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198 Amendments of Isabel BENJUMEA BENJUMEA related to 2023/0167(COD)

Amendment 110 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Recital 3
(3) Third party payments, such as fees, commissions or any monetary or non- monetary benefits paid to or received by investment firms and insurance undertakings and intermediaries by or from persons other than the client or customer, also termed as ‘inducements’, play a significant role in the distribution of retail investment products in the Union. The existing rules designed to manage conflicts of interests in Directives (EU) 2014/65 and (EU) 2016/97, including restrictions on and transparency around the payments of inducements, have not proven sufficiently effective in mitigating consumer detriment and have led to different levels of retail investor protection across product segments and distribution channels. It is therefore necessary to further strengthen the investor protection framework to ensure that retail clients’ best interests are protected uniformly across the Union. In light of the potential disruptive impact caused by the introduction of a full prohibition of inducements, it is appropriate to have a staged approach and first strengthent is appropriate to introduce rules that better frame the current advice environment, by ensuring that financial intermediaries provide more transparent, understandable and tailored advice to retail investors. This should ensure that investors are offered products suitable to their investment needs, preferences and strategies and should enable them to better understand the advice that they requirements around the payment and receipt of inducements to addrceive. A review, five years after the entry into force of this Directive, should assess the potential conflicts of interest and ensure better protection of retail investors and, at a second stage, to review the effectiveness of the framework, and propose alternative measures in line with Better Regulation rules, including a potential ban on inducements, if appropriatessociated with inducements, the evolution of costs, the overall level of retail investment in capital markets, consumer protection, the relevance of distribution rules and the implementation of financial literacy measures.
2023/11/09
Committee: ECON
Amendment 112 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Recital 4
(4) In order to remove any consumer detriment as a consequence of the payment and receipt of inducements for non-advised sales, it is appropriate to prohibit the payment and receipt of such inducements. In the case of Directive (EU) 2014/65, such prohibition would cover the execution or reception and transmission of orders and in the case of Directive (EU) 2016/97, non-advised sales. To avoid restricting issuers’ ability to raise funding, that prohibition should not apply to payments in relation to underwriting and placement services provided to an issuer, where the investment firm also provides an execution of order or reception and transmission of order service to an end- investor. Furthermore, investment advice is often combined with the provision of an execution or reception and transmission of order service. In such cases, the main service being investment advice, the prohibition should not apply to the execution or reception and transmission of order service relating to one or more transactions of that client covered by that advice. Minor non-monetary benefits which do not exceed 100 euros or are of a scale and nature that they could not be judged to impair compliance with the duty to act in the best interest of the retail investor should be allowed, to the extent that they are clearly disclosed.deleted
2023/11/09
Committee: ECON
Amendment 117 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Recital 5
(5) In order to ensure that retail customers are not misled, it is important to stipulate in Directive (EU) 2016/97 that, in line with existing rules in Directive (EU) 2014/65, insurance intermediaries that indicate to their customers that they provide advice on an independent basis, should not accept inducements for such advice. This rule should not prevent insurance intermediaries offering advice to customers from accepting inducements, provided that the advice is not presented as independent, customers are informed of the inducements in line with applicable transparency requirements and that other legal requirements, including the requirement to act in the best interest of the customer, are complied with.deleted
2023/11/09
Committee: ECON
Amendment 121 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Recital 6
(6) The existing safeguards conditioning the payment or receipt of inducements, which under Directive (EU) 2014/65 require that the inducement is designed to enhance the quality of the service to the client, or under Directive (EU) 2016/97 should not have a detrimental effect on the quality of the service to the customer, have not been sufficiently effective in mitigating conflicts of interest. It is therefore appropriate to remove those criteria and introduce a new, common test, both in Directive (EU) 2014/65 and Directive (EU) 2016/97, that further clarifies how financial advisors should apply the principle of acting in the best interest of the client. Financial advisors should base their advice on an appropriate and diversified range of financial products. After having identified suitable instruments for their clients, they should recommend the mobest cost-efficient of similar products to their clienttailored-oriented to investors' individual investment needs, preferences and strategies. Furthermore, financial advisors shcould also systematically recommend at least onerecommend products without features that may not be necessary for the achievement of the client’s investment objective, so that retail investors are presented also with alternative and possibly cheaper options to consider. Such features may include, as an example, funds with an investment strategy which implies higher costs, a capital guarantee and structured products with hedging elements. If advisors choose to also recommend a product that carries additional features which carry extra costs to the client or customer, they should explicitly provide the reason for such a recommendation and disclose the extra costs incurred. In the case of insurance- based investment products, advisors should also ensure that the insurance cover included in the product is consistent with the customer’s insurance demands and needs.
2023/11/09
Committee: ECON
Amendment 127 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Recital 8
(8) In order to enable the development of independent advice at a reasonable cost, organizational requirements applicable to the entities that provide both independent and non-independent financial advice shall be reviewed and independent advisors should be allowed to provide advice to retail investors on well- diversified, non-complex and cost- efficient products based on a more limited set of data collected for the suitability assessment. The scope of such advice should be clearly disclosed to retail investors in good time before the provision of the advice. Given the diversified nature of the advised products, independent financial advisors should not be required to obtain and assess information from the clients relating to their knowledge and experience or existing portfolios.
2023/11/09
Committee: ECON
Amendment 130 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Recital 9
(9) In order to assess the effectiveness of these measures, threfive years after the date of entry into force of this Directive and after having consulted the European Securities and Markets Authority (‘ESMA’) and European Insurance and Occupational Pensions Authority (‘EIOPA’), the Commission should prepare a report on the effeassessing the potential conflicts of third-party payments on retail investments which, where necessary, should be accompanied by proposals to further strengthen the frameworkinterest associated with inducements, the evolution of costs, the overall level of retail investment in capital markets, consumer protection, the relevance of distribution rules and the implementation of financial literacy measures.
2023/11/09
Committee: ECON
Amendment 134 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Recital 10
(10) The level of costs and charges associBoth qualitative and quantitative elements related withto investment and insurance- based investment products can have a significant impact on investment returns, something that may not always be evident for retail investor. This may include the level of costs and charges associated with financial products and its adaptability to investors' individual investment needs, preferences and strategies. To ensure that products offer Value for Money for retail investors, Member States should ensure that firms authorised under Directive (EU) 2014/65 or Directive (EU) 2016/97 to manufacture or distribute investment products have clear pricing processes that enable a clear identification and quantification of all costs charged to retail investors and are designed to ensure that the costs and charges that are included in investment products or that are linked to their distribution are justified and, proportionate in respect ofand adjusted to the characteristics, objectives, strategy and, expected performance of the product and investors' investment needs, preferences and strategies.
2023/11/09
Committee: ECON
Amendment 136 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Recital 11
(11) Since the charging structure of the packaged retail investment product is designed by the manufacturer, it is for the manufacturer to assess whether the costs and charges that are included in investment products are justified and proportionate in the context of the overall value delivered. Building on those assessments, distributors should make similar assessments, so that the costs of distribution and other costs not already included in the manufacturer’s assessment are additionally taken into account.
2023/11/09
Committee: ECON
Amendment 139 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Recital 13
(13) To make the pricing process more objective and to equip manufacturers, distributors and competent authorities with a tool allowing for an efficient comparison of costs among investment products from the same product type, both ESMA and EIOPA should develop benchmarks, based on data related to the cost and performance of investment products, which should be taken into consideration by manufacturers and distributors in their pricing processes. If the result of the comparison with a relevant benchmark indicates that the costs and performance for investors are not aligned to the benchmark, the product should not be marketed to retail investors, unless additional testing and further assessments have established that the product nevertheless offers Value for Money to the target market, for example in the case of a product containing additional special features that would be considered relevant for a particular group of investors with identified specific needs and objectives, but which are not reflected in the description of the group of investment products for which the benchmark was developed.deleted
2023/11/09
Committee: ECON
Amendment 142 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Recital 13 a (new)
(13a) To ensure that product governance process delivers fair value relative to costs and meets retail investors' needs, preferences and strategies, the Value for Money principle should consider benefits expected to be provided by the investment, when considering the risk profile and the total costs to the customers as defined in MIFID Delegated Regulation 565/2017, article 50 and annex 2. The benefits should not be solely a return expectation after costs but could also be other services provided by the investment firm.
2023/11/09
Committee: ECON
Amendment 144 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Recital 14
(14) To assist manufacturers and distributors in their assessments, the Commission should be empowered to adopt delegated acts to specify the criteria to be used in determining whether costs and performance are justified and proportionate in the context of the overall value delivered.
2023/11/09
Committee: ECON
Amendment 147 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Recital 15
(15) To enable ESMA and EIOPA to develop reliable benchmarks, based on reliable data, manufacturers and distributors of investment products should be required to report necessary data to competent authorities, for onward transmission to ESMA and EIOPA. To limit, to the greatest extent possible, costs related to the new reporting obligations and to avoid unnecessary duplication, data sets should as far as possible be based on disclosure and reporting obligations stemming from EU law. ESMA and EIOPA should develop regulatory technical standards to determine the data sets, data standards and methods and formats for the information to be reported.deleted
2023/11/09
Committee: ECON
Amendment 151 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Recital 17
(17) In view of the extent of diversity of retail investment product offerings, the development of benchmarks by ESMA and EIOPA should be an evolutionary process, beginning with the investment products most commonly purchased by retail investors and progressively building on the experience gathered over time in order to broaden coverage and refine their quality.deleted
2023/11/09
Committee: ECON
Amendment 155 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Recital 18
(18) Directives 2009/65/EC and 2011/61/EU require alternative investment funds (AIFs) and undertakings for the collective investment in transferable securities (UCITS) management companies to act with due skill, care and diligence in the best interests of the investment fund they manage and of their investors. AIFs and UCITS management companies should therefore prevent undue costs from being charged to investment funds and their investomaintain a pricing process that ensures that investors are not charged any costs that are undue, and that any such costs that are borne by investors are justified and proportionate in the context of the overall value delivered to unit- holders. AIFMs and UCITS management companies should be requiensured to establish a sound pricing process which should comprise the identification, analysis and review of costs charged, directly or indirectly, to investment funds or their unit holders, and thus borne by investors. Costs should be considered to be due if they comply with UCITS and AIFs pre- contractual documents, are necessary to their functioning, and are borne by investors in a fair wahat when costs are not in line with the pricing process, they shall perform additional testing and further assessments. If justification and proportionality of costs and charges cannot be demonstrated after a reasonable period, the financial instrument shall be subject to remedial actions approved by the AIFM or UCITS management company.
2023/11/09
Committee: ECON
Amendment 157 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Recital 19
(19) UCITS and AIFsAIFMs and UCITS management companies should compensate investorassess where undue costs have been charged, including where costs have been miscalculated to the detriment of investors or the investment firm, and inform the competent authorities, financial auditors of the investment funds and their managers, and the depositary of those funds thereof. To promote better enforcement and achieve concrete results for retail investors, harmonisation of Member States' administrative and sanctioning powers is necessary. The obligation to compensate investors should be added as a possible administrative measure and sanction so that this possibility exists in all Member Stateswhere undue costs have been charged should be above certain threshold determined by the management company and proportionate to the amount unduly charged, and only if it is practicable. For instance, the reimbursement of investors in case of merger or liquidation is not practicable.
