Tag Archives: Securities

Market abuse

Market abuse

Outline of the Community (European Union) legislation about Market abuse

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Internal market > Financial services: transactions in securities

Market abuse

Document or Iniciative

Directive 2003/6/EC of the European Parliament and of the Council of 28 January 2003 on insider dealing and market manipulation (market abuse) [See amending acts].

Summary

This Directive aims at preventing market abuse in order to preserve the smooth functioning of European Union financial markets.

This Directive does not apply to transactions relating to:

  • monetary policy, exchange rates or public debt management by a Member State;
  • the European System of Central Banks;
  • national central banks.

Conditions for the prohibition of market abuse

Market abuse may arise in circumstances where investors have been unreasonably disadvantaged, directly or indirectly, by others who:

  • have used information which is not publicly available (insider dealing);
  • have distorted the price-setting mechanism of financial instruments;
  • have disseminated false or misleading information.

This type of conduct can undermine the general principle that all investors must be placed on an equal footing.

The Member States therefore prohibit any person possessing information from:

  • disclosing privileged information to any other person outside the scope of the exercise of their employment;
  • recommending any other person to acquire or dispose of financial instruments to which that information relates;
  • engaging in market manipulation.

These prohibitions do not apply either to trading in own shares in “buy-back” programmes or to the stabilisation of a financial instrument.

Managing information from the issuers of financial instruments

The issuers of financial instruments must publish information which concerns the said issuers as soon as possible and post it on their website. If an issuer discloses privileged information to a third party in the exercise of his duties, he must make public disclosure of that information.

Issuers must also draw up a list of persons in their employment who have access to privileged information.

The European Securities and Markets Authority (ESMA) may draft technical norms for implementation aimed at ensuring that acts adopted by the Commission are applied under uniform conditions.

Cooperation

The Directive requires each Member State to designate a single regulatory and supervisory authority with a common minimum set of responsibilities. These authorities use convergent methods to combat market abuse and should be able to assist each other in taking action against infringements, particularly in cross-border cases. The administrative cooperation procedure followed could in particular help to combat terrorist acts. The competent authorities are to collaborate with the ESMA.

Penalties

The same form of wrongful conduct shall incur the same penalty in each of the Member States.

If a competent authority adopts an administrative measure or penalty, it must inform the ESMA. If said penalty concerns an investment firm authorised pursuant to the Markets in Financial Instruments Directive (MiFiD), the ESMA shall add a reference to that penalty in the register of investment firms.

References

Act Entry into force Deadline for transposition in the Member States Official Journal

Directive 2003/6/EC

12.4.2003

12.10.2004

OJ L 96, 12.4.2003

Amending act(s) Entry into force Deadline for transposition in the Member States Official Journal

Directive 2008/26/EC

21.3.2008

OJ L 81, 20.3.2008

Directive 2010/78/EU

4.1.2011

31.12.2011

OJ L 331, 15.12.2010

Successive amendments and corrections to Directive 2003/6/CE have been incorporated in the basic text. This consolidated version is for reference purpose only.

Related Acts

Directive 2008/26/EC of the European Parliament and of the Council of 11 March 2008 amending Directive 2003/6/EC on insider dealing and market manipulation (market abuse), as regards the implementing powers conferred on the Commission [Official Journal L 81 of 20.3.2008].

Commission Directive 2004/72/EC of 29 April 2004 implementing Directive 2003/6/EC of the European Parliament and of the Council as regards accepted market practices, the definition of inside information in relation to derivatives on commodities, the drawing up of lists of insiders, the notification of managers’ transactions and the notification of suspicious transactions [Official Journal L 162, 30.04.2004].
This Directive defines the criteria to be taken into account when evaluating market practices for the purpose of implementing Article 6(10) of Directive 2003/6/EC. The practices of market participants must comply with the principles of fairness and efficiency in order to protect the integrity of the market. These practices must not compromise the integrity of other European Union markets that are linked to it.

Commission Directive 2003/124/EC of 22 December 2003 implementing Directive 2003/6/EC of the European Parliament and of the Council as regards the definition and public disclosure of inside information and the definition of market manipulation [Official Journal L 339, 24.12.2003].
This Directive fixes the detailed criteria for determining information that must be deemed to be of a precise nature and likely to have a significant effect on prices. In addition, it specifies a series of factors that are to be taken into consideration in determining whether specific behaviour constitutes market manipulation. Regarding issuers, it lays down the means and time-limits for public disclosure of inside information and the precise circumstance in which they are authorised to delay such public disclosure in order to protect their legitimate interests.

Commission Directive 2003/125/EC of 22 December 2003 implementing Directive 2003/6/EC of the European Parliament and of the Council as regards the fair presentation of investment recommendations and the disclosure of conflicts of interest [Official Journal L 339, 24.12.2003].
This Directive fixes the rules for the fair presentation of investment recommendations and the disclosure of conflicts of interest. It draws a distinction between persons producing investment recommendations (who must meet stricter standards) and those disseminating recommendations made by third parties. Under Article 6 of the Directive on market abuse, this second implementing Directive must take into account the rules, including self-regulation, governing the profession of journalist. This means that the highly specialised subcategory of financial journalists who produce or disseminate investment recommendations must respect certain general principles. Nevertheless, protective measures are provided for and the use of self-regulatory mechanisms is authorised in order to determine how those basic principles must be applied. The aim of this arrangement is to preserve the freedom of the press while protecting investors and issuers against any risk of market manipulation by journalists.


Another Normative about Market abuse

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic

Internal market > Financial services: transactions in securities

Market abuse (Proposal)

Credit rating agencies

Credit rating agencies

Outline of the Community (European Union) legislation about Credit rating agencies

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Internal market > Financial services: transactions in securities

Credit rating agencies

Document or Iniciative

Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies (Text with EEA relevance).

Summary

This Regulation aims at regulating the business of credit rating agencies with a view to protecting investors and European financial markets against the risk of malpractice. It lays down the conditions for issuing credit ratings, as well as rules related to registering and monitoring credit rating agencies.

Which credit ratings does the Regulation apply to?

This Regulation applies to credit ratings which are issued by credit rating agencies registered in the European Union (EC) and which are communicated to the public or distributed by subscription.

How are credit ratings used?

Credit ratings issued by credit rating agencies based in the EU are used by investors, borrowers, issuers and public administrations to help them make investment and financial decisions. These ratings may be used by the banks as a reference for calculating their capital requirements for solvency purposes or to help investors to assess the risks in their investment activity.

