[ParlTrack]

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Recital 2 a (new)

(2a) One of the key lessons from the financial crisis in Europe was the inadequacy of its institutional and policy framework to prevent and address imbalances within the EU. In the light of the latest institutional developments in the European Union, a comprehensive review of the macroprudential policy framework is warranted. It is important to streamline the coordination mechanism between authorities, simplify the activation of macroprudential policy tools and broaden the macroprudential toolbox to ensure authorities are enabled to address systemic risks in a timely and effective manner. Legislative changes should, inter alia, include the revision of the respective powers of national and EU-level macroprudential authorities so as to better delineate responsibilities in the areas of risk assessment and policy making, including the coordination and notification procedures between authorities. The ESRB should play a key role in the coordination of macro- prudential measures, as well as the transmission of information on planned macro-prudential measures in Member States, notably through the publication of adopted macro-prudential measures on its website and through information sharing across authorities following the notifications of planned macroprudential measures.

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Recital 12 a (new)

(12a) Institutions operate under a nexus of regulatory requirements and standards aiming to ensure the protection of retail customers and consumer, the level playing field in the single market, the protection of human rights, tax justice and the avoidance of money laundering. Non-observance of those requirements and standards by institutions has significant negative societal consequences but it may also affect those institutions’ capital requirements and, potentially, overall financial stability. There is, therefore, a need to single out conduct as a distinguished parameter of operational risk and to ensure that institutions and competent authorities identify, evaluate and monitor this risk adequately in the context of the institutions’ internal capital. It is also necessary to set out that information relating to investigations of institutions’ misconduct is communicated promptly from the authorities monitoring conduct-of-business, anti-money laundering, consumer, competition and other frameworks to the competent authorities responsible for prudential supervision.

2018/02/02
Committee: ECON

Philippe LAMBERTS, Ernest URTASUN, Sven GIEGOLD

Proposal for a directive
Recital 12 b (new)

(12b) Not only did many institutions prove to be severely undercapitalised in the face of the financial crisis, but ten years later, significant concerns about the reliability and excessive variability of internal approaches used by institutions to determine capital requirements for a variety of market and credit risk exposures persist and have been raised by, among others, the BCBS, SSM as well as EBA in its benchmarking exercises conducted in accordance with Article 78 of this directive. It is of crucial importance to the stability of the financial system as well as to the credibility of institutions in the eyes of supervisors, investors, customers and counterparties and the wider public that steps be taken as soon as possible to address these concerns. Giving explicit powers to competent authorities to take corrective action in this Directive, such as applying multipliers to model outputs, standardised model floors, moratoria on changes to models and disclosure of the differences between standardised and internal approaches for the same exposures is one such step. Giving explicit powers to competent authorities to take corrective action in this Directive, such as applying multipliers to model outputs, standardised model floors, moratoria on changes to models and disclosure of the differences between standardised and internal approaches for the same exposures is one such step. In the medium term however the entire capital adequacy framework should be reformed to ensure that there are credible supervisory backstops to both inputs and outputs to institutions' internal models for all risks subject to internal approaches and, where necessary, withdraw entirely the possibility for internal approaches where there is little or no reason to believe an internal approach can outperform a standardised approach. In this regard the Commission should consider legislative proposals as soon as possible to put in place such safeguards, leaving the possibility in its proposals to integrate, where necessary and appropriate and as they become available, developments in international standards in this area.

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 1 – point b

Directive 2013/36/EU
Article 2 – paragraph 5a – point e

(e) it is ~~precluded from accepting covered deposits~~not as defined in point (5) of Article 2(1) of Directive 2014/49/EU of the European Parliament and of the Council12 ; __________________ 12 Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014 on deposit guarantee schemes (recast) (OJ L 173, 12.6.2014, p. 149)irect recipient of consumer savings deposits;

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 1 – point b

Directive 2013/36/EU
Article 2 – paragraph 5a – point g

(g) the total value of the institution's assets is below EUR 30 billion or a Member State’s central government or a regional or local authority in accordance with letter (d) guarantees the institution’s own fund requirements, financing needs and exposures at a level of 100% either directly or indirectly;

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 1 – point b

Directive 2013/36/EU
Article 2 – paragraph 5b – point d

(d) they are only permitted to accept deposits or repayable funds from their members ~~and such deposits qualify as covered deposits under point 5 of Article 2(1) of Directive 2014/49/EU;~~.