2023/11/09
Committee: ECON
Amendment 159 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Recital 20
(20) The pricing process under Directives 2009/65/EC and 2011/61/EU should ensure that costs borne by retail investors are justified and proportionate toin the characteristics of the product, and in particular to the investment objective and strategy, level of risk and expected returns of the funds, so that UCITS and AIFs deliver Value for Money to investors. UCITS and AIFs management companies should remain responsible for the quality of their pricing process. In particular, they sontext of the overall value delivered to unit-hould ensure that costs are comparable to market standards, including by comparing the costs of funds with similar investment strategies and characteristics available on publicly available databases. However, to make the pricing process more objective and to equip UCITS and AIFs management companiers, and to the investors' investment needs, preferences, and competent authorities with a tool allowing for an efficient comparison of costs among investment products from the same product type, ESMA should develop benchmarks, based on data related to the cost and performance of investment products that ESMA receives as part of the supervisory reporting, against which an assessment of Value for Money can be carried out, in addition to the other criteria included in the pricing process of UCITS and AIFs management companies. Considering the Commission’s priority to avoid unnecessary administrative burdens and to simplify reporting requirements, those benchmarks should build on existing data from public disclosures and supervisory reporting, unless additional data are exceptionally necessary. Investment funds offering poor Value for Money or deviating from ESMA's benchmarks should not be marketed to retail investors unless further assessment has established that the product nevertheless offers Value for Money. The assessment and the measures taken should be documented and provided to competent authorities upon their requeststrategies, so that UCITS and AIFs deliver Value for Money to investors. UCITS management companies and AIFMs should remain responsible for the quality of their pricing process.
2023/11/09
Committee: ECON
Amendment 164 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Recital 21
(21) The Commission should be empowered to adopt delegated acts specifying the minimum requirements for the pricing process to prevent undue costs from being charged to the UCITS, AIFs and their unit-holders, and for carrying out the Value for Money assessment and, where needed, for taking corrective measures where costs borne by retail investors are not justified or proportionate toin the expected returns of the UCITS and AIFs where available, their level of risk, investment objective and strategy, and for documenting such assessment and measurecontext of the overall value delivered to unit-holders.
2023/11/09
Committee: ECON
Amendment 168 #
Frances FITZGERALD, Isabel BENJUMEA BENJUMEA
Proposal for a directive
Recital 24
(24) The provision of cross-border investment services is essential for the development of the Capital Markets Union, as well as being an inherent outworking of the Freedom of Services which is fundamental to the EU and its Single Market, and proper enforcement of the rules is a key element of the single market. While the home Member State is responsible for the supervision of an investment firm in cases of cross-border provision of services, the single market relies on trust that stems from the adequate supervision of investment firms by the home competent authorities. The principle of mutual recognition requires efficient cooperation between home and host Member States to ensure that a sufficient level of investor protection is maintained. Directive (EU) 2014/65 already provides for a mechanism that allows, under strict conditions and where the home Member State does not take appropriate action, competent authorities of host Member States to take precautionary measures to protect investors. To facilitate cooperation between competent authorities, and to further strengthen the supervisory efforts, that mechanism should be simplified and those competent authorities that observe highly similar or identical behaviours on their territory to those already signalled by another authority should be able to refer to the findings of that initiating authority to initiate a procedure under Article 86 of Directive (EU) 2014/65. Regulatory restrictions to the freedom of cross-border investment that would have as a consequence the limiting of choice for retail investors and/or undermining the Freedom of Services should be avoided.
2023/11/09
Committee: ECON
Amendment 170 #
Isabel BENJUMEA BENJUMEA, Frances FITZGERALD
Proposal for a directive
Recital 24 a (new)
(24a) The Capital Markets Union enables undertakings established in the Union to exercise their rights under the freedom to provide services and the freedom of establishment, provided that they comply with certain conditions. To ensure the fair and proper application of these principles, regulators should actively cooperate through ESMA and EIOPA and exchange best practices in line with the provisions of Directives 2014/65/EU and (EU) 2016/97 to prevent any potential misuse.
2023/11/09
Committee: ECON
Amendment 171 #
Isabel BENJUMEA BENJUMEA, Frances FITZGERALD
Proposal for a directive
Recital 24 b (new)
(24b) Recital 46 of Directive 2014/65/EU clarifies that the principles of mutual recognition and of home Member State supervision require that the Member States’ competent authorities should not grant or should withdraw authorisation where factors such as the content of programmes of operations, the geographical distribution or the activities actually carried on indicate clearly that an investment firm has opted for the legal system of one Member State for the purpose of evading the stricter standards in force in another Member State within the territory of which it intends to carry out or does carry out the greater part of its activities. In equal measure, the importance of the single market needs to be stressed, promoting fair competition and harmonised standards among Member States. In recognising the freedom for investment firms to establish themselves across the EU, Member States should collaborate to ensure that these firms contribute to the economic integration of the single market. Competent authorities shall conduct case- by-case assessments to review the business case of investment firms seeking authorisation, ensuring they respect their right to provide services in other Member States, in alignment with the principles of the single market.
2023/11/09
Committee: ECON
Amendment 177 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Recital 34
(34) To ensure that, in the context of advised services, due consideration is given to portfolio diversification, financial advisors should be systematically required to consider the needs of such diversification for their clients or customers, as part of the suitability assessments, including on the basis of information provided by those clients or customers on their existing portfolio of financial and non-financial assets.deleted
2023/11/09
Committee: ECON
Amendment 183 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Recital 35
(35) To ensure that appropriateness tests enable investment firms, insurance undertakings and insurance intermediaries to effectively assess if a financial product or service is appropriate for their clients and customers, those firms, insurance undertakings and insurance intermediaries should obtain from them information not only about their knowledge and experience on such financial instruments or services, but for retail clients or customers also about their capacity to bear full or partial losses and their risk tolerance. In the case of a negative appropriateness assessment, an investment firm, insurance undertaking or insurance intermediary distributor should, in addition to the obligation to provide a warning to the client or customer, only be allowed to proceed with the transaction where the client or customer concerned explicitly request so.deleted
2023/11/09
Committee: ECON
Amendment 184 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Recital 36
(36) A wide diversity of financial instruments can be offered to retail investors, with each financial instrument entailing different levels of risks of potential losses. Retail investors should therefore be able to easily identify investment products that are particularly risky. It is therefore appropriate to require that investment firms, insurance undertakings and insurance intermediaries identify those investment products that are particularly risky and include, in information transmitted to retail clients and customers, including marketing communications, warnings on those risks. To assist investment firms, insurance undertakings and insurance intermediaries in identifying such particularly risky products, ESMA and EIOPA should issue guidelines on how to identify such products, taking due account of the different types of existing investment products and insurance-based investment products. To harmonise such risk warnings across the EU, ESMA and EIOPA should submit technical standards as regards the content and format of such risk warnings. Member States should empower competent authorities to impose the use of risk warnings for specific investment products and, where the use or absence of use of those risk warnings throughout the EU would be inconsistent or would create a material impact in terms of investor protection, ESMA and EIOPA should have the power to impose the use of such warnings by investment firms throughout the EU.deleted
2023/11/09
Committee: ECON
Amendment 208 #
Frances FITZGERALD, Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 3 a (new)
Directive 2014/65/EU
Article 5 – paragraph 4 – point a
(3a) in Article 5(4), point (a) is replaced by the following: (a) any investment firm which is a legal person have its head office in the same Member State as its registered office from where it can operate fully within the EU single market and utilise the EU's freedom of services;
2023/11/09
Committee: ECON
Amendment 210 #
Isabel BENJUMEA BENJUMEA, Frances FITZGERALD
Proposal for a directive
Article 1 – paragraph 1 – point 3 a (new)
Directive 2014/65/EU
Article 5 – paragraph 4 – point a
(3a) In article 5(4), point (a) is amended: "(a) any investment firm which is a legal person haves its head office in the same Member State as its registered office; "
2023/11/09
Committee: ECON
Amendment 215 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 8 – point c a (new)
Directive 2014/65/EU
Article 16 – paragraph 6 a (new)
(ca) In paragraph 6, new paragraph 6a is added: An investment firm providing investment advice that is not independent shall be required to report to the competent authorities of its home Member State on an annual basis: (i) the number of financial instruments it considers when providing advice, with a distinction between instruments issued or provided by entities with close link to the investment firm and those provided non- affiliated third-party providers; (ii) the ratio of financial instruments sold to clients that are issued or provided by entities with close links to the investment firm compared to non-affiliated third- party providers, expressed as a total amount; (iii) the range of financial instruments advised, broken down per quartile depending on the level of payments received from affiliated entities or non- affiliated third-party providers, together with the corresponding volume of financial instruments sold per quartile in the preceding 12 months; (iv) the instances in which the investment firm refrained from making a recommendation because none of the products it offered were in the best interest of the client.
2023/11/09
Committee: ECON
Amendment 229 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 1 – point e
(e) in relation to financial instruments falling under the definition of packaged retail investment products in accordance with Article 4(1) of Regulation (EU) No 1286/2014 of the European Parliament and of the Council*, a clear identification and quantification ofnd which are made available to retail clients, a clear identification of both quantitative and qualitative elements of the financial product, including i) all costs and charges related to the financial instrument and, ii) an assessment of whether those costs and charges are justified and, proportionate, having regar and adjusted to the characteristics, objectives and, if relevant, strategy of the financial instrument, and its performance (‘pricing process’), strategy, expected performance of the product and investors' investment needs, preferences and strategies (‘pricing process’), and iii) additional product features and services that may impact the value and benefits provided to investors.
2023/11/09
Committee: ECON
Amendment 245 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 1 – subparagraph 3
The pricing process referred to in point (e) shall include a comparison with the relevant benchmark, where available, on costs and performance published by ESMA in accordance with paragraph 9.deleted
2023/11/09
Committee: ECON
Amendment 247 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 1 – subparagraph 3
The pricing process referred to in point (e) shallmay include a comparison with the relevant benchmark, where available, on costs and performance published by ESMA in accordance with paragraph 9, where relevant, an internal value comparison process on both qualitative and quantitative elements, including costs and performance with similar financial instruments at national level, capital protection, liquidity, ESG characteristics, applicable tax regime, services provided to the client if any.
2023/11/09
Committee: ECON
Amendment 251 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 1 – subparagraph 4
When a financial instrument deviates from the relevant benchmark referred to in paragraph 9, the investment firm shall perform additional testing and further assessments and establish whether costs and charges are nevertheless justified and proportionate. If justification and proportionality of costs and charges cannot be demonstrated, the financial instrument shall not be approved by the investment firm.deleted
2023/11/09
Committee: ECON
Amendment 261 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 1 – subparagraph 4 a (new)
Investment firms shall notify their home competent authorities about their internal value comparison methodology.
2023/11/09
Committee: ECON
Amendment 264 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 1 – subparagraph 5
An investment firm which manufactures financial instruments shall make available to distributors all information on the financial instrument and the product approval process that is needed to fully understand that instrument and the elements taken into consideration during the product approval process, including complete and accurate details on any costs and chargeboth quantitative and qualitative elements of the financial instrument.
2023/11/09
Committee: ECON
Amendment 269 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 2 – introductory part
An investment firm which manufactures financial instruments falling under the definition of packaged retail products in accordance with Article 4(1) of Regulation (EU) No 1286/2014 and which is made available to retail clients shall report to its home competent authorities the following:
2023/11/09
Committee: ECON
Amendment 273 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 2 – point b
(b) data on the characteristics of the financial instrument and its identified target market, in particular its performance, benefits and the level of risk.