Two procedures allow the use, in the EU, of ratings issued by credit agencies established in third countries. Firstly, credit rating agencies have the option to give their endorsement to credit ratings issued outside of the EU, on the condition that:

  • the credit rating agency has carried out preliminary checks and can continue to demonstrate to the European Securities and Markets Authority (ESMA) that the credit ratings meet legislative requirements which are at least as strict as those applicable in the EU;
  • the ability of ESMA to assess and monitor compliance with the requirements is not limited;
  • the credit rating agency shall provide ESMA with all the information it requires;
  • the credit rating agency established in the third country is authorised or registered, and is subject to supervision, in that third country;
  • a cooperation arrangement has been concluded between ESMA and the relevant competent authority of the credit rating agency established in a third country.

Secondly, ratings issued by a small credit rating agency established in a third country, but not established in the EU, can be used in the European Union on the condition that:

  • the credit rating agency is authorised or registered in and is subject to supervision in that third country;
  • the Commission has adopted an equivalence decision recognising the legal and supervisory framework for ratings agencies in the third country;
  • the cooperation arrangements with the third country exist and are operational;
  • the credit ratings issued by the credit rating agency and its credit rating activities are not of systemic importance to the financial stability or integrity of the financial markets of one or more Member States;
  • the credit rating agency is certified in the Union.

Credit rating agencies may request certification from ESMA.

Under which conditions are credit ratings issued?

The issuing of credit ratings should not be affected by any conflict of interest or business relationship. In order to ensure this, credit rating agencies are subject to specific organisational and operational requirements. The administrative or supervisory board of the agency shall ensure independence of the rating process. It shall ensure that conflicts of interest are properly identified, managed and disclosed, and finally that the credit rating agency complies with the requirements of the Regulation. ESMA may however exempt a credit agency from certain requirements in view of the nature, scale and complexity of its business.

The methodologies of credit rating agencies and the descriptions of models and key rating assumptions, such as mathematical or correlation assumptions, are published in a manner permitting comprehensive review. In this way, agencies shall guarantee the quality of the credit ratings that they produce, and the transparency of methods used.

The credit rating agencies shall ensure regular monitoring of credit ratings and shall review this at least once a year. They shall produce general and periodic disclosures, as well as a transparency report. Agencies shall send data to ESMA on their past performance so that it can be made available to the public.

How is monitoring of credit rating activities carried out?

Credit rating agencies established in the EU must register with ESMA. They will send their application for registration to ESMA, providing, amongst other things, information on their headquarters, their legal status, their methods of issuing ratings and their policies and procedures on managing conflicts of interest. ESMA has 45 working days to examine their application.

In the case of an application for registration made by a group of agencies, ESMA decides whether to grant or refuse registration. In this case, it has 55 working days to reach a decision.

ESMA is responsible for drawing up guidelines in consultation with the European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA). It is required to publish an annual report on the application of this Regulation.

ESMA carries out ongoing surveillance of credit rating agencies, particularly of their rating methodologies. It must not interfere with the content of the credit ratings or with the methodologies used by the credit rating agencies. If it identifies an infringement (listed in Annex III), ESMA appoints an independent investigator to open an inquiry, at the end of which a dossier is produced presenting his/her conclusions. ESMA then decides whether to fine the credit rating agency or to impose one of the following penalties:

  • withdraw the registration of the credit rating agency;
  • temporarily prohibit the agency from issuing credit ratings;
  • suspend the use of the credit ratings;
  • require the agency to stop the infringement;
  • issue public notices.

ESMA is required to cooperate with EBA, EIOPA and the competent authorities and sectoral competent authorities with regard to exchanging information. It has the right to send confidential information to the following bodies:

  • the central banks;
  • the European Central Bank;
  • the European Systemic Risk Board;
  • public authorities.

Context

The 2008 financial crisis and the absence of national regulations led the European Commission to establish common rules in order to better regulate the activities of credit rating agencies. In February 2009, the “Larosière” Expert Group highlighted the need to strengthen the framework for monitoring the financial sector, which enabled the creation of a European System of Financial Supervision (ESFS) comprising three European supervisory authorities and a Systemic Risk Board. The role of ESMA also enables the monitoring of credit rating agencies to be strengthened.

Key terms of the Act
  • Credit rating: an opinion regarding the creditworthiness of an entity, a debt or financial obligation, debt security, preferred share or other financial instrument, or of an issuer of such debt or financial obligation, debt security, preferred share or other financial instrument, issued using an established and defined ranking system of rating categories;
  • Credit rating agency: a legal person whose occupation includes the issuing of credit ratings on a professional basis;
  • Rating category: a rating symbol, such as a letter or numerical symbol which might be accompanied by appending identifying characters, used in a credit rating to provide a relative measure of risk to distinguish the different risk characteristics of the types of rated entities, issuers and financial instruments or other assets.

References

Act Entry into force Deadline for transposition in the Member States Official Journal
Regulation No 1060/2009

7.12.2009

OJ L 302 of 17.11.2009

Amending act(s) Entry into force Deadline for transposition in the Member States Official Journal
Regulation No 513/2011

1.6.2011

OJ L 145 of 31.5.2011

Directive 2011/61/EU

21.7.2011

OJ L 17 of 1.7.2011

Fund mergers and master-feeder structures relating to undertakings for collective investment in transferable securities

Fund mergers and master-feeder structures relating to undertakings for collective investment in transferable securities

Outline of the Community (European Union) legislation about Fund mergers and master-feeder structures relating to undertakings for collective investment in transferable securities

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Internal market > Financial services: transactions in securities

Fund mergers and master-feeder structures relating to undertakings for collective investment in transferable securities (UCITS)

Document or Iniciative

Commission Directive 2010/44/EU of 1 July 2010 implementing Directive 2009/65/EC of the European Parliament and of the Council as regards certain provisions concerning fund mergers, master-feeder structures and notification procedure (Text with EEA relevance).

Summary

This Directive lays down provisions relating to the mergers of undertakings for collective investment in transferable securities (UCITS) and master-feeder structures within the framework of the Directive on the rules applying to UCITS. It forms part of the implementing measures of the latter instrument, which include Directive 2010/43/EU, Regulation (EU) No 583/2010 and Regulation (EU) No 584/2010.

