31 Amendments of Jonás FERNÁNDEZ related to 2013/0306(COD)
Amendment 101 #
Proposal for a regulation
Recital 2 a (new)
Recital 2 a (new)
(2a) MMFs accept funding with deposit- like characteristics, perform maturity and liquidity transformation and engage in credit risk transfer. Hence, they are shadow banks in the strict sense of the word.
Amendment 110 #
Proposal for a regulation
Recital 6 a (new)
Recital 6 a (new)
(6a) In view of the many bank-like characteristics of MMFs and the systemic interconnections to bank stability, MMFs should be subject to the supervision of the banking supervisors.
Amendment 166 #
Proposal for a regulation
Recital 43
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. CNAV MMFs may only be short-term MMFs, even though the restrictions on maturity, average life and the composition of their assets will be stricter, so as to minimise the risk of a credit and interest rate event.
Amendment 181 #
Proposal for a regulation
Recital 45
Recital 45
(45) IFor prudential reasons and in order to be able to absorb 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 itextraordinary liquidity requests, MMFs should have a cash buffer at all times. The CNAV MMF should thus have at all times a cash buffer amounting to at least whichever figure produced by the following two calculations is higher: (a) the difference between the NAV per unit (measured using the amortised cost method) and its market or model value; (b) 2% of the MMF’s assets. Theis 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 unit or share should be neutralized by using the NAV buffer. Moreover, these obligations may be increased on a proposal from the competent authority in the event of negative results from the stress tests which MMFs will have to undergo on a quarterly basis. During stressed market situations, when the differences can rapidly increase, a procedure should also ensure that the MMF’s whole chain of management is involved. This escalation procedure should permit the senior management to take rapid remedy actions.
Amendment 193 #
Proposal for a regulation
Recital 46
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 month30 days 3% below the required 3% by 10 basis pointslevel stipulated by Article 31 of this Regulation, 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.
Amendment 220 #
Proposal for a regulation
Recital 54
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, the Commission should analyse the experience acquired in applying this Regulation and the impacts on the different economic aspects attached to the MMFs. TheAt all events, the percentage of 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 debtor the EU institutions will not be taken into account when defining the liquidity ratio.
Amendment 233 #
Proposal for a regulation
Article 2 – paragraph 1 – point 2
Article 2 – paragraph 1 – point 2
2) “money market instruments” means money market instruments as defined in Article 2(1)(o) of Directive 2009/65/EC, or in other words, instruments normally dealt in on the money market which are liquid and have a value which can be accurately determined at any time;
Amendment 259 #
Proposal for a regulation
Article 2 – paragraph 1 – point 22 b (new)
Article 2 – paragraph 1 – point 22 b (new)
22b) “Member State public debt instruments” means public debt instruments that are cash, government assets or reverse repurchase agreements secured with public debt of Member States. “EU public debt instruments” means public debt instruments that are cash, government assets or reverse repurchase agreements secured with public debt of the institutions of the EU or its agencies or agents, including among others the European Central Bank, the European stability mechanism, the European Investment Bank, the European Investment Fund and the European Fund for Strategic Investments;
Amendment 260 #
Proposal for a regulation
Article 2 – paragraph 1 – point 22 c (new)
Article 2 – paragraph 1 – point 22 c (new)
22c) “money market” means a market where short-term loan operations are conducted and assets such as public debt securities, corporate debt securities, repurchase agreements and depository receipts are traded.
Amendment 278 #
Proposal for a regulation
Article 8 – paragraph 1 – point a a (new)
Article 8 – paragraph 1 – point a a (new)
(aa) Financial instruments issued or guaranteed separately or jointly by the national, regional and local administrations of the Member States or their central banks, or by the institutions of the EU or its agencies or agents, including among others the European Central Bank, the European Investment Bank, the European Investment Fund, the new European Fund for Strategic Investments or the European stability mechanism, the International Monetary Fund, the International Bank for Reconstruction and Development, the Council of Europe Development Bank and the European Bank for Reconstruction and Development.
Amendment 298 #
Proposal for a regulation
Article 9 – paragraph 1 – point c
Article 9 – paragraph 1 – point c
c) the issuer of the money market instrument has been awarded one of the two highest internal rating grades according to the rules laid down in Articles 16 to 198 of this Regulation.