2023/11/09
Committee: ECON
Amendment 278 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 3
3. An investment firm that offers or recommends financial instruments which it does not manufacture, shall have in place adequate arrangements to obtain the information referred to in paragraph 1 and to understand the characteristics and identified target market of each financial instrument including its adaptability to investors' individual investment needs, preferences and strategies.
2023/11/09
Committee: ECON
Amendment 284 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 4 – subparagraph 2 – introductory part
An investment firm which offers or recommends financial instruments falling under the definition of packaged retail investment products in accordance with Article 4(1) of Regulation (EU) No 1286/2014 and which is made available to retail clients, shall ensure the following:
2023/11/09
Committee: ECON
Amendment 288 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 4 – subparagraph 2 – point a
(a) identify and quantify the costs of distribution and any further costs and charges not already taken into account by the manufacturer, including entry costs, exit costs and third-party payments received and retained by the distributor;
2023/11/09
Committee: ECON
Amendment 291 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 4 – subparagraph 2 – point b
(b) assess whether the total costs and charges, when aggregating the costs of the financial instrument with the distribution costs, are justified and, proportionate, having regard and adjusted to the to the target market’s objectives and needinvestors' investment needs, preferences and strategies (‘pricing process’).
2023/11/09
Committee: ECON
Amendment 295 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 4 – subparagraph 2 – point b (new)
(ba) assess additional product features and services that may impact the value and benefits provided to investors.
2023/11/09
Committee: ECON
Amendment 301 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 4 – subparagraph 3
The pricing process, as referred to in points (a) and (b), shall include a comparison with the relevant benchmark, when available, on costs and performance published by ESMA in accordance with paragraph 9.deleted
2023/11/09
Committee: ECON
Amendment 302 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 4 – subparagraph 3
The pricing process, as referred to in points (a) and, (b), shall include a comparison with the relevant benchmark, when available, on costs and performance published by ESMA in accordance with paragraph 9(ba) may include, where relevant, an internal value comparison process on both qualitative and quantitative elements, including costs and performance with similar financial instruments at national level, capital protection, liquidity, ESG characteristics, applicable tax regime, services provided to the client if any.
2023/11/09
Committee: ECON
Amendment 304 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 4 – subparagraph 4
When a financial instrument, together with costs of services incurred by the client in order to purchase that instrument, deviates from the relevant benchmark referred to in paragraph 9, the investment firm which offers or recommends a financial instrument shall perform additional testing and further assessments and establish whether costs and charges are nevertheless justified and proportionate. If justification and proportionality of costs and charges cannot be demonstrated, the financial instrument shall not be offered or recommended by the investment firm.deleted
2023/11/09
Committee: ECON
Amendment 311 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 4 – subparagraph 4 a (new)
Investment firms shall notify their home competent authorities about their internal value comparison methodology.
2023/11/09
Committee: ECON
Amendment 314 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 5 – subparagraph 1
An investment firm which offers or recommends financial instruments falling under the definition of packaged retail products in accordance with Article 4(1) of Regulation (EU) No 1286/2014 and which is made available to retail clients, shall report to its home competent authorities details of the costs of distribution, including any costs related to the provision of advice or any connected third-party payments.
2023/11/09
Committee: ECON
Amendment 324 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 6 – introductory part
An investment firm which offers or recommends financial instruments falling under the definition of packaged retail products in accordance with Article 4(1) of Regulation (EU) No 1286/2014, manufactured by a manufacturer that is not subject to the reporting obligation laid down in paragraph 2 or any other equivalent reporting obligation, and which is made available to retail clients, shall report to their home competent authorities the following:
2023/11/09
Committee: ECON
Amendment 328 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 6 – subparagraph 1 – point b
(b) data on the characteristics of the financial instruments and its identified target market, in particular its performance, benefits and the level of risk.
2023/11/09
Committee: ECON
Amendment 332 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 7
7. An investment firm shall document all assessments made and shall, upon request, provide such assessments to a relevant competent authority, including the following: (a) comparison of the financial instrument to the relevant benchmark; (b) justifying a deviation from the benchmark; (c) of the proportionality of costs and charges of the financial instrument.deleted where relevant, the results of the where applicable, the reasons the justification and demonstration
2023/11/09
Committee: ECON
Amendment 353 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 9
9. After having consulted EIOPA and the competent authorities, ESMA shall, where appropriate, develop and make publicly available common benchmarks for financial instruments that present similar levels of performance, risk, strategy, objectives, or other characteristics, to help investment firms to perform the comparative assessment of the cost and performance of financial instruments, falling under the definition of packaged retail investment products, both at the manufacturing and distribution stages. The benchmarks shall display a range of costs and performance, in order to facilitate identification of financial instruments whose costs and performance depart significantly from the average. The costs used for the development of benchmarks for investment firms manufacturing financial instruments shall, in addition to the total product cost, allow comparison to individual cost components. The costs used for the development of benchmarks for distributors shall, in addition to the total cost of the product, refer to the distribution cost. ESMA shall regularly update the benchmarks.deleted
2023/11/09
Committee: ECON
Amendment 367 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 11
11. The Commission is empowered to supplement this Directive by adopting delegated acts in accordance with Article 89 to specify the following: (a) develop benchmarks referred to in paragraph 9; (b) costs and charges are justified and proportionate.deleted the methodology used by ESMA to the criteria to determine whether
2023/11/09
Committee: ECON
Amendment 378 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 12 – subparagraph 1 – introductory part
ESMA, after having consulted EIOPA and the competent authorities and taking into consideration the methodology referred to in paragraph 11, point (a), shall develop draft regulatory technical standards specifying the following:
2023/11/09
Committee: ECON
Amendment 401 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 10
Directive 2014/65/EU
Article 16 a – paragraph 1
An investment firm shall be exempted from the requirements set out in the Article 16-a(1) and in Article 24(2), where the investment service it provides relates to bonds with no other embedded derivative than a make-whole clauseshares and bonds issued for the sole purpose of raising funding for their issuer or where the financial instruments are marketed or distributed exclusively to eligible counterparties.;
2023/11/09
Committee: ECON
Amendment 414 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Directive 2014/65/EU
Article 24 – paragraph 1 a – point a
(a) to provide advice on the basis of an assessment of an appropriate and diversified range of financial instruments;
2023/11/09
Committee: ECON
Amendment 419 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Directive 2014/65/EU
Article 24 – paragraph 1 a – point b
(b) to recommend the most cost- efficient financial instrumentfinancial instruments best tailored to investors' individual investment needs, preferences and strategies among financial instruments identified as suitable to the client pursuant to Article 25(2) and offering similar features;
2023/11/09
Committee: ECON
Amendment 427 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Directive 2014/65/EU
Article 24 – paragraph 1 a – point c
(c) to recommend, among the range of financial instruments identified as suitable to the client pursuant to Article 25(2), a product or products without additional features that are not necessary to the achievement of the client’s investment objectives and that give rise to extra costs.but which could diversify its investment portfolio;
2023/11/09
Committee: ECON
Amendment 430 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Directive 2014/65/EU
Article 24 – paragraph 1 a – point c a (new)
(ca) not to place the financial or other interest of the investment firm ahead of the interest of the client.
2023/11/09
Committee: ECON
Amendment 433 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Directive 2014/65/EU
Article 24 – paragraph 1 a a (new)
1aa. When none of the financial instruments offered by the investment firm are in the best interest of the client, the investment firm shall refrain from making any advice or recommendation.
2023/11/09
Committee: ECON
Amendment 443 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point e – point i – indent 2
Directive 2014/65/EU
Article 24 – paragraph 4 – point a – subpoint v
(v) how the recommended financial instruments take into account the diversification of the retail client’s portfolio;
2023/11/09
Committee: ECON
Amendment 458 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g
Directive 2014/65/EU
Article 24 – paragraph 5c – subparagraph 3
ESMA shall develop draft regulatory technical standards to further specify the format and content of such risk warnings to retail clients, taking due account of the specificities of the different types of financial instruments and types of communications.
2023/11/09
Committee: ECON
Amendment 463 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point h
Directive 2014/65/EU
Article 24 – paragraph 7a
7a. When providing investment advice to retail clients on an independent basis, the investment firm may limit the assessment in relation to the type of financial instruments mentioned in paragraph 7, point (a), to well-diversified, cost-efficient and non-complex financial instruments as referred to in Article 25(4)(a). Before accepting such service, the retail client shall be duly informed about the possibility and conditions to get access to standard independent investment advice and the associated benefits and constraints.;
2023/11/09
Committee: ECON
Amendment 480 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EC
Article 24 a – paragraph 1
1. Member States shall ensure that investment firms, when providing portfolio management, do not pay or receive any fee or commission to retail clients, do not accept and retain any fee, or provide or are provided with any non-monetary benefit, in connection with the provision of such service, to or by any party except the client or a person on behalf of the client.
2023/11/09
Committee: ECON
Amendment 487 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24a – paragraph 2
2. Member States shall ensure that investment firms, when providing reception and transmission of orders or execution of orders to or on behalf of retail clients, do not pay or receive any fee or commission, or provide or are provided with any non-monetary benefit in connection with the provision of such services, to or from any third-party responsible for the creation, development, issuance or design of any financial instrument on which the firm provides such execution or reception and transmission services, or any person acting on behalf of that third-party.deleted
2023/11/09
Committee: ECON
Amendment 495 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24a – paragraph 3
3. Paragraph 2 shall not apply to investment firms, when providing investment advice on a non-independent basis relating to one or more transactions of that client covered by that advice.deleted
2023/11/09
Committee: ECON
Amendment 500 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24a – paragraph 4
4. Paragraph 2 shall not apply to fees or any other remuneration received from or paid to an issuer by an investment firm performing for that issuer one of the services referred to in Annex I, Section A, points 6 and 7, where the investment firm also provides to retail clients any of the investment services referred to in paragraph 2 and relating to the financial instruments subject to the placing or underwriting services. This paragraph shall not apply to financial instruments that are packaged retail investment products as referred to Article 4, point (1), of Regulation (EU) No 1286/2014.deleted
2023/11/09
Committee: ECON
Amendment 513 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
5. Paragraphs 1 and 2 shall not apply to the minor non-monetary benefits of a total value below EUR 100 per annum or of a scale and nature such that they could not be judged to impair compliance with the investment firm’s duty to act in the best interest of the client, provided that they have been clearly disclosed to the client.deleted
2023/11/09
Committee: ECON
Amendment 520 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24a – paragraph 6
6. Member States shall ensure that the provision of research by third parties to investment firms providing portfolio management or other investment or ancillary services to clients is to be regarded as fulfilling the obligations under Article 24(1) if: (a) before the execution or research services have been provided, an agreement has been entered into between the investment firm and the research provider, identifying the part of any combined charges or joint payments for execution services and research that is attributable to research; (b) clients about the joint payments for execution services and research made to the third-party providers of research; and (c) combined charges or the joint payment is made concerns issuers whose market capitalisation for the period of 36 months preceding the provision of the research did not exceed EUR 10 billion, as expressed by end-year quotes for the years when they are or were listed or by the own-capital for the financial years when they are or were not listed. For the purpose of this Article, research shall be understood as covering research material or services concerning one or several financial instruments or other assets, or the issuers or potential issuers of financial instruments, or as covering research material or services closely related to a specific industry or market such that it informs views on financial instruments, assets or issuers within that industry or market. Research shall also comprise material or services that explicitly or implicitly recommend or suggest an investment strategy and provide a substantiated opinion as to the present or future value or price of financial instruments or assets, or otherwise contain analysis and original insights and reach conclusions based on new or existing information that could be used to inform an investment strategy and be relevant and capable of adding value to the investment firm’s decisions on behalf of clients being charged for that research.deleted the investment firm informs its the research for which the
2023/11/09
Committee: ECON
Amendment 523 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24a – paragraph 7
7. Where the investment firm is not prohibited from getting or paying fees or benefits, from or to a third-party, in connection with services provided to its clients, it shall ensure that the reception or payment of such fees or benefits does not impair compliance with the investment firm’s duty to act honestly, fairly and professionally in accordance with the best interest of its clients. The existence, nature and amount of such third-party payment(s) shall be disclosed in accordance with Article 24b(1). Where applicable, the investment firm shall also inform the client on mechanisms for transferring to the client the fee, commission, monetary or non- monetary benefit received in relation to the provision of the investment or ancillary service. The payment or benefit which enables or is necessary for the provision of investment services, such as custody costs, settlement and exchange fees, regulatory levies or legal fees, and which by its nature cannot give rise to conflicts with the investment firm’s duties to act honestly, fairly and professionally in accordance with the best interests of its clients, is not subject to the requirements set out in the first subparagraph.deleted
2023/11/09
Committee: ECON
Amendment 530 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24a – paragraph 8
8. Three years after the date of entry into force of Directive (EU) [OP Please introduce the number of the amending Directive] and after having consulted ESMA and EIOPA, the Commission shall assess the effects of third-party payments on retail investors, in particular in view of potential conflicts of interest and as regards the availability of independent advice, and shall evaluate the impact of the relevant provisions of Directive (EU) [OP Please introduce the number of the amending Directive] on it. If necessary to prevent consumer detriment, the Commission shall propose legislative amendments to the European Parliament and the Council.deleted
2023/11/09
Committee: ECON
Amendment 537 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24a – paragraph 8 a (new)
8a. Five years after the entry into force of Directive (EU) [OP Please introduce the number of the amending Directive], and after having consulted ESMA and EIOPA, the Commission shall issue a report to assess the potential conflict of interest associated with inducements, the evolution of costs, the overall level of retail investment in capital markets, consumer protection, the relevance of distribution rules and the implementation of financial literacy measures.