UCITS mergers

In the case of a merger of a UCITS, the unit-holders * must be informed of the conditions of the merger and of its potential influence on the receiving UCITS. The unit-holders shall receive other information including in particular:

  • their rights before and after the proposed merger takes effect;
  • a comparison of charges, fees and expenses for both UCITS;
  • whether the management or investment company of the merging UCITS intends to undertake any rebalancing of the portfolio * before the merger takes effect;
  • details concerning any accrued income in the respective UCITS.

The merging and receiving UCITS shall provide unit-holders with information on the approval procedure for the proposed merger and the date at which the merger is to take effect.

Key investor information of the receiving UCITS shall be provided to the unit-holders of the merging and receiving UCITS.

Master-feeder structures

Agreements and internal conduct of business rules between feeder UCITS and master UCITS

The master UCITS shall provide the feeder UCITS with:

  • a copy of its fund rules or instruments of incorporation and key investor information;
  • information on the delegation of investment management and risk management functions to third parties;
  • internal operational documents.

In addition, the master UCITS shall provide certain information with regard to the basis of investment and divestment:

  • a statement of which share classes of the master UCITS are available for investment by the feeder UCITS;
  • the amount of charges and expenses to be borne by the feeder UCITS;
  • the terms on which any initial or subsequent transfer of assets in kind may be made from the feeder UCITS to the master UCITS.

Procedures in the case of liquidation of the master UCITS

Where the feeder UCITS intends to invest at least 85% of its assets in units of another master UCITS, it shall provide:

  • its application for approval of that investment;
  • its application for approval of the proposed amendments to its fund rules;
  • the amendments made to its key investor information.

Where a feeder UCITS intends to convert into a non-feeder UCITS, it shall provide:

  • its application for approval of the proposed amendments to its fund rules;
  • the proposed amendments to its key investor information.

Where a feeder UCITS wishes to be liquidated, it shall provide notification of this intention.

The competent authorities shall be responsible for informing the feeder UCITS if it intends to invest at least 85% of its assets in units of another master UCITS or if it intends to convert into a non-feeder UCITS. This should take place 15 days after receipt of the documents. Once the feeder UCITS has obtained approval from the competent authorities, it shall inform the master UCITS.

Procedures in the case of merger or division of the master UCITS

The feeder UCITS shall provide the competent authorities with its application for approval in the following cases:

  • where it intends to continue to be a feeder UCITS of the same master UCITS;
  • where it intends to become a feeder UCITS of another master UCITS;
  • where it intends to convert into a non-feeder UCITS;
  • where it intends to be liquidated.

As with the liquidation procedure, the competent authorities shall inform the feeder UCITS 15 days after the documents have been received. Once the feeder UCITS has obtained approval from the competent authorities, it shall inform the master UCITS.

The law of the Member State applying in the case of liquidation, merger or division shall also apply to information sharing between the two depositaries.

Key terms of the Act
  • Unit-holder: any natural or legal person holding one or several shares in a UCITS.
  • Rebalancing of the portfolio: a significant modification of the composition of the portfolio of a UCITS.

Reference

Act Entry into force Deadline for transposition in the Member States Official Journal

Directive 2010/44/EU

30.7.2010

30.6.2011

OJ L 176 of 10.7.2010

UCITS: organisational requirements and rules of conduct

UCITS: organisational requirements and rules of conduct

Outline of the Community (European Union) legislation about UCITS: organisational requirements and rules of conduct

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Internal market > Financial services: transactions in securities

UCITS: organisational requirements and rules of conduct

Document or Iniciative

Commission Directive 2010/43/EU of 1 July 2010 implementing Directive 2009/65/EC of the European Parliament and of the Council as regards organisational requirements, conflicts of interest, conduct of business, risk management and content of the agreement between a depositary and a management company (Text with EEA relevance).

Summary

This Directive is an implementing measure of the Directive on the rules applying to UCITS. It specifies the organisational requirements with which management companies managing UCITS must comply, as well as rules of conduct and rules on handling conflicts of interest. Furthermore, the Directive establishes requirements concerning the risk management process for UCITS.

Entities concerned by the Directive

This Directive applies to:

  • management companies which manage UCITS;
  • depositaries;
  • investment companies that have not designated a management company.

Administrative procedures and control mechanism

Management companies have a duty to:

  • implement decision-making procedures, and an organisational structure;
  • ensure that information is transmitted to the relevant persons * in the proper way;
  • implement appropriate internal control mechanisms;
  • maintain records of their business and internal organisation.

Management companies must safeguard the security, integrity and confidentiality of information.

They must put in place operational accounting procedures in such a way that all assets and liabilities of the UCITS can be directly identified at all times. The accounting procedures must be in accordance with the accounting rules of the UCITS’ home Member States.

As regards internal control mechanisms, the senior management of management companies are responsible for general investment policy. They oversee the approval of investment strategies for each UCITS.

Management companies must ensure permanent compliance. This consists of evaluating the adequacy and effectiveness of the measures taken to address any failures of the management company in complying with its obligations. Compliance also consists of advising and assisting the persons responsible for carrying out the services and activities of the management company. This work is to be carried out by a person designated for this purpose.

Management companies shall be responsible for maintaining a risk management function at all times, independently of operational units, in particular responsible for:

  • implementing the risk management policy and procedures;
  • ensuring compliance with the UCITS risk limit system;
  • providing advice to the board of directors as regards the identification of the risk profile of each managed UCITS;
  • reviewing and supporting the arrangements and procedures for the valuation of over-the-counter (OTC) derivatives.

Management companies shall put in place a procedure to prevent certain relevant persons * from:

  • performing a personal financial transaction or advising another person to perform such a transaction;
  • divulging information that might influence the behaviour of other persons as regards the choice of their transactions.

Portfolio transactions must be recorded in order facilitate future reconstructions of the details of the order, as must be subscription and redemption orders. These records are then to be retained for at least five years.

Conflict of interests

The following situations may lead to conflicts of interest, where:

  • the management company is likely to make a financial gain, or avoid a financial loss, at the expense of the UCITS;
  • the management company has an interest in the outcome of a service provided to the UCITS or another client which does not share the interests of the UCITS;
  • the management company has an incentive to favour the interest of another client;
  • the management company carries out the same activities for the UCITS as for another client;
  • the management company receives money, goods or services illegally.

Management companies are therefore obliged to define in writing an effective policy as regards conflict of interest, which preserves the independence of the relevant persons.

