PROPOSAL FOR THE TRANSPARENCY OF INTEREST REPRESENTATION CARRIED OUT ON BEHALF OF THIRD COUNTRIES

Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing harmonised requirements in the internal market on transparency of interest representation carried out on behalf of third countries and amending Directive (EU) 2019/1937

CHAPTER I – GENERAL PROVISIONS

Article 1 Object and purpose

This Directive lays down harmonized requirements in relation to economic activities of interest representation carried out on behalf of a third country entity, with a view to improving the functioning of the internal market by achieving a common level of transparency across the Union. The purpose of this Directive is to achieve that transparency in such a manner as to avoid creating a climate of distrust apt to deter natural or legal persons from Member States or third countries from engaging with or providing financial support to entities carrying out interest representation on behalf of a third country entity.

Article 2 Definitions

For the purpose of this Directive, the following definitions apply:

(1) ‘interest representation activity’ means an activity conducted with the objective of influencing the development, formulation or implementation of policy or legislation, or public decision-making processes, in the Union, which could in particular be performed through organizing or participating in meetings, conferences or events, contributing to or participating in consultations or parliamentary hearings, organizing communication or advertising campaigns, organizing networks and grassroots initiatives, preparation of policy and position papers, legislative amendments, opinion polls, surveys or open letters, or activities in the context of research and education, where they are specifically carried out with that objective;

(2) ‘interest representation service’ means an interest representation activity normally provided for remuneration, as referred to in Article 57 of the Treaty on the functioning of the European Union;

(3) ‘interest representation service provider’ means a natural or legal person that provides an interest representation service;

(4) ‘third country entity’ means: (a) the central government and public authorities at all other levels of a third country, with the exception of members of the European Economic Area; (b) a public or private entity whose actions can be attributed to an entity referred to in point (a), taking into account all relevant circumstances;

(5) ‘ancillary activity’ means an activity that supports the provision of an interest representation activity but has no direct influence on its content;

(6) ‘annual amount’ means: (a) the total annual remuneration received from a third country entity for the provision of an interest representation service, consisting, where the remuneration is non-pecuniary, of its estimated value; or (b) where no remuneration is received, the estimate of the annual costs related to the interest representation activity carried out; taking into account the interest representation activity as a whole, including, when carried out by a service provider on the basis of contractual arrangements, costs for subcontractors and ancillary activities;

(7) ‘subcontractor’ means an interest representation service provider with whom a main contractor, or one of its subcontractors, concludes a contract under which it is agreed that the subcontractor performs some or all parts of an interest representation activity that the main contractor has committed to carry out;

(8) ‘registered entities’ means entities registered in a national register as referred to in Article 9 pursuant to Article 10;

(9) ‘authority responsible for the national register’ means the public authority or body responsible for maintaining a national register as referred to in Article 9 and processing registrations submitted pursuant to this Directive;

(10) ‘supervisory authority’ means the independent public authority responsible for the supervision of the compliance with and enforcement of the obligations laid down in this Directive;

(11) ‘public official’ means: (a) a Union official or an official of a Member State; (b) any other person assigned and exercising a public service function in a Member State;

(12) ‘Union official’ means a person who is: (a) an official or other servant within the meaning of the Staff Regulations of Officials and the Conditions of Employment of Other Servants of the European Union laid down in Council Regulation (EEC, Euratom, ECSC) No 259/6816; (b) seconded to the Union by a Member State or by any public or private body, who carries out functions equivalent to those performed by Union officials or other servants; Members of an institution, body, office or agency of the Union and the staff of such bodies shall be assimilated to Union officials, in as much as the Staff Regulations do not apply to them.

(13) ‘official of a Member State’ means any person holding an executive, administrative, or judicial office at national, regional or local level, whether appointed or elected, whether permanent or temporary, whether paid or unpaid, irrespective of that person’s seniority and any person holding a legislative office at national, regional or local level.

Article 3 Scope

1. This Directive applies to entities, irrespective of their place of establishment, carrying out the following activities: (a) an interest representation service provided to a third country entity; (b) an interest representation activity carried out by a third country entity referred to in Article 2(4), point (b), that is linked to or substitutes activities of an economic nature and is thus comparable to an interest representation service as referred to in point (a) of this paragraph.