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 1 – point b

Directive 2013/36/EU
Article 2 – paragraph 5b – point g

(g) the aggregate value of the assets of this category of institutions does not exceed 3% of the GDP of the Member State concerned ~~and the total value of assets of individual institutions does not exceed EUR 100 million~~;

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 9

Directive 2013/36/EU
Article 21b – paragraph 1

1. Member States shall require that two or more institutions or third country branches in the Union, which are part of the same third country group, have an intermediate EU parent undertaking that is established in the Union.

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 9

Directive 2013/36/EU
Article 21b – paragraph 2

2. Member States shall require an intermediate EU parent undertaking in the Union to obtain authorisation as an credit institution in accordance with Article 8, or as a financial holding company or mixed financial holding company in accordance with Article 21a.

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 9

Directive 2013/36/EU
Article 21b – paragraph 4 a (new)

4 a. Where paragraphs 1 or 2 apply, Member States shall require that each third country branch of the third country group is re-established either as a credit institution or as a branch of a credit institution established in the Union.

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 11 a (new)

Directive 2013/36/EU
Article 56 – point f a (new) and point f b (new)

(11a) In Article 56 points (fa) and (fb) are added: "(fa) competent authorities referred to in Article 48 of the amended Directive (EU) 2015/849 of the European Parliament and of the Council; (fb) competent authorities or bodies responsible for the application of rules on structural separation within a banking group. "

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 11 b (new)

Directive 2013/36/EU
Article 67 – paragraph 1 – point p a (new) to point p d (new)

(11b) In article 67, the following points (pa), (pb), (pc), (pd) are added: (pa) an institution fails to meet the own funds requirements set out in Article 92 of Regulation (EU) No 575/2013; (pb) an institution or a natural person fails to comply with an obligation arising from a regulation or decision issued by the competent authority; (pc) an institution acts without the prior permission of the competent authority where Regulation (EU) No 575/2013 or national provisions transposing this Directive require the institution to obtain such prior permission, obtained such permission on the basis of its own false statement or does not comply with the conditions under which such permission was granted; (pd) an institution fails to give notice or does not do so correctly, in full or in time where the institution is obliged to give such notice according to Regulation (EU) No 575/2013 or national provisions transposing this Directive.

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 12 a (new)

Directive 2013/36/EU
Article 75 – paragraph 3

~~3. Competent authorities shall collect~~(12a) paragraph 3 is replaced by the following: 3. Institutions shall report to competent authorities information on the number of natural persons per institution that are remunerated EUR 1 million or more per financial year, in pay brackets of EUR 1 million, including their job responsibilities, the business area involved and the main elements of salary, bonus, long-term award and pension contribution. ~~That information~~Competent authorities shall be forwarded that information to EBA, which shall publish it on an aggregate home Member State basis in a common reporting format. ~~EBA may elaborate guidelines to facilitate the implementation of this paragraph and ensure the consistency of the information collected.~~

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 12 b (new)

Directive 2013/36/EU
Article 75 – paragraph 3 a (new)

(12b) the following paragraph 3a is added: EBA shall develop draft implementing technical standards to specify the uniform formats, frequencies, dates of reporting, definitions and the IT solutions to be applied in the Union for the reporting of the information referred to in paragraph 3.