Rules of conduct

Management companies must treat UCITS unit-holders * fairly. Where they have carried out a subscription or redemption order for a unit-holder, they must send the unit-holder notice containing in particular the following information:

  • the management company identification;
  • the name of the unit-holder;
  • the date and time of receipt of the order and method of payment;
  • the date of execution;
  • the UCITS identification;
  • the number of units involved.

Management companies are not permitted to carry out a UCITS order in aggregate with an order of another UCITS or another client or with an order on their own account.

Risk management

Management companies must implement an operational risk management policy. They are to calculate the global exposure of the UCITS once a day.

Key terms of the Act
  • Relevant person: in relation to a management company shall mean a director, partner or equivalent, or manager of the management company, an employee of the management company, as well as any other natural person whose services are placed at the disposal and under the control of the management company and who is involved in the provision by the management company of collective portfolio management, or a natural person who is directly involved in the provision of services to the management company under a delegation arrangements to third parties for the purpose of the provision by the management company of collective portfolio management.
  • Unit-holder: any natural or legal person holding one or more units in a UCITS.

Reference

Act Entry into force Deadline for transposition in the Member States Official Journal

Directive 2010/43/EU

30.7.2010

30.6.2011

OJ L 176 of 10.7.2010

Transparency of information about issuers of securities

Transparency of information about issuers of securities

Outline of the Community (European Union) legislation about Transparency of information about issuers of securities

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Internal market > Financial services: transactions in securities

Transparency of information about issuers of securities

Document or Iniciative

Directive 2004/109/EC of the European Parliament and of the Council of 15 December 2004 on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market and amending Directive 2001/34/EC [See amending acts].

Summary

Three conditions must be met, namely efficiency, transparency and integration of securities markets, if the objective of harmonising those markets is to be achieved.

This would promote competition on securities markets. It would also guarantee investors a high level of protection and would thus strengthen confidence in the market.

In addition, again with a view to protecting investors, the Directive lays down detailed disclosure requirements:

  • for issuers whose securities are already admitted to trading on a regulated market;
  • to shareholders with voting rights;
  • to natural or legal persons holding voting rights or financial instruments that influence voting rights.

By contrast, these requirements do not apply to units issued by collective investment undertakings other than the closed-end type * or to units * acquired or disposed of in such undertakings. In addition, States, regional or local authorities of States, international public institutions, the European Central Bank and Member States’ national central banks are exempt.

Established on 1 January 2011, the European Securities and Markets Authority (ESMA) plays an important role by, for example, developing draft technical standards.

Periodic information

Periodic information relates to the financial situation of the issuer of securities and that of the enterprises it controls. It also concerns forecasts based on three documents, namely:

  • the annual financial report: this encourages year-on-year comparisons and the issuer makes it public at the latest four months after the end of each financial year;
  • the half-yearly report by the issuer of shares or debt securities: this covers the first six months of the financial year and is made public as soon as possible after the end of the relevant period, but at the latest two months thereafter;
  • interim management statements: the management of each issuer makes public a statement for each period running from the beginning of the six-month period until its publication. The statement is normally made public some time between ten weeks after the beginning of the relevant six-month period and six weeks before the end of that period. However, it does not apply to issuers that already publish quarterly financial reports.

The periodic information must be made public by the issuer. If not, its liability or that of its administrative, management and supervisory bodies will be involved. In addition, the annual and half-yearly financial reports must be made available to the public for at least five years.

Certain bodies are exempt from the requirement to provide annual or half-yearly financial reports, such as:

  • States and their regional or local authorities, international public bodies of which at least one Member State is a member, the ECB and Member States’ national central banks, whether or not they issue shares or other securities;
  • an issuer exclusively of debt securities admitted to trading on a regulated market, the denomination per unit of which is at least EUR 100 000.

Ongoing information

The Directive imposes an ongoing information requirement whenever events change the breakdown of major holdings that affect the allocation of voting rights whether they stem from:

  • the acquisition or disposal of holdings of an issuer to which voting rights are attached, either by the shareholder or the issuer itself;
  • the acquisition or disposal of major proportions of voting rights by a natural person or legal entity that is entitled to acquire, to dispose of or to exercise voting rights;
  • the holding of financial instruments by a natural person or legal entity which confer the right to acquire, on such holder’s own initiative alone, under a formal agreement, shares, already issued, of an issuer whose shares are admitted to trading on a regulated market.

The procedure for notifying and making public major shareholdings involves the new allocation of voting rights, the identification of the shareholder, the date of the change and the voting threshold achieved.

Assessed in the light of thresholds, the proportion of voting rights is calculated on the basis of the total number of shares, effectively held, to which voting rights are attached.

The notification to the issuer is effected not later than four trading days after the event. However, an undertaking is exempted from the notification requirement if it does not exercise its voting rights independently from the parent undertaking, such as an investment or management company, and where it is notified by the parent undertaking.

The issuer shall make public the information no later than three trading days after receipt of the notification if the information has not already been made public by the competent authority. The issuer will also make public the total number of voting rights and capital at the end of each calendar month during which a change has occurred.

In addition, the public issuer must make public without delay any change in the rights attaching to the various classes of shares and new loan issues, and in particular any related guarantee or security. Where shares are not admitted to trading on a regulated market, the issuer must make public without delay any changes in the rights of holders of securities other than shares.

In all cases, the issuer of securities must ensure equal treatment for all holders of shares who are in the same position. The use of electronic means in this connection may be a preferred way of making the information public.

Shareholders must also be in a position to exercise their rights by proxy. Accordingly, the issuer must designate as its agent a financial institution through which shareholders may exercise their financial rights. As regards holders of debt securities whose denomination per unit is equivalent to at least €50 000, the issuer may choose the financial institution that is to act as its agent provided that the shareholders have all the facilities and information necessary to exercise their rights.

Principle of home Member State

In the interests of consistency, efficiency and rationalisation, the home Member State, that is to say the Member State in which the issuer has its registered office, is the main forum for applying the Directive. An issuer with its registered office in a third country may qualify for certain exemptions regarding the disclosure requirements provided that the regulated information in that third country is equivalent to that required in the Member State of the competent authority concerned (“home Member State”). This issuer is required to communicate any information disclosed in a third country that is deemed to be of importance to the public in the Community even if that information is not regulated within the meaning of the Directive. The competent authority in the home Member State must therefore make this information public and inform ESMA of the exemption granted.

