Where a competent authority has not applied the acts in Article 1(2), or has applied them in a way which appears to be a breach of Union law, the Authority may, after informing that competent authority, investigate on request (including from other competent authorities, the European Parliament, the Council, the Commission, or the Securities and Markets Stakeholder Group) or on its own initiative, including based on well substantiated information from natural or legal persons. The competent authority must provide all information the Authority considers necessary without delay; the Authority may address justified requests for information directly to other competent authorities and shall engage with the competent authority before issuing a recommendation where appropriate.

Within two months of initiating an investigation the Authority may issue a recommendation; the competent authority must inform the Authority of steps taken or intended within ten working days. If the competent authority has not complied within one month, the Commission may issue a formal opinion no later than three months after the recommendation (extendable by one month), to which the competent authority must respond within ten working days. Where non‑compliance persists and the requirements are directly applicable to financial market participants, the Authority may adopt an individual decision addressed to a financial market participant requiring necessary action including cessation; such decisions must conform to the Commission’s formal opinion, prevail over prior competent authority decisions, and failures to comply will be reported under Article 43(5).