Version in force , Modified +1,006 −187§
Amended by Regulation (EU) 2023/2845 32023R2845 on EUR-Lex (external, EUR-Lex)
Explanation, written by a model and checked against the cited text
Paragraph 1 gains new text allowing the home Member State competent authority to invite staff from host Member State authorities and from ESMA to take part in on-site inspections, and requiring that authority to transmit inspection findings and information on remedial actions or penalties to ESMA and to the college referred to in Article 24a.
Paragraph 3 now specifies that the identity information to be communicated concerns issuers established in the host Member State and participants holding financial instruments constituted under host Member State law, ties the securities settlement systems reference to core services under Section A, points 1 and 2, of the Annex, and limits the other relevant information to activities of a CSD providing core services in the host Member State through a branch, none of which appeared in the earlier text.
Paragraph 5 changes the host authority's action from referring findings to the home authority and ESMA to informing the home authority, ESMA and the college referred to in Article 24a, replaces "infringement" with "breach" and removes the phrase about measures proving inadequate, adds an obligation to inform ESMA and that college of measures taken without undue delay, and rewords the referral option so either the host or the home authority, rather than both, may refer the matter to ESMA.
Cited: Art. 24, v2 (external, EUR-Lex) · Art. 24, v1 (external, EUR-Lex)
v1 is the previous version, v2 this one.
Text from EUR-Lex, before and after
Previous version, in force 22 June 2022 02014R0909-20220622 → this version, in force 16 January 2024 02014R0909-20240116
Article 24
Cooperation between authorities of the home Member State and of the host Member State and peer review
1. Where a CSD authorised in one Member State has set up a branch in another Member State, the competent authority of the home Member State and the competent authority of the host Member State shall cooperate closely in the performance of their duties provided for in this Regulation, in particular when carrying out on-site inspections in that branch. The competent authority of the home Member State and of the host Member State may, in the exercise of their responsibilities, carry out on-site inspections in that branch after informing the competent authority of the host Member State or of the home Member State respectively.
The competent authority of the home Member State may invite staff from the competent authorities of the host Member States and from ESMA to participate in on-site inspections.
The competent authority of the home Member State shall transmit to ESMA and to the college referred to in Article 24a the findings of the on-site inspections and information on any remedial actions or penalties decided on by that competent authority.
2. The competent authority of the home Member State or of the host Member State may require CSDs which provide services in accordance with Article 23 to report to them periodically on their activities in that host Member State, including for the purpose of collecting statistics. The competent authority of the host Member State shall, on request from the competent authority of the home Member State, provide those periodic reports to the competent authority of the home Member State.
3. The competent authority of the home Member State of the CSD shall, on upon the request of the competent authority of the host Member State and without delay, communicate the identity of the issuers established in the host Member State and of the participants holding financial instruments constituted under the law of the host Member State in the securities settlement systems operated by the CSD which provides core services as referred to in that Section A, points 1 and 2, of the Annex in relation to financial instruments constituted under the law of the host Member State State, and any other relevant information concerning the activities of a CSD that CSD provides core services in the host Member State. State through a branch.
4. Where, taking into account the situation of the securities markets in the host Member State, the activities of a CSD have become of substantial importance for the functioning of the securities markets and the protection of the investors in that host Member State, the competent authority of the home Member State and of the host Member State and the relevant authorities of the home Member State and of the host Member State shall establish cooperation arrangements for the supervision of the activities of that CSD in the host Member State.
Where a CSD has become of substantial importance for the functioning of the securities markets and the protection of the investors in more than one host Member State, the home Member State may decide that such cooperation arrangements are to include colleges of supervisors.
5. Where the competent authority of the host Member State has clear and demonstrable grounds for believing that a CSD providing services within its territory in accordance with Article 23 is in breach of the obligations arising from the provisions of this Regulation, it shall refer those findings to inform the competent authority of the home Member State State, ESMA and the college referred to ESMA. in Article 24a of those findings.
Where, despite measures taken by the competent authority of the home Member State or because such measures prove inadequate, State, the CSD persists in acting in infringement breach of the obligations arising from the provisions of this Regulation, the competent authority of the host Member State shall, after informing the competent authority of the home Member State, the competent authority of the host Member State shall take all the appropriate measures needed in order to ensure compliance with the provisions of this Regulation within the territory of the host Member State. The competent authority of the host Member State shall inform ESMA shall be informed and the college referred to in Article 24a of such measures without undue delay.
The competent authority of the host Member State and or the competent authority of the home Member State may refer the matter to ESMA, which may act in accordance with the powers conferred on it under Article 19 of Regulation (EU) No 1095/2010.
6. Without prejudice to Article 30 of Regulation (EU) No 1095/2010, ESMA shall, after consulting the members of the ESCB, organise and conduct, at least every three years, a peer review of the supervision of CSDs which make use of the freedom to provide services in another Member State in accordance with Article 23 or to participate in an interoperable link.
In the context of the peer review referred to in the first subparagraph ESMA shall, where appropriate, also request opinions or advice from the Securities and Markets Stakeholder Group referred to in Article 37 of Regulation (EU) No 1095/2010.
7. The Commission shall be empowered to adopt delegated acts in accordance with Article 67 concerning measures for establishing the criteria under which the operations of a CSD in a host Member State could be considered to be of substantial importance for the functioning of the securities markets and the protection of the investors in that host Member State.
8. ESMA shall, in close cooperation with the members of the ESCB, develop draft implementing technical standards to establish standard forms, templates and procedures for the cooperation referred to in paragraphs 1, 3 and 5.
ESMA shall submit those draft implementing technical standards to the Commission by 18 June 2015.
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.