In addition, the Commission adopts delegated acts to ensure that general criteria for equivalence are drawn up regarding accounting standards for issuers from more than one country.

The home Member State will ensure that the Directive is implemented and may impose stricter requirements than those laid down by the Directive. At the same time, it must provide for arrangements for imposing liability and penalties where its requirements are not met.

The Member State will also centralise information. In this connection, it would have to guarantee fast and non-discriminatory access to information by way of appropriate media and of an officially appointed mechanism for the central storage of regulated information.

Competent authority

Each Member State will designate a competent authority responsible in particular for implementing the Directive.

This authority will, as a rule, be the central authority referred to in Directive 2003/71/EC. Member States must inform the Commission and ESMA.

Each competent authority shall have all the powers necessary for the performance of its functions, specifically:

  • monitoring of disclosure of timely information by the issuer and publication on its own initiative of information not disclosed within the time limits set;
  • request for further information and documents;
  • verification of compliance with the disclosure requirements, by way of on-site inspections;
  • suspension for a maximum of ten days of trading in securities or prohibition of trading on a regulated market if it finds that the disclosure requirements laid down in the Directive have not been met or if it has reasonable grounds for suspecting that those requirements have been infringed.

Tasks may also be delegated, but only for a temporary period. Any such delegation must be notified to the Commission and to ESMA and the competent authorities in the Member States. They will review the situation five years after the entry into force of the Directive. The review will end eight years after the entry into force of the Directive.

In addition, the obligation of professional secrecy applies to the competent authorities, including for the exchange of information intended for the performance of supervisory tasks, with any disclosure of information requiring the agreement of the competent authorities which disclose it. The competent authorities also cooperate with ESMA in that they refer to it situations or requests for cooperation which have been rejected or which have not been followed up within a reasonable time period. The competent authorities also provide ESMA with all the information required to complete its task. The competent authorities may also send information to the European Systemic Risk Board (ESRB).

Where the competent authority of a host Member State finds that the issuer or the holder of shares has committed irregularities, it shall refer its findings to the competent authority of the home Member State and ESMA.

Delegated acts and implementing measures

The Commission is assisted by the European Securities Committee regarding the implementing measures.

In addition, the Directive is also designed to take account of developments on financial markets in order to ensure its uniform application. The Commission is empowered, therefore, to adopt implementing measures that take account of technical developments on financial markets.

This Directive also envisages guidelines for setting up electronic networks at national and at European level for all the actors and all the information required by the Directive, by Directive 2003/6/EC on market abuse and by Directive 2003/71/EC on prospectuses.

Key terms used in the Act
  • Securities: those categories of securities which are negotiable on the capital market (with the exception of payment instruments), such as shares in companies and other securities equivalent to shares in companies, partnerships or other entities, and depositary receipts in respect of shares; bonds or other forms of securitised debt, including depositary receipts in respect of such securities; any other securities giving the right to acquire or sell any such securities or giving rise to a cash settlement determined by reference to transferable securities, currencies, interest rates, commodities or other indices or measures.
  • Collective investment undertakings other than the close-end type: unit trusts and investment companies the object of which is the collective investment of capital provided by the public and which operate on the principle of risk spreading, and the units of which are, at the request of the holder of such securities, repurchased or redeemed, directly or indirectly, out of the assets of those undertakings.
  • Units of a collective investment undertaking: securities issued by a collective investment undertaking and representing rights of the participants in such undertaking over its assets.

References

Act Entry into force Deadline for transposition in the Member States Official Journal

Directive 2004/109/EC

20.1.2005

20.1.2007

OJ L 390, 31.12.2004

Amending Act(s) Entry into force Deadline for transposition in the Member States Official Journal

Directive 2008/22/EC

20.3.2008

OJ L 76, 19.3.2008

Directive 2010/73/EU

31.12.2010

1.7.2012

OJ L 327, 11.12.2010

Directive 2010/78/EU

4.1.2011

31.12.2011

OJ L 331, 15.12.2010

Successive amendments and corrections to Directive 2004/109/CE have been incorporated in the basic text. This consolidated version is for reference purpose only.

Related Acts

Commission Regulation (EC) No 1569/2007 of 21 December 2007 establishing a mechanism for the determination of equivalence of accounting standards applied by third country issuers of securities pursuant to Directives 2003/71/EC and 2004/109/EC of the European Parliament and of the Council [Official Journal L340 of 22.12.2007].
This Regulation sets out the conditions under which the accounting standards in force in a third country are considered to be equivalent to the ‘International Financial Reporting Standards’ or ‘IFRS’, which are the international accounting standards adopted by the EU. The accounting standards authorised in a third country are considered to be equivalent to international standards if the investors are able to assess, amongst other things, the assets, financial status and results of the issuer in the same way as the financial statements drawn up in accordance with the IFRS. The decision regarding the determination of such equivalence is taken on the initiative of the Commission, at the request of the competent authority of a Member State or upon application of an authority responsible for accounting standards or market supervision of a third country. The ruling on equivalence shall be publicly available.

Commission Recommendation 2007/657/EC of 11 October 2007 on the electronic network of officially appointed mechanisms for the central storage of regulated information referred to in Directive 2004/109/EC of the European Parliament and of the Council [Official Journal L 267 of 12.10.2007].

Commission Directive 2007/14/EC of 8 March 2007 laying down detailed rules for the implementation of certain provisions of Directive 2004/109/EC on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market [Official Journal L 69 of 9.3.2007].

Securities markets: Advisory, regulatory and supervisory committee

Securities markets: Advisory, regulatory and supervisory committee

Outline of the Community (European Union) legislation about Securities markets: Advisory, regulatory and supervisory committee

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Internal market > Financial services: transactions in securities

Securities markets: Advisory, regulatory and supervisory committee

Acts

Commission Decision 2001/528/EC of 6 June 2001 establishing the European Securities Committee (Text with EEA relevance) [See amending acts].

Summary

The establishment of the supervisory and regulatory committees is designed to give practical impetus to the achievement of a single market in financial services in accordance with the framework spelt out in the Financial Services Action Plan (FSAP).

