Legal provisions of COM(2010)371 - Amendment of Directive 97/9/EC on investor-compensation schemes - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2010)371 - Amendment of Directive 97/9/EC on investor-compensation schemes. |
|---|---|
| document | COM(2010)371  |
| date | July 12, 2010 |
Contents
Article 1 - Amendments to Directive 97/9/EC
(1) Article 1 is amended as follows:
(a) Point 2 is replaced by the following:
"2. investment business shall mean investment services and activities as defined in Article 4(1)(2) of Directive 2004/39/EC and the ancillary service referred to in point 1 of Section B of the Annex I to Directive 2004/39/EC of the European Parliament and of the Council (*);
* OJ L 45, 16.2.2005, p. 18."
(b) Point 4 is replaced by the following:
"4. investor means, in relation to investment business, any person who has entrusted money or instruments to an investment firm, and in relation to the activities of UCITS, a unit holder or share holder in a UCITS (hereafter 'unit holder');"
(c) Point 7 is replaced by the following:
"7. competent authorities means the authorities defined in Article 4 (1) 22 of Directive 2004/39/EC and in Article 2(1) ( h) of Directive 2009/65/EC of the European Parliament and of the Council (*).
Where this Directive refers to the [ESMA regulation] investor-compensation schemes shall, for the purpose of this regulation, be considered competent authorities under Article 2(3) of the [ESMA regulation];
* OJ L 302, 17.11.2009, p. 32."
(d) The following points 8 to 11 are added:
"8. UCITS means an undertaking as defined in Article 1(2) and (3) of Directive 2009/65/EC;
9. depositary means in relation to UCITS activities, an institution as defined in Article 2(1)(a) of Directive 2009/65/EC;"
10. third party means, in relation to investment business, an institution with whom an investment firm has deposited financial instruments held by it on behalf of its clients as referred to in Article 17 of Directive 2006/73/EC or with whom such an institution has sub-deposited the financial instruments; in relation to a UCITS business, an institution with whom a UCITS depositary has entrusted assets on behalf of the UCITS;
11. low-risk assets means asset items falling into one of the categories set out in the first and second category of Table 1 of point 14 of Annex I to Directive 2006/49/EC of the European Parliament and of the Council(*) but excluding asset items defined as qualifying items in point 15 of that Annex.
* OJ L 177, 30.6.2006, p. 201."
(e) The following paragraph 2 is added:
"2. The provisions of this Directive applying to investment firms shall apply to management companies authorized in accordance with Directive 2009/65/EC, where their authorization also covers the services listed in Article 6(3), of that Directive."
(2) Article 2 is amended as follows:
(a) The first subparagraph of paragraph 1 is replaced by the following:
"1. Each Member State shall ensure that within its territory one or more investor-compensation schemes are introduced and officially recognized. Except in the circumstances envisaged in the second subparagraph and in Article 5(3), no investment firm authorized in that Member State or UCITS authorized in that Member State may carry on investment business or carry on activities as a UCITS, unless it belongs to such a scheme."
(b) Paragraph 2 is replaced by the following:
"2. A scheme shall provide coverage for investors in relation to investment business in accordance with Article 4 where one of the following conditions is met first:
(a) the competent authorities have determined that an investment firm appears, for the time being, for reasons directly related to the financial circumstances of the investment firm or the financial circumstances of any third party with whom financial instruments have been deposited by the investment firm, to be unable to meet its obligations arising out of investors' claims and has no early prospect of being able to do so,
(b) a judicial authority has made a ruling, for reasons directly related to the financial circumstances of the investment firm or the financial circumstances of any third party with whom financial instruments have been deposited by the investment firm, which has the effect of suspending investors' ability to make claims against the firm or the firm's ability to make claims against the third party.
Member States shall ensure that competent authorities make the determination referred to in point (a) of the first subparagraph as soon as possible and in any event within 3 months, after first becoming aware that an investment firm has failed to meet its obligations arising out of investors' claims."
(c) The following paragraphs 2a, 2b and 2c are inserted:
"2a. The coverage referred to in paragraph 2 shall be provided in accordance with the legal and contractual conditions applicable for claims arising out of an investment firm's inability to perform either of the following:
(a) repay money owed to or belonging to investors and held on their behalf in connection with investment business;
(b) return to investors any instruments belonging to them and held, administered or managed on their behalf in connection with investment business,
Member States shall ensure that the schemes provide coverage where financial instruments or monies are held, administered or managed for or on behalf of an investor, irrespective of the type of investment business being carried on by the firm and of whether or not the firm is acting in accordance with any restriction set out in its authorisation.