2023/11/09
Committee: ECON
Amendment 540 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24b – paragraph 1 – subparagraph 1
Member States shall ensure that investment firms provide retail clients or potential retail clients in good time prior to the provision of any investment services and ancillary services, and in good time prior to the conclusion of any transaction on financial instruments with information, in the required format, on all costs, associated charges and third- party payments related to those services, financial instruments or transactions.
2023/11/09
Committee: ECON
Amendment 543 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24b – paragraph 1 – subparagraph 2 – point a
(a) all explicit and implicit costs, and associated charges, charged by the investment firms or other parties where the retail client has been directed to such other parties, for the investment services and/or ancillary services provided to the retail client or potential retail client;
2023/11/09
Committee: ECON
Amendment 546 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24b – paragraph 1 – subparagraph 2 – point d
(d) how the retail client may pay for them.
2023/11/09
Committee: ECON
Amendment 551 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24b – paragraph 1 – subparagraph 3
Member States shall ensure that investment firms aggregate the information on all costs and associated charges to enable the retail client to understand the overall cost, of the financial instruments and the cumulative effect on return of the investment.. For retail clients, Member States shall ensure that investment firms express the overall cost in monetary terms and percentages calculated up to the maturity date of the financial instrument or for financial instruments without a maturity date, the holding period recommended by the investment firm, or in the absence thereof, holding periods of 1, 3 and 5 years. Where the retail client so requests, investment firms shall provide an itemised breakdown.
2023/11/09
Committee: ECON
Amendment 553 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24b – paragraph 1 – subparagraph 4
The third-party payments paid or received by the investment firm in connection with the investment service provided to the client shall be itemised separately. The investment firm shall disclose the cumulative impact of such third-party payments, including any recurring third- party payments, on the net return over the holding period as mentioned in the preceding subparagraph. The purpose of the third-party payments and their impact on the net return shall be explained in a standardised way and in a comprehensible language for an average retail client.
2023/11/09
Committee: ECON
Amendment 560 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24b – paragraph 1 – subparagraph 5
Where the amount of any costs, associated charges or third-party payments cannot be ascertained prior to the provision of the relevant investment or ancillary service, the method of calculating the amount shall be clearly disclosed to the retail client in a manner that is comprehensible, accurate and understandable for an average retail client.
2023/11/09
Committee: ECON
Amendment 564 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24b – paragraph 1 – subparagraph 6
Investment firms providing investment services to professional clients shall have the right to agree to a limited application of the detailed requirements set out in this paragraph, with such clients. Investment firms shall not be allowed to agree such limitations when the services of investment advice or portfolio management are provided or when, irrespective of the investment service provided, the financial instruments concerned embed a derivative.
2023/11/09
Committee: ECON
Amendment 568 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24b – paragraph 1 – subparagraph 7
Investment firms providing investment services to eligible counterparties shall have the right to agree to a limited application of the detailed requirements set out in this paragraph, except when, irrespective of the investment service provided, the financial instruments concerned embed a derivative and the eligible counterparty intends to offer them to its clients.
2023/11/09
Committee: ECON
Amendment 574 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24b – paragraph 2 – subparagraph 1 – point b
(b) the standard terminology and related explanations to be used by investment firms for the disclosure and calculation of any costs, associated charges and third-party payments charged directly or indirectly by firms to the retail client or potential retail client in connection with the provision of any investment service(s) or ancillary service(s) and the manufacturing and managing of financial instruments to be recommended or marketed to the retail client or potential retail client. Explanations related to those costs, associated charges and third- party payments and their impact on the expected returns, shall ensure that they are likely to be understood by any average retail client without specific knowledge on investments in financial instruments.
2023/11/09
Committee: ECON
Amendment 597 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24c – paragraph 1
1. Member States shall ensure that marketing communications addressed to retail clients are clearly identifiable as such and clearly identify the investment firms responsible for their content and distribution, regardless of whether the communication is made directly or indirectly by the investment firm.
2023/11/09
Committee: ECON
Amendment 599 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24c – paragraph 2 – subparagraph 1
Member States shall ensure that marketing communications are developed, designed and provided in a manner that is fair, clear, not misleading, balanced in terms of presentation of benefits and risks, and appropriate in terms of content and distribution channels for the target audiencemarket and where related to a specific financial instrument to the target market identified pursuant to Article 24(2).
2023/11/09
Committee: ECON
Amendment 601 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24c – paragraph 2 – subparagraph 2
All marketing communications provided or made accessible to retail clients or potential retail clients shall present in a prominent and concise way, the essential characteristics of the financial instruments or the investment services and related ancillary services to which they refer.
2023/11/09
Committee: ECON
Amendment 609 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24c – paragraph 3
3. Member States shall ensure that marketing practices are developed and used in a manner that is fair and not misleading, and shall be appropriate for the target audiencemarket.
2023/11/09
Committee: ECON
Amendment 615 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24c – paragraph 5
5. Member States shall ensure, investment firms make annual reports to the firm’s management body on the use of marketing communications and strategies aimed at marketing practices provided or made accessible to retail clients or potential retail clients, the compliance with relevant obligations on marketing communications and practices under this Directive and on any signalled irregularities and proposed solutions.
2023/11/09
Committee: ECON
Amendment 627 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24d – paragraph 1
1. Member States shall require investment firms to ensure and demonstrate to competent authorities on request that natural persons giving investment advice or information about financial instruments, investment services or ancillary services to clients on behalf of the investment firm possess the necessary knowledge and competence to fulfil their obligations under Articles 24, 24a, 24b, 24c and Article 25 and when providing services to retail clients maintain and update that knowledge and competence by undertaking regular professional development and training including specific training where new financial instruments and investment services are being offered by the firm. Member States shall have in place and publish the criteria to be used for assessing effectively such knowledge and competence.
2023/11/09
Committee: ECON
Amendment 631 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24d – paragraph 2 – subparagraph 1
For the purpose of paragraph 1, Member States shall require investment firms to ensure and demonstrate to competent authorities on request that natural persons giving investment advice to retail clients on behalf of the investment firm possess and maintain at least the knowledge and competence set out in Annex V and undertake at least 15 hours of professional training and development per year. Compliance with the criteria set out in Annex V as well as the yearly successful completion of the continuous professional training and development shall be proven by a certificate.
2023/11/09
Committee: ECON
Amendment 636 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a
Directive 2014/65/EU
Article 25 – paragraph 1 – subparagraph 2 – point b
(b) the absence of information shall prevent the firm to determine whether the service or financial instrument envisaged is suitable or appropriate for them and to proceed with the recommendation or the execution of the client’s order. SWhen providing services to retail clients, such explanation and warning shall be provided in a standardised format.
2023/11/09
Committee: ECON
Amendment 637 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a
Directive 2014/65/EU
Article 25 – paragraph 1 – subparagraph 4
ESMA shall develop draft regulatory technical standards to determine the explanation and warning to the retail clients referred to in paragraph 1, second subparagraph, and the format and content of the report to retail clients referred to in paragraph 1, third subparagraph.
2023/11/09
Committee: ECON
Amendment 646 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a
Directive 2014/65/EU
Article 25 – paragraph 2 – subparagraph 1
Subject to the second subparagraph, when providing investment advice or portfolio management services, the investment firm shall obtain the necessary information regarding the client or potential client’s knowledge and experience in the investment field relevant to the specific type of product or service, that client’s financial situation, including the composition of any existing portfolios, its ability to bear full or partial losses, investment needs and objectives including sustainability preferences, if any, and risk tolerance, so as to enable the investment firm to recommend to the client or potential client the investment services or financial instruments that are suitable for that person, and, in particular, are in accordance with its risk tolerance, ability to bear losses and need for portfolio diversification.
2023/11/09
Committee: ECON
Amendment 648 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a
Directive 2014/65/EU
Article 25 – paragraph 2 – subparagraph 2
When providing independent investment advice to retail clients restricted to well- diversified, non- complex, and cost- efficient financial instruments, the independent firm shall be under no obligation to obtain information on the retail client or potential retail client’s knowledge and experience about the considered financial instruments or investment services or on the retail client’s existing portfolio composition.
2023/11/09
Committee: ECON
Amendment 654 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a
Directive 2014/65/EU
Article 25 – paragraph 3 – subparagraph 1
Member States shall ensure that investment firms, when providing investment services other than those referred to in paragraph 2, ask the retail client or potential retail client to provide information regarding their knowledge and experience in the investment field relevant to the specific type of product or service offered or demanded, and for the retail client or potential retail client, the capacity to bear full or partial losses and risks tolerance so as to enable the investment firm to assess whether the investment service(s) or financial instrument(s) envisaged is appropriate for the client.
2023/11/09
Committee: ECON
Amendment 656 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a
Directive 2014/65/EU
Article 25 – paragraph 3 – subparagraph 3
Where the investment firm assesses on the basis of the information received under the first subparagraph, that the product or service is not appropriate to the client or potential client, the investment firm shall warn the client or potential client. TWhen the service is provided to a retail client, that warning shall be provided in a standardised format and shall be recorded.
