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Activities of Petr JEŽEK related to 2013/0306(COD)

Plenary speeches (3)

Money market funds (debate)
2016/11/22
Dossiers: 2013/0306(COD)
Money market funds (A8-0041/2015 - Neena Gill)
2016/11/22
Dossiers: 2013/0306(COD)
Money market funds (debate)
2016/11/22
Dossiers: 2013/0306(COD)

Shadow reports (1)

REPORT on the proposal for a regulation of the European Parliament and of the Council on Money Market Funds PDF (304 KB) DOC (244 KB)
2016/11/22
Committee: ECON
Dossiers: 2013/0306(COD)
Documents: PDF(304 KB) DOC(244 KB)

Amendments (72)

Amendment 116 #
Petr JEŽEK
Proposal for a regulation
Recital 10
(10) In the absence of a Regulation setting out rules on MMFs, diverging measures might continue to be adopted at national level, which would continue to cause significant distortions of competition resulting from important differences in essential investment protection standards. Diverging requirements on portfolio composition, eligible assets, their maturity, liquidity and diversification, as well as on credit quality of issuers of money market instruments lead to different levels of investor protection because of the different levels of risk attached to the investment proposition associated with a money market fund. The failure to adopt strict common rules applicable to MMFs in the internal market prevents uniform investor protection and gives investors different incentives to redeem their investments and thereby trigger a run. It is therefore essential to avoid contagion into the short term funding market and to the sponsors of the MMF which would largely put at risk the stability of the Union's financial market by adopting a uniform set of rulesIt is therefore essential to adopt a uniform set of rules in order to avoid contagion into the short term funding market and to the sponsors of the MMF which would largely put at risk the stability of the Union's financial market. In order to mitigate systemic risk, CNAV MMF may maintain a constant price per unit or share only if they establish a mechanism which reflects increases and decreases in the net asset value of an investor's portfolio.
2015/01/12
Committee: ECON
Amendment 125 #
Petr JEŽEK, Philippe DE BACKER
Proposal for a regulation
Recital 23
(23) Asset Backed Commercial Papers (ABCPs) should be considered eligible money market instruments to the extent that they respect additional requirements. Due to the fact that during the crisis certain securitisations were particularly unstable, it is necessary to impose maturity limits and quality criteria on the underlying assets. Not all categories of underlying assets should be eligibl and also to ensure that the pool of exposures is sufficiently diversified. Yet not all categories of underlying assets have proved to be unstable, and in particular those bsecause some were more confronted to instability than othersuritizations where the underlying assets were associated with supporting the working capital of manufacturers and the sales of real economy goods and services. These securitizations have performed well and should be eligible. For this reason the underlying assets should be exclusively composed of short- term and liquid debt instruments that have been issued by corporates in the course of their business activity, such as trade receivables. Instruments such as auto loans and leases, equipment leases, consumer loans, residential mortgage loans, credit card receivables or any other type of instrument linked to the acquisition or financing of services or goods by consumers should not be eligible. ESMAundergo a thorough examination. ESMA, in close cooperation with the EBA, should be entrusted with drafting regulatory technical standards to be submitted for endorsement by the Commission with regard to the conditions and circumstances under which the underlying exposure or pool of exposures is considered to exclusively consist of corporate debt and the conditions and, whether it is sufficiently diversified, as well as the numerical thresholds determining when corporate debt is of high credit quality and liquid. In order to assess the eligibility of certain instruments and their underlying assets, ESMA shall develop, in close cooperation with EBA, a set of criteria to define "high quality securitization". These criteria should take into consideration the need for more standardisation and transparency to avoid securitisation of high complexity.
2015/01/12
Committee: ECON
Amendment 138 #
Petr JEŽEK, Philippe DE BACKER
Proposal for a regulation
Recital 29
(29) The MMF should have a responsibility to invest in high quality eligible assets. Therefore, a MMF should have a prudent and rigorous internalcredit assessment procedure for determining the credit quality of the money market instruments in which it intends to invest. In accordance with Union legislation limiting over-reliance on credit ratings, it is important that MMFs avoid any mechanisticover- reliance on ratings issued by rating agencies when assessing the quality of eligible assets. For this purpose the MMF should establish an internal rating system based on a harmonised rating scale and an internal assessment procedure.
2015/01/12
Committee: ECON
Amendment 142 #
Petr JEŽEK, Philippe DE BACKER
Proposal for a regulation
Recital 30
(30) For the purpose of avoiding that MMF managers use different assessment criteria for evaluating the credit risk of a money market instrument and thus attribute different risk characteristics to the same instrument, it is essential that managers rely on the same criteria. To this effect the ratingcredit assessment criteria should be precisely defined and harmonized. Examples of internal ratingcredit assessment criteria are quantitative measures on the issuer of the instrument, such as financial ratios, balance sheet dynamics, profitability guidelines, which are evaluated and compared to those of industry peers and groups; qualitative measures on the issuer of the instrument, such as management effectiveness, corporate strategy, which are analysed with a view to determining that the issuer's overall strategy does not impede on its future credit quality. The highest internal ratings should reflect the fact that the creditworthiness of the issuer of the instruments is maintained at all times at the highest possible levels.