2b. A scheme shall also provide coverage for UCITS unit holders in accordance with Article 4 where either of the following conditions is met first:
(a) the competent authority has determined that a depositary or a third party to whom the assets of the UCITS are entrusted is unable to meet its obligations to a UCITS, for the time being, for reasons directly related to the financial circumstances of the depositary or the third party and has no early prospect of being able to do so;
(b) a judicial authority has made a ruling, for reasons directly related to the financial circumstances of the depositary or any third party to whom assets of the UCITS are entrusted, which has the effect of suspending the UCITS' ability to make claims against the depositary or the third party.
Member States shall ensure that the competent authorities make the determination referred to in point (a) of the first subparagraph as soon as possible and in any event within 3 months, after first becoming aware that a depositary or a third party to whom the assets of the UCITS are entrusted has failed to meet its obligations arising out of the UCITS' claims.
2c. The coverage referred to in paragraph 2b shall be provided in accordance with the legal and contractual conditions applicable for a claim by a UCITS unit holder for the loss of value of the UCITS unit due to the inability of a depositary or a third party to whom the assets of the UCITS have been entrusted, to perform either of the following:
(a) repay money owed to or belonging to the UCITS and held on its behalf in connection with UCITS activities,
(b) return to the UCITS any instruments belonging to it and held or administered on its behalf in connection with UCITS activities."
(f) Paragraph 3 is replaced by the following:
"3. Any claim referred to in paragraph 2a on a credit institution which, in a given Member State, would be eligible both under this Directive and Directive 94/19/EC shall be dealt with under Directive 94/19/EC. No claim shall be eligible more than once under those directives."
(3) Article 3 is replaced by the following:
" Article 3
Claims arising out of transactions in connection with which a criminal conviction has been obtained for money laundering, as defined in Article 1 of Directive 2005/60/EC of the European Parliament and of the Council(*), or arising out of conduct that is prohibited under Directive 2003/6/EC of the European Parliament and of the Council(**), shall be excluded from any compensation under investor-compensation schemes.
* OJ L 309, 25.11.2005, p. 15.
** OJ L 96, 12.4.2003, p. 16."
(4) Article 4 is amended as follows:
(a) Paragraph 1 is replaced by the following:
"1. Member States shall ensure that schemes provide for coverage of EUR 50 000 for each investor in respect of the claims referred to in Article 2(2a) or (2c).
Members States which provide for coverage of more than EUR 50 000 at the time of adoption of this Directive, may maintain that level of coverage for no longer than 3 years from the date for the transposition of this Directive. After that date, those Member States shall ensure that the level of coverage is EUR 50 000.
Member States who convert the amounts expressed in euro into their national currency shall initially use in the conversion the exchange rate prevailing on the date of entry into force of this Directive.
Member States may round off the amounts resulting from the conversion, provided that such rounding off does not exceed EUR 2500.
Without prejudice to the fourth subparagraph, Member States shall adjust the coverage levels converted into another currency to the amount referred to in this paragraph every five years. Member States may make an earlier adjustment of coverage levels, after having consulted the Commission, following the occurrence of unforeseen events such as currency fluctuations.
(b) The following paragraph 1a is inserted:
"1a. The Commission may adjust by means of delegated acts the amount referred in paragraph 1, taking into account the following parameters:
(a) inflation in the Union, on the basis of changes in the harmonised index of consumer prices published by the Commission;
(b) average amount of funds and financial instruments held by investment firms on behalf of retail investors."
(c) Paragraph 2 is replaced by the following:
"2. A Member State may provide that certain investors shall be excluded from coverage by schemes for claims referred to in Article 2(2a) or (2c) or shall be granted a lower level of coverage. Those exclusions shall be as listed in Annex 1. "
(d) Paragraph 4 is deleted.
(5) The following Articles 4a and 4b are inserted:
" Article 4a
1. Member States shall ensure that schemes have in place adequate systems to determine their potential liabilities. Member States shall ensure that compensation schemes are adequately financed in proportion to their liabilities.
2. Member States shall ensure that each scheme establishes a target fund level of at least 0.5% of the value of the monies and financial instruments held, administered or managed by the investment firms or UCITS that are covered by the protection of the investor compensation scheme. The value of the covered monies and financial instruments shall be calculated every year as at 1 January.