Creation of the ESC

The ESC was set up in 2001 to help improve the regulation and supervision of securities markets. Its creation meets the needs of the four-level regulatory framework advocated in the report by the Committee of Wise Men, the Lamfalussy report in 2001. As an advisory body, it participates in preparing and applying the measures for implementing the framework principles laid down in the relevant directives and regulations. The Lamfalussy process was re-examined in 2007. As part of the re-examination of this process, it seemed necessary to enhance the action of these committees and to establish a strengthened legal framework.

As it oversees developments on securities markets, this advisory committee participates in drawing up the implementing measures for the framework principles. It is also responsible for assessing risks which represent a major factor in financial stability.

Role of the ESC

The ESC is, first and foremost, a body for consultation and reflection. The committee is principally responsible for advising the Commission on policy issues and draft proposals which it could adopt in the field of securities.

Composition of the ESC

The ESC is composed of high-level representatives of Member States and is chaired by a representative of the Commission. The committee may invite experts and observers to attend its meetings.

Context

The interdependency of European Union financial systems and the disappearance of a distinction between bank-related activities, those related to securities and to insurance complicates monitoring both at national and European level. It is therefore essential to introduce a system to detect any cross-border and cross-sectoral risks rapidly so as to preserve financial stability.

Decision 2009/77/EC repeals Decision 2001/527/EC.

References

Act Entry into force Deadline for transposition in the Member States Official Journal

Decision 2001/528/EC

7.6.2001

OJ L 191, 13.7.2001

Amending act(s) Entry into force Deadline for transposition in the Member States Official Journal

Decision 2004/8/EC

13.4.2005

OJ L 3, 7.1.2004

Prospectus to be published when securities are offered to the public or admitted to trading

Prospectus to be published when securities are offered to the public or admitted to trading

Outline of the Community (European Union) legislation about Prospectus to be published when securities are offered to the public or admitted to trading

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Internal market > Financial services: transactions in securities

Prospectus to be published when securities are offered to the public or admitted to trading

Document or Iniciative

Directive 2003/71/EC of the European Parliament and of the Council of 4 November 2003 on the prospectus to be published when securities are offered to the public or admitted to trading and amending Directive 2001/34/EC [See amending act(s)].

Summary

The purpose of the Directive is to harmonise requirements for the drafting, approval and distribution of the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market situated or operating within a Member State.

The Directive introduces rules making it easier and cheaper for companies to raise capital throughout the EU on the basis of approval from a regulatory authority in one Member State (‘home competent authority’). It reinforces protection for investors by guaranteeing that all prospectuses, wherever they are issued in the EU, provide them with the clear and comprehensive information they need to make investment decisions.

Obligation to publish a prospectus

The Member States do not authorise any offering of securities to the public on their territory unless a prospectus has been published previously, except where an offer of securities:

  • is addressed solely to qualified investors; and/or
  • is addressed to fewer than 150 natural or legal persons other than qualified investors; and/or
  • is addressed to investors who acquire securities for a total consideration of at least EUR 100 000 per investor, for each separate offer; and/or
  • has a denomination of at least EUR 100 000; and/or
  • has a total value in the EU, over a period of 12 months, of less than EU 100 000.

This Directive therefore provides for derogations. The latter are regulated by technical standards prepared by the European Securities and Markets Authority (ESMA) and adopted by the European Commission.

Characteristics of the prospectus

A prospectus is a disclosure document containing financial information which concerns the issuer and the securities to be offered to the public or admitted to trading on regulated markets. It must contain a summary of the information relating to the securities in question, acting as a guide for investors. Nevertheless, the summary is not generally mandatory if the prospectus relates to the admission to trading on a regulated market of non-equity securities with a denomination of at least EUR 100 000.

Information to be included

Information to be included in the prospectus relates in particular to:

  • securities (equity and non-equity);
  • the various types and characteristics of offers and admissions to trading on a regulated market of non-equity securities;
  • the activities and size of the issuer;
  • the public status of the issuer.

Some items of information may not be disclosed if they are contrary to the public interest, likely to seriously prejudice the issuer, or of minor importance. The ESMA participates in drafting norms relating to the omission of this kind of information.

The validity of a prospectus is 12 months, provided it is updated and supplemented with the required items.

Approval of the prospectus

No prospectus can be published until it has been approved by the competent authority of the home Member State. This competent authority must notify the ESMA at the same time as the issuer, the person offering the securities or the person seeking admission to trading on a regulated market, of its decision regarding the approval of the prospectus. This notification must be given within ten working days of the submission of the draft prospectus (twenty working days if the public offer involves securities issued by an issuer who does not have any securities admitted to trading on a regulated market and who has not previously offered securities to the public).

Publication of the prospectus

As soon as the prospectus has been approved, it is deposited with the competent authority of the home Member State and made available to the ESMA. It is also published by one of the following methods:

  • in a newspaper disseminated nationally or having a wide readership;
  • in printed form;
  • on the issuer’s website;
  • on the website of the regulated market;
  • on the website of the competent authority of the home Member State.

The ESMA publishes a list of approved prospectuses on its website.

References

Act Entry into force Deadline for transposition in the Member States Official Journal

Directive 2003/71/EC

31.12.2003

1.7.2005

OJ L 345, 31.12.2003

Amending Act(s) Entry into force Deadline for transposition in the Member States Official Journal

Directive 2010/73/EC

31.12.2010

1.7.2012

OJ L 327, 11.12.2010

Directive 2010/78/EC

4.1.2011

31.12.2011

OJ L 331, 15.12.2010

Related Acts

Commission Regulation (EC) No 1569/2007 of 21 December 2007 establishing a mechanism for the determination of equivalence of accounting standards applied by third country issuers of securities pursuant to Directives 2003/71/EC and 2004/109/EC of the European Parliament and of the Council [Official Journal L 340 of 22.12.2007].

This Regulation lays down the conditions according to which accounting standards in force in a third country are considered to be equivalent to “International Financial Reporting Standards” or “IFRS”, which are the international accounting standards adopted by the EU. The accounting standards applied within a third country are considered to be equivalent to international standards if investors are able to assess, inter alia, the assets, financial situation, and profits of the issuer in the same way as financial statements established pursuant to IFRS. The decision relating to the determination of such equivalence is to be taken at the Commission’s initiative, upon request from the competent authority of a Member State or from an authority responsible for accounting standards or the monitoring of markets in a third country. The decision in respect of equivalence is made public.

Commission Regulation (EC) No 809/2004 of 29 April 2004 implementing Directive 2003/71/EC of the European Parliament and of the Council as regards information contained in prospectuses as well as the format, incorporation by reference and publication of such prospectuses and dissemination of advertisements [Official Journal L 149 of 30.4.2004].

