Article 47 Digital Operational Resilience Act (DORA), Notification Duties

Member States play a vital role in maintaining the consistency and effectiveness of the European Union’s financial regulatory framework. They are tasked with notifying the European Commission, the European Securities and Markets Authority (ESMA), the European Banking Authority (EBA), and the European Insurance and Occupational Pensions Authority (EIOPA) about their specific laws, regulations, and administrative provisions that implement the EU requirements. This includes relevant criminal law provisions. Compliance with this requirement ensures that the regulatory framework is uniformly applied across the EU. Member States must meet the notification deadline of [OJ: insert date 1 year after the date of entry into force].

Ensuring Transparency and Accountability

The communication of these laws, regulations, and provisions serves several important purposes. First, it ensures transparency and accountability in how Member States are implementing the regulatory framework. By informing the Commission and the relevant European Supervisory Authorities (ESAs), Member States provide a clear picture of their compliance and the specific measures they have put in place. This transparency is essential for maintaining trust and cooperation within the EU financial regulatory system.

Monitoring and Assessing Consistency

Secondly, the notification process allows the Commission, ESMA, the EBA, and EIOPA to monitor and assess the consistency of implementation across different Member States. Given the complexity and interconnectivity of the EU financial markets, it is crucial that regulations are applied uniformly to prevent regulatory arbitrage and ensure a level playing field. By reviewing the national measures, the ESAs can identify any discrepancies or gaps in implementation and work with Member States to address them.

Furthermore, Member States are required to promptly notify the Commission, ESMA, the EBA, and EIOPA of any subsequent amendments to their laws, regulations, and administrative provisions without undue delay. This ongoing communication is vital for several reasons. Financial regulations are dynamic and must evolve to address new risks, challenges, and market developments. By keeping the ESAs informed of changes, Member States help ensure that the regulatory framework remains current and effective in safeguarding the financial system.

Prompt Notification of Amendments

Member States are also required to promptly notify the Commission, ESMA, EBA, and EIOPA of any subsequent amendments to their laws, regulations, and administrative provisions. This ongoing communication is vital for several reasons:

• Dynamic Nature of Financial Regulations: Financial regulations must evolve to address new risks, challenges, and market developments. Keeping the ESAs informed of changes ensures that the regulatory framework remains current and effective in safeguarding the financial system.

• Timely Coordination and Response: Prompt notification facilitates timely coordination and response at the EU level. If significant changes in national laws could impact the broader EU regulatory framework or market stability, the ESAs and the Commission need to be aware of these changes as soon as possible. This enables them to take appropriate actions, such as issuing guidance, adjusting supervisory approaches, or initiating legislative amendments to maintain coherence and stability within the financial system.

Supporting the Principle of Subsidiarity

The requirement for Member States to inform the ESAs and the Commission of their regulatory measures also supports the principle of subsidiarity. It ensures that while Member States retain the authority to implement and enforce regulations within their jurisdictions, there is sufficient oversight and coordination at the EU level to address cross-border issues and ensure a harmonized approach. This balance is critical for the effective functioning of the Single Market and the protection of consumers and investors across the EU.

Moreover, the information provided by Member States can be used by the ESAs to develop best practices and provide technical assistance to national authorities. By analyzing the different approaches taken by Member States, the ESAs can identify successful strategies and share these insights with other jurisdictions. This peer-learning process can enhance the overall quality and effectiveness of financial regulation within the EU.

The requirement for Member States to inform the Commission, ESMA, the EBA, and EIOPA of their implementing laws, regulations, and administrative provisions, as well as any subsequent amendments, is a critical component of the EU financial regulatory framework. It ensures transparency, consistency, and effective coordination across the Union. By adhering to this requirement, Member States contribute to a robust, harmonized regulatory environment that supports financial stability, market integrity, and consumer protection. This collaborative approach helps to uphold the integrity of the EU financial system and fosters confidence among market participants and the public.

Overall, this notification process underscores the importance of cooperation and communication in achieving the regulatory objectives set out in this Chapter, ultimately ensuring that the EU financial markets operate smoothly and securely.