The Commission shall adopt, by means of delegated acts in accordance with Article 13a and subject to the conditions of Articles 13b and 13c, measures to determine the method to calculate the value of monies and financial instruments covered by the protection of the investor compensation schemes in order to determine the target fund level to be established by the schemes and to modify the target fund level taking account of the developments in financial markets.
3. The target fund level shall be financed prior to and irrespective of the occurrence of any event relevant under Article 2(2) or (2b). Member States shall ensure that the level of funding for each scheme is reached within a ten-year period after the entry into force of this Directive and that each scheme adopts and complies with an appropriate planning in order to fulfil this objective.
Contributions collected to reach the target fund level shall only be invested in cash deposits and low-risk assets with a residual term to financial maturity of 24 months or less, which can be liquidated within a time limit not exceeding one month.
4. Member States shall ensure that the schemes may make additional calls for contribution to the members of the scheme in case the target fund level is insufficient to meet the payment of the compensation claims referred to in Article 9(2). Those additional contributions shall not exceed 0.5% of the covered monies and financial instruments as referred to in paragraph 2 of this Article. Those additional contributions shall not jeopardise the stability of the financial system of the Member State concerned and be based on affordability criteria.
5. Member States shall ensure that schemes have in place adequate alternative funding arrangements to enable them to obtain short term funding to meet claims against the scheme once the pre-funded amount has been exhausted. Those arrangements may include borrowing facilities from commercial banks. They may also include borrowing facilities from public institutions provided that those facilities are based on commercial grounds.
6. Member States shall ensure that the cost of financing schemes is ultimately borne in relation to investment business by the investment firms or third party custodians covered by the scheme and in relation to UCITS activities, by UCITS or their depositaries or third parties who are covered by the scheme. Regular contributions by members shall be raised annually.
7. Member States shall annually inform the ESMA of the target fund level, as referred to in paragraph 2, and the level of funding, as referred to in paragraph 3, of the schemes in their Member State. This information shall be confirmed by the competent authorities and shall, accompanied by this confirmation, be transmitted within 30 days from the end of each year to the ESMA.
Member States shall ensure that the information referred to in the first subparagraph is published on the web-site of the Schemes at least on an annual basis.
8. Member States shall ensure that 10% of the ex-ante funding amount of the schemes referred to in Article 4a (2) is available for lending to other schemes under the conditions established in Article 4c.
The Commission may amend, by means of delegated acts in accordance with Article 13a and subject to the conditions of Articles 13b and 13c, the percentage of the ex-ante funding amount to be made available for lending to other schemes, taking into account the developments in financial markets.
9. The Commission shall adopt, by means of delegated acts in accordance with Article 13a and subject to the conditions of Articles 13b and 13c, measures to determine:
(a) the method to determine the potential liabilities of schemes as referred to in paragraph 1;
(b) the alternative funding arrangements as referred to in paragraph 5 that schemes must have in place to be able to obtain short term funding if necessary;
(c) the factors to be considered in assessing the ability of additional contributions as referred to in paragraph 4 to not jeopardise the stability of the financial system of a Member State;
(d) the criteria to determine the contributions by entities covered as referred to in paragraph 6.
10. In order to ensure uniform conditions of application of paragraph 7, subparagraph 2, the European Securities and Markets Authority established by Regulation …/… of the European Parliament and of the Council(*) [ESMA] (hereinafter referred to as 'ESMA') shall develop draft technical standards to specify the details of the information to be published by the schemes.
ESMA shall submit the draft technical standards referred to in the first subparagraph to the Commission by 31 December 2012.
The Commission may adopt the draft technical standards referred to in the first subparagraph in accordance with the procedure laid down in Article 7e of Regulation .../.... [ESMA].
Article 4b
1. A scheme shall have the right to borrow from all other schemes referred to in Article 2 within the Union provided that all of the following conditions are met:(a) the borrowing scheme is not able to fulfil its obligations under Article 2 (2a) or (2c) because of previous payments made to fulfil those obligations;
(b) the situation referred to in point (a) of this subparagraph is due to a lack of funds as referred to in Article 4a(3);
(c) the borrowing scheme has made recourse to additional contributions referred in Article 4a(4);
(d) the borrowing scheme undertakes the legal commitment that the borrowed funds will be used in order to pay claims under Article 2 (2a) and (2c);
(e) a scheme that has not repaid a loan to other schemes under this Article shall neither borrow from nor lend to other schemes;
(f) the borrowing scheme shall state the amount of money requested;
(g) the borrowing scheme informs without delay the ESMA and states the reasons why the above conditions are fulfilled and the amount of money requested.
