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15 Amendments of Martin SCHIRDEWAN related to 2016/0364(COD)

Amendment 52 #
Matt CARTHY, Martin SCHIRDEWAN, Miguel VIEGAS
Proposal for a directive
Recital 9
(9) Own funds add-ons imposed by competent authorities should be set in relation to the specific situation of an institution and should be duly justified. These requirements should not be used to address macroprudential risks and should be positioned, in the stacking order of own funds requirements, above the minimum own funds requirements and below the combined buffer requirement.
2018/02/02
Committee: ECON
Amendment 53 #
Matt CARTHY, Martin SCHIRDEWAN, Miguel VIEGAS
Proposal for a directive
Recital 9 a (new)
(9a) Well-capitalised institutions support economic growth rather than hamper it. Significant risk reduction can only be achieved when institutions are not able to pose systemic threats to the economies of the Union or the Member States and when orderly failure is possible without the socialisation of losses. It is therefore appropriate to increase capital buffers for institutions that are classified as O-SIIs and G-SIIs so that possible losses which may occur can be absorbed by the owners of such institutions.
2018/02/02
Committee: ECON
Amendment 57 #
Matt CARTHY, Martin SCHIRDEWAN, Miguel VIEGAS
Proposal for a directive
Recital 16
(16) In order to guide competent authorities in identifying situations where institution-specific capital add-ons should be imposed, the Commission should be empowered to adopt regulatory technical standards in respect of how risks or elements of risks not covered or not sufficiently covered by the own funds requirements set out in Regulation (EU) No 575/2013 should be measured by means of delegated acts pursuant to Article 290 TFEU and in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.deleted
2018/02/02
Committee: ECON
Amendment 117 #
Matt CARTHY, Martin SCHIRDEWAN, Miguel VIEGAS
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2013/36/EU
Article 21b – paragraph 1 a (new)
1 a. Competent authorities may allow the institutions referred to in paragraph 1 to have two intermediate EU parent undertakings where the competent authorities ascertain that a single intermediate EU parent undertaking would be operationally incompatible with a mandatory requirement for separation of activities in accordance with the rules of the third country where the ultimate parent undertaking of the third country group has its head office.
2018/02/02
Committee: ECON
Amendment 150 #
Matt CARTHY, Martin SCHIRDEWAN, Miguel VIEGAS
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2013/36/EU
Article 21b – paragraph 6 – subparagraph 2
Competent authorities shall ensure that there is a single intermediate EU parent undertaking for all institutions that are part of the same third country group., unless the competent authorities have permitted the institution to have two intermediate EU parent undertakings in order for the institution to be compatible with a mandatory requirement for separation of activities in accordance with the rules of the third country where the ultimate parent undertaking of the third country group has its head office.
2018/02/02
Committee: ECON
Amendment 267 #
Matt CARTHY, Martin SCHIRDEWAN, Miguel VIEGAS
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
Amendment 284 #
Matt CARTHY, Martin SCHIRDEWAN, Miguel VIEGAS
Proposal for a directive
Article 1 – paragraph 1 – point 22
Directive 2013/36/EU
Article 104a – paragraph 1 – introductory part
Competent authorities shall impose the additional own funds requirement referred to in Article 104(1)(a) only where, on the basis of the reviews carried out in accordance with Articles 97 and 101, they ascertain any of the following situations for an individual institution:
2018/02/02
Committee: ECON
Amendment 285 #
Matt CARTHY, Martin SCHIRDEWAN, Miguel VIEGAS
Proposal for a directive
Article 1 – paragraph 1 – point 22
Directive 2013/36/EU
Article 104a – paragraph 1 – point a a (new)
(aa) the institution has reached a size and level of complexity such that its failure would lead to significant disruptions of the economy of the Member State or parts of it;
2018/02/02
Committee: ECON
Amendment 289 #
Matt CARTHY, Martin SCHIRDEWAN, Miguel VIEGAS
Proposal for a directive
Article 1 – paragraph 1 – point 22
Directive 2013/36/EU
Article 104a – paragraph 1 – subparagraph 2
The competent authorities shall not impose the additional own funds requirement referred to in Article 104(1)(a) to cover macroprudential or systemic risks.deleted
2018/02/02
Committee: ECON
Amendment 307 #
Matt CARTHY, Martin SCHIRDEWAN, Miguel VIEGAS
Proposal for a directive
Article 1 – paragraph 1 – point 22
Directive 2013/36/EU
Article 104a – paragraph 6