2015/01/12
Committee: ECON
Amendment 145 #
Petr JEŽEK, Philippe DE BACKER
Proposal for a regulation
Recital 31
(31) In order to develop a transparent and coherent internal rating systemcredit assessment procedure, the manager should document the procedures used for the internalcredit assessment. This should ensure that the procedure follows a clear set of rules that can be monitored and that the methodologies employed are communicated upon request to the interested stakeholders.
2015/01/12
Committee: ECON
Amendment 151 #
Petr JEŽEK, Philippe DE BACKER
Proposal for a regulation
Recital 39
(39) It is important that the risk management of MMFs not be biased by short-term decisions influenced by the possible ratAn effect of the financial crisis has been an over-reliance by investors, UCITS and AIFs on credit rating agencies in assessing of the MMF. Therefore, it is necessary to prohibit a MMF or its manager from requesting that the MMF is rated by a credit rating agency in order to avoid that this external rating is used for marketing purposes. The MMF or its manager should also refrain from using alternative methods for obtaining acredit worthiness of potential investments. In order to improve the quality of the investments made by MMFs, and thereby UCITS and AIFs, and in order to protect investors of those funds, it is appropriate to require MMF managers and investors to avoid relying solely or mechanically on credit ratings of the MMF. Should the MMF be awarded an external rating, either on the own initiative of the credit rating agency or following request by a third party that is independent of the MMF or the manager and does not act on behalf of any of them, the MMF manager should refrain from relying on criteria that would be attached to that external ratingr using them as the only parameter when assessing the risk involved in the investments made by MMFs. The general principle against over-reliance on credit ratings should therefore be integrated into the risk-management processes and systems of MMFs and adapted to their specificities. For ensuring appropriate liquidity management it is necessary that the MMFs establish sound policies and procedures to know their investors. The policies that the manager has to put in place should help understanding the MMF's investor base, to the extent that large redemptions could be anticipated. In order to avoid that the MMF faces sudden massive redemptions, particular attention should be paid to large investors representing a substantial portion of the MMF's assets, as with one investor representing more than the proportion of daily maturing assets. In this case the MMF should increase its proportion of daily maturing assets to the proportion of that investor. The manager should whenever possible look at the identity of the investors, even if they are represented by nominee accounts, portals or any other indirect buyer. In order to specify further the general principle against over- reliance on credit ratings, as introduced in this Regulation, ESMA should develop draft regulatory technical standards to ensure that MMF managers and investors consult other sources, such as internal assessment results, and do not rely solely on credit ratings when assessing the creditworthiness of the assets held. It is appropriate in this regard for ESMA to develop draft regulatory technical standards in respect of the general provisions regarding risk-management processes and systems employed by MMF managers and investors. The Commission should adopt those draft regulatory technical standards in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.
2015/01/12
Committee: ECON
Amendment 155 #
Petr JEŽEK
Proposal for a regulation
Recital 40
(40) As part of a prudent risk management, MMFs should periodical, at least quarterly, conduct stress testing. The managers of MMFs are expected to act in order to strengthen the MMF's robustness whenever the results of stress testing point to vulnerabilities. Or. en Justification
2015/01/12
Committee: ECON
Amendment 163 #
Petr JEŽEK
Proposal for a regulation
Recital 43
(43) To allow for the specificities of CNAV MMFs it is necessary that CNAV MMFs be permitted to use also the amortised cost accounting method for the purpose of determining the constant net asset value (NAV) per unit or share. This notwithstanding, for the purpose of ensuring at all times the monitoring of the difference between the constant NAV per unit or share and the NAV per unit or share, a CNAV MMF should also calculate the value of its assets on the basis of the marking to market or marking to model methods. deleted Or. en Justification
2015/01/12
Committee: ECON
Amendment 178 #
Petr JEŽEK
Proposal for a regulation
Recital 45
(45) In order to be able to absorbreflect day-to- day fluctuations in the value of a CNAV MMF's assets and allow it to offer a constant NAV per unit or share, the CNAV MMF should have at all times a NAV buffer amounting to at least 3% of its assets. The NAV buffer should serve as an absorbing mechanism for maintaining the constant NAV. All differences between the constant NAV per unit or share and the NAV per establish a mechanism which reflects increases and decreases in the net asset value of an investor´s portfolio. The operating principle of this mechanism shall be that an amounit or share should be neutralized by using the NAV buffer. During stressed market situations, when the differences can rapidly increase, a procedure should ensure that the whole chain of management is involved. This escalation procedure should permit the senior management to take rapid remedy actionsrepresenting a decrease of the NAV of an investor´s portfolio will result in a decrease of a corresponding number of shares in this investor´s portfolio (variable shares mechanism).