The amount referred to in point (f) of the first subparagraph shall be determined as follows:
[amount of claims to be paid under Article 2(2a) and 2(2c)] – [level of funding as referred to in Article 4a(7)] + maximum amount of additional contributions referred to in Article 4a(4)]
The other schemes shall act as lending schemes. For this purpose, Member States in which more than one scheme is established shall designate one scheme acting as the lending scheme of this Member State and inform the ESMA thereof. Member States may decide if and how the lending scheme is reimbursed by other Schemes established in the same Member State.
2. The loan shall be subject to the following conditions:
(a) subject to the limit established in the following subparagraph, each scheme shall lend the amount proportionate to the amount of covered monies and financial instruments in each scheme without taking account of the borrowing scheme. The amounts shall be calculated pursuant to the latest information referred to in Article 4a (2);
(b) the borrowing scheme shall repay the loan at the latest after 5 years. It may repay the loan in annual instalments. Interest shall be due only at the time of repayment;
(c) the interest rate shall be equivalent to the marginal lending facility rate of the European Central Bank during the credit period.
The total amount lent to each borrowing scheme shall not exceed the 20% of the total amount of the funds available at Union level for lending as referred to in Article 4a (8).
3. ESMA shall confirm that the requirements referred to in paragraph 1 have been met, state the amounts to be lent by each scheme as calculated pursuant to paragraph 2(a) and the initial interest rate pursuant to paragraph 2-(c) as well as the duration of the loan.
ESMA shall transmit its confirmation together with the information referred to in paragraph (g) to the lending Schemes. They shall receive this confirmation and information within 15 working days. The lending schemes shall, without delay but at the latest within further 15 working days after reception effect payment of the loan to the borrowing scheme.
4. Member States shall ensure that the contributions levied by the borrowing scheme are sufficient to reimburse the amount borrowed and to re-establish the target level fund as soon as possible and at latest within a ten-year period after the reception of the loan.
5. In order to facilitate an effective cooperation between investor-compensation schemes, the schemes, or, where appropriate, the competent authorities, shall have written cooperation agreements in place. Such agreements shall take into account the requirements set out in Directive 95/46/EC of the European Parliament and of the Council (**).
ESMA shall be notified of the existence and the content of the agreements referred to in subparagraph 1. It may issue opinions on such agreements under Articles [6(2)(f) and 19 of the ESMA regulation]. If competent authorities or schemes cannot reach an agreement or if there is a dispute about the interpretation of such agreement, ESMA shall settle disagreements pursuant to [Article 11 of the ESMA regulation].
The absence of the agreements referred to in subparagraph 1 shall not affect the claims of investors under Article 2(2a) or (2c).
* OJ L …
** OJ L 084, 26/03/1997, p.22.
(6) Articles 5 and 6 are replaced by the following:
"Article 5
1. If an investment firm, UCITS, depositary or third party required by Article 2(1) to belong to a scheme do not meet their respective obligations incumbent on it as a member of that scheme, the competent authorities which issued the investment firm authorization or the UCITS authorization shall be notified and, in cooperation with the compensation scheme, shall take all measures appropriate, including the imposition of penalties, to ensure that the investment firm, UCITS, depositary or third party meets its obligations.2. If the measures referred to in paragraph 1 fail to secure compliance on the part of the investment firm, UCITS, depositary or third party, the scheme may, with the express consent of the competent authorities, give not less than 12 months' notice of its intention of excluding the investment firm, UCITS, depositary or third party from membership of the scheme. The scheme shall continue to provide the coverage referred to in Article 2(2a) and (2c) in respect of investment business or UCITS activities carried on during that period. If, on expiry of the period of notice, the investment firm, UCITS, depositary or third party has not met its obligations, the compensation scheme may, again having obtained the express consent of the competent authorities, exclude it.
3. An investment firm, UCITS, depositary or third party, excluded from an investor-compensation scheme, may continue to carry on investment business, its UCITS activities or be entrusted with investors' and UCITS financial instruments under the following conditions:
a) before its exclusion, it had made alternative compensation arrangements ensuring that investors and UCITS would enjoy cover that is at least equivalent to that offered by the officially recognized scheme and that the characteristics of such alternative compensation arrangements would be equivalent to those of the officially recognized scheme;
b) the competent authority responsible for the authorization of the investment firm or UCITS, has confirmed that the conditions referred to in letter a) are met.