6. EBA shall develop draft regulatory technical standards specifying how the risks and elements of risks referred to in paragraph 2 shall be measured. EBA shall ensure that the draft regulatory technical standards are proportionate in light of: (a) institutions and competent authorities; and (b) higher level of capital requirements that apply where institutions do not use internal models may justifydeleted the implementation burden on the imposition of lower capital requirements when assessing risks and elements of risks in accordance with paragraph 2. EBA shall submit those draft regulatory technical standards to the Commission by [one year after entry into force]. Power is conferred on the Commission to adopt the regulatory technical standards referred to in paragraph 6 in accordance with Articles 10-14 of Regulation (EU) No 1093/2010.sibility that the general
2018/02/02
Committee: ECON
Amendment 324 #
Matt CARTHY, Martin SCHIRDEWAN, Miguel VIEGAS
Proposal for a directive
Article 1 – paragraph 1 – point 22
Directive 2013/36/EU
Article 104b – paragraph 5
5. An institution that fails to meet the expectations set out in paragraph 3 shall notmay be subject to the restrictions referred to in Article 141.
2018/02/02
Committee: ECON
Amendment 354 #
Matt CARTHY, Martin SCHIRDEWAN, Miguel VIEGAS
Proposal for a directive
Article 1 – paragraph 1 – point 30 a (new)
Directive 2013/36/EU
Article 131 – paragraph 5
(30 a) In Article 131, paragraph 5 is replaced by the following: "5. The competent authority or designated authority may require each O- SII, on a consolidated or sub-consolidated or individual basis, as applicable, to maintain an O-SII buffer of up to 2 5% of the total risk exposure amount calculated in accordance with Article 92(3) of Regulation (EU) No 575/2013, taking into account the criteria for the identification of the O-SII. That buffer shall consist of and shall be supplementary to Common Equity Tier 1 capital. "
2018/02/02
Committee: ECON
Amendment 358 #
Matt CARTHY, Martin SCHIRDEWAN, Miguel VIEGAS
Proposal for a directive
Article 1 – paragraph 1 – point 30 b (new)
Directive 2013/36/EU
Article 131 – paragraph 9
(30 b) In Article 131, paragraph 9 is replaced by the following: "9. There shall be at least five subcategories of G-SIIs. The lowest boundary and the boundaries between each subcategory shall be determined by the scores under the identification methodology. The cut-off scores between adjacent sub-categories shall be defined clearly and shall adhere to the principle that there is a constant linear increase of systemic significance, between each sub- category resulting in a linear increase in the requirement of additional Common Equity Tier 1 capital, with the exception of the highest sub-category. For the purposes of this paragraph, systemic significance is the expected impact exerted by the G-SII's distress on the global financial market. The lowest sub-category shall be assigned a G- SII buffer of 12 % of the total risk exposure amount calculated in accordance with Article 92(3) of Regulation (EU) No 575/2013 and the buffer assigned to each sub-category shall increase in gradients of 0,51 % of the total risk exposure amount calculated in accordance with Article 92(3) of Regulation (EU) No 575/2013 up to and including the fourth sub-category. The highest sub-category of the G-SII buffer shall be subject to a buffer of 3,58 % of the total risk exposure amount calculated in accordance with Article 92(3) of Regulation (EU) No 575/2013. "
2018/02/02
Committee: ECON
Amendment 406 #
Matt CARTHY, Martin SCHIRDEWAN, Miguel VIEGAS
Proposal for a directive
Article 1 – paragraph 1 – point 32
Directive 2013/36/EU
Article 141a – paragraph 2
2. By way of derogation from paragraph 1, an institution shall not be considered as failing todeleted the institution meets the combined buffer requirement for the purposes of Article 141 where all the following conditions are met: (a) buffer requirement defined in Article 128(6) and each of the requirements referred to in points (a), (b) and (c) of paragraph 1; (b) requirements referred to in point (d) of paragraph 1 is exclusively due to the inability of the institution to replace liabilities that no longer meet the eligibility or maturity criteria laid down in Articles 72b and 72c of Regulation (EU) No 575/2013; (c) requirements referred to in point (d) of paragraph 1 does not last longer than 6 months..the failure to meet the the failure to meet the
2018/02/02
Committee: ECON
Amendment 421 #
Matt CARTHY, Martin SCHIRDEWAN, Miguel VIEGAS
Proposal for a directive
Article 1 – paragraph 1 – point 32 a (new)
Directive 2013/36/EU
Chapter 4 a (new)