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 12 c (new)

Directive 2013/36/EU
Article 76 – paragraph 3 – subparagraph 4 a (new)

~~(http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013L0036&from=DE)~~(12b) In Article 76, the following subparagraph is added at the end: For small and non-complex institutions as defined in Article 430a of Regulation (EU) No 575/2013 this paragraph shall not apply. " Or. en

2018/02/02
Committee: ECON

Philippe LAMBERTS, Ernest URTASUN, Sven GIEGOLD

Proposal for a directive
Article 1 – paragraph 1 – point 12 c (new)

Directive 2013/36/EU
Article 78 – para 4

(13a) Paragraph 4 of Article 78 is replaced by the following: "4. Where particular institutions diverge significantly from the majority of their peers or where there is little commonality in approach leading to a wide variance of results, competent authorities shall investigate the reasons therefor and, if it can be clearly identified that an institution's approach leads to an underestimation of own funds requirements which is not attributable to differences in the underlying risks of the exposures or positions, shall take corrective action. ~~lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2013:176:0338:0436:En:PDF)~~Member States shall ensure that competent authorities have the necessary powers to take at least the following corrective actions: - requiring an institution to apply additional multiplication factors to the capital requirements determined by internal approaches; - requiring an institution to use a the relevant standardised approach or other model provided for in Regulation (EU) No 575/2013 for the calculation of risk weighted exposure amounts or own fund requirements except for operational risk; - requiring an institution to apply a floor to the capital requirements determined under the internal approach expressed as a percentage of the relevant standardised approach or other model provided for in Regulation (EU) No 575/2013 for the calculation of risk weighted exposure amounts or own fund requirements except for operational risk; - imposing a moratorium on approval of adjustments to internal approaches if they result in substantially reduced risk weightings; - requiring institutions to disclose the differences between the calculations produced by the relevant standard approach and internal approaches; EBA shall issue guidelines in accordance with Article 16 of Regulation (EU) No 1093/2010 to convergence in the application of the corrective actions referred to in this paragraph by the competent authorities. " Or. en (http://eur-

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 13

Directive 2013/36/EU
Article 84 – paragraph 1

1. Competent authorities shall ensure that institutions implement internal systems or use the standardised methodology to identify, evaluate, manage and mitigate the risks arising from potential changes in interest rates that affect both the economic value of equity and the net interest income of an institution's non-trading book activities. By way of derogation, small and non-complex institutions as defined in Article 430a of Regulation (EU) No 575/2013 shall be required to use the standardised methodology only if the competent authority comes to the conclusion that the internal systems are not sufficient.

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 13

Directive 2013/36/EU
Article 84 – paragraph 4 – subparagraph 1

EBA shall develop draft regulatory technical standards to specify, for the purposes of this Article, the details of a standardised methodology that institutions may use for the purpose of evaluating the risks referred to in paragraph 1. , including a conservatively calibrated alternative simplified methodology for small and non-complex institutions as defined in Article 430a of Regulation (EU) No 575/2013.

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 14

Directive 2013/36/EU
Article 85 – paragraph 1

1. Competent authorities shall ensure that institutions implement policies and processes to evaluate and manage the exposure to operational risk, including model risk, conduct risk according to Article 85A and risks resulting from outsourcing, and to cover low-frequency high-severity events. Institutions shall articulate what constitutes operational risk for the purposes of those policies and procedures..

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 14 a (new)

Directive 2013/36/EU
Article 85 a (new)

(14a) The following Article 85a is added: 'Article 85a Conduct risk 1. Competent authorities shall ensure that institutions identify as conduct risk any risk arising from providing services or performing activities in a manner which is not in line with regulatory requirements or standards and which exposes the institution to potential fines, penalties, sanctions or damages (“misconduct”). Conduct risk shall be identified in respect of any misconduct attained by an act or omission, preparatory or final, wilful or negligent, which has been performed by an institution’s employee or a third party to which operational functions or activities have been outsourced or which has been approved by the institution’s management body. 2. Competent authorities shall ensure that institutions implement policies and processes to identify, evaluate and manage their exposures to conduct risk. Institutions shall articulate what constitutes conduct risk for the purposes of those policies and processes. 3. Authorities designated under Union legislation applicable to institutions to supervise regulatory requirements and standards referred to in paragraph 1 shall inform without undue delay the competent authority responsible for the prudential supervision of an institution of any investigation concerning that institution’s potential misconduct. This information shall remain confidential in accordance with Title VII, Section II of this Directive.'