2. Notwithstanding paragraph 1, this Directive shall not apply to the following activities: (a) activities carried out directly by a third country entity referred to in Article 2(4), point (a), that are connected with the exercise of official authority, including activities related to the exercise of diplomatic or consular relations between States or international organizations; (b) the provision of legal and other professional advice in the following cases: (i) advice to a third country entity to help it ensure that its activities comply with existing legal requirements; (ii) representation of third country entities in the context of a conciliation or mediation procedure aimed at preventing a dispute from being brought before, or adjudicated on by, a judicial or administrative body; (iii) representation of third country entities in legal proceedings; (c) ancillary activities.

Article 4 Level of harmonization

Member States shall not maintain or introduce, for interest representation activities falling within the scope of this Directive, provisions diverging from those laid down in this Directive, including more, or less, stringent provisions to ensure a different level of transparency of those activities.

CHAPTER II – TRANSPARENCY AND REGISTRATION

Article 5 Identification of the recipient of the service

Member States shall ensure that interest representation service providers have the possibility to require the entity on whose behalf the service is provided to declare whether it is a third country entity

Article 6 Subcontracting

1. Member States shall ensure that entities referred to in Article 3(1) include, in their contractual arrangements with subcontractors, the information that the interest representation activity falls within the scope of Article 3(1), as well as an obligation to pass on such information to any further subcontractors. Subcontractors that have been so informed shall not have to comply with the requirements of Article 7, Article 8, Article 10 and Article 11 in respect of the interest representation activity carried out under the contract containing that information.

2. Member States shall ensure that where the subcontractor subcontracts the interest representation service further, it shall inform the main contractor or, where applicable, the subcontractor from which it received the contract to carry out the interest representation activity, of the fact that the interest representation activity has been further subcontracted and ensure that the contractual arrangements include the information that the interest representation activity falls within the scope of Article 3(1).

3. Member States shall ensure that the subcontractor provides the main contractor or, where applicable, the subcontractor with the information necessary to comply with the requirements of Article 10.

Article 7 Record-keeping

1. Member States shall ensure that entities referred to in Article 3(1) keep, for each interest representation activity that falls within the scope of that Article, records of the following: (a) the identity or name of the third country entity on whose behalf the activity is carried out, as well as the name of the third country whose interests are represented; (b) a description of the purpose of the interest representation activity; (c) contracts and key exchanges with the third country entity essential to understand the nature and purpose of the interest representation activity, including, where applicable, the records of the means and extent of any remuneration; (d) information or material constituting a key component of the interest representation activity.

2. Member States shall ensure that entities referred to in Article 3(1) keep the records referred to in paragraph 1 for 4 years after the interest representation activity in question has ceased.

3. Member States shall ensure that entities referred to in Article 3(1) draw up, on an annual basis, the following: (a) a list of all third country entities on whose behalf they have carried out interest representation activities in the preceding financial year; (b) a list of the aggregated annual amount received in respect of the activities that fall within the scope of Article 3(1) in the preceding financial year per third country.

4. Member States shall ensure that entities referred to in Article 3(1) keep records of the information referred to in paragraph 3 for 4 years.

Article 8 Legal representative

1. Member States shall require entities referred to in Article 3(1) that are not established in the Union to designate, in writing, a natural or legal person as their legal representative in one of the Member States where they carry out interest representation activities.

2. Member States shall ensure that the legal representative is responsible for ensuring compliance by the registered entity with its obligations pursuant to this Directive and is the addressee of all communications by competent national authorities with the relevant entity pursuant to Article 15. Any communication to that legal representative shall be deemed to be a communication to the represented entity.

3. Member States shall ensure that the legal representative may be held liable for noncompliance with obligations under this Directive by the entity it represents, without prejudice to the liability and legal actions that could be initiated against that entity. Member States shall ensure that entities referred to in Article 3(1) provide their legal representative with necessary powers and sufficient resources to guarantee efficient and timely cooperation with the Member States’ competent authorities, and to ensure the compliance with their decisions.

