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

Article 47 of the Digital Operational Resilience Act (DORA) establishes the notification duties of Member States regarding the implementation of laws, regulations, and administrative provisions related to the Act. This article is crucial for ensuring that the European Union maintains a cohesive and coordinated approach to digital operational resilience across all Member States. By outlining specific obligations for Member States to communicate their legislative and regulatory actions, Article 47 plays a key role in the effective implementation and enforcement of DORA.

Initial Notification of Implementation

The first obligation under Article 47 requires Member States to notify the European Commission, as well as the European Securities and Markets Authority (ESMA), the European Banking Authority (EBA), and the European Insurance and Occupational Pensions Authority (EIOPA), about the laws, regulations, and administrative provisions they have enacted to implement the relevant chapters of DORA. This notification must include all provisions, including those related to criminal law that pertain to the enforcement of DORA within their jurisdictions.

The importance of this notification lies in its role in ensuring transparency and consistency across the EU. By informing the Commission and the ESAs of the specific legal frameworks in place, Member States contribute to the creation of a unified regulatory environment where all financial entities are subject to similar standards of digital operational resilience, regardless of where they are located within the EU. This uniformity is essential for mitigating systemic risks that could arise from differing levels of protection and enforcement across Member States.

The timeline for this initial notification is clearly defined in the article. Member States are required to complete this notification process by a specific date, which is set as one year after the date of DORA’s entry into force. This deadline ensures that all Member States are given adequate time to draft, pass, and implement the necessary legislation and administrative measures, while also ensuring that the regulatory framework is operational across the EU within a reasonable period.

Subsequent Amendments and Continuous Updates

Beyond the initial notification, Article 47 also obliges Member States to keep the European Commission, ESMA, EBA, and EIOPA informed of any subsequent amendments to the laws, regulations, and administrative provisions they have implemented. This requirement underscores the dynamic nature of regulatory frameworks, where laws and regulations may need to be updated or refined in response to new developments, emerging threats, or practical challenges encountered during enforcement.

The obligation to notify amendments “without undue delay” highlights the need for Member States to act promptly in communicating changes. This prompt communication is critical for several reasons. First, it allows the Commission and the ESAs to monitor and assess the impact of these changes on the overall effectiveness of DORA across the EU. Second, it ensures that there is no significant lag between the implementation of amendments at the national level and the awareness of these changes at the EU level. This minimizes the risk of regulatory gaps or inconsistencies that could undermine the collective digital operational resilience of the EU’s financial system.

Coordinated Oversight and Enforcement

The notification duties outlined in Article 47 serve a broader purpose of facilitating coordinated oversight and enforcement of DORA. By requiring Member States to inform the Commission and the ESAs of both initial and subsequent legislative actions, the article ensures that these EU bodies have a comprehensive and up-to-date understanding of how DORA is being implemented across the Union. This, in turn, enables the Commission and the ESAs to carry out their supervisory and enforcement responsibilities more effectively.

For example, if the ESAs identify discrepancies or weaknesses in the implementation of DORA in certain Member States, they can work with the relevant national authorities to address these issues. Similarly, the Commission can use the information provided by Member States to assess whether further legislative action at the EU level is necessary to enhance digital operational resilience or to close any regulatory loopholes that may emerge.

Ensuring Accountability and Transparency

Article 47 also plays a crucial role in promoting accountability and transparency within the EU’s regulatory framework for digital operational resilience. By mandating that Member States notify the Commission and the ESAs of their legislative actions, the article ensures that these actions are subject to scrutiny at both the national and EU levels. This dual level of oversight helps to ensure that the laws and regulations implemented by Member States are aligned with the objectives of DORA and that they effectively contribute to the resilience of the EU’s financial system.

Moreover, the requirement to notify subsequent amendments ensures that this accountability is ongoing. It prevents situations where national authorities might introduce changes that could weaken the enforcement of DORA or create discrepancies in the level of protection afforded to financial entities and their customers across the EU.

Conclusion

Article 47 of the Digital Operational Resilience Act outlines essential notification duties for Member States regarding the implementation and amendment of laws, regulations, and administrative provisions related to the Act. By ensuring timely and transparent communication with the European Commission, ESMA, EBA, and EIOPA, this article supports the creation of a cohesive and effective regulatory framework for digital operational resilience across the EU. Through these notification requirements, Article 47 enhances the EU’s ability to monitor, assess, and enforce the provisions of DORA, thereby contributing to the stability and security of the European financial system in the face of digital threats.