COMMISSION DELEGATED REGULATION (EU) 2022/803
of 16 February 2022
supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council by specifying rules of procedure for the exercise of the power to impose fines or periodic penalty payments by the European Securities Markets Authority regarding data reporting service providers
(Text with EEA relevance)
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Article 1
This Delegated Regulation applies to ‘data reporting services providers’, or ‘DRSPs’, as defined in Article 2(1)(36a) of Regulation (EU) No 600/2014, that are subject to ESMA supervision.
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Article 2
Rules of procedure in infringement proceedings before the investigation officer
1.
Upon completion of an investigation of potential infringements of the requirements referred to in Article 38g(1) of Regulation (EU) No 600/2014 and before submitting the file to ESMA, the investigation officer referred to in Article 38k(1) of that Regulation shall inform the person subject to investigation in writing stating its findings and shall provide that person with the opportunity to make written submissions pursuant to paragraph 3. The statement of findings shall set out the facts liable to constitute one or more of the infringements of the requirements referred to in Article 38g(1) of (EU) No 600/2014, including an assessment of the nature and seriousness of those infringements, taking into account the criteria laid down in Article 38g(2) of that Regulation.
2.
The statement of findings shall set a reasonable time limit for the person subject to investigation to make its written submissions. In investigations other than those referred to in Article 5, this time limit shall be at least four weeks. The investigation officer shall not be obliged to take into account written submissions received after that time limit has expired.
3.
In the written submissions, the person subject to investigation may set out all the facts which are relevant to its defence, and shall, if possible, attach documents as proof of the facts set out. The person subject to investigation may propose that the investigation officer hears other persons who may corroborate the facts set out in the submissions of the person subject to investigation.
4.
The investigation officer may invite a person subject to investigation to which a statement of findings has been addressed to attend an oral hearing. The persons subject to investigation may be assisted by a counsel of their choice. Oral hearings shall not be public.
Article 3
Rules of procedure in infringement proceedings before ESMA with regard to fines and supervisory measures
1.
The complete file to be submitted by the investigation officer to ESMA shall include the following documents:
(a)
the statement of findings and a copy thereof addressed to the person subject to the investigation;
(b)
a copy of the written submissions by the person subject to the investigation;
(c)
the minutes of any oral hearing.
2.
When a file is incomplete, ESMA shall make a reasoned request for additional documents to the investigation officer.
3.
Where ESMA considers that the facts described in the statement of findings of the investigation officer do not to constitute infringements of the requirements referred to in Article 38g(1) of Regulation (EU) No 600/2014, it shall decide to close the case and it shall notify that decision to the person subject to investigation.
4.
Where ESMA does not agree with the findings of the investigation officer, it shall submit a new statement of findings to the person subject to investigation. That statement of findings shall set a time limit of at least four weeks within which the person subject to investigation may make written submissions. ESMA shall not be obliged to take into account written submissions received after the expiry of that time limit for adopting a decision on the existence of an infringement and on supervisory measures and the imposition of a fine in accordance with Articles 38g and 38h of Regulation (EU) No 600/2014.
5.
Where ESMA agrees with all or some of the findings of the investigation officer, it shall inform the person subject to investigation accordingly. Such communication shall set a time limit of at least two weeks in case ESMA agrees with all of the findings, and at least four weeks in case ESMA does not agree with all of the findings, within which period the person subject to investigation may make written submissions. ESMA shall not be obliged to take into account written submissions received after the expiry of that time limit for adopting a decision on the existence of an infringement and on supervisory measures and the imposition of a fine in accordance with Articles 38g and 38h of Regulation (EU) No 600/2014.
6.
ESMA may invite the person subject to investigation to which a statement of findings has been addressed to attend an oral hearing. The person subject to investigation may be assisted by a counsel of their choice. Oral hearings shall not be public.
7.
If ESMA decides that one or more of the infringements of the requirements referred to in Article 38g(1) of Regulation (EU) No 600/2014 has been committed by a person subject to investigation and has adopted a decision imposing a fine in accordance with Article 38h of that regulation, it shall notify immediately that decision to the person subject to investigation.
Article 4
Rules of procedure in infringement proceedings before ESMA with regard to periodic penalty payments
1.
Before making a decision imposing a periodic penalty payment pursuant to Article 38i of Regulation (EU) No 600/2014, ESMA shall submit a statement of findings to the person subject to the proceedings setting out the reasons justifying the imposition of a periodic penalty payment and the amount of the periodic penalty payment per day of non-compliance. The statement of findings shall set a time limit of at least four weeks within which the person subject to the proceedings may make written submissions. ESMA shall not be obliged to take into account written submissions received after the expiry of that time limit for deciding on the periodic penalty payment.
2.
Once the DRSP or the person subject to the proceedings, has complied with the relevant decision referred to in Article 38i(1) of Regulation (EU) No 600/2014, a periodic penalty payment shall no longer be imposed.
3.
A decision referred to in Article 38i(1) of Regulation (EU) No 600/2014 shall indicate the legal basis and the reasons for the decision, the amount and the starting date of the periodic penalty payment.
4.
ESMA may invite the person subject to the proceedings to attend an oral hearing. The person subject to the proceedings may be assisted by a counsel of their choice. Oral hearings shall not be public.
Article 5
Rules of procedure for interim decisions on supervisory measures
1.
By way of derogation from Article 3(4), (5) and (6) and from Article 4(1) and (4), the procedure set out in this Article shall apply where ESMA adopts interim decisions pursuant to Article 38l(1), second subparagraph of Regulation (EU) No 600/2014.
