[ParlTrack]

Proposal for a directive
Recital 6

(6) In order to provide policy holders and beneficiaries with an equivalent level of protection, such internal models should be subject to prior supervisory approval on the basis of harmonised processes and standards, and to ongoing supervision, including by EIOPA.

2018/09/11
Committee: ECON

Pervenche BERÈS

Proposal for a directive
Recital 7

(7) In order to ensure a high degree of convergence in the area of supervision and approval of internal models, EIOPA should ~~be able to issue Opinions on issues relating to such internal model~~assess and, where necessary, review the decisions made by the supervisory authorities.

2018/09/11
Committee: ECON

Pervenche BERÈS, Sven GIEGOLD

Proposal for a directive
Article 1 – paragraph 1 – point 2 a (new)

Directive 2014/65/EU
Article 39 – paragraph 3a (new)

(2 a) In Article 39, the following paragraph 3a is added: “3a. This Article does not apply to third country firms with respect to the operation of a trading venue that would qualify as an MTF or OTF if established in the Union”

2018/09/11
Committee: ECON

Pervenche BERÈS, Sven GIEGOLD

Proposal for a directive
Article 1 – paragraph 1 – point 2 b (new)

Directive 2014/65/EU
Article 57 – paragraph 4 –subparagraph 1

(2 b) In paragraph 4 of Article 57, the first subparagraph is amended as follows: “4. A competent authority shall set limits for each contract in commodity derivatives traded on trading venues based on the methodology for calculation determined by ESMA in accordance with paragraph 3. That position limit shall include economically equivalent OTC contracts. Contracts traded on third-country trading venues recognised under Article 49a of Regulation (EU) No 600/2014 or benefitting from grandfathering in accordance with Article 49s of Regulation (EU) No 600/2014 do not qualify as OTC contracts.”

2018/09/11
Committee: ECON

Pervenche BERÈS

Proposal for a directive
Article 2 – paragraph 1 – point -1 (new)

Directive 2009/138/EC
Article 13 – paragraph 1 – points 30, 31, 32 and 40a (new)

(-1) Article 13 is amended as follows: “(a) points (30), (31) and (32) are replaced by the following: (30) ‘underwriting risk’ means the risk of loss or of adverse change in the value of insurance liabilities, due to inadequate pricing and provisioning assumptions, including assumptions of environmental, social and governance impact on the liabilities; (31) ‘market risk’ means the risk of loss or of adverse change in the financial situation resulting, directly or indirectly, from fluctuations in the level and in the volatility of market prices of assets, liabilities and financial instruments, including fluctuations as a consequence of environmental, social and governance impact; (32) ‘credit risk’ means the risk of loss or of adverse change in the financial situation, resulting from fluctuations in the credit standing of issuers of securities, counterparties and any debtors to which insurance and reinsurance undertakings are exposed, in the form of counterparty default risk, or spread risk, or market risk ~~concentrations;~~concentrations, including fluctuations as a consequence of environmental, social and governance impact; (b) the following point (40a) is added: (40a) “environmental, social and governance factors” means factors as referred to in the United Nations supported Principles for Responsible Investment.

2018/09/11
Committee: ECON

Pervenche BERÈS

Proposal for a directive
Article 2 – paragraph 1 – point -1 a (new)

Directive 2009/138/EC
Article 27 – paragraph 1

(-1 a) In Article 27, paragraph 1 is amended as follows: "Member States shall ensure that the supervisory authorities are provided with the necessary means, and have the relevant expertise, capacity, and mandate to achieve the main objective of supervision, namely the protection of policy holders and beneficiaries~~. (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02009L0138-~~ in a sustainable way." Or. en 20180709&from=EN)

2018/09/11
Committee: ECON

Pervenche BERÈS

Proposal for a directive
Article 2 – paragraph 1 – point -1 b (new)