Article 9 National registers

1. Each Member State shall set up and maintain one or several national registers for the purpose of ensuring transparency of interest representation activities carried out by entities referred to in Article 3(1). Member States may make use of existing national registers where they meet the requirements set out in paragraphs 2, 3 and 4 of this Article and in Article 10, Article 11 and Article 12.

2. The national register or, as relevant, registers shall be maintained by authorities responsible for the national registers. For the processing of personal data, such authorities shall act as controllers within the meaning of Article 4, point (7) of Regulation (EU) 2016/679.

3. Member States shall ensure that the national registers referred to in paragraph 1 are set up and maintained in such a way as to ensure a neutral, factual and objective presentation of the information contained therein.

4. Member States shall ensure that the authorities responsible for the national registers maintain logs of personal data processing operations within the national register. Those logs shall be deleted after a period of 1 year and may be used only for monitoring the lawfulness of access to personal data and for ensuring integrity and security of such data

Article 10 Registration

1. Member States shall ensure that an entity referred to in Article 3(1) established in their territory registers in a national register at the latest when the interest representation activities are commenced. Member States operating multiple national registers shall ensure that the respective scope of each national register is clearly defined, that such registers cover all entities that are required to register pursuant to the first subparagraph of this Article and that entities referred to in Article 3(1) may obtain information regarding which of the national registers they are required to register in.

2. If an entity referred to in Article 3(1) is established in more than one Member State, it shall register in the Member State of its main establishment.

3. If an entity referred to in Article 3(1) is not established in the Union, it shall register in the Member State where its legal representative designated pursuant to Article 8 is established or, in the absence of a place of establishment, has his or her permanent address or usually resides.

4. Member States shall ensure that, for the purpose of registration, an entity is required to submit only the information set out in Annex I.

5. Member States shall ensure that before submitting the information pursuant to paragraph 4, entities are informed that the information will be published in accordance with Article 12 and that they may request not to have the information published in accordance with Article 12(3).

6. Member States shall ensure that registered entities submit the following information: (a) within a reasonable period of time, changes or additions to the data provided pursuant to Annex I, point 1, points (a), (b), (f)(i) and (f)(ii); (b) annually, changes or additions to the data provided pursuant to paragraph 4 not covered by point (a).

7. Member States shall ensure that registered entities that no longer qualify as entities referred to in Article 3(1) are able to notify that fact to the authority responsible for the relevant national register in which they are registered and ask to be removed from that register. When an entity referred to in Article 3(1) is required, pursuant to paragraphs 2 or 3, to register in a national register other than the one in which it is registered, it shall notify that fact to the authority responsible for the relevant national register and ask to be removed from that register. That authority shall process the request within 5 working days and remove the registered entity from the national register if it considers that the entity no longer qualifies as an entity referred to in Article 3(1) or, as the case may be, should no longer be registered in the register for which it is responsible. The decision of the authority responsible for the relevant national register shall be subject to administrative and judicial redress in the Member State of registration.

8. Member States shall ensure that registration, updates, requests to be removed from the register and requests pursuant to Article 12(3) can be made by electronic means and are free of charge.

9. Where necessary to ensure that the information provided for the purposes of registration continues to allow the authorities responsible for the national registers to correctly and precisely identify the third countries on whose behalf interest representation is being carried out and how much is being spent on those activities, the Commission is empowered to adopt delegated acts in accordance with Article 23 to amend Annex I by modifying the list of information to be provided for the purpose of registration in the light of developments in the market for interest representation services, opinions, recommendations and reports issued by the advisory group established pursuant to Article 19, or, where available, relevant international and European standards and practices. Personal data fields set out in Annex I shall be modified only where necessary to ensure a proper identification of the entities and the interest representation activities referred to in Article 3(1).

Article 11 Registration procedure

1. Member States shall ensure that the authority responsible for the national register ensures that for each registration submitted pursuant to Article 10(4), all the elements set out in Annex I have been provided and do not contain manifest errors. A corresponding entry shall be included by the authority responsible in its national register within 5 working days from the submission of the registration unless a request pursuant to paragraph 2 has been made.

2. Where the information provided for the purposes of registration is incomplete or contains manifest errors, the authority responsible for the national register shall ask the entity to complete or rectify its submission. Within 5 working days of receiving a response from the entity in question, the authority responsible for the national register shall either include a corresponding entry in its national register, or refuse to make such an entry and inform the entity in question why the submission remains incomplete or contains manifestly incorrect information.