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 14 b (new)

Directive 2013/36/EU
Article 88 – paragraph 2 – subparagraph 5

W(14b) In Article 88, paragraph 2, subparagraph 5 is replaced by the following: For small and non-complex institutions as defined in Article 430a of Regulation (EU) No 575/2013 and where, under national law, the management body does not have any competence in the process of selection and appointment of any of its members, this paragraph shall not apply. ~~(http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013L0036&from=DE)~~" Or. en

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 14 c (new)

Directive 2013/36/EU
Article 89

(14c) Article 89 is replaced by the following: "Article 89 Country-by-country reporting 1. ~~From 1 January 2015~~ Member States shall require each institution to disclose annually, specifying, by Member State and by third country in which it has anone or more establishment, the following information on a consolidated basis for the financial year: (a) name(s), nature of activities and geographical location; (b) turnover; (c) number of employees on a full time equivalent basis; (d) profit or loss before tax; (e) tax on profit or loss; (f) public subsidies received. 2. Notwithstanding paragraph 1, Member States shall require institutions to disclose the information referred to in paragraph 1(a), (b) and (c) for the first time on 1 July 2014. 3. By 1 July 2014, all global systemically important institutions authorised within the Union, as identified internationally, shall submit to the Commission the information referred to in paragraph 1(d), (e) and (f) on a confidential basis. The Commission, after consulting EBA, EIOPA and ESMA, as appropriate, shall conduct a general assessment as regards potential negative economic consequences of the public disclosure of such information, including the impact on competitiveness, investment and credit availability and the stability of the financial system. The Commission shall submit its report to the European Parliament and to the Council by 31 December 2014. In the event that the Commission report identifies significant negative effects, the Commission shall consider making an appropriate legislative proposal for an amendment of the disclosure obligations set out in paragraph 1 and may, in accordance with point (h) of Article 145, decide to defer those obligations. The Commission shall review the necessity to extend deferral annually. 4. The information referred to in paragraph 1 shall be audited in accordance with Directive 2006/43/EC and shall be published, where possible, as an annex to the annual financial statements or, where applicable, to the consolidated financial statements of the institution concerned. 5. To the extent that future Union legislative acts for disclosure obligations go beyond those laid down in this Article, this Article shall cease to apply and shall be deleted accordingly. lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2013:176:0338:0436:En:PDF)s, including subsidiaries, branches and any affiliated undertakings consolidated in the financial statement, the following information on a consolidated basis for each jurisdiction for the relevant financial year: (a) a list of the names of their establishments, a brief description of the nature of their activities as well as their country of tax registration; (b) the amount of the net turnover arising in the jurisdiction, including separate disclosure of the turnover made with related and unrelated parties; (c) the number of employees on a fulltime equivalent basis; (d) the amount of profit or loss before income tax; (e) the amount of income tax accrued (current year) which is the current tax expense recognised on taxable profits or losses of the financial year by subsidiaries, branches, joint ventures, undertakings and establishments resident for tax purposes in the relevant tax jurisdiction; (f) the amount of income tax paid, which is the amount of income tax paid during the relevant financial year by subsidiaries, branches, joint ventures, undertakings and establishments resident for tax purposes in the relevant tax jurisdiction; (g) stated capital; (h) the amount of accumulated earnings at the end of the period; (i) public subsidies received; (j) fixed investment intangible plant, equipment, inventories and stocks and the annual cost of maintaining that tangible plant and equipment; (k) whether subsidiaries, branches, joint ventures, undertakings or establishments have benefited from a preferential tax treatment during the course of the period that might or does permit the payment of tax at a lower rate than that generally applied to profits arising in the jurisdiction and provide a description of the arrangement in question. 2. For the purposes of point (e) of the first paragraph, the current tax expense shall relate only to the activities of an undertaking in the current financial year and shall only include those sums likely to fall due for payment within twelve months of the period end and shall exclude all deferred taxes. 3. The information referred to in paragraph 1 shall be audited in accordance with Directive 2006/43/EC and shall be published, where possible, as an annex to the annual financial statements or, where applicable, to the consolidated financial statements of the institution concerned. 4. To the extent that future Union legislative acts for disclosure obligations go beyond those laid down in this Article, this Article shall cease to apply and shall be deleted accordingly. " Or. en (http://eur-