Directive 2009/138/EC
Article 36 – paragraph 4

(-1 b) In Article 36, paragraph 4 is replaced by the following: "4. The supervisory authorities shall assess the adequacy of the methods and practices of the insurance and reinsurance undertakings designed to identify possible events or future changes in economic, environmental or social conditions that could have adverse effects on the overall financial standing of the undertaking concerned. " Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02009L0138- 20180709&from=EN)

2018/09/11
Committee: ECON

Pervenche BERÈS

Proposal for a directive
Article 2 – paragraph 1 – point -1 c (new)

Directive 2009/138/EC
Article 41 – paragraphs 1 and 5

(-1 c) Article 41 is amended as follows: (a) paragraph 1 is replaced by the following: "1. Member States shall require all insurance and reinsurance undertakings to have in place an effective system of governance which provides for sound and prudent management of the business. That system shall at least include an adequate transparent organisational structure with a clear allocation and appropriate segregation of responsibilities and an effective system for ensuring the transmission of information. ~~It shall include compliance with the requirements laid down in Articles 42 to 49. The system of governance shall be subject to regular internal review.~~The system of governance shall include consideration of environmental, social and governance factors especially related to investment assets in investment decisions. The supervisory authorities shall assess the ability of the undertakings to withstand those possible events or future changes in economic conditions. (b) paragraph 5 is replaced by the following: 5. The supervisory authorities shall have appropriate means, methods and powers for verifying the system of governance of the insurance and reinsurance undertakings and for evaluating emerging risks, including from ESG factors, identified by those undertakings which may affect their financial soundness."

2018/09/11
Committee: ECON

Pervenche BERÈS

Proposal for a directive
Article 2 – paragraph 1 – point -1 d (new)

Directive 2009/138/EC
Article 44 – paragraph 2 – subparagraphs 2 and 3

(-1 d) In Article 44, paragraph 2 is amended as follows: “(a) in subparagraph 2 the following point (fa) is added: (fa) ESG risks relating to the investment portfolio and the management thereof, if not included in the areas listed in (a)-(f). (b) subparagraph 3 is replaced by the following: The written policy on risk management referred to in Article 41(3) shall comprise policies relating to points (a) to (fa) of the second subparagraph of this paragraph. ” Or. en(https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02009L0138- 20180709&from=EN)

2018/09/11
Committee: ECON

Pervenche BERÈS

Proposal for a directive
Article 2 – paragraph 1 – point -1 e (new)

Directive 2009/138/EC
Article 45 – paragraph 1 – subparagraph 2 – point (a)

(-1 e) In Article 45(1), point (a) of subparagraph 2 is replaced by the following: "(a) the overall solvency needs taking into account the specific risk profile, approved risk tolerance limits and the business strategy of the undertaking; , including a qualitative assessment of new or emerging risks, including risks related to climate change, use of resources and the environment, social risks and risks related to the depreciation of assets due to regulatory change (stranded assets); " Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02009L0138- 20180709&from=EN)

2018/09/11
Committee: ECON

Pervenche BERÈS

Proposal for a directive
Article 2 – paragraph 1 – point -1 f (new)

Directive 2009/138/EC
Article 51 – paragraph 1 – subparagraph 2 – point (c)

(-1 f) In Article 51(1), point (c) of subparagraph 2 is replaced by the following: "(c) a description, separately for each category of risk, of the risk exposure, concentration, mitigation and sensitivity~~; (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02009L0138-~~ that shall contain, at least, how the investment policy takes environmental, social and governance factors into account; " Or. en 20180709&from=EN)

2018/09/11
Committee: ECON

Pervenche BERÈS, Jonás FERNÁNDEZ

Proposal for a directive
Article 2 – paragraph 1 – point -1 g (new)

Directive 2009/138/EC
Chapter IV – Section 5 – Article 71a (new)

(-1 g) The following Article 71a is inserted: "Article 71a Coordination of cross-border cooperation Without prejudice to other forms of cooperation, EIOPA may set up collaboration platforms involving the supervisory authorities of the home and host Member States concerned in view of discussing and coordinating common matters relating to activities of insurance undertakings which pursue business under the right of establishment or the freedom to provide services. "

2018/09/11
Committee: ECON

Pervenche BERÈS

Proposal for a directive
Article 2 – paragraph 1 – point 1

Directive 2009/138/EC
Article 112 – paragraph 4 – subparagraph 4

EIOPA may ~~issue an Opinion to~~review a decision taken by the supervisory authorities concerned in accordance with Article 21a(1)(a) and 29(1)(a) of Regulation (EU) No 1094/2010 ~~within 4 months of receipt by the supervisory authority of the complete application~~.

