A term used within directives produced by the European Commission (see 'Investment Services Directive' and 'Prospectus Directive') to describe a body which has been identified by a member state of the European Union as being responsible for specified functions related to the securities market within that member state. Areas of competence include the recognition of firms permitted to offer investment services, the approval of prospectuses for public offerings, the recognition and surveillance of stock markets, etc. A member state may nominate different competent authorities for different areas of responsibility.