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 14 d (new)

Directive 2013/36/EU
Article 91 – paragraph 1

(14d) In Article 91, paragraph 1 is replaced by the following: "Article 91 Management body 1. Members of the management body shall at all times be of sufficiently good repute and possess sufficient knowledge, skills and experience to perform their duties. The overall composition of the management body shall reflect an adequately broad range of experiences. Members of the management body shall, in particular, fulfil the requirements set out in paragraphs 2 to 8. ~~(http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013L0036&from=DE)~~Competent authorities may waive the requirements set out in paragraphs 3 to 5 for small and non- complex institutions as defined in Article 430a of Regulation (EU) No 575/2013. " Or. en

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 14 e (new)

Directive 2013/36/EU
Article 91 – paragraph 8

(14e) In Article 91, paragraph 8 is replaced by the following: "8. Each member of the management body shall act with honesty, integrity and independence of mind to effectively assess and challenge the decisions of the senior management where necessary and to effectively oversee and monitor management decision-making. ~~(http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013L0036&from=DE)~~This requirement shall not lead to ban members of affiliated companies from the supervisory board. " Or. en

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 14 f (new)

Directive 2013/36/EU
Article 91 – paragraph 13 a (new)

(14f) The following paragraph 13a shall be added in Article 91: '13a. Notwithstanding Article 13 (1) of this Directive, competent authorities may assess, at their discretion, institutions’ compliance with the requirements according to Article 91 (1) to (8) of this Directive regarding the management body in its supervisory function before or after the appointment of one of its members."

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 14 g (new)

Directive 2013/36/EU
Article 91 a (new)

(14g) The following Article 91a is inserted: Article 91a Key function holders 1. Institutions shall have the primary responsibility for ensuring that key function holders are at all times of sufficiently good repute and possess sufficient knowledge, skills and experience to perform their duties to the highest ethical standards taking into account the legitimate expectations of all stakeholders of the institution. Key function holders shall, in particular, fulfil the requirements set out in Article 91(2) and (8) on an ongoing basis. Institutions shall establish internal policies and procedures to adequately conduct and report these assessments. 2. Institutions shall provide the competent authorities with all relevant documentation on their relevant internal policies and make public the assessments of key function holders with respect to the matters mentioned in paragraph 1. 3. Member States shall ensure that competent authorities have, for institutions that are significant within the meaning of Directive 2013/36/EU, the power to assess and take supervisory measures, including the power to remove a key function holder where they no longer comply with the requirements of the paragraph 1.

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 15 – point a

Directive 2013/36/EU
Article 92 – paragraph 1

~~(a) paragraph 1 is~~ deleted.

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 15 – point b a (new)

Directive 2013/36/EU
Article 92 – paragraph 2 – point c a (new)

(ba) in paragraph 2, the following point ca is inserted: (ca) the highest remuneration in the institution does not exceed 30 times the average remuneration of the lowest paid 5 percent of employees

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 15 – point b b (new)

Directive 2013/36/EU
Article 92 – paragraph 2 – point c b (new)

(bb) in paragraph 2, the following point cb is inserted: (cb) a pay ratio of 1 to 20 between the average total remuneration and the highest total remuneration within the same institution is respected.

