40 Amendments of Paul TANG related to 2015/2106(INI)
Amendment 6 #
Motion for a resolution
Recital -A (new)
Recital -A (new)
-A. whereas it is widely accepted that the financial crisis of 2008 was caused in large part, and certainly had such a widespread and devastating impact, because of a lack of appropriate, high quality financial services regulation;
Amendment 17 #
Motion for a resolution
Recital C
Recital C
C. whereas the transposition and implementation of the financial regulatory reform is still ongoing and not yet completed, with a number of important reforms still due and many delegated and implementing acts in particular still to be finalised;
Amendment 21 #
Motion for a resolution
Recital C a (new)
Recital C a (new)
Ca. whereas the capital market union potentially offers a valuable framework to safeguard equal access to finance for SMEs throughout the EU and to promote innovative venues for market based funding;
Amendment 26 #
Motion for a resolution
Recital C b (new)
Recital C b (new)
Cb. whereas the capital market based context in the United States is often cited, but fundamentally differs from the banking based European Union context, and should not be copied or used as a template; whereas the capital market union is a chance to strengthen capital markets in the European Union as a complement to banking based finance;
Amendment 27 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Notes that the Commission communication entitled ‘A reformed financial sector for Europe’ provides a first stocktaking of the financial sector reforms but failsit was not meant to provide a full assessment of the overall effects and the interaction of the individual measures;
Amendment 58 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Is concernedUnderlines the importance of financial legislation in reigning in financial markets and recognises the achievements of the Commission in responding to the ramifications of the financial crisis; notes concerns about the increased complexity, reflected in the greater amount, detail and number of layers of regulation and supervision with requirements at international, European and national level; acknowledges the general need to examine fitness of regulation now and in the future, however this fitness cannot be decoupled from the functioning of the financial sector as a whole;
Amendment 71 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Notes that a sound and robust CMU should set the right regulatory framework for allowing more and better diversified finance in the European Union and when necessary aim at harmonising national practices and legislation under the supervision of a newly established European authority as the SSM is for the banking sector; underlines that the CMU has to acknowledge the interdependencies with other financial sectors and has to be based on well-established existing structures; stresses the need for a holistic view of EU financial services regulation; in which the CMU serves as a complement to banking financing;
Amendment 82 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Believes that an effective and efficient EU financial services regulation should beis one that ensures the financing of the real economy and shields against systemic risks while being coherent, consistent (also on a cross- sectoral basis), proportionate, and free of superfluous complexity; believes that it should enable intermediaries to fulfil their role in funding the real economy and serve savers and investors; considers that it should contribute to the single market and focus on goals better achievable at European level;
Amendment 100 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Underlines the need to take stock of the financial services framework; notes that similar exercises are being undertaken in other jurisdictions, notably in the US; stresses however that this stocktaking exercise is not a call for deregulation of the financial sector;
Amendment 104 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Believes that a single market for financial services serves businesses, but ultimately has to benefit customers and investorthe real economy; points furthermore to the fact that cross border obstacles are still numerous for consumers, for example regarding cross border transactions and insurance services; insists that barriers to cross- border access, marketing and investment have to be analysed and addressed;
Amendment 125 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Believes that consumer protection does not necessarily entail large volumes of information; is concerned that the multiplicity of customer information might not ultimately serve real customer needs; argues for a balance to be struck between providing consumers with the information they need to make informed choices and to understand the risks involved, while not unnecessarily burdening businesses, especially SMEs; points to the necessity of a European initiative for more and better financial education;
Amendment 126 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Believes that consumer protection does not necessarily entail large volumes of information; is concerned that the multiplicity of customer information might not ultimately serve real customer needs; points to the necessity of a European initiative for more and better financial education; believes however that financial education is not enough to ensure proper decision making and stresses the vital role of financial advisors;
Amendment 131 #
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
8a. Calls for adequate supervision of all banking and non-banking entities that are active on capital markets as to avoid regulatory arbitrage between financial institutions; recalls that malfunctioning supervisors and a thriving shadow banking sector have in the past seriously exacerbated the systemic risk;
