Subject matter and scope

1. This Regulation lays down harmonised rules ensuring the participation of citizens of the Union in the capital value created by hyper-automated undertakings operating in the internal market.

2. To that end, this Regulation establishes:
(a) criteria and a procedure for the designation of covered undertakings;
(b) an obligation on covered undertakings to issue citizens' capital warrants to the European Citizens' Capital Reserve;
(c) the European Citizens' Capital Reserve and the rules governing its holdings and conduct;
(d) an individual entitlement of citizens of the Union to distributions from the Reserve, administered through national vehicles;
(e) rules protecting the Reserve and individual entitlements.

3. This Regulation applies to undertakings offering goods or services in the internal market, irrespective of their place of establishment.

4. This Regulation is without prejudice to Directive (EU) 2016/2341 and to Regulation (EU) 2019/1238, save as expressly provided in Article 11.