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 16 – point a a (new)

Directive 2013/36/EU
Article 94 – paragraph 1 – point m

(aa) in paragraph 1, point m is amended as follows: "(m) a substantial portion, and in any event at least 40 %, of the variable remuneration component is deferred over a period which is not less than ~~thre~~five to ~~five~~ten years and is correctly aligned with the nature of the business, its risks and the activities of the member of staff in question. Remuneration payable under deferral arrangements shall vest no faster than on a pro-rata basis. In the case of a variable remuneration component of a particularly high amount, at least 60 % of the amount shall be deferred. The length of the deferral period shall be established in accordance with the business cycle, the nature of the business, its risks and the activities of the member of staff in question; ~~lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2013:176:0338:0436:En:PDF)~~" Or. en (http://eur-

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 16 – point b

Directive 2013/36/EU
Article 94 – paragraph 3 – point a

(a) an institution ~~the value of the assets of which is on average equal to or less than EUR 5 billion over the four-year period immediately preceding the current financial year~~or subsidiary that is not large as defined in Article 430a (1) and (2) of Regulation (EU) No 575/2013 unless the competent authority objects to the exemption;

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 17

Directive 2013/36/EU
Article 97 – paragraph 1 – point b

~~(17) In Article 97(1) point (b) is~~ deleted.

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 17 a (new)

Directive 2013/36/EU
Article 97 – paragraph 2

(17a) In Article 97, paragraph 2 is replaced by the following: "2. The scope of the review and evaluation referred to in paragraph 1 shall cover all requirements, of this Directive, including Article 104b, and of Regulation (EU) No 575/2013. " Or. en (http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32013L0036)

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 17 b (new)

Directive 2013/36/EU
Article 97 – paragraph 4

(17b) In Article 97, paragraph 4 is replaced by the following: "4. Competent authorities shall establish the frequency and intensity of the review and evaluation referred to in paragraph 1 having regard to the size, systemic importance, nature, scale and complexity of the activities of the institution concerned and taking into account the principle of proportionality. The review and evaluation shall be updated at least on an annual basis for institutions covered by the supervisory examination programme referred to in Article 99(2). ~~(http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013L0036&from=DE)~~The review and evaluation shall be updated not more than every three years for small and non-complex institutions as defined in Article 430a of Regulation (EU) No 575/2013. " Or. en

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 17 c (new)

Directive 2013/36/EU
Article 97 a (new)

(17c) The following new Article 97a shall be inserted: 'Article 97a Derogation for small and non-complex institutions In derogation to Article 97, competent authorities may decide on the basis of a supervisory assessment with respect to the relevant institution to not apply Articles 97 and 98 if the institution is small and non-complex as defined in Article 430a of Regulation (EU) No 575/2013. The supervisory assessment shall be reviewed every three years and when the competent authority identifies the emergence of new risks.'

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 18 – point a

Directive 2013/36/EU
Article 98 – paragraph 1 – point j

~~(a) in paragraph (1), point (j) is~~ deleted;

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN, Bas EICKHOUT, Molly SCOTT CATO

Proposal for a directive
Article 1 – paragraph 1 – point 18 – point a a (new)

Directive 2013/36/EU
Article 98 – paragraph 1 – point j a (new)

(aa) in paragraph 1, point ja is added; (ja) the assessment of the integration of environmental, social and governance (ESG) factors and risks in the institution’s risk-management system;

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 18 – point a a (new)

Directive 2013/36/EU
Article 98 – paragraph 3 a (new)

(aa) The following paragraph 3a is inserted: 3a. Competent authorities shall monitor each credit institution’s exposures to shadow banking entities, as defined in point 144 a (new) of Article 4 (1) of Regulation (EU) No 575/2013, taking into account the information provided under Article 449a (new) of Regulation (EU) No 575/2013, and, if necessary, take appropriate measures, including setting out lower limits on the credit institution’s individual exposure to a shadow banking entity as referred to in Article 395 (1) of Regulation (EU) No 575/2013, or mitigation measures to address potential risks stemming from situations where interconnectedness between shadow banking entities and the institution cannot be determined.