Amendment 388 #
Proposal for a regulation
Article 14 – paragraph 6 – subparagraph 2 – point c
Article 14 – paragraph 6 – subparagraph 2 – point c
c) the MMF makes express mention in the fund rules or instruments of incorporation of the central, regional or local authorityies or central banks of a Member States, the European Central Bank, the Union, the European stability mechanism or the European Investment Bank, a central authority or central bank of a third country, or the public international bodythe European Investment Fund, the European Fund for Strategic Investments, a central authority or central bank of a third country, the International Monetary Fund, the International Bank for Reconstruction and Development, the Bank for International Settlements, the Council of Europe Development Bank, the European Bank for Reconstruction and Development or any other international public organisation to which one or more Member States belong issuing or guaranteeing money market instruments in which it intends to invest more than 5% of its assets;
Amendment 389 #
Proposal for a regulation
Article 14 – paragraph 6 – subparagraph 2 – point d
Article 14 – paragraph 6 – subparagraph 2 – point d
d) the MMF includes a prominent statement in its prospectus and marketing communications drawing attention to the use of this derogation and indicating the central, regional or local authority/authorities or central bank/s of a Member State/s, the European Central Bank, the Union, the European stability mechanism, the European Investment Bank, a central authority or central bank of a third country, or the public international bodythe European Investment Fund, the European Fund for Strategic Investments, a central authority or central bank of a third country, the International Monetary Fund, the International Bank for Reconstruction and Development, the Bank for International Settlements or any other international public organisation to which one or more Member States belong issuing or guaranteeing money market instruments in which it intends to invest more than 5% of its assets.;
Amendment 395 #
Proposal for a regulation
Article 15 – paragraph 2
Article 15 – paragraph 2
2. The limit laid down in paragraph 1 shall not apply in respect of holdings of money market instruments issued or guaranteed by aone or more central, regional or local authorityies or central banks of a Member State/s, the European Central Bank, the Union, the European stability mechanism or the European Investment Bank, a central authority or central bank of a third country, or the public international body to which one or more Member States belongthe International Monetary Fund, the International Bank for Reconstruction and Development, the Bank for International Settlements or any other international public organisation to which one or more Member States belongs, unless the MMF concerns the public debt of Member States or EU institutions, agencies or agents.
Amendment 424 #
Proposal for a regulation
Article 18 – paragraph 2
Article 18 – paragraph 2
2. The internal assessment procedure shall be detailed in the fund rules or rules of incorporation of the MMF and all documents referred to in paragraph 1 shall be made available upon request by the competent authorities of the MMF and by the competent authorities of the manager of the MMF.
Amendment 430 #
Proposal for a regulation
Article 20 – paragraph 1 – subparagraph 1
Article 20 – paragraph 1 – subparagraph 1
The internal assessment procedures shall be approved by the senior management, the governing body, and, where it exists, the supervisory function of the manager of the MMF.
Amendment 508 #
Proposal for a regulation
Article 25 – paragraph 4
Article 25 – paragraph 4
4. Stress tests shall be conducted at a frequency determined by the board of directors of the manager of the MMF, after considering what an appropriate and reasonable interval in light of the market conditions is and after considering any envisaged changes in the portfolio of the MMF. Such frequency shall be at least yearlysix- monthly in the case of VNAV MMFs, and quarterly in the case of CNAV MMFs.
Amendment 578 #
Proposal for a regulation
Article 29 – paragraph 2 – point a
Article 29 – paragraph 2 – point a
a) it has established a NAV buffer in accordance with the requirements in Article 301;
Amendment 605 #
Proposal for a regulation
Article 29 – paragraph 2 a (new)
Article 29 – paragraph 2 a (new)
2a. A CNAV MMF may only be a short- term MFF as defined in Article 22, even though it shall comply with additional requirements: (a) its portfolio shall have a weighted average maturity (WAM) of no more than 45 days; (b) its portfolio shall have a weighted average life (WAL) of no more than 90 days; (c) at least 15% of its assets shall be comprised of daily maturing assets. A CNAV MMF shall not acquire any daily maturing asset when such acquisition would result in the CNAV MMF investing more than 15% of its portfolio in daily maturing assets; (d) at least 30% of its assets shall be comprised of 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 30% of its portfolio in weekly maturing assets.