2015/01/12
Committee: ECON
Amendment 187 #
Petr JEŽEK, Philippe DE BACKER
Proposal for a regulation
Recital 46
(46) As a CNAV MMF that does not maintain the NAV buffer at the required level is not capable of sustaining a constant NAV per unit or share, it should be required to fluctuate the NAV and cease to be a CNAV MMF. Therefore, where despite the use of the escalation procedure the amount of the NAV buffer remains for one month below the required 3% by 10 basis points, the CNAV MMF should automatically convert into a MMF that is not allowed to use amortised cost accounting or rounding to the nearest percentage point. If before the end of the one month allowed for the replenishment a competent authority has justifiable reasons demonstrating the incapacity of the CNAV MMF to replenish the buffer, it should have the power to convert the CNAV MMF into a MMF other than a CNAV MMF. The NAV buffer is the only vehicle through which external support to a CNAV MMF can be provided.deleted
2015/01/12
Committee: ECON
Amendment 199 #
Petr JEŽEK
Proposal for a regulation
Recital 47
(47) External support provided to a MMF other than a CNAV MMF with the intention of ensuring either liquidity or stability of the MMF or de facto having such effects increases the contagion risk between the MMF sector and the rest of the financial sector. Third parties providing such support have an interest in doing so, either because they have an economic interest in the management company managing the MMF or because they want to avoid any reputational damage should their name be associated with the failure of a MMF. Because these third parties do not commit explicitly to providing or guaranteeing the support, there is uncertainty whether such support will be granted when the MMF needs it. In these circumstances, the discretionary nature of sponsor support contributes to uncertainty among market participants about who will bear losses of the MMF when they do occur. This uncertainty likely makes MMFs even more vulnerable to runs during periods of financial instability, when broader financial risks are most pronounced and when concerns arise about the health of the sponsors and their ability to provide support to affiliated MMFs. For these reasons, MMFs should not rely on external support in order to maintain their liquidity and the stability of their NAV per unit or share unless the competent authority of the MMF has specifically allowed the external support in order to maintain stability of financial markets.
2015/01/12
Committee: ECON
Amendment 207 #
Petr JEŽEK
Proposal for a regulation
Recital 48
(48) Investors should be clearly informed, before they invest in a MMF, if the MMF is of a short-term nature or of a standard nature and if the MMF is of a CNAV type or not. In order to avoid misplaced expectations from the investor it must also be clearly stated in any marketing document that MMFs are not a guaranteed investment vehicle and that they do not benefit from any explicit or implicit sponsor support as defined in point (22 b) of Article 2, unless the procedure under Article 35 is respected. CNAV MMFs should clearly explain to investors the buffervariable shares mechanism they are applying to maintain the constant NAV per unit or share. Investors should clearly acknowledge their understanding of the risk of this investment product.
2015/01/12
Committee: ECON
Amendment 211 #
Petr JEŽEK
Proposal for a regulation
Recital 48 a (new)
(48a) Investors shall be also informed of where they can access information on the portfolio of investment and the fund's levels of liquidity.
2015/01/12
Committee: ECON
Amendment 219 #
Petr JEŽEK, Philippe DE BACKER
Proposal for a regulation
Recital 54
(54) It is essential to carry out a review of this Regulation in order to assess the appropriateness of exempting certain CNAV MMFs that concentrate their investment portfolios on debt issued by the Member States from the requirement to establish a capital buffer that amounts to at least 3 % of the total value of the CNAV MMF's assets. Therefore, during the three years after the entry into force of this Regulation,During the three years after the entry into force of this Regulation, it is essential that the Commission should analyses the experience acquired in applying this Regulation and the impacts on the different economic aspects attached to the MMFs. The debt issued or guaranteed by the Member States represents a distinct category of investment displaying specific credit and liquidity traits. In addition, sovereign debt plays a vital role in financing the Member States. The Commission should evaluate the evolution of the market for sovereign debt issued or guaranteed by the Member States and the possibility to create a special framework for MMF that concentrate their investment policy on that type of debtis review should focus on the effect on the real economy and financial stability of the changes required by this Regulation.