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 18 – point a b (new)

Directive 2013/36/EU
Article 98 – paragraph 3 b (new)

(ab) The following paragraph 3b is inserted: 3b. Competent authorities shall monitor the risks associated with the use of leverage created synthetically by credit institutions, taking into account the information provided under 443b (new) of Regulation (EU) No575/2013, and, if necessary, take appropriate measures, to limit it. EBA shall develop draft regulatory technical standards to specify the monitoring tools to assess the risks associated with the use of leverage created synthetically as well as the set of measures to limit it when appropriate, as referred to in the first subparagraph. EBA shall submit those draft regulatory technical standards to the Commission by 1 February 2020. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the second subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 18 – point a c (new)

Directive 2013/36/EU
Article 98 – paragraph 3 c (new)

(ac) The following paragraph 3c is inserted: 3c. By 1 December 2021, competent authorities shall conduct constant screening and monitoring of complex structured finance transactions, as referred to in Article 449b (new) of Regulation (EU) No 575/2013, with the aim of identifying transactions structured to potentially produce significant tax benefits. They shall notify to the Commission any transaction so identified as posing a risk of significant tax benefits.

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 18 – point b

Directive 2013/36/EU
Article 98 – paragraph 5

5. The review and evaluation 5. performed by competent authorities shall include the exposure of institutions to the interest rate risk arising from non-trading book activities. Supervisory measures shall be required at least in the case of institutions whose economic value of equity referred to in Article 84(1) declines by more than 15 % of their Tier 1 capital as a result of a sudden and unexpected change in interest rates as set out in any of six supervisory shock scenarios applied to interest rates. By way of derogation, for small and non- complex institutions as defined in Article 430a of Regulation (EU) No 575/2013, the requirements laid down in the first subparagraph shall apply only if the competent authority provides a reasoned opinion that the internal systems are not sufficient.

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 18 – point c

Directive 2013/36/EU
Article 98 – paragraph 5a

5a. EBA shall develop draft regulatory technical standards to specify for the purpose of paragraph 5: (a) be applied to interest rates for every currency; (b) assumptions that institutions shall reflect in their calculation of the economic value of equity under paragraph 5; (c) shall also be required in the case of a decline in the institutions' net interest income referred to in Article 84(1) as a result of potential changes in interest rates. EBA shall submit those draft regulatory technical standards to the Commission by [one year after entry into force]. 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 1093/2010..deleted six supervisory shock scenarios to common modelling and parametric whether supervisory measures

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN, Bas EICKHOUT, Molly SCOTT CATO

Proposal for a directive
Article 1 – paragraph 1 – point 18 – point c a (new)

Directive 2013/36/EU
Article 98 – paragraphs 7 a (new) and 7 b (new)

(ca) the following paragraphs 7a and 7b are inserted: 7 a. For the purpose of point (ja) and for Article 448a of Regulation (EU) No 575/2013, EBA shall by 1 June 2020 issue guidelines in accordance with Article 16 of Regulation (EU) No 1093/2010 to specify further details of the supervisory review and evaluation process regarding the integration of ESG factors and risks including risks related to the depreciation of assets due to regulatory change. The evaluation process shall integrate, as appropriate, specific qualitative and quantitative criteria and metrics for assessing whether the overall business strategy and investment policy of the institution is aligned with the Paris targets and EU related ESG goals. 7b. Taking into account the experience acquired in the application of the guidelines referred to in paragraph 7a, EBA shall develop draft regulatory technical standards for developing a methodological standard for identifying and measuring sustainability risks and factors within the capital adequacy framework relying on clearly demonstrated risks. EBA shall submit those draft regulatory technical standards to the Commission by 1 July 2022. Power is conferred on 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 1093/2010.