3. Once an entry is included in the national register, the registered entity shall immediately and at the latest within 5 working days receive a confirmation of registration from the authority responsible for the national register and shall be issued with a unique EIRN, and a digital copy of the information included in the national register. The EIRN shall be in the format set out in Annex II.

4. Member States shall ensure that each new registration is notified by the authority responsible for the national register of the Member State of registration to the national authorities designated pursuant to Article 15(1) of the Member States indicated in the registration pursuant to Annex I, point 2(e) immediately and at the latest within 5 working days from the entry in the national register. Such notification shall also take place where, pursuant to Article 10(6), a registered entity submits a change or an addition to the information referred to in Annex I, point 2(e). The notification shall contain the name of the registered entity, its EIRN and a link to the national registers where the registration took place.

5. Member States shall provide that authorities responsible for maintaining the national registers in the Member State receiving the notification referred to in paragraph 4 include, in the relevant register, the information laid down in that notification immediately and at the latest within 5 working days. Information on the registered entity shall not be made public if, in the relevant national register of the Member State of registration, that information is the object of a derogation from publication in accordance with Article 12(3).

6. Registered entities shall not be subject to any further registration requirements in any other Member State for activities falling within the scope of Article 3(1).

7. Acts taken by the authorities responsible for the national registers pursuant to paragraphs 1 to 5, including refusals to make an entry in the register or to issue an EIRN, shall be subject to administrative and judicial redress. This shall also apply to failures to act in accordance with these paragraphs.

8. Where a supervisory authority has reliable information that an entity failed to register pursuant to paragraphs 1 to 3 of Article 10 in a register for which it has jurisdiction pursuant to Article 15(3), it may ask that entity to provide the information strictly necessary to establish whether the entity falls within the scope of Article 3(1).

9. Where a supervisory authority has reliable information of possible non-compliance by an entity registered in a register for which it has jurisdiction pursuant to Article 15(3) with the obligations provided for in the national provisions adopted pursuant to Article 10, such as providing inaccurate information in the registration, it may ask that entity to provide the information referred to in Article 7 to the extent necessary to investigate the possible non-compliance.

10. The request referred to in paragraphs 8 and 9 shall include the following information: (a) a statement of the reasons for investigating the possible non-compliance; (b) the information sought and why it is necessary to investigate the possible noncompliance; (c) information on the judicial review procedures available.

11. The entity to whom the request is made shall provide, within 10 working days, the information requested pursuant to paragraphs 8 and 9 in a complete and accurate manner.

12. The requests referred to in paragraphs 8 and 9 shall be subject to judicial review procedures in the Member State of the supervisory authority which makes the request.

Article 12  Public access

1. Member States shall make the following information contained in the national register related to a registered entity publicly available: (a) information provided by the registered entity in accordance with Annex I, point 1, points (a), (e), (f)(i), (f)(ii), (h), (i), (j) and (k) and point 2, points (a)(i), and points (b) to (h); (b) the EIRN issued pursuant to Article 11(3); (c) the date of registration; (d) the date of the last update of the information referred to in point (a) of this paragraph. The publication of the annual amount provided by the registered entity in accordance with Annex I, point 2, points (c) shall be published according to the grid set out in Annex III.
2. Member States shall ensure that the information referred to in paragraph 1 is presented in a format which is easily accessible and machine readable, clearly visible and user-friendly, including through the use of plain language. The information shall be made available in a searchable manner in at least one official language of the Member State of registration and in an official language of the Union that is broadly understood by the largest possible number of citizens in the Union.
3. Member States shall ensure that entities referred to in Article 3(1) are able to apply for a derogation from the publication referred to in paragraph 1 by duly reasoned request. The supervisory authority shall take a decision limiting partially or fully public access where the requesting entity demonstrates, taking into account the circumstances of the individual case, that to do so is justified on grounds of a legitimate interest, including a serious risk that the publication would expose an individual to a violation of their fundamental rights, in particular as protected under Article 1, Article 2, Article 3, Article 4 or Article 6 of the Charter of Fundamental Rights of the European Union. Otherwise, the supervisory authority shall take a decision rejecting the request.
4. Any decision taken pursuant to paragraph 3 shall be subject to judicial redress in the Member State of registration. Member States shall ensure that any review procedures, including judicial redress, are carried out within a reasonable period of time and that a final decision is taken promptly.
5. Member States shall ensure that, from the moment the request pursuant to paragraph 3 is made until the decision has become final, the information to which the request relates is not made public.
6. Member States shall ensure that where a decision referred to in paragraph 3 has become final, the entry in the national register to which that decision relates indicates, as the case may be, that public access has been partially or fully limited.