Amendment 148 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Stresses the need for consistency in the risk-based approach, including sovereign exposures, but also the need to reduce opportunities for regulatory arbitrage in certain risk approaches (IRB); supports the work of the BCBS and ESRB in this regard;
Amendment 187 #
Motion for a resolution
Paragraph 13 a (new)
Paragraph 13 a (new)
13a. Underlines the potential of innovative market based funding; highlights especially the opportunities of financial technologies in matching projects and businesses with small scale investors and capital markets, including crowdfunding and peer-to-peer loans; asks the Commission to give breathing space for the emergence of these new models and limit its role to exploring and promoting these alternatives, giving priority to its cross border dimension;
Amendment 191 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. Calls for an appropriate division of competences between EU and national level, bearing in mind that national supervisors have more knowledge of local market characteristics; is concerned about the effect of a one-size-fits-all supervisory approach on smaller and primarily nationally active entiacknowledges the benefits of European supervision in creating a level playing field and breaking the sometimes within the Single Supervisory Mechanism (SSM)too close links between national supervisors and the financial entities they supervise;
Amendment 202 #
Motion for a resolution
Paragraph 15
Paragraph 15
15. Notes the achievements in establishing a banking union; stresses that the next step has to be its full implementation, including full capitalisation of national Deposit Guarantee Schemes (DGS) and the Single Resolution Fund (SRF); emphasises the aim ofthe setting up of the third pillar, namely a European Deposit Guarantee Schemes (DGS), which is crucial also in the light of addressing interdependencies between governments and banks, and the full implementation of the other two pillars, including the Single Resolution Fund (SRF) and the Banking Structural Reform; emphasises the aim of reducing systemic risks through joint action while avoiding moral hazard and ensuring that risk-takers bear the costs when their risks materialise;
Amendment 226 #
Motion for a resolution
Paragraph 17
Paragraph 17
17. Acknowledges that the traditional reliance of SMEs on bank funding due to their specific nature, different risk profiles and variety across Europe is at the moment insufficient to bridge the funding gap that SMEs face; calls on the Commission, in cooperation with the European Supervisory Authorities (ESAs) and the ECB, to analyse the obstacles to, and benefits of, the diversification of funding channels and how to enable banks to increase SME fundingwhilst making sure that banks can still offer funding to SMEs; suggests that the initiatives for improved SME funding should be expanded to mid-cap companies; highlights the potential of innovative and largely untapped venues for financing SMEs, including peer-to-peer lending, crowdfunding and private placement;
Amendment 235 #
Motion for a resolution
Paragraph 17 a (new)
Paragraph 17 a (new)
17a. Regrets that the geographical context remains hugely relevant to the accessibility of capital markets, both in non-banking finance and traditional bank lending; stresses the obstacles cross- border investors face due to differences in shareholder and ownership rights and the differences in taxation on dividends between Member States; urges the Commission to examine how fragmentation between Member States can be addressed; believes that this will help to seize the potential of the contribution of SMEs to growth and jobs;
Amendment 236 #
Motion for a resolution
Paragraph 17 b (new)
Paragraph 17 b (new)
17b. Reiterates the need for standardisation and comparability of information; deplores the high costs incurred by SMEs when obtaining an external credit rating; welcomes the Commission’s proposal in its green book to introduce a standardised scoreboard; stresses the need to further explore how SMEs can be rated in a comparable and affordable way including the advanced internal rating-based (AIRB) approach; calls on the Commission to continue its efforts to bridge information asymmetries;
Amendment 237 #
Motion for a resolution
Paragraph 17 c (new)
Paragraph 17 c (new)
17c. Welcomes the upcoming review of the Prospectus Directive; stresses that the review should be geared towards reducing costs and simplifying procedures to SMEs whilst striking the right balance with investor protection;
Amendment 238 #
Motion for a resolution
Paragraph 17 d (new)
Paragraph 17 d (new)
17d. Regrets the limited number of credit rating agencies and the very limited opportunities for new actors to enter the market; believes that public rating agencies should be promoted as a welcome counterforce within the market of credit rating agencies; recalls in this light that the Commission is due to publish a roadmap for the creation of a European Public Rating Agency for sovereign debt in 2016;
Amendment 242 #
Motion for a resolution
Paragraph 18
Paragraph 18
18. RInvites the Commission to propose an appropriate prudential treatment of securitisation that is apt to attract long term investors and to equip supervisors with the right tools; stresses in this perspective the need to set up a data repository which would register each securitisation’s participants while also tracking aggregate exposures and flows between market participants; does not believe there is a need to revitalise synthetic securitisation given the risks and the problems in the past; recognises the efforts made to establish a more transparent securitisation market; emphasises that stringent requirements for underlying high-quality assets and calibrations according to the actual risk profile are necessary, bearing in mind the riskiness of securitisation as shown during the crisis; calls on the Commission to conduct a thorough assessment of the benefits of securitisation for SMEs and the marketability of securitisation instruments as a matter of priority, and to report to Parliament;
Amendment 255 #
Motion for a resolution
