Mr. Philip Andrews:

From a purely legal perspective, the criteria laid down in head 16(i)(a) to (f) stipulate that the body should, among other things, be a non-profit body. The directive provides for a two-category system of designating qualified entities. As I read the directive for cross-border representative actions that qualified entities might take, these criteria must apply to qualified entities that are acting cross-border. In respect of purely domestic representation, I read the directive also to allow that for domestic qualified entities these stipulations do not have to apply. Article 4(4) of the directive on the issue of domestic representation actions states: "Member States shall ensure that the criteria they use to designate an entity as a qualified entity for the purposes of bringing domestic representation actions are consistent with the objective of this directive in order to make the functioning of such representative actions effective and efficient." It is not a requirement of the directive that the six stipulations that are included must be applied in respect of domestic representation actions. Member states have greater freedom to adopt different criteria under the directive.