Article 13 Publication of aggregated data

1. Starting on 31 March [year after the transposition deadline], and by 31 March of each subsequent year, each Member State shall publish, and transmit to the Commission, a report based on the information provided by the entities registered in their national registers. This report shall contain only: (a) aggregated data on the annual amounts per third country in the preceding financial year. That aggregated data should be based on the information provided pursuant to Annex I, point 2, points (b) and (c); (b) aggregated data on the annual amounts per category of organisation for each third country in the preceding financial year. That aggregated data should be based on the information provided pursuant to Annex I, point 1, point (h) and point 2, point (b) and (c); (c) total number of third country entities that can be attributed to a specific third country. That aggregated data should be based on the information provided pursuant to Annex I, point 2, point (b); (d) a list of the third countries that fulfil the criteria set out in Article 16(3), point (b)(ii)
2. On the basis of the data transmitted by the Member States pursuant to paragraph 1, the Commission shall, by 31 May of each year, publish a summary of the data received and list the third countries that fulfil the criteria laid down in Article 16(3), point (b)(i).
3. Where necessary to ensure that the information provided in the reports published by Member States continues to provide the public with aggregate data necessary to understand the scope, scale and means of interest activities carried out by entities falling within the scope of Article 3(1), and to ensure that the list of third countries that fulfil the criteria laid down in Article 16(3), point (b), can be established, the Commission is empowered to adopt delegated acts in accordance with Article 23 to amend paragraph 1 by modifying the list of information to be included in the reports published by Member States in the light of developments in the market for interest representation services, opinions, recommendations, and reports issued by the advisory group established pursuant to Article 19, or, where available, relevant international standards and practices.

Article 14 Information for public officials

1. Member States shall ensure that registered entities provide the EIRN in their contacts with public officials when carrying out the activities referred to in Article 3(1).

2. Member States shall ensure that where registered entities make use of subcontractors, the subcontractors provide the EIRN of the registered entity in their contacts with public officials when carrying out the activities referred to in Article 3(1).

CHAPTER III – SUPERVISION AND ENFORCEMENT

Article 15 Competent national authorities

1. Each Member State shall designate: (a) one or more authorities responsible for the national registers; (b) one or more supervisory authorities.

2. Each supervisory authority shall have access to the national registers under its responsibility for the purpose of supervising the compliance with and enforcing the obligations set out in this Directive as well as exchanging information with the supervisory authorities in other Member States and the Commission, where authorised to do so under this Directive.

3. Each supervisory authority shall have jurisdiction over the entities referred to in Article 3(1) that are required to register pursuant to Article 10(1), (2) and (3) in the national registers under its responsibility.

 4. Where an entity referred to in Article 3(1) has not designated a legal representative in accordance with Article 8(1), any supervisory authority in a Member State where the entity carries out an interest representation activity shall have jurisdiction.

5. Where a Member State designates more than one supervisory authority, it shall ensure that the tasks of each of those authorities are clearly defined and that they cooperate closely and effectively when performing their tasks. Member States shall identify the supervisory authority to which communications may be addressed for transmission to the appropriate authority within that Member State.

6. Member States shall ensure that the supervisory authority is independent in the exercise of its functions. In particular, Member States shall ensure that the staff in supervisory authorities acting in the exercise of their powers pursuant to this Directive: (a) are able to perform their duties independently, free from political and other external influence, and neither seek nor take instructions from government or any other public or private entity; (b) refrain from taking any action which is incompatible with the performance of their duties and the exercise of their powers under this Directive.

7. Member States shall ensure that the national authorities designated pursuant to paragraph 1 have all necessary means to carry out the tasks assigned to them under this Directive, including sufficient technical, financial and human resources.

