCPs. Where for a CCP that becomes significant, a college had been established pursuant to Article 18, such college shall be dissolved at the latest within a year after the CCP qualified as a significant CCP. | deleted |
| In relation to a significant CCP, the procedures referred to in Articles 7e, 15a, 17, 17a, 17c, 20, 21, 24, 30, 31, 32, 35, 37, 41 and 49 shall apply without including the college. |
| Text proposed by the Commission | Amendment |
|---|---|
| Powers of ESMA over significant CCPs under this Regulation | Powers of ESMA over CCPs under this Regulation |
| Text proposed by the Commission | Amendment |
|---|---|
| Powers of ESMA over significant CCPs under this Regulation | Powers of ESMA over CCPs under this Regulation |
| (The amendment applies throughout the text.) |
| Text proposed by the Commission | Amendment |
|---|---|
| 1. ESMA shall be responsible for carrying out its duties under this Regulation for the authorisation and supervision of significant CCPs. | 1. ESMA shall be responsible for carrying out its duties under this Regulation for the authorisation and supervision of significant CCPs and the less significant CCPs pursuant to Articles 22(1a) and (1aa) . |
| Text proposed by the Commission | Amendment |
|---|---|
| 1. ESMA shall be responsible for carrying out its duties under this Regulation for the authorisation and supervision of significant CCPs. | 1. ESMA shall be responsible for carrying out its duties under this Regulation for the authorisation and supervision of CCPs. |
| Text proposed by the Commission | Amendment |
|---|---|
| 2. ESMA shall ensure on an ongoing basis the compliance by significant CCPs with Articles 7, Article 7e, Article 8, Articles 14 to 17c, Article 20, Article 21, and Article 24 and Titles IV and V. | 2. ESMA shall ensure on an ongoing basis the compliance by CCPs with Article 7, Article 7a, Article 7e, Article 8, Articles 14 to 17c, Article 20, Article 21, and Article 24 and Titles IV and V. |
| Text proposed by the Commission | Amendment |
|---|---|
| 2. ESMA shall ensure on an ongoing basis the compliance by significant CCPs with Articles 7, Article 7e, Article 8, Articles 14 to 17c, Article 20, Article 21, and Article 24 and Titles IV and V. | 2. ESMA shall ensure on an ongoing basis the compliance by CCPs with Articles 7, Article 7e, Article 8, Articles 14 to 17c, Article 20, Article 21, and Article 24 and Titles IV and V. |
| Text proposed by the Commission | Amendment |
|---|---|
| ESMA shall be conferred with the powers necessary for the exercise of its functions over significant CCPs under this Regulation and under Regulation (EU) No 1095/2010. | ESMA shall be conferred with the powers necessary for the exercise of its functions over CCPs under this Regulation and under Regulation (EU) No 1095/2010. |
| (The word "significant" should be removed throughout this article as ESMA would be the supervisor for all CCPs) |
| Text proposed by the Commission | Amendment |
|---|---|
| Relevant authorities for significant CCPs | Relevant authorities for CCPs |
| Text proposed by the Commission | Amendment |
|---|---|
| The following entities shall be involved in the authorisation and supervision carried out by the CCP’s competent authority of a significant CCP and be referred to as relevant authorities for such CCP: | The following entities shall be involved in the authorisation and supervision carried out by ESMA and be referred to as relevant authorities for CCPs: |
| Text proposed by the Commission | Amendment |
|---|---|
| (a) the national competent authority of the Member State in which the significant CCP is established; | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| (b) the competent authorities responsible for the supervision of the clearing members, of the significant CCP, which are established in the three Member States with the largest contributions to the default fund referred to in Article 42 of this Regulation on an aggregate basis over a one-year period, including, where relevant, the ECB in the framework of the tasks concerning the prudential supervision of credit institutions within the single supervisory mechanism conferred upon it in accordance with Council Regulation (EU) No 1024/2013; | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| (b) the competent authorities responsible for the supervision of the clearing members, of the significant CCP, which are established in the three Member States with the largest contributions to the default fund referred to in Article 42 of this Regulation on an aggregate basis over a one-year period, including, where relevant, the ECB in the framework of the tasks concerning the prudential supervision of credit institutions within the single supervisory mechanism conferred upon it in accordance with Council Regulation (EU) No 1024/2013; | (b) the competent authorities responsible for the supervision of the clearing members, of the CCP, which are established in the three Member States with the largest contributions to the default fund referred to in Article 42 of this Regulation on an aggregate basis over a one-year period, as well as the competent authorities responsible for banking supervision in the home Member State of the CCP, including, where relevant, the ECB in the framework of the tasks concerning the prudential supervision of credit institutions within the single supervisory mechanism conferred upon it in accordance with Council Regulation (EU) No 1024/2013; |