2015/01/12
Committee: ECON
Amendment 236 #
Petr JEŽEK, Sylvie GOULARD, Philippe DE BACKER
Proposal for a regulation
Article 2 – paragraph 1 – point 8
(8) ‘corporate debt’ means debt instruments issued by an undertakings which is effectively engaged in producing or trading inand/or financing the manufacturing, trading or providing of goods orand non- financial services to the market. For the purpose of this definition, it should be understood, that debt instrument such as trade receivables, auto loans and leases, equipment loans and leases, SME loans of such undertakings are eligible provided they otherwise comply with the conditions set out in this Regulation;
2015/01/12
Committee: ECON
Amendment 281 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 8 – paragraph 1 – point d
(d) reverse repurchase agreements; nd repurchase agreements provided that the cash received is not reinvested and the aggregate exposure to repurchase agreements does not exceed 10% of the assets of a MMF; Or. en Justification
2015/01/12
Committee: ECON
Amendment 283 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 8 – paragraph 1 – point d a (new)
(da) units or shares of other MMFs;
2015/01/12
Committee: ECON
Amendment 293 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 8 – paragraph 2 – point d
(d) entering into securities lending agreements or securities borrowing agreements, and repurchase agreements, or any other agreement that would encumber the assets of the MMF;
2015/01/12
Committee: ECON
Amendment 303 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 9 – paragraph 2
2. Standard MMFs shall be allowed to invest in a money market instrument that undergoes regular yield adjustments in line with money market conditions every 397 days or on a more frequent basis while not having a residual maturity excewith a residual maturity until the legal redemption date not exceeding 2 years provided that the time remaining until the next interest rate reset date is less or equal to 397 days. This feature corresponds either to a two-year floating rate security or to a two-year fixed rate security coupled with an interest rate hedging 2 years. arrangement that reset to a money market rate (or index). Or. en Justification
2015/01/12
Committee: ECON
Amendment 353 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 13 – paragraph 5 a (new)
5 a. A MMF may borrow or enter into repurchase agreements, provided that all of the following conditions are met: (a) the repurchase agreement is used on a temporary basis, for a maximum of 7 business days, and not for investment purposes; (b) the sum of repurchase agreements shall not exceed 10%; (c) cash collateral received should only be: - placed on deposit with entities prescribed in Article 50(f) of the UCITS Directive; - invested in high-quality government bonds; - used for the purpose of reverse repo transactions provided the transactions are with credit institutions subject to prudential supervision and the UCITS is able to recall at any time the full amount of cash on accrued basis; - invested in short-term money market funds as defined in the Guidelines on a Common Definition of European Money Market Funds. Re-invested cash collateral shall be diversified in accordance with the diversification requirements applicable to non-cash collateral. The prospectus shall clearly inform investors of the collateral policy of the UCITS, including, in the case of cash collateral, re-investment policy (including the risks arising from the re-investment policy).
2015/01/12
Committee: ECON
Amendment 357 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 13 a (new)
Article 13 a Eligible MMFs 1. A MMF may acquire the units of other MMFs provided that no more than 10 % of the assets of the MMF whose acquisition is contemplated, can, according to their fund rules or instruments of incorporation, be invested in aggregate in units of other MMFs; 2. A MMF may acquire the units of other MMFs, provided that no more than 10 % of its assets are invested in units of a single MMF. Member States may raise that limit to a maximum of 20 %. This restriction does not apply to non-UCITS MMFs marketed solely through employee savings schemes and to a specific category of investor that is subject to divestment restrictions. 3. Member States may, where a MMF has acquired units of another MMF, provide that the assets of the respective MMF are not required to be combined for the purposes of the diversification limits laid down in Articles 14, 21 and 22. 4. Where a MMF invests in the units of other MMF that are managed, directly or by delegation, by the same management company or by any other company with which the management company is linked by common management or control, or by a substantial direct or indirect holding, that management company or other company shall not charge subscription or redemption fees on account of the MMFs' investment in the units of such other MMF. 5. A MMF that invests a substantial proportion of its assets in other MMFs shall disclose in its prospectus the maximum level of the management fees that may be charged both to the MMF itself and to the other MMFs in which it intends to invest. It shall indicate in its annual report the maximum proportion of management fees charged both to the MMF itself and to the other MMFs in which it invests. 6. Short-term MMFs may only invest in units of other short-term MMFs and Standard MMFs may invest in units of both short-term MMFs and Standard MMFs; UCITS MMFs may only invest in units of other UCITS MMFs and AIF MMFs may invest in both UCITS and AIF MMFs. 7. A MMF that invests exclusively its assets in one or several other MMFs authorised under this Regulation is assumed to be in compliance with the provisions laid down in this Regulation.
2015/01/12
Committee: ECON
Amendment 362 #
Petr JEŽEK, Philippe DE BACKER, Sylvie GOULARD
Proposal for a regulation
Article 14 – paragraph 1 – introductory part
1. A MMF shall invest no more than 510% of its assets in any of the following:
2015/01/12
Committee: ECON
Amendment 378 #
Petr JEŽEK, Philippe DE BACKER, Sylvie GOULARD
Proposal for a regulation
Article 14 – paragraph 5 – introductory part
5. Notwithstanding the individual limits laid down in paragraphs 1 and 3, a MMF shall not combine, where this would lead to investment of more than 105% of its assets in a single body, any of the following:.
