in force 2021-06-26 MODIFIED+2,153 −569§
Amended by Regulation (EU) 2019/2033 32019R2033
applies from: unchanged
The heading changes from Withdrawal of registration to Measures to be taken by ESMA, and the article gains a new first paragraph giving ESMA power to temporarily prohibit or restrict a third-country firm's provision of investment services or activities where the firm fails to comply with certain prohibitions, restrictions, requests or investigative/inspection obligations under Articles 40, 41, 42, 46 and 47(2).
The withdrawal-of-registration provision moves to paragraph 2, is now expressed as applying without prejudice to paragraph 1, and its conditions are reorganized so that the referral to the third-country competent authority and that authority's failure are stated as a standalone requirement combined with one of two listed grounds, which now also reference the annual information under Article 46(6a) and add reference to compliance with the conditions of the Article 47(1) decision.
Paragraph 3 replaces the prior 30-day advance notice requirement with a duty to inform the third-country competent authority of intended action under paragraph 1 or 2 in due course, adds a list of criteria ESMA must take into account when deciding on action, and expands the duty to inform of adopted measures to include the third-country firm concerned alongside the Commission.
Cited: Art. 49, v1 · Art. 49, v2
text before / after
texts differ too much for an inline diff; shown separately
before (02014R0600-20200704)
Article 49 Withdrawal of registration 1. ESMA shall withdraw the registration of a third-country firm in the register established in accordance with Article 48 where: (a) ESMA has well-founded reasons based on documented evidence to believe that, in the provision of investment services and activities in the Union, the third-country firm is acting in a manner which is clearly prejudicial to the interests of investors or the orderly functioning of markets; or (b) ESMA has well-founded reasons based on documented evidence to believe that, in the provision of investment services and activities in the Union, the third-country firm has seriously infringed the provisions applicable to it in the third country and on the basis of which the Commission has adopted the Decision in accordance with Article 47(1); (c) ESMA has referred the matter to the competent authority of the third country and that third-country competent authority has not taken the appropriate measures needed to protect investors and the proper functioning of the markets in the Union or has failed to demonstrate that the third-country firm concerned complies with the requirements applicable to it in the third country; and (d) ESMA has informed the third-country competent authority of its intention to withdraw the registration of the third-country firm at least 30 days before the withdrawal. 2. ESMA shall inform the Commission of any measure adopted in accordance with paragraph 1 without delay and shall publish its decision on its website. 3. The Commission shall assess whether the conditions under which a decision in accordance with Article 47(1) has been adopted continue to persist in relation to the third country concerned.
after (02014R0600-20210626)
Article 49 Measures to be taken by ESMA 1. ESMA may temporarily prohibit or restrict a third‐country firm from providing investment services or performing investment activities with or without any ancillary services in accordance with Article 46(1) where the third‐country firm has failed to comply with any prohibition or restriction imposed by ESMA or EBA in accordance with Articles 40 and 41 or by a competent authority in accordance with Article 42, has failed to comply with a request from ESMA in accordance with Article 46(6a) and (6b) in due time and a proper manner, or where the third‐country firm does not cooperate with an investigation or an on‐site inspection carried out in accordance with Article 47(2). 2. Without prejudice to paragraph 1, ESMA shall withdraw the registration of a third‐country firm in the register established in accordance with Article 48 where ESMA has referred the matter to the competent authority of the third country, and that competent authority has not taken the appropriate measures needed to protect investors or the proper functioning of the markets in the Union, or has failed to demonstrate that the third‐country firm concerned complies with the requirements applicable to it in the third country or with the conditions under which a decision in accordance with Article 47(1) has been adopted, and one of the following applies: (a) ESMA has well‐founded reasons, based on documented evidence, including but not limited to the annual information provided in accordance with Article 46(6a), to believe that, in the provision of investment services and activities in the Union, the third‐country firm is acting in a manner which is clearly prejudicial to the interests of investors or the orderly functioning of markets; (b) ESMA has well‐founded reasons, based on documented evidence, including but not limited to the annual information provided in accordance with Article 46(6a), to believe that, in the provision of investment services and activities in the Union, the third‐country firm has seriously infringed the provisions applicable to it in the third country and on the basis of which the Commission has adopted the Decision in accordance with Article 47(1). 3. ESMA shall inform the third‐country competent authority of its intention to take action in accordance with paragraph 1 or 2 in due course. In deciding the appropriate action to take under this Article, ESMA shall take into account the nature and seriousness of the risk posed to investors and the proper functioning of the markets in the Union, having regard to the following criteria: (a) the duration and frequency of the risk arising; (b) whether the risk has revealed serious or systemic weaknesses in the third‐country firm’s procedures; (c) whether financial crime has been occasioned, facilitated or otherwise attributable to the risk; (d) whether the risk has arisen intentionally or negligently. ESMA shall inform the Commission and the third‐country firm concerned of any measure adopted in accordance with paragraph 1 or 2 without delay and shall publish its decision on its website. The Commission shall assess whether the conditions under which a decision in accordance with Article 47(1) was adopted continue to persist in relation to the third country concerned.