1. The competent authority of the home Member State shall establish a college of supervisors to carry out the tasks referred to in paragraph 8 in relation to a CSD whose activities are considered of substantial importance for the functioning of securities markets and the protection of investors in at least two host Member States.

2. The college shall be established within one month of the date when: 

(a) the competent authority of the home Member State determines that the activities carried out by the CSD in at least two host Member States are of substantial importance; or 

(b) the competent authority of the home Member State is notified by one of the entities listed in paragraph 4 that the activities carried out by the CSD in at least two host Member States are of substantial importance.

3. The competent authority of the home Member State shall manage and chair the college.

4. The college shall consist of:

(a) ESMA; 

(b) the competent authority of the home Member State; 

(c) the relevant authorities referred to in Article 12; 

(d) the competent authorities of the host Member States in which the CSD’s activities are of substantial importance; 

(e) EBA, where the CSD has been authorised pursuant to Article 54(3).

5. Where the activities of a CSD for which a college is established are not of substantial importance in a Member State where a subsidiary belonging to the same group of companies as the CSD, or its parent undertaking, is established or where the CSD for which a college is established is entitled to provide services in another Member State in accordance with Article 23(2), the competent authority and relevant authorities of that Member State shall be able to participate in the college upon their request.

6. The chair shall notify the composition of the college to ESMA within one month of the college’s establishment and any change in its composition within one month of that change. ESMA and the competent authority of the home Member State shall publish on their websites without undue delay the list of the members of that college and keep that list updated.

7. A competent authority which is not a member of the college may request from the college any information relevant for the performance of its supervisory duties.

8. The college shall, without prejudice to the responsibilities of competent authorities under this Regulation, ensure:

(a) the exchange of information, including requests for information pursuant to Articles 13, 14 and 15 and information on the review and evaluation process pursuant to Article 22;

(b) efficient supervision by avoiding unnecessary duplicative supervisory actions, such as information requests;

(c) agreement on the voluntary entrustment of tasks among its members; 

(d) the exchange of information on an authorised outsourcing or extension of activities and services under Article 19;

e) the cooperation between the authorities of the home Member State and of the host Member State pursuant to Article 24 regarding the measures referred to in Article 23(3), point (d), and any issues encountered in relation to the provision of services in other Member States; 

(f) the exchange of information on group structure, senior management, management body and shareholders pursuant to Article 27; 

(g) the exchange of information on processes or arrangements that have a significant impact on governance or risk management for the CSDs belonging to the group.

9. The chair shall convene a meeting of the college at least annually or upon the request of a member of the college.

In order to facilitate the performance of the tasks assigned to the college pursuant to paragraph 8, members of the college may add points to the agenda of a meeting.

The chair may invite additional participants to the discussions of the college on an ad hoc basis on specific topics.

The members of a college other than its chair may decide not to participate in a meeting of the college.

10. Upon the request of any of its members, the college shall adopt, in accordance with paragraph 11, non-binding opinions with regard to:

(a) issues identified during the review and evaluation processes pursuant to Article 22 or 60;

(b) issues relating to any outsourcing or extension of activities and services under Article 19; or

(c) issues relating to any potential breach of this Regulation arising from the provision of services in a host Member State as referred to in Article 24(5).

11. The college shall adopt its non-binding opinions on the basis of a simple majority vote. The members referred to in paragraph 4, points (b), (c) and (d), shall have voting rights. Each member with a voting right shall have one vote. Members with a voting right that act in more than one capacity, including as competent authority and as relevant authority, shall have one vote for each capacity in which they act. EBA and ESMA shall not have voting rights.

12. The functioning of the college shall be based on a written agreement between all of its members.

That agreement shall determine the practical arrangements for the functioning of the college, including the modalities of communication amongst members of the college, and may determine tasks to be entrusted to them.

13. ESMA shall develop draft regulatory technical standards specifying the criteria under which the activities of a CSD in a host Member State could be considered to be of substantial importance for the functioning of the securities markets and the protection of investors in that host Member State.

ESMA shall submit those draft regulatory technical standards to the Commission by 17 January 2025.

Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.