2015/01/12
Committee: ECON
Amendment 407 #
Petr JEŽEK, Philippe DE BACKER
Proposal for a regulation
Article 16 – paragraph 3 – point c
(c) a manager of a MMF shall monitor its assignments of internal ratingsinternal assessment procedure on an ongoing basis and review all assignments of internal rating at least annuallycredit assessments every 6 months. That manager shall review theconsider its internal assignessment every time there is a material change that could have an impact on an internal credit ratingthe credit assessment. The manager shall establish internal arrangements to monitor the impact on its internal credit ratingsassessment of changes in macroeconomic, financial market or issuer specific conditions;
2015/01/12
Committee: ECON
Amendment 431 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 21 – paragraph 1 – introductory part
A short-term MMF shall comply at all times with all of the following portfolio requirements:
2015/01/12
Committee: ECON
Amendment 439 #
Petr JEŽEK, Sylvie GOULARD, Philippe DE BACKER
Proposal for a regulation
Article 21 – paragraph 1 – point d
(d) at least 20% of its assets shall be comprised of up to weekly maturing assets. A short-term MMF shall not acquire any asset other than a weekly maturing asset when such acquisition would result in the short-term MMF investing less than 20% of its portfolio in weekly maturing assets.
2015/01/12
Committee: ECON
Amendment 440 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 21 – paragraph 1 – point d a (new)
(da) investment in units of other short- term MMFs may be included in the daily or weekly maturing assets up to a maximum of 5%.
2015/01/12
Committee: ECON
Amendment 441 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 21 – paragraph 1 a (new)
If the limits are temporarily not reached for reasons beyond the control of a MMF or as a result of the exercise of redemption rights, that MMF shall adopt as a priority objective for its acquiring transactions the remedying of that situation, taking due account of the interests of its unit-holders;
2015/01/12
Committee: ECON
Amendment 444 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 22 – paragraph 1 – introductory part
1. A standard MMF shall comply at all times with all of the following requirements:
2015/01/12
Committee: ECON
Amendment 445 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 22 – paragraph 1 – introductory part
1. A standard MMF shall comply at all times with all of the following requirements:
2015/01/12
Committee: ECON
Amendment 446 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 22 – paragraph 1 – point a
(a) its portfolio shall have at all times a WAM of no more than 6 months;
2015/01/12
Committee: ECON
Amendment 447 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 22 – paragraph 1 – point b
(b) its portfolio shall have at all times a WAL of no more than 12 month;
2015/01/12
Committee: ECON
Amendment 456 #
Petr JEŽEK, Sylvie GOULARD, Philippe DE BACKER
Proposal for a regulation
Article 22 – paragraph 1 – point d
(d) at least 2015% of its assets shall be comprised of up to weekly maturing assets. A standard MMF shall not acquire any asset other than a weekly maturing asset when such acquisition would result in the standard MMF investing less than 2015% of its portfolio in weekly maturing assets.
2015/01/12
Committee: ECON
Amendment 457 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 22 – paragraph 1 a (new)
1 a. If the limits are temporarily not reached for reasons beyond the control of a MMF or as a result of the exercise of redemption rights, that MMF shall adopt as a priority objective for its acquiring transactions the remedying of that situation, taking due account of the interests of its unit-holders.
2015/01/12
Committee: ECON
Amendment 459 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 22 – paragraph 2
2. A standard MMF may invest up to 10% of its assets in money market instruments issued by a single body.deleted
2015/01/12
Committee: ECON
Amendment 475 #
Petr JEŽEK, Philippe DE BACKER
Proposal for a regulation
Article 23 – paragraph 1
The MMF or the manager of the MMF shall not solicit or finance a credit rating agency for rating the MMFrisk management of MMF may not be affected by short-term decisions influenced by the possible rating of the MMF. Where a MMF seeks an external rating, this shall be subject to, and carried out in accordance with, the requirements of the national competent authority of the credit rating agency. A MMF manager shall not rely on the criteria attached to the external credit rating.
2015/01/09
Committee: ECON
Amendment 493 #
Petr JEŽEK
Proposal for a regulation
Article 25 – paragraph 1 – subparagraph 1
For each MMF there shall be in place sound stress testing processes that allow identifying possible events or future changes in economic conditions that could have unfavourable effects on the MMF. The manager of a MMF shall regularly conduct stress testing at least every three months and develop action plans for different possible scenarios. Or. en Justification
2015/01/09
Committee: ECON
Amendment 504 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 25 – paragraph 2
2. In addition, in the case of CNAV MMFs, the stress tests shall estimate for different scenarios the difference between the constant NAV per unit or share and the NAV per unit or share, including the impact of the difference on the NAV buffer.