2.
Where ESMA decides that one or more of the infringements of requirements referred to in Article 38g(1) of Regulation (EU) No 600/2014 has been committed by a person subject to investigation and adopts an interim decision imposing supervisory measures pursuant to Article 38g of Regulation (EU) No 600/2014, it shall notify immediately that interim decision to the person subject to the interim decision.
ESMA shall set a time limit of at least four weeks within which the person subject to the interim decision may make written submissions on that decision. ESMA shall not be obliged to take into account written submissions received after the expiry of that time limit.
Upon request, ESMA shall grant access to the file to the person subject to the interim decision. File documents accessed shall be used only for the purposes of judicial or administrative proceedings concerning the application of Regulation (EU) No 600/2014.
ESMA may invite the person subject to the interim decision to attend an oral hearing. The persons subject to the interim decision may be assisted by a counsel of their choice. Oral hearings shall not be public.
3.
ESMA shall take a final decision as soon as possible after the adoption of the interim decision.
Where ESMA considers, after having heard the person subject to the interim decision, that an infringement of the provisions referred to in Article 38g(1) of Regulation (EU) No 600/2014 has been committed by the person subject to the interim decision, it shall adopt a confirmatory decision imposing one or more supervisory measures laid down in Article 38g of Regulation (EU) No 600/2014. ESMA shall immediately notify that decision to the persons subject to the interim decision.
4.
Where ESMA adopts a final decision that does not confirm the interim decision, the interim decision shall be deemed to be repealed.
Article 6
Access to the file and use of documents
1.
Upon request, ESMA shall grant access to the file to the person subject to the investigation to whom the investigation officer or ESMA has sent a statement of findings. Access shall be granted following the notification of any statement of findings.
2.
File documents accessed shall be used by the person referred to in paragraph 1 only for the purposes of judicial or administrative proceedings concerning the application of Regulation (EU) No 600/2014.
Article 7
Limitation periods for the imposition of fines and periodic penalty payments
1.
Fines and periodic penalty payments on DRSPs and other persons subject to investigation shall be subject to a limitation period of five years.
2.
The limitation period referred to in paragraph 1 shall begin on the day following that on which the infringement is committed. In the case of continuing or repeated infringements, that limitation period shall begin on the day on which the infringement ceases.
3.
Any action taken by ESMA, or by the national competent authority acting at the request of ESMA in accordance with Article 38o of Regulation (EU) No 600/2014 for the purpose of the investigation or proceedings in respect of an infringement of the requirements referred to in Article 38g(1) of Regulation (EU) No 600/2014 shall interrupt the limitation period for the imposition of fines and periodic penalty payments. That limitation period shall be interrupted with effect from the date on which the action is notified to the DRSP or the person subject to the investigation in respect of an infringement of the requirements referred to in Article 38g(1) of Regulation (EU) No 600/2014.
4.
Each interruption as referred to in paragraph 3 shall restart the limitation period. The limitation period shall expire at the latest on the day on which a period equal to twice the limitation period has elapsed without ESMA having imposed a fine or a periodic penalty payment. That period shall be extended by the time during which limitation is suspended pursuant to paragraph 5.
5.
The limitation period for imposing fines and periodic penalty payments shall be suspended for as long as the decision of ESMA is subject to proceedings pending before the Board of Appeal referred to in Article 60 of Regulation (EU) No 1095/2010 of the European Parliament and of the Council (
1
), or is subject to a review by the Court of Justice of the European Union in accordance with Article 38m of Regulation (EU) No 600/2014.
Article 8
Limitation periods for the enforcement of penalties
1.
The power of ESMA to enforce decisions taken pursuant to Articles 38h and 38i of Regulation (EU) No 600/2014 shall be subject to a limitation period of five years.
2.
The limitation period referred to in paragraph 1 shall be calculated from the day following that on which the decision becomes final.
3.
The limitation period for the enforcement of penalties shall be interrupted by:
(a)
a notification by ESMA to the person subject to the proceedings, of a decision varying the original amount of the fine or periodic penalty payment;
(b)
any action of ESMA, or of a national competent authority acting at the request of ESMA in accordance with Article 38o of Regulation (EU) No 600/2014, designed to enforce payment or payment terms and conditions of the fine or periodic penalty payment.
4.
Each interruption referred to in paragraph 3 shall restart the limitation period.
5.
The limitation period for the enforcement of penalties shall be suspended for so long as:
(b)
enforcement of payment is suspended pursuant to a pending decision of ESMA Board of Appeal in accordance with Article 60 of Regulation (EU) No 1095/2010, and a review by the Court of Justice of the European Union in accordance with Article 38m of Regulation (EU) No 600/2014.
Article 9
Collection of fines and periodic penalty payments
1.
The amounts of fines and periodic penalty payments collected by ESMA shall be lodged to an interest-bearing account opened by ESMA until such time as they become final. In case of multiple fines and periodic penalty payments collected by ESMA in parallel ESMA shall ensure that they are lodged to different accounts or subaccounts. Fines and periodic penalty payments paid shall not be entered into ESMA’s budget or recorded as budgetary amounts.
2.
Once ESMA has established that the fines or periodic penalty payments have become final following the exhaustion of all appeal rights ESMA shall transfer those amounts and potential interest accruing to the Commission. These amounts shall then be entered in the Union Revenue budget.
3.
ESMA shall report on a regular basis to the Commission on the amounts of fines and periodic penalty payments imposed and their status.
Article 10
Entry into force and date of application
This Regulation shall enter into force and apply on the third day following that of its publication in the Official Journal of the European Union.