The Regulation lays down the arrangements for implementing Directive 2003/71/EC as regards both the format of the prospectus and the documents relating to the information to be included in the prospectus. It spells out in particular the requirements for the information to be contained in the prospectus and the base prospectus as well as in the schedule, i.e. the basic list of the minimum information required, and in the building block for additional information.

Review of the Lamfalussy process

Review of the Lamfalussy process

Outline of the Community (European Union) legislation about Review of the Lamfalussy process

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Internal market > Financial services: general framework

Review of the Lamfalussy process

References

Communication from the Commission of 20 November 2007 entitled “Review of the Lamfalussy process – Strengthening supervisory convergence” [COM(2007) 727 final – Official Journal C 55 of 28.2.2008]

Summary

The Lamfalussy process was launched in 2001 for the purpose of strengthening the European regulatory and financial sector supervision framework. It consists of four levels. It starts with the adoption of the framework legislation (Level 1) and detailed implementing measures (Level 2). For the technical preparation of the implementing measures, the Commission is advised by committees, made up of representatives of national supervisory bodies, which exist in three sectors: banking, insurance and occupational pensions, and the securities markets. These committees then contribute to the consistent implementation of Community directives in the Member States, ensuring effective cooperation between the supervisory authorities and convergence of their practices (Level 3). Finally, the Commission enforces the timely and correct transposition of EU legislation into national law (Level 4).

Based on the review of this process, the Commission proposes practical improvements to strengthen the Community supervisory framework, especially during periods of market instability.

The evaluation of the Lamfalussy process is positive on the whole. However, despite undeniable contributions (flexible regulatory system, convergence, cooperation, etc.), there is a need for certain improvements.

Improvements in the legislative process and enforcement

Experience with the adoption of framework legislation and implementing measures has generally been positive, with only a few adjustments necessary between institutions with regard to supervision and implementation.

The evaluation of the schedules for the sequencing of the measures for the adoption of legislation and implementation (Levels 1 and 2) proves to be complicated as the deadlines are so variable. Consequently, it is difficult to set reasonable deadlines for both transposition and application. To resolve this, the transposition deadline for the whole legislative package could be linked to the adoption of the last implementing measures identified in Level 1. Work on the Level 1 and Level 2 measures could also be carried out more in parallel for greater coherence and facility.

The Lamfalussy process has enabled sound regulatory principles to be introduced and applied. In particular it has led to improved quality of legislation and enhanced transparency and predictability of European Union (EU) policy-making. However, Member States must refrain from adding further national rules (“gold-plating”). For greater transparency regarding consultation, the systematic publication of contributions should also become general practice. Finally, impact assessment should be extended to all significant implementing measures.

In order to increase transparency regarding transposition, the impact of the various disclosure instruments put in place (under the Capital Requirements Directive, etc.) should be strengthened. The Commission publishes regular statistics on the state of play of transposition by Member States, especially concerning Level 1 and Level 2 directives. For their part, Member States should provide the Commission with transposition tables. In the case of late implementation, infringement proceedings will be launched under Article 226 of the EC Treaty.

Supervisory cooperation and convergence

Supervisory cooperation and convergence are one of the innovations of the process, but have not always had the expected effects.

Strengthening the Level 3 Committees [or committees of regulators] is essential. As regards political accountability, an overall two-step approach (political guidance from the European Parliament, the Council and the Commission and committee reports) should enable them to deliver more results. In addition, the mission of the national supervisors is to be extended to include a cooperation and convergence requirement at European level. As regards the legal status of Level 3 Committees, changes to the legal framework will be considered concerning the decisions setting them up and the definition of their role.

Reducing the practical obstacles at European and national levels would strengthen mutual trust and the implementation of the measures. Decision-making, especially of the committees of regulators, should be facilitated (extension of qualified majority voting and definition of solutions in the case of a blocking minority) and carry more authority (even if non-binding) in relation to the national regulators and supervisors.

Member States also have a key role to play to guarantee the application in full of the standards and guidelines concerning:

  • the powers of national supervisors and sanctions. In view of the divergence of the national systems, the regulators and supervisors should have sufficient supervisory powers and tools, including sanctions, to be able to fulfil their obligations;
  • the guarantee of the operational independence of national supervisory authorities in four fields: institutional, regulatory, budgetary and supervisory;
  • the proposals strengthening cooperation between home and host regulators. The Commission’s role is to raise awareness, evaluate and take measures (delegation of tasks, multilateral memoranda of understanding, role of ‘lead’ supervisor, etc.).

The development of common standards to ensure optimum cooperation between colleges of supervisors would guarantee greater coherence and uniformity of application and would allow the problems of competences between home and host countries to be resolved.

Cross-sector cooperation is based on a joint protocol on cooperation, signed in 2005, and is provided for when added value can be expected from a joint action. Level 3 Committees have agreed on joint annual work programmes since 2006 to deal with priority subjects such as financial conglomerates and common reporting standards.

As regards crisis management, rapid information procedures must be provided for to ensure efficient, collective action in the case of a major market disturbance or financial crisis.

The Commission considers that some financial assistance from the EU budget may be appropriate in response to the calls made on the committees of regulators arising from their Community obligations.

Packaged retail investment products

Packaged retail investment products

Outline of the Community (European Union) legislation about Packaged retail investment products

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Internal market > Financial services: general framework

Packaged retail investment products

Document or Iniciative

Communication from the Commission to the European Parliament and to the Council of 30 April 2009 – Packaged retail investment products [COM(2009) 204 final – Not published in the Official Journal].

Summary

This Communication presents the measures planned by the European Commission in the packaged retail investment products sector and more specifically in terms of mandatory information and commercial practices. The aim is bring the Community framework into line with market reality. In this regard, the Commission intends to introduce, at European level, a horizontal approach in the field of retail investment products.

Characteristics

Packaged retail investment products have the following points in common:

  • they offer exposure to underlying financial assets;
  • their primary function is capital accumulation;
  • they are designed with the mid- to long-term in mind;
  • they are marketed directly to retail investors.

These products include the following types:

  • investment (or mutual) funds;
  • investments packaged as life insurance policies;
  • retail structured securities;
  • structured term deposits.

Current weaknesses

Packaged retail investment products can be at the origin of risks where there is a sharp asymmetry in information and expertise between the manufacturers and distributors of products and retail investors.