2015/01/09
Committee: ECON
Amendment 510 #
Petr JEŽEK
Proposal for a regulation
Article 25 – paragraph 7
7. ESMA shall issue guidelines with a view to establishingdevelop draft regulatory technical standards after consultation with the European Systemic Risk Board (ESRB) specifying the economic scenarios, including baseline, adverse, and severely adverse scenarios, that are to be used in MMF stress testing and other common reference parameters of the stress test scenarios to be included in the stress tests taking into account the factors specifiedreferred to in paragraph 1. The guidelines shall beregulatory technical standards shall be reviewed and if required updated at least every year taking into account the latest market developments. and macro financial developments. ESMA shall submit the draft regulatory technical standards referred to in the first subparagraph to the Commission by [...]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010. Or. en Justification
2015/01/09
Committee: ECON
Amendment 521 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 26 – paragraph 5
5. In addition to the marking to market method referred to in paragraphs 2 and 3 and marking to model method referred to in paragraph 4, the assets of a CNAV MMF may also be valued by using the amortised cost method.deleted
2015/01/09
Committee: ECON
Amendment 530 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 27 – title
Calculation of NAV per unit or share
2015/01/09
Committee: ECON
Amendment 531 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 27 – paragraph 1 – subparagraph 1
1. The ‘Net Asset Value (NAV) per unit or share’ shall be calculated as the difference between the sum of all assets of a MMF and the sum of all liabilities of the MMF valued in accordance with the mark to market and mark to model methods, divided by the number of outstanding units or shares of the MMF.
2015/01/09
Committee: ECON
Amendment 532 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 27 – paragraph 1 – subparagraph 2
The NAV per unit or share shall be calculated for each MMF, irrespective of whether it is a CNAV MMF or not.deleted
2015/01/09
Committee: ECON
Amendment 534 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 27 – paragraph 2
2. The NAV per unit or share shall be rounded to the nearest basis point or its equivalent when the NAV is published in a currency unitof a MMF shall be calculated at least daily.
2015/01/09
Committee: ECON
Amendment 535 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 27 – paragraph 3
3. The NAV per unit or share of a MMF shall be calculated at least daily.deleted
2015/01/09
Committee: ECON
Amendment 536 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 27 – paragraph 4
4. The ‘constant NAV per unit or share’ shall be calculated as the difference between the sum of all assets of a CNAV MMF and the sum of all liabilities of a CNAV MMF valued in accordance with the amortised cost method, divided by the number of outstanding units or shares of the CNAV MMF.deleted
2015/01/09
Committee: ECON
Amendment 544 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 27 – paragraph 6
6. The difference between the constant NAV per unit or share and NAV per unit or share of a CNAV MMF shall be continuously monitordeleted.
2015/01/09
Committee: ECON
Amendment 551 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 27 a (new)
Article 27 a Calculation of NAV per share or unit 1. The 'Net Asset Value (NAV) per unit or share' shall be calculated as the NAV divided by the number of outstanding units or shares of the MMF. The NAV per unit or share shall be calculated for each MMF 2. The NAV per unit or share shall be rounded to the nearest basis point or its equivalent when the NAV is published in a currency unit. 3. The NAV per unit or share of a MMF shall be calculated at least daily.
2015/01/09
Committee: ECON
Amendment 552 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 27 b (new)
Article 27 b Calculation of adjusted number of units or shares 1. Notwithstanding article 27a, CNAV MMFs are allowed to display a constant NAV per unit or share, provided the number of outstanding investor units or shares is adjusted in line with the development of the NAV after each calculation. 2. Any decrease of the NAV calculated in accordance with article 27 should be reflected by a proportional decrease of the number of units or shares in each investor's portfolio. Adjustments of the number of units or shares shall apply on the same day than the calculation of the NAV. 3. A decrease of an investor's number of shares shall mean the redemption of units or shares for the benefit of the MMF. 4. The number of units or shares in an investor's portfolio shall be rounded to the nearest basis point. Or. en Justification
2015/01/09
Committee: ECON
Amendment 555 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 28 – paragraph 2
2. By way of derogation from paragraph 1, the units or shares of a CNAV MMF shall be issued or redeemed at a price that is equal to the MMF's constant NAV per unit or share provided the number of outstanding investor units or shares is adjusted as described in article 27b.