2023/11/09
Committee: ECON
Amendment 657 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a
Directive 2014/65/EU
Article 25 – paragraph 3 – subparagraph 5
ESMA shall develop draft regulatory technical standards to determine the format and content of the warning to retail clients referred to in subparagraph 3.
2023/11/09
Committee: ECON
Amendment 662 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point b
Directive 2014/65/EU
Article 25 – paragraph 4 – subparagraph 5
ESMA shall develop draft regulatory technical standards to determine the format and content of warning to retail clients referred to in the first subparagraph, point (c).
2023/11/09
Committee: ECON
Amendment 671 #
Isabel BENJUMEA BENJUMEA, Frances FITZGERALD
Proposal for a directive
Article 1 – paragraph 1 – point 16
Directive 2014/65/EU
Article 35 a – paragraph 1 – subparagraph 1– point b
(b) the type, scope and scale of services provided and activities carried out in each host Member State through the freedom to provide investment services and activities and ancillary services;deleted
2023/11/09
Committee: ECON
Amendment 672 #
Isabel BENJUMEA BENJUMEA, Frances FITZGERALD
Proposal for a directive
Article 1 – paragraph 1 – point 16
Directive 2014/65/EU
Article 35 a – paragraph 1 – subparagraph 1– point c
(c) for each host Member State, the total number and the categories of clients corresponding to the services and activities referred to in point (b), and provided during the relevant period ending on the 31 December and a breakdown between professional and non- professional clients;deleted
2023/11/09
Committee: ECON
Amendment 673 #
Isabel BENJUMEA BENJUMEA, Frances FITZGERALD
Proposal for a directive
Article 1 – paragraph 1 – point 16
Directive 2014/65/EU
Article 35 a – paragraph 1 – subparagraph 1– point d
(d) the number of complaints referred to under Article 75 received from clients and interested parties in each host Member State;deleted
2023/11/09
Committee: ECON
Amendment 674 #
Isabel BENJUMEA BENJUMEA, Frances FITZGERALD
Proposal for a directive
Article 1 – paragraph 1 – point 16
Directive 2014/65/EU
Article 35 a – paragraph 1 – subparagraph 1– point e
(e) the type of marketing communications used in host Member States.deleted
2023/11/09
Committee: ECON
Amendment 676 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 1 – paragraph 1 – point 17 – point c
Directive 2014/65/EU
Article 69 – paragraph 2 – point w
(w) to impose the use of risk warnings by investment firms in information materials, including marketing communications provided or made accessible to retail clients or potential retail clients, related to particularly risky financial instruments where those instruments could pose a serious threat to investor protection.;
2023/11/09
Committee: ECON
Amendment 696 #
Isabel BENJUMEA BENJUMEA, Frances FITZGERALD
Proposal for a directive
Article 2 – paragraph 1 – point 2 – point c a (new)
Directive (EU) 2016/97
Article 3 – paragraph 7 a (new)
(ca) the following paragraph 7a is added: 7a. Member States shall ensure that competent authorities, in cases where an insurance, reinsurance, or ancillary insurance intermediary, which is a legal entity, has its head office in the same Member State as its registered office but exclusively engages in investment activities in other Member States, act in a manner consistent with EU law and the principles of the single market, refraining from imposing restrictions on undertakings providing cross-border services in line with the single market principles.
2023/11/09
Committee: ECON
Amendment 697 #
Frances FITZGERALD, Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 2 – point c a (new)
Directive (EU) 2016/97
Article 3 – paragraph 7 a (new)
(ca) (ca) the following paragraph is added: Member States shall ensure that competent authorities uphold the integrity of the EU internal market when making their decision to grant or refuse registration to an insurance, reinsurance or ancillary insurance intermediary, which is a legal person.
2023/11/09
Committee: ECON
Amendment 699 #
Isabel BENJUMEA BENJUMEA, Frances FITZGERALD
Proposal for a directive
Article 2 – paragraph 1 – point 4
(b) the scale and scope of the insurance distribution activities carried out in each host Member State;deleted
2023/11/09
Committee: ECON
Amendment 700 #
Isabel BENJUMEA BENJUMEA, Frances FITZGERALD
Proposal for a directive
Article 2 – paragraph 1 – point 4
Directive (EU) 2016/97
Article 9 a – paragraph 1 – subparagraph 1 – point c
(c) the type of insurance products distributed in each host Member State;deleted
2023/11/09
Committee: ECON
Amendment 701 #
Isabel BENJUMEA BENJUMEA, Frances FITZGERALD
Proposal for a directive
Article 2 – paragraph 1 – point 4
Directive (EU) 2016/97
Article 9 a – paragraph 1 – subparagraph 1 – point d
(d) for each host Member State, the total number of customers, for the relevant period ending on the 31 December;deleted
2023/11/09
Committee: ECON
Amendment 702 #
Isabel BENJUMEA BENJUMEA, Frances FITZGERALD
Proposal for a directive
Article 2 – paragraph 1 – point 4
Directive (EU) 2016/97
Article 9 a – paragraph 1 – subparagraph 1 – point e
(e) the number of complaints received from customers and interested parties in each host Member State.deleted
2023/11/09
Committee: ECON
Amendment 703 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 5 – point a
Directive (EU) 2016/97
Article 10 – paragraph 1 – subparagraph 1
1. Home Member States shall ensure that insurance and reinsurance distributors and employees of insurance and reinsurance undertakings carrying out insurance or reinsurance distribution activities possess the necessary knowledge and competence in order to complete their tasks and perform their duties adequately.
2023/11/09
Committee: ECON
Amendment 727 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 13 – point d
Directive (EU) 2016/97
Article 20– paragraph 8 a
(d) the following paragraph 8a is inserted: ‘ 8a. For life insurance products other than insurance-based investment products, the insurance product information document shall contain the following: (a) information about the type of insurance; (b) a summary of the insurance cover, including details of the insurance benefits deleted the means of payment of premiums information on the premiums for where applicable, the meands options and the circumstances that would trigger them, and, where applicable, a summary of the excluded risks; (c) and the duration of payments; (d) each benefit, both main benefits and supplementary benefits, where applicable; (e) calculation and distribution of bonuses; (f) cannot be made; (g) contract; (h) contract; (i) claim is made; (j) paid-up values andf main exclusions where claims obligations at the start of the obligations during the term of the obligations in the extvent to which they are guaranteed; (k) cancellation pursuant to Article 186 of Directive 2009/138/EC, in particular details on the time-limitations and conditions for the exercise of that right; (l) rules applicable to the type of insurance policy; (m) includinghat a an indication of surrender and information on the right of general information on the start and end dates of the contract; (n) contract; (o) where the parties do not have a choice of law or, where the parties can choose the law applicable to the contract, the law that the insurance undertaking proposes to choose, and the competent jurisdiction.; ’x the term of the insurance contract, the means of terminating the the law applicable to the contract
2023/11/09
Committee: ECON
Amendment 738 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 1 – subparagraph 2 – point f
(f) in relation to insurance-based investment products, a clear identification and quantification ofof both quantitative and qualitative elements, including i) all costs and charges related to the product and, ii) an assessment of whether these costs and charges are justified and, proportionate, having regar and adjusted to the characteristics, objectives, strategy an, expected performance of the product and investors' investment needs, preferences and strategies, as well as the guarantees and insurance coverage of biometric and other risks (‘pricing process);’), and iii) additional product features and services that may impact the value and benefits provided to investors.
2023/11/09
Committee: ECON
Amendment 751 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 1 – subparagraph 3
The pricing process referred to in point (f) shall contain a comparison with the relevant benchmark, where available, on costs and performance published by EIOPA in accordance with paragraph 8.deleted
2023/11/09
Committee: ECON
Amendment 754 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 1 – subparagraph 3 a (new)
3a. The pricing process referred to in point (e) may include, where relevant, an internal value comparison process on both qualitative and quantitative elements, including costs and performance with similar investment products at national level, capital protection, liquidity, ESG characteristics, applicable tax regime, services provided to the client if any.
2023/11/09
Committee: ECON
Amendment 755 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 1 – subparagraph 3 b (new)
3b. Insurance firms shall notify their home competent authorities about their internal value comparison methodology.
2023/11/09
Committee: ECON
Amendment 759 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 2
2. When an insurance-based investment product which deviates from the relevant benchmark referred to in paragraph 8, the manufacturer shall perform additional testing and further assessments and establish whether costs and charges are nevertheless justified and proportionate. If justification and proportionality of costs and charges cannot be demonstrated, the insurance- based investment product shall not be approved by the manufacturer. Where no relevant benchmark exists for an insurance-based investment product, a manufacturer shall approve the product only if it has established through product testing and assessments that the costs and charges are justified and proportionate and that the product meets the target market’s objectives and needs.deleted
2023/11/09
Committee: ECON
Amendment 767 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 3 – subparagraph 2
Insurance undertakings and intermediaries which manufacture insurance products, shall make available to distributors all information on the insurance product and the product approval process that is needed to fully understand that product and the elements taken into consideration during the product approval process, including complete and accurate details on any costs and chargeboth quantitative and qualitative elements of the insurance product.
2023/11/09
Committee: ECON
Amendment 773 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 4 – subparagraph 1 – point b
(b) data on the characteristics of the insurance-based investment product and its identified target market, in particular its performance, benefits and level of risk.
2023/11/09
Committee: ECON
Amendment 774 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 5 – subparagraph 1
An insurance distributor that advises on or proposes insurance products which it does not manufacture, shall have in place adequate arrangements to obtain the information referred to in paragraph 3, second subparagraph, and to understand the characteristics and identified target market of each insurance product including its adaptability to investors' individual investment needs, preferences and strategies.
2023/11/09
Committee: ECON
Amendment 776 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 5 – subparagraph 2 – point b
(b) identify and quantify any further costs and charges, in particular distribution costs, that are not already taken into account in the calculation of total costs and charges by the manufacturer, including entry costs, exit costs and third-party payments received and retained by the distributor;
2023/11/09
Committee: ECON
Amendment 780 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 5 – subparagraph 2 – point c
(c) assess whether the total costs and charges, when aggregating the costs of the insurance-based investment product with the distribution costs, are justified and, proportionate, having regard and adjusted to the to the target market’s objectives and needinvestors' investment needs, preferences and strategies (‘pricing process’).
2023/11/09
Committee: ECON
Amendment 782 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 5 – subparagraph 2 – point c a (new)
(ca) assess additional product features and services that may impact the value and benefits provided to investors.
2023/11/09
Committee: ECON
Amendment 784 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 5 – subparagraph 3
The pricing process referred to in point (c) shall include, where available, a comparison with the relevant benchmark on costs and performance published by EIOPA in accordance with paragraph 8.deleted
2023/11/09
Committee: ECON
Amendment 789 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 5 – subparagraph 3 a (new)
The pricing process referred to in point (b), (c), (ca) may include, where relevant, an internal value comparison process on both qualitative and quantitative elements, including costs and performance with similar financial instruments at national level, capital protection, liquidity, ESG characteristics, applicable tax regime, services provided to the client if any.
2023/11/09
Committee: ECON
Amendment 790 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 5 – subparagraph 3 a (new)
Insurance firms shall notify their home competent authorities about their internal value assessment methodology.