Amendment 617 #
Proposal for a regulation
Article 30 – paragraph 1 – subparagraph 1
Article 30 – paragraph 1 – subparagraph 1
Each CNAV MMF shall establish and maintain a NAV buffer amounting at all times to at least 3the corresponding NAV liquidity buffer comprising a cash reserve account amounting to the nominal value of whichever of the following two calculations is higher: (a) the difference between the NAV per unit or share, valued in accordance with Article 27(3) or (4), and the value of the same unit or share under the amortised cost method; (b) 2% of the total value of the CNAV MMF’s assets. The total value of the CNAV MMF’s assets shall be calculated as the sum of the values of each asset of the MMF determined in accordance with Article 267(3) or (4). Furthermore, if the quarterly report on the stress tests detects liquidity problems in the face of certain adverse scenarios, the competent authority of the MMF may increase the NAV buffer to whichever of the following two calculations is higher: (a) the difference plus a maximum of 15% between the NAV per unit or share, valued in accordance with Article 27(3) or (4), and the value of the same unit or share under the amortised cost method; (b) 5% of the total value of the CNAV MMF’s assets valued in accordance with Article 27(3) or (4). This decision by the competent authority of the MMF shall be revised on a quarterly basis after each stress test.
Amendment 630 #
Proposal for a regulation
Article 30 – paragraph 5
Article 30 – paragraph 5
5. The reserve account shall be used solely for the benefit of the MMF. A transfer of funds from the reserve account shall only be made under the conditions laid down in Article 312(2)(b) and Article 312(3)(a).
Amendment 634 #
Proposal for a regulation
Article 30 – paragraph 7 a (new)
Article 30 – paragraph 7 a (new)
7a. The percentage of the portfolio invested in public debt issued or guaranteed by at least one Member State or by EU institutions shall not be taken into account for the purposes of calculating the liquidity buffer laid down by this article.
Amendment 644 #
Proposal for a regulation
Article 32
Article 32
Amendment 658 #
Proposal for a regulation
Article 33 – paragraph 1
Article 33 – paragraph 1
1. Whenever the amount of the NAV buffer falls below 3%the specified minimum limit it shall be replenished.
Amendment 659 #
Proposal for a regulation
Article 33 – paragraph 1 a (new)
Article 33 – paragraph 1 a (new)
1a. When the NAV buffer has not been replenished and for 30 days the amount of the NAV buffer stays below the applicable limit defined in accordance with Article 31(1) by 3%, 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, as well as the competent authority of the MMF.
Amendment 672 #
Proposal for a regulation
Article 34 – paragraph 1
Article 34 – paragraph 1
1. The competent authority of the CNAV MMF shall be immediately notified of any decrease below 3% in the amount of the NAV buffer below the applicable limit defined in accordance with Article 31(1).
Amendment 674 #
Proposal for a regulation
Article 34 – paragraph 2
Article 34 – paragraph 2
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 inelow the level set in accordance with Article 301(1).
Amendment 691 #
Proposal for a regulation
Article 35 – paragraph 2
Article 35 – paragraph 2
2. MMFs other than CNAV MMFs shall not be allowed to receive external support, except under the conditions laid down in Article 367.
Amendment 705 #
Proposal for a regulation
Article 36 – paragraph 1 – introductory part
Article 36 – paragraph 1 – introductory part
1. In exceptional circumstances justified by systemic implications or adverse market conditions the competent authority may allow a MMF other than a CNAV MMF to receive external support referred to in Article 356 that is intended for or in effect would result in guaranteeing the liquidity of the MMF or stabilising the NAV per unit or share of the MMF provided that all of the following conditions are fulfilled:
Amendment 775 #
Proposal for a regulation
Article 43 – paragraph 3 – introductory part
Article 43 – paragraph 3 – introductory part
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(102) shall establish a NAV buffer of at leastliquidity buffer as defined in Article 31(1), within three years, covering one third of the buffer required in each financial year.
Amendment 790 #
Proposal for a regulation
Article 43 – paragraph 4
Article 43 – paragraph 4
4. For the purposes of paragraph 3 of this Article, the reference to 3%the liquidity buffer in Articles 33 and 34 shall be interpreted as referring to the amounts of the NAV buffer mentioned in points (a), (b) and (c) of paragraph 3 respectivelyaragraph 3.