Commission Implementing Decision (EU) 2024/2901 of 14 November 2024 amending Implementing Decision (EU) 2023/1602 on the primary dealer network and the definition of eligibility criteria for lead and co-lead mandates for syndicated transactions for the purposes of the borrowing activities by the Commission on behalf of the Union and of the European Atomic Energy Community

‘1 The selection of syndicates shall respect the principles of transparency and equal treatment in accordance with the provisions of Article 163(5), point (b), of Regulation (EU, Euratom) 2024/2509.’

‘6 The Commission may invite primary dealers to express their interest in a mandate as co-lead managers to a syndicated transaction, in addition to joint lead manager or managers, based on the market circumstances and with a view to ensure the optimal performance of a given transaction. The Commission may invite either all primary dealers eligible in accordance with Article 9 of this Decision or a subgroup of them based on alphabetical order and a rotation mechanism. Such invitation shall be considered for at least one syndication transaction within the period covered by a funding plan established in accordance with Article 4 of Commission Implementing Decision (EU, Euratom) 2023/2825;

‘4 In order to perform the annual review, the primary dealers shall be invited to represent and declare to the Commission that they continue to fulfil all the eligibility criteria for the membership laid down in Article 4, and that all of the documents submitted by the primary dealers during their application for membership or a subsequent update remain relevant.’

1 Primary dealers shall periodically, and at least every 3 years, renew the information submitted to the Commission during their application process.

2 A primary dealer who is in an exclusion situation shall continue to remain eligible to serve as lead and co-lead manager for syndicated transactions during the assessment by the authorising officer by delegation of whether the primary dealer is to be excluded pursuant to Article 138 of Regulation (EU, Euratom) 2024/2509.

3 The Commission may suspend primary dealers from serving as lead or co-lead managers in syndicated transactions when their selection for the implementation of Union funds would constitute a serious and imminent threat to the financial interests of the Union. The Commission shall communicate the basis for its suspension decision to the primary dealer concerned as soon as possible and give the primary dealer at least 3 days to submit observations before adopting the final suspension decision. In exceptional circumstances, the Commission may adopt the suspension decision and allow the primary dealer concerned to submit observations and objections afterwards.’

1 The Commission shall terminate the membership of a primary dealer in the primary dealer network in either of the following cases: (a) the primary dealer ceases to fulfil any of the conditions referred to in Article 4; (b) non-compliance with obligations laid down under Article 5, point (c).

2 The following procedure shall apply to the termination referred to in paragraph 1: (a) the primary dealer is to be invited, by means of a notice, to submit its observations within a time-limit of no less than 7 days from the receipt of the notice; (b) the decision on termination is to be notified to the primary dealer and is to take effect on the first business day following the date of its notification.

3 The Commission may terminate the membership of a primary dealer in the primary dealer network in any of the following cases: (a) non-compliance with obligations laid down under Article 5, points (a), (b), (d), (e) and (f); (b) exclusion of the primary dealer pursuant to Articles 137 to 148 of Regulation (EU, Euratom) 2024/2509;

4 The following procedure shall apply to the situations referred to in paragraph 3: (a) the primary dealer concerned is to receive a notice indicating the reasons for a finding of non-compliance, a request to submit observations and corrective measures that it intends to take to restore and/or ensure compliance with the relevant criteria and/or obligations and to set a time-limit to submit observations of no less than 7 days from the receipt of the notice; (b) taking into account the submitted observations and communicated corrective measures, if any, the decision to terminate membership of the non-compliant primary dealer from the primary dealer network may be taken; (c) the decision on termination is to state the grounds on which the termination is based; (d) the decision on termination is to take effect on the first business day following the date of its notification to the excluded primary dealer.

5 Termination of the membership in the primary dealer network pursuant to paragraphs 1 to 4 of this Article, or resignation from the primary dealer network pursuant to Article 7, point (e), is to have no effect on the rights and obligations of the primary dealer in question in respect of contracts concluded prior to the effective date of exclusion, suspension or resignation respectively.

6 The termination of membership of the primary dealer shall not prevent that dealer from reapplying to be, and being readmitted as, a member of the primary network, where the reasons for the termination are no longer present and have been fully remedied. If membership in the primary dealer network is terminated due to an exclusion pursuant to Articles 137 to 148 of Regulation (EU, Euratom) 2024/2509, no reapplication is possible during the duration of the exclusion. Article 14 shall apply to any reapplication.’.

This Decision shall enter into force on the day of its publication in the Official Journal of the European Union.