[ParlTrack]

Proposal for a regulation
Recital 23

(23) The involvement of third parties in helping to check compliance of a securitisation with the STS requirements ~~may be~~is useful for investors, originators, sponsors and SSPE's and cwould contribute to increase confidence in the market for STS securitisations. ~~However, it is essential that investors make their own assessment, take responsibility for~~Originators, sponsors and SSPEs should also use the services of a their ~~investment decisions and do not mechanistically rely on such~~d party. This should be authorised in accordance with this regulation to assess whether their~~d parties~~ securitisation complies with the STS criteria.

2016/07/27
Committee: ECON

Thomas MANN

Proposal for a regulation
Article 12 a (new)

Article 12 a 1. The sponsor of the ABCP programme shall be a credit institution supervised under Directive 2013/36/EU or a regulated fund or asset manager. 2. The sponsor of an ABCP programme shall be a liquidity facility provider and shall support all securitisation positions on an ABCP programme level by covering all liquidity and credit risks and any material dilution risks of the securitised exposures as well as any other transaction costs and programme-wide costs with such support. The sponsor shall disclose a description of the support provided at transaction level to the investors including a description of the liquidity facilities provided. 3. The sponsor of the ABCP programme shall verify before becoming exposed to an ABCP transaction that, the seller grants all its credits on the basis of sound and well-defined criteria and clearly established processes for approving, amending, renewing and financing those credits and has effective systems in place to apply those criteria and processes. The sponsor shall perform its own due diligence and verify that the seller meets sound underwriting standards, servicing capabilities and collection processes that meet the requirements specified in points (i) to (m) of Article 259(3) of Regulation (EU) No 575/2013 or equivalent requirements in third countries. Policies, procedures and risk management controls shall be well documented and effective systems shall be in place. 4. The seller, at the level of a transaction, or the sponsor, at the level of the ABCP programme, shall satisfy the risk retention requirement in accordance with Article 4. 5. Article 5 shall apply to ABCP programmes. The sponsor of the ABCP programme shall be responsible for compliance with Article 5 and shall : (a) make all aggregated information required by point (a) of Article 5(1), available to investors, such information being updated on a quarterly basis ; (b) make the information required by points (b) to (e) of Article 5(1) of this Regulation, available 6. In the event that the sponsor does not renew the funding commitment of the liquidity facility before its expiry, the liquidity facility shall be drawn down and the maturing securities shall be repaid.

2016/07/27
Committee: ECON

Thomas MANN

Proposal for a regulation
Article 13 – paragraph 1

~~1. All transactions within an ABCP programme shall fulfil the requirements of Article 12 of this Regulation.~~deleted

2016/07/27
Committee: ECON

Thomas MANN

Proposal for a regulation
Article 14 – paragraph 1 a (new)

1a. In addition to the self-certification mechanism described in article 14(1), the originator, sponsor and SSPE should use the service of a third party authorised pursuant to Article 14(a) to assess whether a securitisation complies with articles 7 to 10 or articles 11 to 13. The STS notification shall include a statement that the compliance with the STS criteria is confirmed by that authorised third party. The notification must include the name of the authorised third party, its place of establishment and the full and original name of the competent authority.

2016/07/27
Committee: ECON

Thomas MANN

Proposal for a regulation
Article 14 a (new)

Article 14 a A third party referred to in Article 14(1a) shall be authorised by the competent authority to assess the compliance of securitisations with the STS criteria laid down in Articles 7 to 10 or Articles 11 to 13. The competent authority shall grant the authorisation if the following conditions are met: (a) the third party only charges non- discriminatory and cost-based fees to the originators, sponsors or SSPEs involved in the securitisations which the third party assesses without differentiating fees depending on, or correlated to, the results of its assessment; (b) the third party is neither a regulated entity as defined in Article 2(4) of Directive 2002/87/EC nor a credit rating agency as defined in Article 3(1) point (b) of Regulation (EC) No 1060/2009, and the performance of the third party's other activities shall not compromise the independence or integrity of its assessment; (c) the third party shall not provide any form of advisory, audit or equivalent service to the originator, sponsor or SSPE involved in the securitisations which the third party assesses; (d) the members of the management body of the third party have professional qualifications, knowledge and experience that are adequate for the task of the third party and they are of good repute and integrity; (e) the management body of the third party includes at least one third, but no less than two, independent directors; (f) the third party takes all necessary steps to ensure that the verification of STS compliance is not affected by any existing or potential conflicts of interest or business relationship involving the third party, its shareholders or members, managers, employees or any other natural person whose services are placed at the disposal or under the control of the third party. To that end, the third party shall establish, maintain, enforce and document an effective internal control system governing the implementation of policies and procedures to identify and prevent potential conflicts of interest. Potential or existing conflicts of interest which have been identified shall be eliminated or mitigated and disclosed without delay. The third party shall establish, maintain, enforce and document adequate procedures and processes to ensure the independence of the assessment of STS compliance. The third party shall periodically monitor and review those policies and procedures in order to evaluate their effectiveness and assess whether it is necessary to update them; and (g) the third party can demonstrate that it has proper operational safeguards and internal processes that enable it to assess STS compliance. The competent authority shall withdraw the authorisation when it considers the party to be materially non-compliant with the above conditions. 2. A third party authorised in accordance with paragraph 1 must notify its competent authority without delay of any material changes to the information provided under that paragraph, or any other changes that could reasonably be considered to affect the assessment of its competent authority. 3. The competent authority may charge cost-based fees to the third party referred to in paragraph 1, in order to cover necessary expenditure relating to the assessment of applications for authorisation and to the subsequent monitoring of the compliance with the conditions set out in paragraph 1. 4. ESMA shall develop draft regulatory technical standards specifying the information to be provided to the competent authorities in the application for the authorisation of a third party in accordance with paragraph 1. ESMA shall further submit those draft regulatory technical standards to the Commission by ... [six months after entry into force of this Regulation]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.

2016/07/27
Committee: ECON

Thomas MANN

Proposal for a regulation
Article 17 – paragraph 1 a (new)

1a. These rules should recognise the good faith of the market participants, through a proportionate application of the sanctions, taking into consideration the nature of the breach.

2016/07/27
Committee: ECON

Thomas MANN

Proposal for a regulation
Article 17 – paragraph 4 a (new)

4a. Where a bona fide breach has occurred: (a) the STS label should remain during the entire lifetime of the securitised instrument if the breach is remedied (b) if the STS label remains and the breach is remedied, there should be no situation of forced seller

2016/07/27
Committee: ECON

7 Amendments of Thomas MANN related to 2015/0226(COD)

ParlTrack - 2011-2024