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 18 – point c a (new)

Directive 2013/36/EU
Article 98 – paragraph 7 c (new)

(cb) The following paragraph 7c is inserted: 7 c. For the purpose of paragraph 3 c (new), EBA shall by 1 June 2021 issue guidelines in accordance with Article 16 of Regulation (EU) No 1093/2010 to specify qualitative and quantitative criteria and metrics for identifying transactions structured to potentially produce significant tax benefits. Taking into account the experience acquired in the application of the guidelines referred to in subparagraph 1, EBA shall develop draft regulatory technical standards for developing a methodological standard for identifying transactions structured to potentially produce significant tax benefits. EBA shall submit those draft regulatory technical standards to the Commission by 1 July 2022. Power is conferred on the Commission to adopt the regulatory technical standards referred to subparagraph 2 in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 19

Directive 2013/36/EU
Article 99 – paragraph 2 – point b

~~(19) In Article 99(2), point (b) is~~ deleted.

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 19 a (new)

Directive 2013/36/EU
Article 102 – paragraph 1 – point a

(19a) In Article 102, point a is replaced by the following: "(a) the institution does not meet the requirements of this Directive, including Article 104(b), or of Regulation (EU) No 575/2013; " Or. en (http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32013L0036)

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 19 b (new)

Directive 2013/36/EU
Article 102 – paragraph 1 – point b

(19b) In Article 102, point b is replaced by the following: "(b) the competent authorities have evidence that the institution is likely to breach the requirements of this Directive, including Article 104(b), or of Regulation (EU) No 575/2013 within the following 12 months. " Or. en (http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A32013L0036)

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 20

Directive 2013/36/EU
Article 103

~~(20) Article 103 is~~ deleted.

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 21 – point a

Directive 2013/36/EU
Article 104 – paragraph 1 – point a

(a) to require institutions to have additional own funds in excess of the requirements set out in Regulation (EU) No 575/2013, under the conditions laid down in Article 104a and Article 104b;

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 21 – point a

Directive 2013/36/EU
Article 104 – paragraph 1 – point c

(c) to require institutions to present a plan to restore compliance with supervisory requirements, pursuant to this Directive and to Regulation (EU) No 575/2013 and set a deadline which shall not exceed one year for its implementation, including improvements to that plan regarding scope and deadline;

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 21 – point a

Directive 2013/36/EU
Article 104 – paragraph 1 – point d

(d) to require institutions to apply a specific provisioning policy or treatment of assets or off-balance sheet items in terms of own funds requirements or, when the applicable accounting framework allows for flexibility in selecting policies or requires subjective estimations, and the specific implementation chosen by the institution is not adequate or sufficiently prudent from a supervisory point of view, to require institutions to apply specific provisions, deductions or filters for the calculation of own funds only;

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 21 – point a

Directive 2013/36/EU
Article 104 – paragraph 1 – point l

(l) to require additional disclosures ~~on an ad hoc basis only~~;

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 21 – point a

Directive 2013/36/EU
Article 104 – paragraph 2 – introductory part

For the purposes of paragraph 1(j), competent authorities ~~may only~~shall impose additional or more frequent reporting requirements on institutions ~~where the information to be reported is not duplicative and~~at least where one of the following conditions is met:

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 21 – point a

Directive 2013/36/EU
Article 104 – paragraph 2 – point c

(c) the additional information is required for the duration of the institution's supervisory examination programme in accordance with Article 99 or for the purpose of the supervisory review and evaluation process as referred to in Article 97.

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN

Proposal for a directive
Article 1 – paragraph 1 – point 21 – point a

Directive 2013/36/EU
Article 104 – paragraph 2 – subparagraph 2

Information that may be required from institutions shall be deemed as duplicative as referred to in the first subparagraph where the same or substantially the same information is already available to the competent authority, may be produced by the competent authority or obtained through other means than a requirement on the institution to report it. Where information is available to the competent authority in a different format or level of granularity than the additional information to be reported, the competent authority shall not require the additional information where that different format or granularity does not prevent it from producing substantially similar information.;deleted

2018/02/02
Committee: ECON

Philippe LAMBERTS, Sven GIEGOLD, Ernest URTASUN