4. If an investment firm or a UCITS the exclusion of which is proposed under paragraph 2 is unable to make alternative arrangements which comply with the conditions imposed in paragraph 3, the competent authorities which issued its authorization shall:
(a) with respect to the investment firm for which it has issued the authorization, withdraw the authorization without delay;
(b) with respect to the UCITS it has approved, withdraw the authorization without delay.
5. Where a depositary or a third party, the exclusion of which is proposed under paragraph 2 is unable to make alternative arrangements which comply with the conditions imposed in paragraph 3, it shall not be allowed to be entrusted with investors' or UCITS assets."
Article 6
After the withdrawal of an investment firm's authorization or UCITS' authorization, the coverage referred to in Article 2(2a) and (2c) shall continue to be provided in respect of investment business transacted up to the time of that withdrawal."(7) Articles 8 and 9 are replaced by the following:
"Article 8
1. The cover provided for in Article 4(1) and (3) shall apply to the investor's aggregate claim on the same investment firm or the same UCITS under this Directive irrespective of the number of accounts, the currency and location within the Union.2. Each investor's share in joint investment business shall be taken into account in calculating the cover provided for in Article 4 (1) and (3).
In the absence of special provisions, claims shall be divided equally amongst investors.
Member States may provide that claims relating to joint investment business to which two or more persons are entitled as members of a business partnership, association or grouping of a similar nature which has no legal personality may, for the purpose of calculating the limits provided for in Article 4(1) and (3), be aggregated and treated as if arising from an investment made by a single investor.
3. Where an investor is not entitled to the sums or securities held, the person who is entitled shall receive the compensation, provided that that person has been or can be identified before the date of the determination or ruling referred to in Article 2(2) and (2b).
If two or more persons are entitled, the share of each under the arrangements subject to which the sums or the securities are managed shall be taken into account when the limits laid down in Article 4(1) and (3) are calculated.
"Article 9
1. The compensation scheme shall take appropriate measures to inform investors of a determination or ruling referred to in Article 2(2) and (2b) and, if they are to be compensated, to compensate them as soon as possible. It may fix a period during which investors shall be required to submit their claims. That period may not be less than five months from the date of the determination or ruling referred to in Article 2(2) and (2b) or from the date on which that determination or ruling is made public.The fact that that period has expired may not be invoked by the scheme to deny coverage to an investor who has been unable to assert his right to compensation in time.
2. The scheme shall be in a position to pay an investor's claim as soon as possible and at the latest within three months of the establishment of the eligibility and the amount of the claim.
In exceptional circumstances a compensation scheme may apply to the competent authorities for an extension of the time limit. No such extension may exceed three months. Competent authorities shall inform immediately the European Securities and Markets Authority of any extension granted to any compensation schemes and the circumstances justifying such extension.
Member States shall ensure that compensation schemes may participate in insolvency or judicial procedures that may be relevant in establishing the eligibility and the amount of a claim.
The third subparagraph shall be without prejudice to schemes being able to adopt other methods to determine the eligibility or amount of a claim.
If final payment has not been made within nine months of the determination or ruling referred to in Article 2(2) or (2b), Member States shall ensure that the scheme provides, within three months of that determination or ruling, for a provisional payout of partial compensation of not less than one third of the claim based on an initial assessment of the claim. The balance shall be paid out within the period set out in the first subparagraph of this paragraph after the eligibility and the amount of the claim are finally established. Member States shall ensure that the scheme has the means to recover amounts provisionally paid out if it is established that the claim was not eligible.
The Commission shall adopt, by means of delegated acts in accordance with Article 13a and subject to the conditions of Articles 13b and 13c, measures to determine the procedure to deal with investors' claims and the technical criteria to calculate the loss of value of a UCITS as a result of the events mentioned under Article 2(2b) and (2c).
3. Notwithstanding the time limit laid down in the first subparagraph of paragraph 2, where an investor or any other person entitled to or having an interest in investment business has been charged with an offence arising out of or in relation to money laundering as defined in Article 1 of Directive 2005/60/EC or is the subject of action for contravention of Directive 2003/6/EC, the compensation scheme may suspend any payment pending the judgment of the court or determination of a competent authority."
(8) In Article 10, paragraph 1 is replaced by the following:
"1. Member States shall ensure that each investment firm or UCITS takes appropriate measures to make available to actual and intending investors the information necessary for the identification of the investor-compensation scheme of which the investment firm or UCITS and its branches within the Union are members or any alternative arrangement provided for under the second subparagraph of Article 2 (1) or Article 5 (3). Investors shall be informed of the provisions of the investor-compensation scheme or any alternative arrangement applicable, including the amount and scope of the cover offered by the compensation scheme and any rules laid down by the Member States pursuant to Article 2(3). That information shall be made available in a readily comprehensible manner.