8. Member States shall ensure that, in carrying out the tasks assigned to them under this Directive, the national authorities designated pursuant to paragraph 1 ensure that no adverse consequences, such as stigmatisation, arise from the mere fact that an entity is a registered entity or has been subject to a request pursuant to Article 16(3).

9. Member States shall ensure that the national authorities designated pursuant to paragraph 1 make available to the public information and explanation concerning the application of this Directive, as well as the opinions, recommendations or reports adopted by the advisory group pursuant to Article 19(6).

10. By [one year after the entry into force], Member States shall notify the Commission and the other Member States of the competent national authorities designated pursuant to paragraph 1. The Commission shall publish a list of the competent national authorities.

Article 16 Information requests

1. Member States shall ensure that the power of supervisory authorities to request entities referred to in Article 3(1) to provide information is limited by the conditions laid down in paragraphs 2 to 9 of this Article.

2. A request pursuant to this Article may only be made by the supervisory authority with jurisdiction over the entity in question.

3. Except in cases referred to in Article 11(8) and (9), a request can only be made in the following cases and must be limited to the records kept in accordance with Article 7: (a) the registered entity received an annual amount that exceeds EUR 1 000 000 for a single third country entity in the preceding financial year; (b) the actions of the third country entity on whose behalf the registered entity is acting are attributable to a third country that has spent, in one of the five preceding financial years, and taking into account all third country entities whose actions can be attributed to this third country, an aggregate annual amount that exceeds either of the following: (i) EUR 8 500 000 on interest representation activities in the Union; (ii) EUR 1 500 000 on interest representation activities in a single Member State; unless the registered entity falls within the scope of Article 3(1), point (a), and received an aggregate annual amount for all activities falling within the scope of this Directive that is inferior to EUR 25 000 in the preceding financial year.

4. The request referred to in paragraph 3 shall contain the following elements: (a) a statement indicating which one of the conditions set out in paragraph 3 is fulfilled; (b) the records requested; (c) information on the judicial review procedures available.

5. Where a supervisory authority other than the supervisory authority of the Member State of registration considers that any of the conditions set out in paragraph 3 are met, it may ask the supervisory authority of the Member State of registration to request records kept in accordance with Article 7 from the registered entity.

6. Upon receipt of a request pursuant to paragraph 5 and if it considers that the conditions laid down in paragraphs 3 are met, the supervisory authority of the Member State of registration shall make a request in accordance with paragraph 3 and transmit the information received to the requesting supervisory authority. If the supervisory authority of the Member State of registration has, within the previous 12 months, made a request in accordance with paragraph 3 covering the same information from the same registered entity, it shall transmit the information to the requesting supervisory authority without having to make a new request. If the supervisory authority of the Member State of registration considers that the conditions laid down in paragraph 3 are not met, it shall provide the requesting supervisory authority with a reply explaining the reasons for not requesting or transmitting the information in question.

7. The entity to whom the request is made shall provide, within 10 working days, the complete information requested pursuant to point (b) of paragraph 4 in a clear, coherent and intelligible format.

8. The requests referred to in paragraph 3 shall be subject to judicial review procedures in the Member State of the supervisory authority which makes the request.

9. Where necessary to ensure that supervisory authorities may request records from entities that are particularly likely to influence the development, formulation or implementation of policy or legislation, or public decision-making processes, in the Union or a Member State, the Commission is empowered to adopt delegated acts in accordance with Article 23 to amend the financial thresholds set out in paragraph 3 in the light of developments in the market for interest representation activities, or of opinions, recommendations or reports issued by the advisory group established pursuant to Article 19, or, where available, developments of the relevant international standards and practices.

Article 17 Cross-border cooperation

1. Member States shall ensure that their supervisory authorities cooperate with the supervisory authorities of all other Member States as necessary

2. Member States shall ensure that where a supervisory authority has reason to suspect that an entity falling within the jurisdiction of a supervisory authority of another Member State does not comply with its obligations under this Directive, it notifies the supervisory authority of that Member State.