2023/11/09
Committee: ECON
Amendment 791 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 5 – subparagraph 4
The distributor shall provide the insurance undertaking or insurance intermediary manufacturing the insurance-based investment product regularly with all relevant information about the results of its pricing process. Where the distributor finds that there are costs and charges, in particular distribution costs, that have not been fully taken into account in the manufacturer’s pricing process, it shall immediately inform the manufacturer.deleted
2023/11/09
Committee: ECON
Amendment 794 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 6
6. When an insurance-based investment product deviates from the relevant benchmark referred to in paragraph 8, the insurance intermediary or insurance undertaking distributing insurance-based investment products shall perform additional testing and further assessments and establish whether costs and charges are nevertheless justified and proportionate. If justification and proportionality of costs and charges cannot be demonstrated, the insurance intermediary or insurance undertaking shall not advise on or propose the insurance-based investment product to retail customers. Where no relevant benchmark exists for an insurance-based investment product, distributors shall only advise on or propose the product, if they have established through product testing and assessments that the costs and charges are justified and proportionate and that the product meets the target market’s objectives and needs.deleted
2023/11/09
Committee: ECON
Amendment 801 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 7
7. An insurance intermediary or insurance undertaking which manufactures or distributes insurance- based investment products shall document all assessments made, including the following: (a) where relevant, the results of the comparison of the insurance-based investment product to the relevant benchmarks, (b) justifying a deviation from the benchmark (c) justification and demonstration of the proportionality of costs and charges of the insurance-based investment product.deleted where applicable, the reasons
2023/11/09
Committee: ECON
Amendment 810 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 8
8. EIOPA, after having consulted ESMA and the competent authorities, shall, where appropriate, develop and make publicly available common benchmarks for insurance-based investment products that present similar levels of performance, risk, strategy, objectives, or other characteristics to help insurance undertakings and insurance intermediaries manufacturing or distributing insurance-based investment products to perform the comparative assessment of the cost and performance of insurance-based investment products. The benchmarks shall display a range of costs and performance, in order to facilitate the identification of insurance- based investment products whose costs and performance depart significantly from the average. The costs used for the development of benchmarks shall, in addition to the total product cost, also include all costs of distribution, inclusive inducements. They shall allow comparison with individual cost components. EIOPA shall regularly update those benchmarks.deleted
2023/11/09
Committee: ECON
Amendment 830 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 9
9. The Commission shall be empowered to supplement this Directive by adopting delegated acts in accordance with Article 38 to further specify the principles set out in this Article, including, with regard to insurance-based investment products, (a) EIOPA to develop the benchmarks referred to in paragraph 8; (b) the criteria to determine whether costs and charges are justified and proportionate; Those delegated acts shall take into account in a proportionate way the activities performed, the nature of the insurance products sold and the nature of the distributor.the methodology to be used by
2023/11/09
Committee: ECON
Amendment 841 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 16
EIOPA, after having consulted ESMA and the competent authorities and after industry testing, and taking into consideration the methodology referred to in paragraph 9, point (a), shall develop draft regulatory technical standards to determine the following:
2023/11/09
Committee: ECON
Amendment 869 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 1 – subparagraph 1– introductory part
Without prejudice to Article 18 and Article 19(1) and (2), Member States shall ensure that insurance intermediaries and insurance undertakings distributing insurance-based investment products provide customers in good time before the customers are bound by an insurance contract or offer, with appropriate information in personalised form about the insurance-based investment products proposed to those customerappropriate information shall be provided in good time prior to the conclusion of a contract, to customers or potential customers with regard to the distribution of insurance-based investment products, and with regard to all costs and related charges. That information shall contain all of the following:
2023/11/09
Committee: ECON
Amendment 882 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 1 – point a – subpoint v
(v) whether or not, and in case how, the recommended insurance- based investment products take into account the diversification of the customer’s portfolio;
2023/11/09
Committee: ECON
Amendment 887 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 1 – subparagraph 1 – point b
(b) a description of the main features of the proposeds regards the information on insurance-based investment products and, where applicable, any recommended underlying investment assets an proposed investment strategies, including appropriate guidance on, and warnings of, the risks associated with the insurance- based investment products and, where applicable, the recommended underlying investment assets or in respect of particular investment strategies followed by that product;
2023/11/09
Committee: ECON
Amendment 889 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 1 – subparagraph 1 – point c
(c) information on the proposed insurance cover, including details of the insurance benefits and options and the circumstances that would trigger them, and, where applicable, a summary of the excluded risks and exclusions, where claims cannot be madeas regards the information on all costs and related charges to be disclosed, information relating to the distribution of the insurance-based investment product, including the cost of advice, where relevant, the cost of the insurance-based investment product recommended or marketed to the customer and how the customer may pay for it, also encompassing any third party payments;
2023/11/09
Committee: ECON
Amendment 892 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 1 – subparagraph 1 – point d
(d) information on all explicit and implicit costs, associated charges and third-party paymencosts, including all costs and charges relating to the distribution of the insurance-based investment product, and the cost of advice, where relevant, how the customer may pay for it and the duration of payments;
2023/11/09
Committee: ECON
Amendment 895 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 1 – subparagraph 2
The information referred to in the first subparagraph, point (d), shall be accompanied by an appropriate explanation, in a standardised and comprehensible language for an average retail customer, on the impact of the costs, charges and any third-party payments on the expected return.
2023/11/09
Committee: ECON
Amendment 900 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 1 – subparagraph 3
Member States shall ensure that insurance intermediaries and insurance undertakings present the information on all costs, charges and third-party payments referred to in the first subparagraph, point (d) in aggregated form to enable the customer to understand the overall cost and the cumulative effect on the return of the investment. The overall cost shall be expressed in monetary terms and percentages calculated over the term of the insurance-based investment product. Where the customer so requests, insurance intermediaries and insurance undertakings shall provide an itemised breakdown of that information.
2023/11/09
Committee: ECON
Amendment 902 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 1 – subparagraph 4
The third-party payments paid or received by the insurance intermediary or insurance undertaking in connection with the provision or distribution of the insurance-based investment product shall be itemised separately. The insurance intermediary or insurance undertaking shall disclose the cumulative impact of such third-party payments, including any recurring third-party payments, on the net return over the term of the insurance- based investment product. The purpose of the third-party payments and their impact on the net return shall be explained in a standardised way and in a comprehensible language for an average retail customer.deleted
2023/11/09
Committee: ECON
Amendment 910 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 2 – subparagraph 5 a (new)
The obligation to provide annual statements only applies to new contracts which are concluded after the entry of force of this Directive.
2023/11/09
Committee: ECON
Amendment 912 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 3 – point a
(a) the total costs associated charges and third-party payments, expressed in an itemised way in monetary terms and percentages, paid or borne, directly or indirectly, by the retail policyholder over the previous 12 months and on a compounded basis since the start of the contract term in connection with the insurance-based investment product;
2023/11/09
Committee: ECON
Amendment 934 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 a
Article 29adeleted
2023/11/09
Committee: ECON
Amendment 935 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 a
Inducementsdeleted
2023/11/09
Committee: ECON
Amendment 941 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 a – paragraph 1
1. Member States shall ensure that insurance intermediaries or insurance undertakings that manufacture insurance-based investment products or distribute such products in accordance with Article 30(2) and (3) do not pay or receive any fee or commission, or provide or are provided with any non-monetary benefit with regard to the provision or distribution of an insurance based investment product, to or by any party except the customer or a person on behalf of the customer. The prohibition contained in the first sub- paragraph shall not apply to minor non- monetary benefits of a total value below EUR 100 per annum or of a scale and nature such that those benefits do not impair compliance with the insurance intermediary’s or insurance undertaking’s duty to act in the best interests of their customer provided those benefits have been clearly disclosed to the customer. Any payment or benefit which enables or is necessary for the provision of services, including regulatory levies or legal fees, and which by its nature cannot give rise to conflicts with the insurance intermediary’s or insurance undertaking’s duty to act honestly, fairly and professionally in accordance with the best interests of their customers, shall not be subject to the requirements set out in the first subparagraph.deleted
2023/11/09
Committee: ECON
Amendment 951 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 a – paragraph 2
2. Member States shall ensure that insurance intermediaries or insurance undertakings, when distributing insurance-based investment products in accordance with Article 30(1), only receive or pay fees or benefits from or to a third-party on the condition that those insurance intermediaries or insurance undertakings ensure that the reception or payment of such fees or benefits does not impair compliance with their duty to act honestly, fairly and professionally in accordance with the best interests of their customers. Insurance intermediaries and insurance undertakings shall disclose the existence, nature and amount of such third-party payments in accordance with Article 29.deleted
2023/11/09
Committee: ECON
Amendment 953 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 a – paragraph 3
3. Member States shall ensure that insurance intermediaries and insurance undertakings shall, where applicable, inform the customer on mechanisms for transferring to the customer any fee, commission, monetary or non-monetary benefit received in relation to the distribution of the insurance-based product.deleted
2023/11/09
Committee: ECON
Amendment 955 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 a – paragraph 4
4. Member States may impose stricter requirements on insurance intermediaries and insurance undertakings in respect of the matters covered by this Article. In particular, Member States may additionally prohibit or further restrict the offer or acceptance of fees, commissions or non-monetary benefits from third parties in relation to the provision of insurance advice. Stricter requirements may include requiring any such fees, commissions or non-monetary benefits to be returned to the customers or offset against fees paid by the customer. The stricter requirements of a Member State referred to in this paragraph shall be complied with by all insurance intermediaries or insurance undertakings, including those operating under the freedom to provide services or the freedom of establishment, when concluding insurance contracts with customers having their habitual residence or establishment in that Member State.deleted
2023/11/09
Committee: ECON
Amendment 966 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 a – paragraph 5
5. The Commission shall be empowered to supplement this Directive by adopting delegated acts in accordance with Article 38 to further specify: (a) insurance undertakings are to comply with the principles set out in this Article; (b) compliance of insurance intermediaries and insurance undertakings paying or receiving inducements with the obligation to act honestly, fairly and professionally in accordance with the best interests of the customer.how insurance intermediaries and the criteria for assessing
2023/11/09
Committee: ECON
Amendment 972 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 a – paragraph 6
6. ThreFive years after the date of entry into force of Directive (EU) [OP Please introduce the number of the amending Directive], and after having consulted ESMA and EIOPA, the Commission shall assess the effects of third-party payments on retail investors, in particular in view ofissue a report to assess the potential conflicts of interest and as regards the availability of independent advice, and shall evaluate the impact of the relevant provisssociated with inducements, the evolutions of Directive (EU) [OP Please introduce the number of the amending Directicosts, the overall leve]l onf retail investors. If necessary to prevent consumer detriment, the Commission shall propose legislative amendments to the European Parliament and the Councilment in capital markets, consumer protection, the relevance of distribution rules and the implementation of financial literacy measures.
2023/11/09
Committee: ECON
Amendment 984 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 b – paragraph 1 – point a
(a) to provide such advice on the basis of an assessment of an appropriate and diversified range of insurance-based investment products and, where applicable, underlying investment assets;
2023/11/09
Committee: ECON
Amendment 991 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 b – paragraph 1 – point b
(b) to recommend the most cost- efficientbest tailored to investors' individual investment needs, preferences and strategies insurance-based investment product and, where applicable, underlying investment assets among the insurance- based investment products identified as suitable for the customer pursuant to Article 30(1) and offering similar features;
2023/11/09
Committee: ECON
Amendment 1004 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 b – paragraph 1 – point c
(c) to recommend, among the range of insurance-based investment products identified as suitable for the customer pursuant to Article 30(1), one or several insurance-based investment products and, where applicable, underlying investment assets, a product or products, without additional features that are not necessary to the achievement of the customer’s objectives and that give rise to extra costsbut which could diversify its investment portfolio;
2023/11/09
Committee: ECON
Amendment 1005 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 b – paragraph 1 – point c a (new)
(ca) not to place the financial or other interest of the insurance firm ahead of the interest of the client.