(32 a) The following Chapter 4a is added: CHAPTER 4 a Too big to fail institutions Section I Treatment of certain activities Article 142a Definitions 1. For the purpose of this Chapter the following definitions shall apply: (1) Too big to fail (TBTF) institutions are domestic or global institutions that have reached a size or level of complexity that a failure would lead to a significant disruption of the economy of the Union, a Member State or parts of it. Systemically important institutions as defined in Article 3 paragraph 1 point 30 shall be deemed as to be too big to fail. (2) "core credit institution" means a credit institution that at the minimum takes deposits eligible under the Deposit Guarantee Scheme in accordance with Directive94/19/EC142a. (3) ‘proprietary trading’ means using own capital or borrowed money to take positions in any type of transaction to purchase, sell or otherwise acquire or dispose of any financial instrument or commodities without any demonstrable connection (a) to actual or reasonably anticipated client activity, (b) to the hedging of the entity's own risks resulting from actual or reasonably anticipated client activity, or (c) to the prudent management of the entity's capital, liquidity and funding; Article 142b Trading activities 1. Competent authorities shall ensure that entities referred to in Article 142a (new) shall not: (a) engage in proprietary trading; (b) with its own capital or borrowed money: (i) acquire or retain units or shares of AIFs as defined by Article 4(1)(a) of Directive2011/61/EU or of any entity that engages in proprietary trading or acquires units or shares in AIFs; (ii) engage in lending to or grant guarantees to AIFs or to any entity that engages in proprietary trading or acquires units or shares in AIFs; (iii) invest in derivatives, certificates, indices or any other financial instrument the performance of which is linked to shares or units of AIFs or which is issued by an AIF; 2. The prohibition in point (a) of paragraph 1 shall not apply to financial instruments issued by Member States central governments or by entities listed in paragraph (2) of Article 117 and in Article 118 of Regulation(EU) No 575/2013. 3. The management body of each entity referred to in Article 142a (new) and each member thereof individually shall permanently ensure that the requirements set out in paragraph 1 are complied with. 4. Each entity referred to in Article 142a (new) shall include in its annual report an explanation of how it complies with the requirements in paragraph 2. 5. The requirements in paragraphs 1 to 5 shall apply as of [OP - please insert exact date, 12 months after publication of the Directive]. 6. The Commission shall be empowered to adopt delegated acts to exempt from the prohibition referred to in point (a) of paragraph 1: (a) financial instruments other than those referred to in paragraph 2 issued by governments of third countries that apply supervisory and regulatory arrangements at least equivalent to those applied within the Union, exposures to which are assigned a 0 per cent risk weight in accordance with Article 115 of Regulation (EU) No575/2013; (b) financial instruments issued by Member States' regional governments, exposures to which are assigned a 0 per cent risk weight in accordance with Article 115 of Regulation (EU) No 575/2013. 7. 7. For the purpose of this article, an activity shall be deemed as proprietary trading unless an institution demonstrates to the satisfaction of the competent authority that is not covered by the definition of proprietary trading in Article 142a (new). Section II Core activities Article 142c (new) Core credit activities 1. For the purposes of this Chapter, activities conducted by core credit institutions shall include solely: (a) taking deposits that are eligible under the Deposit Guarantee Scheme in accordance with Directive 94/19/EC of the European Parliament and of the Council142b; (b) lending including, consumer credit, credit agreements relating to immovable property, factoring with or without recourse, financing of commercial transactions (including forfeiting); (c) financial leasing; (d) payment services as defined in Article 4(3) of Directive 2007/64/EC of the European Parliament and of the Council142c; (e) issuing and administering other means of payment such as travelers' cheques and bankers' drafts insofar as such activity is not covered by point (d); money broking, safekeeping and administration of securities; credit reference services; safe custody services; issuing electronic money; advising on and selling products of other regulated financial institutions without acting as a principal, subject to the requirements of (MIFID/MIFIR). 