2.5.4.1 Decisions by ESMA addressed to national competent authorities

Article 8(2)(e) of the ESMA regulation empowers ESMA to take individual decisions addressed to competent authorities in emergency situations (article 18) or in situations of disagreements between competent authorities (article 19). In the event of adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system of the European Union, the Commission, upon its own initiative or following a request by ESMA (or the Commission or ESRB), the Council, in consultation with the Commission and ESRB, may adopt a decision addressed to ESMA, determining the existence of such an emergency situation.1 If such a decision is taken by the Council, ESMA may adopt individual decisions requiring competent authorities to take the necessary action in accordance with the legislation referred to in article 1(2) to address the risks to the financial system.2

In a case where a competent authority disagrees about the procedure or content of an action or inaction of a competent authority of another Member State in cases specified in the acts referred to in article 1(2), ESMA, at the request of one or more of the competent authorities concerned may assist the authorities in reaching an agreement in accordance with the time limit for conciliation set by ESMA.3 If the competent authorities fail to reach an agreement at the expiry of this time limit, ESMA may take a decision requiring them to take specific action or to refrain from action in order to settle the matter in compliance with EU legislation.4