2015/01/09
Committee: ECON
Amendment 562 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 29 – title
AdditionalSpecific requirements for CNAV MMFs
2015/01/09
Committee: ECON
Amendment 564 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 29 – paragraph 1
1. A MMF shall not use the amortised cost method for valuation, or advertise a constant NAV per unit or share, or round the constant NAV per unit or share to the nearest percentage point or its equivalent when the NAV is published in a currency unit unless it has been explicitly authorised as a CNAV MMF.deleted
2015/01/09
Committee: ECON
Amendment 573 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 29 – paragraph 2 – introductory part
2. A CNAV MMF shall satisfy all the following additionalspecific requirements:
2015/01/09
Committee: ECON
Amendment 576 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 29 – paragraph 2 – point a
(a) it has established a NAV buffer in accordance with the requirements in Article 30;CNAV MMFs shall fulfil disclosure requirements towards investors including key investor information, prospectus and marketing materials explaining in a clear, concise and understandable way the functioning of the product.
2015/01/09
Committee: ECON
Amendment 583 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 29 – paragraph 2 – point b
(b) the competent authority of the CNAV MMF is satisfied with a detailed plan by the CNAV MMF specifying the modalities of the use of the buffer in accordance with Article 31;CNAV MMFs shall communicate to each investor the number of outstanding units or shares held and the corresponding monetary amount on a daily basis.
2015/01/09
Committee: ECON
Amendment 588 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 29 – paragraph 2 – point c
(c) the competent authority of the CNAV MMF is satisfied with the CNAV MMF's arrangements to replenish the buffer and with the financial strength of the entity expected to fund the replenishmentCNAV MMFs may only take the form of Short Term MMFs;
2015/01/09
Committee: ECON
Amendment 591 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 29 – paragraph 2 – point d
(d) tThe rules or instruments of incorporation of the CNAV MMF provide clear procedures for the conversion of the CNAV MMF into a MMF that is not allowed to use the amortised cost accounting or the rounding methods;s should state clearly that the CNAV MMF cannot receive external support.
2015/01/09
Committee: ECON
Amendment 592 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 29 – paragraph 2 – point f
(f) the CNAV MMF has established clear and effective communication tools towards investors that ensure prompt information in relation to any use or replenishment of the NAV buffer and the conversion of the CNAV MMF;deleted
2015/01/09
Committee: ECON
Amendment 598 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 29 – paragraph 2 – point g
(g) the rules or instruments of incorporation of the CNAV MMF state clearly that the CNAV MMF cannot receive external support other than through the NAV buffer.deleted
2015/01/09
Committee: ECON
Amendment 611 #
Petr JEŽEK, Sylvie GOULARD, Philippe DE BACKER
Proposal for a regulation
Article 30
[...]deleted
2015/01/09
Committee: ECON
Amendment 635 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 30 a (new)
Article 30 a Variable Shares In order for variable shares to comply with this Regulation, all investors to whom variable shares apply must be made aware that: (a) the number of shares they hold and the total monetary value of their holdings may fluctuate; (b) the total value of their holding will decrease if a number of shares are redeemed or cancelled for the benefit of the MMF; (c) variable shares may result in losses to the investors at the time of redemption.
2015/01/09
Committee: ECON
Amendment 639 #
Petr JEŽEK, Sylvie GOULARD, Philippe DE BACKER
Proposal for a regulation
Article 31
1. The NAV buffer shall only be used in case of subscriptions and redemptions to equalise the difference between the constant NAV per unit or share and the NAV per unit or share. 2. For the purposes of paragraph 1, in case of subscriptions: (a) where the constant NAV at which a unit or share is subscribed is higher than the NAV per unit or share, the positive difference shall be credited to the reserve account; (b) where the constant NAV at which a unit or share is subscribed is lower than the NAV, the negative difference shall be debited from the reserve account. 3. For the purposes of paragraph 1, in case of redemptions: (a) where the constant NAV at which a unit or share is redeemed is higher than the NAV per unit or share, the negative difference shall be debited from the reserve account; (b) where the constant NAV at which a unit or share is redeemed is lower than the NAV per unit or share, the positive difference shall be credited to the reserve account.Article 31 deleted Use of the NAV buffer
2015/01/09
Committee: ECON
Amendment 643 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 32
1. A CNAV MMF shall establish and implement an escalation procedure that ensures that the negative difference between the constant NAV per unit or share and the NAV per unit or share is considered by persons competent to act for the fund in a timely manner. 2. The escalation procedure shall require that: (a) where the negative difference reaches 10 basis points or its equivalent when the NAV is published in a currency unit, the senior management of the manager of the CNAV MMF be informed; (b) where the negative difference reaches 15 basis points or its equivalent when the NAV is published in a currency unit, the board of directors of the manager of the CNAV MMF, the competent authorities of the CNAV MMF and ESMA be informed; (c) the competent persons assess the cause of the negative difference and take appropriate action to reduce the negative effects.Article 32 deleted Escalation procedure