2. In addition to the activities permitted under paragraph 1, core credit institutions may carry out certain trading activities as detailed below provided they can demonstrate to the competent authority that they are solely used for the purpose of prudently managing capital, liquidity and funding: (a) the use of interest rate derivatives, foreign exchange derivatives and credit derivatives eligible for central counter party clearing to hedge its overall balance sheet risk where the hedging activity is designed to reduce, and demonstrably reduces or significantly mitigates, specific, identifiable risks of individual or aggregated positions of the core credit institution; (b) purchasing and disposing of high quality liquid assets that at least meet the standards set out in Article 416 of the Regulation (EU)No 575/2013 for the purpose of managing the cash and liquidity position of the CCI; (c) lending to and borrowing in the interbank markets for the purpose of managing the cash and liquidity position of the CCI subject to the conditions in Article 142d (new) paragraph 1; (d) issuance and repurchase of securities for the purpose of meeting the capital management needs of the CCIs core activities. This may include securitisation not considered to pose a threat to the financial stability of the CCI or to parts of or the whole of the Union financial system. 3. Without prejudice to the remuneration rules laid down in this Directive, the remuneration policy applicable to staff of the core credit institution engaged in hedging activities shall: (a) aim at preventing any residual or hidden proprietary trading activities, whether disguised as risk management or otherwise; (b) reflect the legitimate hedging objectives of the core credit institution as a whole and ensure that remuneration awarded is not directly determined by reference to the profits generated by such activities but takes account of the overall effectiveness of the activities in reducing or mitigating risk. The management body and its individual members shall ensure that the remuneration policy of the core credit institution is in line with the provisions set out in the first subparagraph, acting on the advice of the risk committee, where such a committee is established in accordance with Article 76(3) of this Directive, and include this information in the annual report. 4. The Commission shall [OP insert the correct date by six months of publication of this Directive] adopt delegated acts in accordance with Article 145 to specify which type of securitisation is not considered to pose a threat to the financial stability of the core credit institution or to the Union financial system as a whole with regard to each of the following aspects: (a) the structural features, such as the embedded maturity transformation and simplicity of the structure; (b) the quality of the underlying assets and related collateral characteristics; (c) the listing and transparency features of the securitisation and its underlying assets; (d) the robustness and quality of the underwriting processes. The Commission shall, [OP insert the correct date by 6months of publication of this Regulation] adopt delegated acts in accordance with Article 145 to specify the criteria for determining that the hedging activity referred to in paragraph 2 is designed to reduce, and demonstrably reduces or significantly mitigates, specific, identifiable risks of individual or aggregated positions of the core credit institution. Article 142d (new) Extra-group large exposure limits 1. In addition to the provisions of paragraph 1 of Article 395 of Regulation (EU) No 575/2013 when measures have been imposed in accordance with this Chapter of this Directive the core credit institution shall not incur the following exposures: (a) a large exposure that exceeds 25 per cent of the core credit institution's eligible capital to a financial entity. That exposure limit shall apply on an individual and on a sub-consolidated basis, and after taking into account the effect of the credit risk mitigation and exemptions in accordance with Articles 399 to 403 of Regulation (EU) No 575/2013 and paragraph 2 of this Article; (b) large exposures that in total exceed 200 per cent of the core credit institution's eligible capital to financial entities. That exposure limit shall apply on an individual and on a sub- consolidated basis, and after taking into account the effect of the credit risk mitigation and exemptions in accordance with Articles 399 to 403 of Regulation (EU) No 575/2013 and paragraph 2 of this Article. The Commission shall be empowered to adopt delegated acts in accordance with Article 145 to adjust the level of the extra-group aggregate large exposure limit as set out in point (b) of paragraph 1, in line with the extent to which the credit risk mitigation has been recognised. 