3. A notification pursuant to paragraph 2 shall be duly reasoned and proportionate and at least indicate: (a) the information allowing the identification of the entity; (b) a description of the relevant facts, the relevant provisions of this Directive and the reasons why the notifying authority suspects an infringement of this Directive; The notification may include any other information that the notifying authority considers relevant, including, where appropriate, information gathered on its own initiative.

4. Member States shall ensure that where a supervisory authority receives a notification pursuant to paragraph 2, it shall, without undue delay and no later than 1 month following receipt of the notification, communicate its assessment of the suspected infringement to the supervisory authority from whom the notification was received and, where appropriate, provide further information on the investigatory or enforcement measures taken, or envisaged, in accordance with Article 11(8) or (9) and Article 22 in order to ensure compliance with this Directive.

5. Where the supervisory authority of the main establishment does not have sufficient information to act upon a notification referred to in paragraph 2, it may request additional information from the competent authority that made the notification.

6. The administrative cooperation and exchanges of information between the national authorities designated pursuant to Article 15(1), as well as the supervisory authorities and the Commission, pursuant to paragraphs 2, 4 and 5, Article 11(4), Article 16(5) and (6) and Article 18 of this Directive, shall be implemented through the IMI system established by Regulation (EU) No 1024/2012.

Article 18 Cross-border information sharing between supervisory authorities

1. Member States shall ensure that supervisory authorities are competent to request the following information from the supervisory authorities of another Member State, where such information is necessary for the purpose of exercising cross-border cooperation as referred to in Article 17(2): (a) information provided by a registered entity in accordance with Article 10(4); (b) any analyses carried out by a supervisory authority on the basis of the information referred to in point (a).

2. Member States shall ensure that upon receipt of a request pursuant to paragraph 1, the supervisory authority of the Member State of registration shall transmit the information to the requesting supervisory authority, unless it considers that the requirements of paragraph 1 are not met, in which case it shall provide the requesting supervisory authority with a reply explaining the reasons for not providing the information in question.

 3. Member States shall ensure that the supervisory authorities provide the Commission, on its request, with aggregate data based on the information provided by registered entities in accordance with Article 10(4) for the purpose of monitoring the implementation of this Directive, including for the preparation of meetings of the advisory group referred to in Article 19. Such aggregate data may contain personal data only to the extent that is necessary to ensure effective monitoring. Where technically possible, the information shall be transmitted in a machine-readable format.

4. When processing personal data pursuant to paragraphs 1 to 3, the supervisory authorities shall act as controllers within the meaning of Article 4, point 7 of Regulation (EU) 2016/679, and the Commission shall act as a controller within the meaning of Article 3, point 8 of Regulation (EU) 2018/1725 with respect to their own data processing activities.

Article 19 Advisory group

1. An advisory group is established.

2. The advisory group shall assist the Commission in the following tasks: (a) facilitate exchanges and sharing of information and best practices as well as advise on possible guidance on the implementation of this Directive in particular regarding Article 2(4), point (b), Article 3(1) and Article 20; (b) facilitate exchanges and sharing of information and best practices on the specific needs of micro, small and medium-sized enterprises within the meaning of Article 3 of Directive 2013/34/EU; (c) advise on recommended formats for the publication of aggregated data pursuant to Article 13; (d) report to the Commission any divergences in the application of this Directive; (e) advise on the recommended technical infrastructure of the national registers set up and maintained pursuant to Article 9.

3. Each Member State shall nominate one representative and one alternate representative, who shall represent the supervisory authorities designated pursuant to Article 15.

4. Representatives of the European Parliament, or of the European Free Trade Association States that are contracting parties to the Agreement on the European Economic Area, may be invited to attend meetings of the advisory group as observers.

5. The Commission shall chair the advisory group and provide its secretariat. The advisory group shall adopt its rules of procedure.

6. The advisory group shall adopt its opinions, recommendations or reports in the context of its tasks set out in paragraph 2 by a simple majority of its members.

Article 20 Prohibition of circumvention

Member States shall ensure that it is prohibited to participate, knowingly and intentionally, in activities the object or effect of which is to circumvent the obligations set out in this Directive.

Article 21 Reporting of breaches and protection of reporting persons

Member States shall take the necessary measures to ensure that Directive (EU) 2019/1937 applies to the reporting of breaches of this Directive and the protection of persons reporting such breaches.