2023/11/09
Committee: ECON
Amendment 1007 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 b – paragraph 1 – point d
(d) to recommend an insurance-based investment products which insurance cover is consistent with the customer’s insurance demands and needs.deleted
2023/11/09
Committee: ECON
Amendment 1024 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 22 – point b
Directive (EU) 2016/97
Article 30 – paragraph 1 – subparagraph 1
Without prejudice to Article 20(1), when providing advice on insurance-based investment products, the insurance intermediary or insurance undertaking shall obtain the information regarding the customer’s knowledge and experience in the investment field relevant to the specific type of insurance-based investment product or, where applicable, underlying investment assetoptions, offered or demanded, that customer’s financial situation, including the composition of any existing portfolios, its ability to bear full or partial losses, investment needs and objectives, including any sustainability preferences, and risk tolerance, so as to enable the insurance intermediary or the insurance undertaking to recommend to the customer the insurance-based investment products that are suitable for that person and that, in particular, are in accordance with its risk tolerance, ability to bear losses and need for portfolio diversification.
2023/11/09
Committee: ECON
Amendment 1029 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 22 – point b
Directive (EU) 2016/97
Article 30 – paragraph 1 – subparagraph 2
When providing advice on an independent basis to retail customers restricted to well- diversified, non-complex, and cost- efficient insurance-based investment products, the insurance intermediary or insurance undertaking shall be under no obligation to obtain information on the customer’s knowledge and experience about the considered insurance-based investment products or on the customer’s portfolio composition.
2023/11/09
Committee: ECON
Amendment 1037 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 22 – point b
Directive (EU) 2016/97
Article 30 – paragraph 1 – subparagraph 3
When providing advice that involves switching between underlying investment assetoptions, insurance intermediaries and insurance undertakings shall obtain the necessary information on the customer’s existing underlying investment assetoptions and the recommended new investment assets and shall analyse the expected costs and benefits of the switch, so that they are reasonably able to demonstrate that the benefits of switching are expected to be greater than the costs.
2023/11/09
Committee: ECON
Amendment 1048 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 22 – point d
Directive (EU) 2016/97
Article 30 – paragraph 5 b – introductory part
5b. Member States shall require that, where an insurance intermediary or insurance undertaking distributing insurance-based investment products informs the custoonsumer that advice is given on an independent basis, the insurance intermediary or insurance undertaking:
2023/11/09
Committee: ECON
Amendment 1051 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 22 – point d
Directive (EU) 2016/97
Article 30 – paragraph 5 b – point b
(b) not accept and retain fees, commissions or any monetary or non- monetary benefits paid or provided by any third party or a person acting on behalf of a third party in relation to the provision of the service to customers.deleted
2023/11/09
Committee: ECON
Amendment 1055 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 2 – paragraph 1 – point 22 – point d
Directive (EU) 2016/97
Article 30 – paragraph 5 c
5c. When providing investment advice to retail customers on an independent basis, the insurance intermediary or insurance undertaking may limit the assessment in relation to the type of insurance-based investment products mentioned in paragraph 5b, point (a), to well-diversified, cost-efficient and non- complex insurance-based investment products. Before accepting such service, the retail customer shall be duly informed about the possibility and conditions to get access to standard independent advice and the associated benefits and constraints.;
2023/11/09
Committee: ECON
Amendment 1063 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 4 – paragraph 1 – point 1 – point a
Directive 2009/65/EC
Article 14 – paragraph 1 a
1a. For the purpose of paragraph 1, Member States shall require management companies to act in such a way as to prevent undue costs from being charged to the UCITS and its unit-holders. The costs which comply with the following conditions shall be regarded as due: (a) disclosures in the prospectus referred to in Article 69 and the key investor information referred to in Article 78; (b) UCITS to operate in line with its investment strategy and objective or to fulfil regulatory requirements; (c) a way that ensures fair treatment of investors.deleted The costs are in line with The costs are necessary for the The costs are borne by investors in
2023/11/09
Committee: ECON
Amendment 1067 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 4 – paragraph 1 – point 1 – point a
Directive 2009/65/EC
Article 14 – paragraph 1 b – introductory part
1b. Member States shall require management companies to maintain, operate and review an effective pricing process that allows for the identification and quantification of all costs borne by the UCITS or its unit-holders. Before the authorisation of the UCITS and throughout its life, that pricing process shall ensure that the following conditions are fulfilled:UCITS pricing process shall ensure that the costs borne by retail investors are justified and proportionate in the context of the overall value delivered to unit-holders.
2023/11/09
Committee: ECON
Amendment 1068 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 4 – paragraph 1 – point 1 – point a
Directive 2009/65/EC
Article 14 – paragraph 1 b – point a
(a) the costs are not undue;deleted
2023/11/09
Committee: ECON
Amendment 1069 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 4 – paragraph 1 – point 1 – point a
Directive 2009/65/EC
Article 14 – paragraph 1 b – point b
(b) the costs borne by retail investors are justified and proportionate, having regard to the characteristics of the UCITS, including its investment objective, strategy, expected returns, level of risks and other relevant characteristics.deleted
2023/11/09
Committee: ECON
Amendment 1071 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 4 – paragraph 1 – point 1 – point a
Directive 2009/65/EC
Article 14 – paragraph 1 c
1c. Member States shall ensure that management companies are responsible for the effectiveness and quality of their pricing process. The pricing process shall be clearly documented, shall clearly set out the responsibilities of the management bodies of the management company in determining and reviewing the costs borne by investors, and shall be subject to periodic review. The assessment of costs shall be based on objective criteria and methodology, and may includinge a comparison to market standardsimilar market products, such as UCITS with similar characteristics in terms of investment objective, strategy, level of risks and other relevant characteristics.
2023/11/09
Committee: ECON
Amendment 1072 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 4 – paragraph 1 – point 1 – point a
Directive 2009/65/EC
Article 14 – paragraph 1 d – subparagraph 1
Member States shall require management companies to assess at least annually whether undue costs have been charged to the UCITS or its unit-holders.
2023/11/09
Committee: ECON
Amendment 1073 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 4 – paragraph 1 – point 1 – point a
Member States shall require management companies to reimburse investors, if it is practicable, to reimburse investors, above certain threshold determined by the management company and proportionate to the amount unduly charged, where undue costs have been charged to the UCITS or its unit-holders.
2023/11/09
Committee: ECON
Amendment 1077 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 4 – paragraph 1 – point 1 – point a
Directive 2009/65/EC
Article 14 – paragraph 1 e – subparagraph 1
Member States shall require management companies to assess at least annually the conditions mentioned in paragraph 1b, point (b). The assessment shall take into account the criteria set out in the pricing process and include a comparison with the relevant benchmark on costs and performance published by ESMA in accordance with paragraph 1f.
2023/11/09
Committee: ECON
Amendment 1081 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 4 – paragraph 1 – point 1 – point a
Directive 2009/65/EC
Article 14 – paragraph 1 e – subparagraph 2
When a UCITS or its share classes, when they have different cost structures, deviate from the relevant benchmark referred to in paragraph 1f, the management company shall perform additional testing and further assessments and establish whether costs and charges are nevertheless justified and proportionate. If justification and proportionality of costs and charges cannot be demonstrated or if the UCITS or its share classes do not comply with other criteria set out by the management company in the pricing process that UCITS or its share classes shall not be marketed to retail investors by the management company.deleted
2023/11/09
Committee: ECON
Amendment 1086 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 4 – paragraph 1 – point 1 – point a
Directive 2009/65/EC
Article 14 – paragraph 1 f
1f. After consulting EIOPA and competent authorities, ESMA shall, where appropriate, develop and make publicly available benchmarks to enable the comparative assessment of costs and performance of UCITS, or their share classes where they have different cost structures, to be used for the assessment set out in paragraph 1e. Common benchmarks shall be developed, where it is feasible to do so, for UCITS, or their share classes where they have different cost structures, marketed to retail investors that present similar levels of performance, risk, strategy, objectives, or other characteristics. These benchmarks shall display a range of costs and performance, especially cases where costs and performance depart significantly from the average. These benchmarks shall be updated on a regular basis.;deleted
2023/11/09
Committee: ECON
Amendment 1089 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 4 – paragraph 1 – point 1 – point a
Directive 2009/65/EC
Article 14 – paragraph 1 f a (new)
(fa) If the UCITS or its share classes do not comply with the criteria set out by the management company in the pricing process, the management company shall perform additional testing and further assessments and establish whether costs and charges are nevertheless justified and proportionate. If justification and proportionality of costs and charges cannot be demonstrated after a reasonable period , the financial instrument shall be subject to remedial actions approved by the management company.
2023/11/09
Committee: ECON
Amendment 1092 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 4 – paragraph 1 – point 1 – point b – point iii
Directive 2009/65/EC
Article 14 – paragraph 2 – point d – subpoint i
(i) ensuring that costs are correctly identified and quantified, and comply with the requirements set out in paragraph 1a, point (a) in a justified and proportionate way in the context of the overall value delivered to unit-holders;
2023/11/09
Committee: ECON
Amendment 1093 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 4 – paragraph 1 – point 1 – point b – point iii
Directive 2009/65/EC
Article 14 – paragraph 2 – point d – subpoint ii
(ii) identifying which costs can be charged to the UCITS and its unit-holders taking into account the level of the costs and the nature of the costs by reference to a list of eligible costs that meet the conditions set out in paragraph 1a, points (b) and (c) , and the conditions under which competent authorities may authorise on a case-by-case basis costs which are not included in the list of eligible costs but that meet the conditions set out in paragraph 1a, points (b) and (c);
2023/11/09
Committee: ECON
Amendment 1094 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 4 – paragraph 1 – point 1 – point b – point iii
Directive 2009/65/EC
Article 14 – paragraph 2 – point d – subpoint iv
(iv) establishing a procedure for the management company to determine the level of compensation wherin case undue costs have been charged to investors.; establishing a procedure for the management company to determine a threshold for compensation which is proportionate to the unduly charged amount;
2023/11/09
Committee: ECON
Amendment 1097 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 4 – paragraph 1 – point 1 – point b – point iii
Directive 2009/65/EC
Article 14 – paragraph 2 – point e
(e) provide for criteria to determine whether costs are justified and proportionate in accordance with paragraph 1b, point (b), and for taking corrective measures mentioned in paragraph 1e and specify the methodology used by ESMA to develop its benchmarks.;deleted
2023/11/09
Committee: ECON
Amendment 1099 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 4 – paragraph 1 – point 1 – point c
Directive 2009/65/EC
Article 14 – paragraph 4 – point b
(b) whether the assessment set out in paragraph 1e is proportionate in terms of complexity and costs incurred by management companire could be other mechanisms to address high costs incurred by management companies at EU level, both legislative and non-legislative measures.;
2023/11/09
Committee: ECON
Amendment 1100 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 4 – paragraph 1 – point 2
Directive 2009/65/EC
Article 20 a
(2) the following Article 20a is inserted: ‘ Article 20a In respect of each UCITS it manages, a management company shall provide to the competent authority of its home Member State information on the costs borne by investors and performance of the UCITS, at the level of each fund, or at the level of the UCITS share classes where those share classes have different cost structures.; ’deleted
2023/11/09
Committee: ECON
Amendment 1102 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 4 – paragraph 1 – point 5
Directive 2009/65/EC
Article 98 – paragraph 2 – point n
(n) require, if it is practicable, a compensation to investors, above certain threshold determined by the management company and proportionate to the amount unduly charged, where undue costs have been charged to UCITS or its unit-holders.;
2023/11/09
Committee: ECON
Amendment 1104 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 4 – paragraph 1 – point 6
Directive 2009/65/EC
Article 99 – paragraph 6 – point h
(h) requirement to, if it is practicable, a compensateion to investors, above certain threshold determined by the management company and proportionate to the amount unduly charged, where undue costs have been charged to UCITS or its unit-holders.;
2023/11/09
Committee: ECON
Amendment 1107 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point a
Directive 2011/61/EU
Article 12 – paragraph 1 a
1a. For the purposes of paragraph 1, Member States shall require AIFMs to act in such a way as to prevent undue costs from being charged to the AIFs and their unitholders. The costs which complydeleted The costs are in line with tThe following conditions shall be regarded as due: (a) disclosures in the prospectus referred to in Article 23(3), the fund rules or instruments of incorporation as referred to in Article 23(1) and the key information document referred to in Article 5(1) of Regulation (EU) No 1286/2014; (b) AIF to operate in line with its investment strategy and objective or to fulfil regulatory requirements; (c) a way that ensures fair treatment of investors, except for cases mentioned in Article 12 (1) where AIF rules or instruments of incorporation provide for a preferential treatment.costs are necessary for the The costs are borne by investors in
2023/11/09
Committee: ECON
Amendment 1110 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point a
Directive 2011/61/EU
Article 12 – paragraph 1 b – introductory part
1b. Member States shall require AIFMs to maintain, operate and review an effective pricing process that allows for the identification and quantification of all costs borne by the AIFs or their unitholders. Thate pricing process shall ensure that the following conditions are fulfilled:costs borne by retail investors are justified and proportionate in the context of the overall value delivered to unit-holders.