2015/01/09
Committee: ECON
Amendment 655 #
Petr JEŽEK, Sylvie GOULARD, Philippe DE BACKER
Proposal for a regulation
Article 33
1. Whenever the amount of the NAV buffer falls below 3% it shall be replenished. 2. When the NAV buffer has not been replenished and for one month the amount of the NAV buffer stays below the 3% referred to in Article 30(1) by 10 basis points the MMF shall automatically cease to be a CNAV MMF and be prohibited from using the amortised cost or rounding methods. The CNAV MMF shall inform immediately each investor thereof in writing and in a clear and comprehensible way.Article 33 deleted Replenishment of the NAV buffer
2015/01/09
Committee: ECON
Amendment 667 #
Petr JEŽEK, Sylvie GOULARD, Philippe DE BACKER
Proposal for a regulation
Article 34
1. The competent authority of the CNAV MMF shall be immediately notified of any decrease below 3% in the amount of the NAV buffer. 2. The competent authority of the CNAV MMF and ESMA shall be immediately notified when the amount of the NAV buffer decreases by 10 basis points below the 3% referred to in Article 30(1). 3. Following the notification referred to in paragraph 1, the competent authority shall closely monitor the CNAV MMF. 4. Following the notification in paragraph 2, the competent authority shall control that the NAV buffer has been replenished or the MMF has ceased to hold itself as a CNAV MMF and informed accordingly its investors.Article 34 deleted Powers of the competent authority concerning the NAV buffer
2015/01/09
Committee: ECON
Amendment 726 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 37 – paragraph 5
5. In addition to the information to be provided in accordance with paragraphs 1 to 4, a CNAV MMF shall explain clearly to investors and potential investors the use of the amortised cost method and/or of rounding. A CNAV MMF shall indicate the amount of its NAV buffer, the procedure to equalise the constant NAV per unit or share and the NAV per unit or share and shall state clearly the role of the buffer and the risks related to it. The CNAV MMF shall clearly indicate the modalities of replenishing the NAV buffer and the entity expected to fund the replenishment. It shall make available to investors all information concerning compliance with the conditions set out in Article 29(2)(a) to (g)valuation method and the procedure to adjust the number of units or shares in line with the fluctuations of the NAV.
2015/01/09
Committee: ECON
Amendment 735 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 38 – paragraph 1
1. For each MMF managed, the manager of the MMF shall report information to the competent authority of the MMF, at least on a quartermonthly basis. The manager shall upon request provide the information also to the competent authority of the manager if different from the competent authority of the MMF.
2015/01/09
Committee: ECON
Amendment 738 #
Petr JEŽEK, Sylvie GOULARD, Philippe DE BACKER
Proposal for a regulation
Article 38 – paragraph 2 – subparagraph 1 – point c
(c) the size and the evolution of the NAV buffer;deleted
2015/01/09
Committee: ECON
Amendment 758 #
Petr JEŽEK, Sylvie GOULARD
Proposal for a regulation
Article 43 – paragraph 1
1. Within the sixeighteen months following the date of entry into force of this Regulation, an existing UCITS or AIF that invests in short term assets and has as distinct or cumulative objectives offering returns in line with money market rates or preserving the value of the investment shall submit an application to its competent authority together with all documents and evidence necessary to demonstrate the compliance with this Regulation.
2015/01/09
Committee: ECON
Amendment 768 #
Petr JEŽEK, Sylvie GOULARD, Philippe DE BACKER
Proposal for a regulation
Article 43 – paragraph 3
3. By way of derogation from the first sentence of Article 30(1), an existing UCITS or AIF that meets the criteria for the definition of a CNAV MMF set out in Article 2(10) shall establish a NAV buffer of at least (a) 1% of the total value of the CNAV MMF's assets, within one year from the entry into force of this Regulation; (b) 2% of the total value of the CNAV MMF's assets, within two years from the entry into force of this Regulation; (c) 3% of the total value of the CNAV MMF's assets, within three years from the date of entry into force of this Regulationdeleted
2015/01/09
Committee: ECON
Amendment 793 #
Petr JEŽEK, Sylvie GOULARD, Philippe DE BACKER
Proposal for a regulation
Article 45 – paragraph 1 – introductory part
By three years after the entry into force of this Regulation, the Commission shall review the adequacy of this Regulation from a prudential and economic point of view. In particular the review shall consider the operation of the CNAV buffer and the operation of the CNAV buffer to those CNAV MMFs that, in future, might concentrate their portfolios on debt issued or guaranteed by the Member States. The review shall:
2015/01/09
Committee: ECON
Amendment 799 #
Petr JEŽEK, Sylvie GOULARD, Philippe DE BACKER
Proposal for a regulation
Article 45 – paragraph 1 – point e a (new)
(ea) Analyse the impact on the real economy and financial stability of the changes required by this Regulation.
2015/01/09
Committee: ECON
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