2. In addition to the provisions of Articles 399 to 403 of Regulation (EU) No 575/2013, when measures have been imposed in accordance with this Chapter of this Directive, restrictions with respect to the recognition of credit mitigation techniques shall apply to the computation of exposure values for the purposes of compliance with the large exposure limits as referred to in paragraph 1 of this Article. The Commission shall be empowered to adopt delegated acts in accordance with Article 145 to specify the extent to which credit risk mitigation techniques including types of and limits to eligible credit protection shall be recognised for the purposes of the first sub-paragraph of paragraph 2 with the purpose of ensuring that credit risk mitigation techniques do not fail when risks materialise so that there can be effective recovery of credit protection. Article 142e (new) Disclosure requirements 1. A core credit institution shall publish, at least semi-annually, a separate balance sheet detailing the use of its own capital or borrowed money to take positions in any type of transaction to purchase, sell or otherwise acquire or dispose of any financial instrument or commodities with a demonstrable connection to each of the following: (a) actual or reasonably anticipated client activity (b) the hedging of the entity's own risks resulting from actual or reasonably anticipated client activity, (c) the prudent management of the entity's capital, liquidity and funding; or (d) other activities. Section III Powers of competent authorities Article 142f (new) Requirement for a core credit institutions not to carry out certain activities 1. The competent authority shall assess trading activities to determine the extent to which they are permissible activities under Article 142c (new) for the following entities: (a) a core credit institution established in the Union, which is neither a parent undertaking nor a subsidiary, including all its branches irrespective of where they are located; (b) an EU parent, including all branches and subsidiaries irrespective of where they are located, where one of the group entities is a core credit institution established in the Union; (c) EU branches of credit institutions established in third countries. 2. Where the competent authority concludes that, following the assessment referred to in paragraph 1, the core credit institution carries out trading activities that are not permitted it shall, no later than two months after the finalisation of that assessment, start the procedure leading to a decision to fully separate the core credit entity from the trading entity. Article 142g (new) Separation of trading activities not permitted for a Core Credit Institution 1. All trading activities not prohibited by Article 142b (new) and not permitted for a core credit institution in Article 142c (new) paragraph 1 and 2 shall, following the decision of a competent authority referred to in Article 142f (new), be transferred to an economically, legally and operationally separate institution ("trading entity"). 2. Trading entities shall not belong to the same group as core credit institutions. All contracts and other transactions entered into between core credit institutions and trading entities shall be done at arm's length. 3. Core credit institutions shall not hold capital instruments or voting rights in trading entities and vice versa. Notwithstanding the first subparagraph, the competent authority may decide to allow core credit institutions that meet the requirements set out in Article 49(3)(a) or (b) of Regulation (EU) No 575/2013 to hold capital instruments or voting rights in a trading entity where the competent authority considers that holding such capital instruments or voting rights is indispensable for the functioning of the group and that the core credit institution has taken sufficient measures in order to appropriately mitigate the relevant risks. A core credit institution, which is neither a central nor a regional credit institution, shall not, in any case, be allowed to directly hold capital instruments or voting rights in any trading entity. Prior to adopting a decision in accordance with this paragraph, the competent authority shall consult EBA. The competent authority shall notify its decision to EBA. EBA shall publish a list of those institutions to which this paragraph has been applied. 4. In accordance with the applicable national law, the name or the designation of trading entities and core credit institutions shall be such that the public can easily identify which entity is a trading entity and which entity is a core credit institution. 5. After separation, trading entities shall comply with the obligations laid down in Parts Two, Three and Four and Parts Six, Seven and Eight of Regulation (EU) No 575/2013 and in Title VII of this Directive. 6. Notwithstanding the criteria laid out in Article 142a (new), trading entities shall in any case comply with the provisions of Article 142b (new) of this Directive. __________________ 142a Directive 94/19/EC of the European Parliament and of the Council of 30 May 1994 on deposit-guarantee schemes, OJ L 135, 31.05.1994 pages 0005 to 0014. 142b Directive 94/19/EC of the European Parliament and of the Council of 30 May 1994 on deposit-guarantee schemes (OJ L 135, 31/05/1994, pages 0005 to 0014). 142c Directive of the European Parliament and of the Council of 13 November 2007 on payment services in the internal market (OJ L 319 of 5.12.2007, pages 1 to 36).
2018/02/02
Committee: ECON
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