2023/11/09
Committee: ECON
Amendment 1111 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point a
Directive 2011/61/EU
Article 12 – paragraph 1 b – point a
(a) the costs are not undue;deleted
2023/11/09
Committee: ECON
Amendment 1112 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point a
Directive 2011/61/EU
Article 12 – paragraph 1 b – point b
(b) the costs borne by retail investors are justified and proportionate, having regard to the characteristics of the AIF, including its investment objective, strategy, expected returns, level of risks and other relevant characteristics.deleted
2023/11/09
Committee: ECON
Amendment 1115 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point a
Directive 2011/61/EU
Article 12 – paragraph 1 c
1c. Member States shall ensure that AIFMs are responsible for the effectiveness and quality of their pricing process. The pricing process shall be clearly documented, shall clearly set out the responsibilities of the management bodies of the AIFM in determining and reviewing the costs borne by investors, and shall be subject to periodic review. The assessment of costs shall be based on objective criteria and methodology, and may includinge a comparison to market standardsimilar market products, such as AIFs with similar characteristics in terms of investment objective, strategy, level of risks and other relevant characteristics.
2023/11/09
Committee: ECON
Amendment 1116 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point a
Directive 2011/61/EU
Article 12 – paragraph 1 d – subparagraph 1
Member States shall require AIFMs to assess at least annually whether undue costs have been charged to AIF or its unit holders.
2023/11/09
Committee: ECON
Amendment 1117 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point a
Directive 2011/61/EU
Article 12 – paragraph 1 d – subparagraph 2
Member States shall require AIFMs to reimburse investors, if it is practicable, to reimburse investors, above certain threshold determined by the AIFM and proportionate to the amount unduly charged, where undue costs have been charged to the or its AIF unit- holders.
2023/11/09
Committee: ECON
Amendment 1120 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point a
Directive 2011/61/EU
Article 12 – paragraph 1 e – subparagraph 1
Member States shall require AIFMs to assess at least annually the conditions mentioned in paragraph 1b, point (b). The assessment shall take into account the criteria set out in the pricing process and, for AIFs marketed to retail investors, include a comparison with the relevant benchmark on costs and performance published by ESMA in accordance with paragraph 1f.
2023/11/09
Committee: ECON
Amendment 1125 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point a
Directive 2011/61/EU
Article 12 – paragraph 1 e – subparagraph 2
When an AIF or its share classes, when they have different cost structures, deviate from the relevant benchmark referred to in paragraph 1f, the AIFM shall perform additional testing and further assessments and establish whether costs and charges are nevertheless justified and proportionate. If justification and proportionality of costs and charges cannot be demonstrated, or if the AIF or its share classes do not comply with other criteria set out by the AIFM in the pricing process, that AIF or its share class shall not be marketed to retail investors by the AIFM.deleted
2023/11/09
Committee: ECON
Amendment 1128 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point a
Directive 2011/61/EU
Article 12 – paragraph 1 f
1f. After having consulted EIOPA and competent authorities, ESMA shall, where appropriate, develop and make publicly available benchmarks to enable the comparative assessment of costs and performance of AIFs, or their share classes where they have different cost structures, to be used for the assessment set out in paragraph 1e. Common benchmarks shall be developed, where it is feasible to do so, for AIFs, or their share classes where they have different cost structures, marketed to retail investors that present similar levels of performance, risk, strategy, objectives, or other characteristics. These benchmarks shall display a range of costs and performance, especially cases where costs and performance depart significantly from the average. The benchmarks shall be updated on a regular basis.;deleted
2023/11/09
Committee: ECON
Amendment 1131 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point a
Directive 2011/61/EU
Article 12 – paragraph 1 f a (new)
(fa) If the AIF or its share classes do not comply with the criteria set out by the AIFM in the pricing process the AIFM shall perform additional testing and further assessments and establish whether costs and charges are nevertheless justified and proportionate. If justification and proportionality of costs and charges cannot be demonstrated after a reasonable period , the financial instrument shall be subject to remedial actions approved by the AIFM.
2023/11/09
Committee: ECON
Amendment 1134 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point b
Directive 2011/61/EU
Article 12 – paragraph 3 – point a – subpoint i
(i) ensuring that costs are correctly identified and quantified, and comply with the condition set out in paragraph 1a, point (a) in a justified and proportionate way in the context of the overall value delivered to unit-holders;
2023/11/09
Committee: ECON
Amendment 1135 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point b
Directive 2011/61/EU
Article 12 – paragraph 3 – point a – subpoint ii
(ii) identifying which costs can be charged to the AIF and its unit-holders taking into account the level of the costs and the nature of the costs by reference to a list of eligible costs that meet the conditions set out in paragraph 1a, points (b) and (c), and the conditions under which competent authorities may authorise on a case-by-case basis costs which are not included in the list of eligible costs but that meet the conditions set out in paragraph 1a, points (b) and (c);
2023/11/09
Committee: ECON
Amendment 1136 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point b
Directive 2011/61/EU
Article 12 – paragraph 3 – point a – subpoint iv
(iv) establishing a procedure for the AIFM to determine the level of compensation in case undue costs have been charged to investors.; establishing a procedure for the AIFM to determine a threshold for compensation which is proportionate to the unduly charged amount;
2023/11/09
Committee: ECON
Amendment 1137 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point b
Directive 2011/61/EU
Article 12 – paragraph 3 – point b
(b) provide for criteria to determine whether costs are justified and proportionate in accordance with paragraph 1b, point (b) and for taking corrective measures mentioned in paragraph 1e and specify the methodology used by ESMA to develop its benchmarks.;deleted
2023/11/09
Committee: ECON
Amendment 1140 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point c
Directive 2011/61/EU
Article 12 – paragraph 4 – point b
(b) whether the assessment set out in paragraph 1e is proportionate in terms of complexity and costs incurred by AIFMre could be other mechanisms to address high costs incurred by AIFMs at EU level, both legislative and non-legislative measures.;
2023/11/09
Committee: ECON
Amendment 1142 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 5 – paragraph 1 – point 2
(2) in Article 24(2), the following point (f) is added: ‘ (f) investors and performance of the AIF, at the level of each AIF or at the level the AIF’s share classes where those share classes have different cost structures.; ’deleted information on the costs borne by
2023/11/09
Committee: ECON
Amendment 1145 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 5 – paragraph 1 – point 3
Directive 2011/61/EU
Article 46 – paragraph 2 – point n
(n) require, if it is practicable, to compensate investors, above certain threshold determined by the AIFM and proportionate to the amount unduly charged, where undue costs have been charged to the AIF or its unit-holders..
2023/11/09
Committee: ECON
Amendment 1148 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 6 – paragraph 1
1. Member States shall adopt and publish, by … [OP please insert the date = 124 months after the date of entry into force of this Directive] at the latest, the laws, regulations and administrative provisions necessary to comply with this Directive. They shall forthwith communicate to the Commission the text of those provisions.
2023/11/09
Committee: ECON
Amendment 1152 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Article 6 – paragraph 2
2. They shall apply those provisions from … [OP please insert the date = 1824 months after the date of entry into force of this Directivepublication of level 2 rules in the Official Journal].
2023/11/09
Committee: ECON
Amendment 1154 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Annex I – paragraph 1 – point -1 (new)
Directive 2014/65/EU
Annex II – section I – paragraph 4 a (new)
- 1 In Annex II to Directive 2014/65/EU, section I, paragraph (5) is added: " 4a Special purpose vehicles or other investment or holding vehicles with sponsors that are professional clients pursuant to (1) to (4) above. "
2023/11/09
Committee: ECON
Amendment 1164 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Annex I – paragraph 1 – point 2 – subpoint 1
Directive 2014/65/EU
Annex II – Section II.1 – subparagraph 5 – second indent
- the size of the client’s financial instrument portfolio, defined as including cash deposits and financial instruments exceeds EUR 250 000 on average during the last 3 years,’;
2023/11/09
Committee: ECON
Amendment 1167 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Annex I – paragraph 1 – point 2 – subpoint 1 a (new)
Directive 2014/65/EU
Annex II – Section II.1 – subparagraph 5 – third indent
— the client works or has worked in the financial sector or undertaken capital market activities requiring to buy and sell financial instruments and/or to manage a portfolio of financial instruments for at least one year in a professional position, which requires knowledge of the transactions or services envisaged. For clients committing capital to a collective investment undertaking, the client works or has worked: a. in a relevant sector for at least one year in a senior management position which requires knowledge of at least one of the asset classes in which such collective investment undertaking will invest; or b. at a large undertaking within the meaning of paragraph 2 of Section I of Annex II for at least one year in a senior management position.;
2023/11/09
Committee: ECON
Amendment 1169 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Annex I – paragraph 1 – point 2 – subpoint 2
Directive 2014/65/EU
Annex II – Section II.1 – subparagraph 5 – fourth indent
- the client can provide the firm with proof of a recognised education or trainingjustified a recognised education, training or specific professional experience that evidences his/her understanding of the relevant transactions or services envisaged and his/her ability to evaluate adequately the risks.;
2023/11/09
Committee: ECON
Amendment 1171 #
Isabel BENJUMEA BENJUMEA
Proposal for a directive
Annex I – paragraph 1 – point 2 – subpoint 2
Directive 2014/65/EU
Annex II – Section II.1 – subparagraph 7 – fourth indent (new)
– assets under management: EUR 10 000 000
2023/11/09
Committee: ECON
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