Paragraph 18 a (new)
Paragraph 18 a (new)
18a. Calls on the Commission to ensure that in the securitisation framework originators of securitisation products take an adequate ‘stake’ as to avoid moral hazard;
Amendment 265 #
Motion for a resolution
Paragraph 20
Paragraph 20
20. Asks the Commission and supervisors to address the interaction between International Financial Reporting Standards (IFRS) and prudential requirements, and to review the impact of tax accounting on own funds; calls on the Commission to explicitly grant to ESMA the power to endorse the use of IFRS in the context of EU legislation;
Amendment 268 #
Motion for a resolution
Paragraph 20 a (new)
Paragraph 20 a (new)
20a. Believes that harmonisation of information and its centralisation in European repositories that are accessible online can help to create the right incentives for an off-set of non- performing loans from the balance sheets of banks and, thereby, free capacity for lending to the real economy and enhance the stability of highly leveraged institutions;
Amendment 271 #
Motion for a resolution
Paragraph 21
Paragraph 21
21. Stresses that efforts for a cultural change in the financial sector have to be pursued further; calls on all actors in the financial sector, including banks, non- banks, national central banks and the ECB, to work towards a change of culture that puts the interest of customers first; acknowledges the benefits of relationship banking for consumers and SMEs;
Amendment 287 #
Motion for a resolution
Paragraph 22
Paragraph 22
22. DemandsUnderlines that the stability of the financial sector and its functioning in service of the society and the real economy, are preconditions when making policy; demands, when these conditions are met, a stronger focus on the global competitiveness of the EU financial sectors when making policy;
Amendment 308 #
Motion for a resolution
Paragraph 25 a (new)
Paragraph 25 a (new)
25a. Urges the Commission to address the fiscal treatment of financial instruments, including the elimination the tax equity debt bias;
Amendment 311 #
Motion for a resolution
Paragraph 26
Paragraph 26
26. BUrges the Member States to properly enforce the agreed legislation; believes that better financial regulation includes robust regulation and starts with Member States applying the current acquis; considers that gold-plating does not facilitate the functioning of the internal market;
Amendment 323 #
Motion for a resolution
Paragraph 27
Paragraph 27
27. Highlights the need for better quality and cross-sectoral co-ordination in the Commission’s drafts and drafting processes, encompassing timing, prioritisation and the avoidance of overlaps, as well as any duplication of the basic act in; stresses that this should aim to avoid any duplication of the basic act in delegated acts, but also avoid the situation whereby political decisions which should be resolved within the basic act are instead left to the delegated acts;
Amendment 347 #
Motion for a resolution
Paragraph 30
Paragraph 30
30. Believes that the ESAs and SSM have a crucial role to play in achieving the objectives of better regulation and supervision; stresses that the ESA and SSM, in pursuing this role, have to be adequately funded and staffed; deplores therefore the recent cuts in both the funding and the staff of the agencies; recalls that developing a quality securitisation market in the EU also requires adequate control mechanisms of the quality criteria supervised at the European level;
Amendment 355 #
Motion for a resolution
Paragraph 32
Paragraph 32
32. Stresses the need to respect the interplay, consistency and coherence between the basic acts and delegated and implementing acts; stresses again that major political decisions should be made by the co-legislators within the basic act, and not left to the delegated acts which instead should deal with technical implementation; insists that the Commission and the ESAs, when drafting delegated and implementing acts and guidelines, stick to the empowerments laid down in the basic acts and respect the co- legislators’ agreement;
Amendment 368 #
Motion for a resolution
Paragraph 37
Paragraph 37
37. Reminds the ESAs that technical standards, guidelines and recommendations are bound by the principle of proportionality; calls on the ESAs to adopt a restrictive approach to the extent and number of guidelines, particularly where they are not explicitly empowered in the basic act; notes that such a restrictive approach is also required in view of the ESAs’ resources and the need to prioritise their tasks;
Amendment 378 #
Motion for a resolution
Paragraph 40
Paragraph 40
40. Calls on the Commission and ESAs to conduct regular (at least annual) coherence and consistency checks, also on a cross-sectoral basis and on every draft legislative act, and to dedicate resources to this activityensure that financial regulation is coherent and consistent;
Amendment 384 #
Motion for a resolution
Paragraph 41
Paragraph 41
Amendment 391 #
Motion for a resolution
Paragraph 42
Paragraph 42
42. Stresses that the impact of individual legislative measures differs from their cumulative impact; calls on the Commission services, in corporation with the ESAs, SSM and ESRB, to conduct a one-off comprehensive quantitative and qualitative assessment every five yearsassessment of the cumulative impact of the EU financial services regulation at EU and Member State level;
Amendment 400 #
Motion for a resolution
Paragraph 43 – introductory part
Paragraph 43 – introductory part
43. Calls on the Commission services to complete the first assessment by the end of 20167 and to report on the overall impact and, in separate chapters, on the following:
Amendment 405 #
Motion for a resolution
Paragraph 43 – indent 1 a (new)
Paragraph 43 – indent 1 a (new)
– impact on financial market stability and moral hazard,
Amendment 408 #
Motion for a resolution
Paragraph 43 – indent 1 b (new)
Paragraph 43 – indent 1 b (new)
– the possible costs and risks of the lack of regulation or deregulation,