Information shall also be given on request concerning the conditions governing compensation and the formalities which must be completed to obtain compensation.
The information provided shall be fair, clear and not misleading and in particular shall explain the situations and claims covered by the relevant compensation scheme and how it applies in cross border situations. The information provided should also give examples of situations and claims not covered under the scheme."
(9) Article 12 is replaced by the following:
"Article 12
1. Without prejudice to any other rights which they may have under national law, schemes which make payments in order to compensate investors shall have the right of subrogation to the rights of those investors in liquidation proceedings for amounts equal to their payments.2. In the case of a loss due to the financial circumstances of a third party that holds financial instruments belonging to an investor in relation to investment business, as referred to in Article 2(2), schemes which make payments in order to compensate investors shall have the right of subrogation to the rights of the investor or investment firm in liquidation proceedings for amounts equal to their payments.
3. In the case, provided for in Article 2(2c), of losses due to the financial circumstances of a depositary or third party to whom the assets of the UCITS have been entrusted, schemes which make payments in order to compensate UCITS unit holders shall have the right of subrogation to the rights of the UCITS holder or UCITS in liquidation proceedings for amounts equal to their payments.
4. If the third party that holds financial instruments belonging to an investor in relation to investment business or the depositary or third party to whom the assets of the UCITS have been entrusted are located in a third country in which the judiciary system does not allow the scheme to subrogate to the rights of the investment firm or the UCITS, Member States shall ensure that the investment firm or the UCITS return to the scheme amounts equal to their payments in case they receive any amount in the liquidation proceedings."
(10) The following Articles 13a, 13b and 13c are inserted:
" Article 13a
1. The powers to adopt the delegated acts referred to in Article 4a(2), Article 4a(8), Article 4a(9) and Article 9(2) shall be conferred on the Commission for an indeterminate period of time.
2. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.
3. The powers to adopt delegated acts are conferred on the Commission subject to the conditions laid down in Articles 13b and 13c.
Article 13b
1. The delegation of power referred to in Article 4a(2), Article 4a(8) Article 4a (9) and Article 9(2) may be revoked by the European Parliament or by the Council.2. The institution which has commenced an internal procedure for deciding whether to revoke the delegation of power shall endeavour to inform the other institution and the Commission within a reasonable time before the final decision is taken, stating the delegated powers which could be subject to revocation and the reasons for a revocation.
3. The decision of revocation shall put an end to the delegation of the powers specified in that decision. It shall take effect immediately or at a later date specified therein. It shall not affect the validity of the delegated acts already in force. It shall be published in the Official Journal of the European Union .
Article 13c
1. The European Parliament and the Council may object to the delegated act within a period of two months from the date of notification. At the initiative of the European Parliament or the Council this period shall be extended by one month.2. If, on expiry of that period, neither the European Parliament nor the Council has objected to the delegated act it shall be published in the Official Journal of the European Union and shall enter into force at the date stated therein.
The delegated act may be published in the Official Journal of the European Union and enter into force before the expiry of that period if the European Parliament and the Council have both informed the Commission of their intention not to raise objections.
3. If the European Parliament or the Council objects to the adopted delegated act, it shall not enter into force. The institution which objects shall state the reasons for objecting to the delegated act.
(11) The following Article 14a is inserted:
"Article 14a
The Member States may conclude cooperation agreements on exchange of information with the competent authorities of third countries in accordance with Article 63 of Directive 2004/39/EC and Article 102 of Directive 2009/65/EC."19. Annex I is amended as follows:
(a) Point 1 is replaced by the following:
"1. Professional investors referred to in points 1 to 4 of section I of Annex II of Directive 2004/39/EC on markets in financial instruments."
(b) Points 2, 3 and 8 are deleted.
Article 2 - Transposition
They shall apply those provisions from [ eighteen months after the entry into force of this Directive ] except for provisions transposing Article 4b that shall be applied from 31 December 2013.
When Member States adopt those provisions, they shall contain a reference to this Directive or be accompanied by such a reference on the occasion of their official publication. Member States shall determine how such reference is to be made.
2. Member States shall communicate to the Commission the text of the main provisions of national law which they adopt in the field covered by this Directive.
Article 3 - Entry into force
Article 4 - Addressees