• Legal basis
The legal basis of the Prospectus Regulation, MAR and MiFIR is Article 114 of the Treaty on the Functioning of the European Union (TFEU). The proposal introduces targeted amendments to those Regulations and is therefore based on the same legal basis.
Article 114 TFEU provides for the adoption of measures for the approximation of the provisions laid down by law, regulation or administrative action in Member States, which have as their goal the establishment and functioning of the internal market. Recourse to Article 114 TFEU is in particular possible where disparities between national rules are such as to obstruct the fundamental freedoms or create distortions of competition and thus have a direct effect on the functioning of the internal market.
• Subsidiarity (for non-exclusive competence)
Under Article 4 of the Treaty on the Functioning of the European Union (TFEU), EU action for completing the internal market must be appraised in light of the subsidiarity principle
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