| Text proposed by the Commission | Amendment |
|---|---|
| (c) the competent authorities responsible for the supervision of trading venues served by the significant CCP; | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| (d) the competent authorities supervising central securities depositories to which the significant CCP is linked; | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| 1. With regard to supervisory assessments conducted in relation to, and decisions to be taken pursuant to, Articles 41, 44, 46, 49, 50 and 54 in relation to significant CCPs, the Executive Board shall consult the central banks of issue referred to in Article 22d, points (e) and (f), before finalising its assessment. Each central bank of issue may respond. Where the central bank of issue decides to respond, it shall do so within 10 working days of receipt of the draft decision. In emergency situations, that period shall not exceed 24 hours. Where a central bank of issue proposes amendments or objects to assessments related to, or draft decisions pursuant to Articles 41, 44, 46, 49, 50 and 54, it shall provide full and detailed reasons, in writing. Upon conclusion of the period for consultation, the Executive Board shall duly consider the response and any amendments proposed by the central banks of issue and provide its assessment to the central bank of issue. | 1. With regard to all supervisory assessments and decisions in relation to the requirements under Articles 41, 44, 46, 49, 50 and 54 in relation to CCPs, including where such supervisory assessments and decisions are taken pursuant to other provisions, including Articles 15, 17, 20 and 21, the Executive Board shall consult the central banks of issue referred to in Article 22d, points (e) and (f), before finalising its assessment. |
| For the purposes of the consultation referred to in the first subparagraph, ESMA shall share the following information with the central banks of issue, either directly or via the central database: | |
| (a) the documents and information submitted by the significant CCP to ESMA, as soon as they are received; and | |
| (b) the draft supervisory assessment report and decision being prepared by ESMA. | |
| Each central bank of issue may respond. Where the central bank of issue decides to respond, it shall do so within 10 working days of receipt of the draft decision. In emergency situations, that period shall not exceed 24 hours. Where a central bank of issue proposes amendments or objects to assessments related to, or draft decisions pursuant to Articles 41, 44, 46, 49, 50 and 54, it shall provide full and detailed reasons, in writing. Upon conclusion of the period for consultation, the Executive Board shall duly consider the response and any amendments proposed by the central banks of issue and provide its assessment to the central bank of issue. |
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- Licensed CC BY 4.0.
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Cite as
European Parliament (2026). “AMENDMENTS 411 - 685 - Draft report on the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) No 1095/2010, No 648/2012, No 600/2014, No 909/2014, 2015/2365, 2019/1156, 2021/23, 2022/858, 2023/1114, No 1060/2009, 2016/1011, 2017/2402, 2023/2631 and 2024/3005 as regards the further development of capital market integration and supervision within the Union”. Text, 31 July 2026. docId ECON-AM-791134. EU Parl Watch Research. https://news.eu-parl.st-solutions.dev/texts/ECON-AM-791134 (retrieved 25 September 2026). Data: EP Open Data API: document record, https://data.europarl.europa.eu/api/v2/documents/ECON-AM-791134 (CC BY 4.0).
BibTeX
@misc{epw-text-econ-am-791134,
author = {{European Parliament}},
title = {{AMENDMENTS 411 - 685 - Draft report on the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) No 1095/2010, No 648/2012, No 600/2014, No 909/2014, 2015/2365, 2019/1156, 2021/23, 2022/858, 2023/1114, No 1060/2009, 2016/1011, 2017/2402, 2023/2631 and 2024/3005 as regards the further development of capital market integration and supervision within the Union}},
year = {2026},
date = {2026-07-31},
howpublished = {\url{https://news.eu-parl.st-solutions.dev/texts/ECON-AM-791134}},
url = {https://news.eu-parl.st-solutions.dev/texts/ECON-AM-791134},
urldate = {2026-09-25},
publisher = {EU Parl Watch Research},
note = {Text. docId ECON-AM-791134. Data: EP Open Data API: document record (CC BY 4.0)}
}