Another main weakness of this type of product is related to the inconsistencies in the European regulatory framework in force. It is currently inadequate with regard to the retail investment market reality and is not able to offer investors a satisfactory level of protection.

The main failings of the Community framework for packaged retail investment products have their origin in the lack of key investor disclosures and in the regulation of commercial practices.

Proposals for a horizontal approach

Key investor disclosures

Information for retail investors should be harmonised and standardised as much as possible so that they are better able to compare products.

Key information made available to investors should comply with the following criteria:

  • be fair, clear and not misleading;
  • guide investors, enabling them to make informed investment decisions (performance, risks, charges, etc.);
  • be short and simple;
  • be provided at the right time.

Selling of packaged retail investment products by intermediaries and other distributors

The MiFID (Markets in Financial Instruments Directive) provisions are considered to be a benchmark on conduct of business and the management of conflicts of interest. The Commission suggests that the scope of MiFID be extended to all packaged retail investment products.

The horizontal approach governing the regulation of commercial practices would be based on the following principles:

  • investors should be fairly treated;
  • products sold should correspond to the profile and needs of the investor;
  • risks should be clearly communicated to the investor if they decide not to take advice;
  • conflicts of interest must not adversely affect investors;
  • investors should receive clear and effective disclosures of remuneration arrangements and all charges, commissions or fees paid;
  • those assessing the suitability of products should fully understand all their features.

It is still necessary however to establish a generic definition of the concept of “a packaged retail investment product”, and a clear designation of the products that fall within scope.

Context

This Communication is the result of work carried out following the request by the ECOFIN Council in May 2007, and has the aim of restoring confidence with regard to financial markets. It is part of the reforms launched by the European Union since the start of the financial crisis in October 2008. This demonstrated the importance of ensuring transparency in financial products and brought to light the disastrous consequences of irresponsible marketing.

European Securities and Markets Authority

European Securities and Markets Authority

Outline of the Community (European Union) legislation about European Securities and Markets Authority

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Internal market > Financial services: transactions in securities

European Securities and Markets Authority (ESMA)

Document or Iniciative

Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC [See amending act(s)].

Summary

This Regulation establishes the European Securities and Markets Authority (ESMA). It forms part of the package of measures implemented to reform the European System of Financial Supervision (ESFS) which creates three other organisations to monitor financial activities:

  • the European Systemic Risk Board;
  • the European Banking Authority;
  • the European Insurance and Occupational Pensions Authority.

The package also reforms existing legislation on financial matters with the Omnibus Directive and includes the Regulation conferring new tasks upon the European Central Bank.

Supervision of the financial system of the European Union (EU) is further reinforced by the activities of:

  • the Joint Committee of the European Supervisory Authorities;
  • the competent or supervisory authorities of Member States.

Establishment and legal status of the ESMA

The objective of the ESMA is to safeguard the stability and effectiveness of the financial system. It acts mainly in the field of activities of:

  • firms offering investment services;
  • corporate governance;
  • auditing;
  • financial reporting.

In addition, the scope of ESMA action covers:

  • the Directive on settlement finality in payment and securities settlement systems;
  • the Directive on financial collateral arrangements;
  • the Directive on the prospectus to be published when securities are offered to the public;
  • the Directive on the transparency of information about issuers of securities;
  • the Directive on Alternative Investment Fund Managers.

The ESMA has legal personality and has its seat in Paris.

Tasks and powers of the ESMA

The ESMA is responsible for carrying out certain tasks, such as:

  • contributing to the establishment of regulatory and supervisory standards and practices;
  • monitoring and assessing the market in the area of its competence;
  • fostering the protection of investors.

In order to meet these objectives, the ESMA has a leading role which consists in particular of:

  • developing draft regulatory and implementing technical standards;
  • issuing guidelines and recommendations;
  • providing a centrally accessible database of financial institutions in the area of its competence.

The ESMA also carries out activities relating to consumer protection, for example by analysing consumer trends or by developing training standards for industry.

Organisation of the ESMA

The ESMA has a Board of Supervisors that is responsible for giving guidance on its activities. The Board is composed of:

  • a Chairperson;
  • the head of the competent national public authority;
  • a representative of the Commission;
  • a representative of the ESRB;
  • a representative of each of the two other European Supervisory Authorities.

The ESMA also has a Management Board.

Joint bodies of the European Supervisory Authorities

The joint bodies of the European Supervisory Authorities are:

  • the Joint Committee of European Supervisory Authorities which is responsible for cooperating with them as regards financial conglomerates, accounting and auditing, micro-prudential analyses, retail investment products, measures combating money laundering and information exchange with the ESRB;
  • the Board of Appeal which provides legal advice on the legality of the ESMA’s exercise of its powers.

Any natural or legal person may appeal against a decision of the ESMA, in writing, within two months of the date of notification of the decision. The Board of Appeal has a period of two months as from the appeal being lodged to confirm the decision taken by the ESMA or to remit the case to a competent body.

This Regulation repeals Decision 2009/77/EC.

Reference

Act Entry into force Deadline for transposition in the Member States Official Journal
Regulation (EU) No 1095/2010

16.12.2010

OJ L 331 of 15.12.2010

Amending act(s) Entry into force Deadline for transposition in the Member States Official Journal
Directive 2011/61/EU

21.7.2011

22.7.2013

OJ L 174 of 1.7.2011

Related Acts

Council Regulation (EU) No 1096/2010 of 17 November 2010 conferring specific tasks upon the European Central Bank concerning the functioning of the European Systemic Risk Board [OJ L 331 of 15.12.2010].

Directive 2010/78/EU of the European Parliament and of the Council of 24 November 2010 amending Directives 98/26/EC, 2002/87/EC, 2003/6/EC, 2003/41/EC, 2003/71/EC, 2004/39/EC, 2004/109/EC, 2005/60/EC, 2006/48/EC, 2006/49/EC and 2009/65/EC in respect of the powers of the European Supervisory Authority (European Banking Authority), the European Supervisory Authority (European Insurance and Occupational Pensions Authority) and the European Supervisory Authority (European Securities and Markets Authority) Text with EEA relevance [OJ L 331 of 15.12.2010].

Commission Decision 2001/528/EC of 6 June 2001 establishing the European Securities Committee (Text with EEA relevance) [OJ L 191 of 13.7.2001].