Article 22 Sanctions

1. Member States shall lay down rules on sanctions, limited to administrative fines, for infringements of national provisions adopted to transpose Article 6, Article 7, Article 8, Article 10, Article 11, Article 14, Article 16 and Article 20 by entities referred to in Article 3(1) or where appropriate, their legal representative. Those rules shall comply with paragraphs 2 to 6. Sanctions shall be imposed by the supervisory authority with jurisdiction over the entity concerned or by a judicial authority at the request of that supervisory authority.

2. The maximum amount of the financial sanction referred to paragraph 1 that may be imposed shall be, for undertakings, 1 % of the annual worldwide turnover in the preceding financial year, for other legal entities, 1 % of the annual budget of the entity in accordance with the most recent financial year closed and for natural persons, EUR 1 000.

3. The sanctions shall in each individual case be effective, proportionate and dissuasive, having regard, in particular, to the nature, recurrence and duration of the infringement to which those measures relate, as well as, where relevant, the economic, technical and operational capacity of the entity referred to in Article 3(1) that committed the infringement.

4. Before imposing sanctions, the supervisory authority shall issue a warning or a reprimand to the entity concerned to the effect that it is likely to infringe or has infringed provisions of this Directive, except if such infringement amounts to a violation of Article 20.

5. Member States shall ensure that the exercise by the supervisory authority of its powers pursuant to this Article shall be subject to appropriate safeguards in accordance with Union and Member State legislation, including the right to an effective judicial remedy and to a fair trial.

CHAPTER IV – FINAL PROVISIONS

Article 23 Exercise of the delegation

1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

2. The power to adopt delegated acts referred to in Article 10(9), Article 13(3) and Article 16(9) shall be conferred on the Commission for an indeterminate period from [the date of entry into force of the Directive].

3. The delegation of power referred to in Article 10(9), Article 13(3) and Article 16(9) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016.

5. As soon as it adopts a delegated act, the Commission shall notify that act simultaneously to the European Parliament and to the Council.

6. A delegated act adopted pursuant to Article 10(9), Article 13(3) and Article 16(9) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

Article 24 Amendment to Directive (EU) 2019/1937 Directive (EU) 2019/1937

Directive (EU) 2019/1937 is amended as follows:

1. in Article 2(1), point (a) the following new point (xi) is added: ‘(xi) internal market rules related to transparency and good governance;’;

2. in the Annex, in Part I, the following new point (K) is added: ‘K. Point (a)(xi) of Article 2(1) — internal market rules related to transparency and good governance: Directive (EU) XXXX/XXXX of the European Parliament and of the Council of XXXX establishing harmonised requirements in the internal market on transparency of interest representation carried out on behalf of third countries and amending Directive (EU) 2019/1937 (OJ reference).’.

Article 25 Reports and review

1. At the latest by [12 months after the transposition deadline], the Commission shall present a report on the implementation of this Directive to the European Parliament, the Council and the European Economic and Social Committee.

2. At the latest by [4 years after the transposition deadline], the Commission shall carry out an evaluation of this Directive and present a report on the main findings to the European Parliament, the Council and the European Economic and Social Committee. That evaluation shall assess the effectiveness and proportionality of the Directive. It shall assess among others the need for changes to the scope and the effectiveness of the safeguards provided in the Directive. It may, where appropriate, be accompanied by relevant legislative proposals.

3. Member States shall provide the Commission with the information necessary for the preparation of the reports referred to in paragraphs 1 and 2.

Article 26 Transposition

1. Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by [eighteen months after the entry into force] at the latest. They shall forthwith communicate to the Commission the text of those provisions. 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.

3. In the case of those Member States which have not adopted the euro, the amount in national currency equivalent to the amounts set out in this Directive shall be that obtained by applying the exchange rate published in the Official Journal of the European Union as at the date of the entry into force of any Directive setting those amounts. For the purposes of conversion into the national currencies of those Member States which have not adopted the euro, the amounts in euro specified in this Directive may be increased or decreased by not more than 5 % in order to produce round sum amounts in the national currencies.

Article 27 Entry into force

This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union

This Directive is addressed to the Member States.

Done at Strasbourg,

For the European Parliament, The President

For the Council The Presiden