2018/09/11
Committee: ECON

Pervenche BERÈS

Proposal for a directive
Article 2 – paragraph 1 – point 1

Directive 2009/138/EC
Article 112 – paragraph 4 – subparagraph 5

Where such an Opinion is issued, the supervisory authority shall take its decision as referred to in the first subparagraph in conformity with that Opinion, or provide reasons in writing to EIOPA and to the applicant where the decision was not taken in conformity with that Opinion.;deleted

2018/09/11
Committee: ECON

Pervenche BERÈS

Proposal for a directive
Article 2 – paragraph 1 – point 1 a (new)

(1 a) In Article 132, the following paragraph 1a is inserted: “1a. Within the prudent person rule, Member States shall allow insurance and reinsurance undertakings to take into account the potential long-term impact of investment decisions on environmental, social, and governance factors.”

2018/09/11
Committee: ECON

Pervenche BERÈS, Jonás FERNÁNDEZ

Proposal for a directive
Article 2 – paragraph 1 – point 1 b (new)

Directive 2009/138/EC
Article 136

(1 b) Article 136 is replaced by the following: Article 136 "Article 136 Identification and notification of deteriorating financial conditions ~~by the insurance and reinsurance undertaking~~1. Insurance and reinsurance undertakings shall have procedures in place to identify deteriorating financial conditions and shall immediately notify the supervisory authorities when such deterioration occurs. ~~(https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02009L0138-~~2. Supervisory authorities shall immediately notify EIOPA following a notification under paragraph 1 in cases where the deteriorating financial conditions have a cross-border effect, notably where the interests of policyholders are at stake. " Or. en 20180709&from=EN)

2018/09/11
Committee: ECON

Pervenche BERÈS

Proposal for a directive
Article 2 – paragraph 1 – point 1 c (new)

Directive 2009/138/EC
Article 185 – paragraph 3 – new points (ma) and (mb)

(1 c) In paragraph 3 of Article 185, the following points (ma) and (mb) are added: “(ma) information on whether and how environmental, climate, social and corporate governance factors are considered in the investment approach, and where further information is available; (mb) fiduciary duty requirements. In addition, specific information shall be supplied in order to provide a proper understanding of the risks underlying the contract that are assumed by the policy holder.”

2018/09/11
Committee: ECON

Pervenche BERÈS

Proposal for a directive
Article 2 – paragraph 1 – point 2 – point b

Directive 2009/138/EC
Article 231 – paragraph 2b –subparagraph 1

Where the supervisory authorities concerned grant an approval but EIOPA considers that anthe application as referred to in the first paragraph presents particular issues with respect to consistency in internal model application approvals across the Union, EIOPA may ~~issue an Opinion to~~review the approval decision made by the supervisory authorities concerned in accordance with Article 21a(1)(a) and 29(1)(a) of Regulation (EU) No 1094/2010 within 46 months ~~of receipt by the group supervisor of the complete application~~.

2018/09/11
Committee: ECON

Pervenche BERÈS

Proposal for a directive
Article 2 – paragraph 1 – point 2 – point b

Directive 2009/138/EC
Article 231 – paragraph 2b –subparagraph 2

Where such an Opinion is issued, the supervisory authorities shall take their joint decision as referred to in the second paragraph in conformity with that Opinion, or provide reasons in writing to EIOPA and the applicant where the joint decision was not taken in conformity with that Opinion.;deleted

2018/09/11
Committee: ECON

Pervenche BERÈS