Activities of Linea SØGAARD-LIDELL related to 2021/0343(COD)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 575/2013 and Directive 2014/59/EU as regards the prudential treatment of global systemically important institution groups with a multiple point of entry resolution strategy and a methodology for the indirect subscription of instruments eligible for meeting the minimum requirement for own funds and eligible liabilities
Amendments (4)
Amendment 26 #
Proposal for a regulation
Recital 7
Recital 7
(7) In the context of the indirect subscription of internal MREL eligible instruments by resolution entities pursuant to the revised Union bank resolution framework, intermediate parents should be required to deduct from their own internal MREL eligible resources the full holding of own funds and eligible liabilities issued by their subsidiaries belonging to the same resolution group. This ensures the proper functioning of the internal loss-absorbing and recapitalisation mechanisms within a group and avoids the double-counting of the internal MREL eligible resources of the subsidiary for the purposes of compliance by the intermediate parent with its own internal MREL. Additionally, without those deductions, the individual solvency ratios of intermediate parents would not reflect appropriately and prudently their actual loss-absorbing capacity, as those ratios would also include the loss- absorbing capacity of their subsidiaries. This could compromise the proper implementation of the chosen resolution strategy, as the intermediate parent could use up not only its own loss absorption capacity but also that of its subsidiary, before the intermediate parent or the subsidiary are no longer viable. The dDeductions should first be applied to the eligible liabilities items of the intermediate parentsentities. Where the intermediate entity is required to comply with internal MREL pursuant to Directive 2014/59/EU, the deductions should be applied to the liabilities meeting the conditions of Article 45f(2) of that Directive. In case the amount to be deducted would exceed the amount of the eligible liabilities items of the intermediate parentities, the remaining amount should be deducted from their Tier 2 items. To ensure that the deduction regime remains proportionate, that regime should not be applicable in the exceptional cases where internal MREL is applied on a consolidated basis only. Common Equity Tier 1, Additional Tier 1 and Tier 2 items, starting with Tier 2 items in accordance with Article 66, point (e), of Regulation (EU) No 575/2013. In such a case, it is necessary that the deductions corresponding to the remaining amount are also applied when calculating own funds for the purposes of the requirements laid down in Regulation (EU) No 575/2013 and Directive 2013/36/EU. Otherwise, the solvency ratios of intermediate entities that have issued own funds instruments, rather than eligible liabilities instruments, to fund the acquisition of ownership of internal MREL eligible resources may be overstated. Additionally, by keeping the treatment of holdings of internal MREL eligible resources aligned for prudential and resolution purposes, an undue increase in complexity is avoided, as institutions would be able to continue to calculate, report and disclose one set of total risk exposure amount and total exposure measure for prudential and resolution purposes. Article 49(2) of Regulation (EU) No 575/2013 should thus be amended accordingly. To ensure that the deduction regime remains proportionate, that regime should not be applicable in the exceptional cases where, pursuant to Articles 45f(1), third subparagraph, and 45f(4) of Directive 2014/59/EU, internal MREL is applied on a consolidated basis only, in what concerns the holdings of internal MREL eligible resources issued by entities included in the perimeter of consolidation. The same exception should apply when the requirement for own funds and eligible liabilities for material subsidiaries of non-EU G-SIIs laid down in Article 92b of Regulation (EU) No 575/2013 is complied with on a consolidated basis, pursuant to Article 11(3a) of Regulation(EU) No 575/2013.
Amendment 34 #
Proposal for a regulation
Recital 10
Recital 10
(10) To ensure that institutions have sufficient time to implement the dedicated treatment for the indirect subscription of instruments eligible for internal MRELternal MREL eligible resources, including the new deduction regime, the provisions laying down that treatment should become applicable six months after the entry into force of this Regulationfrom 01 January 2024.
Amendment 58 #
Proposal for a regulation
Article 1 – paragraph 1 – point 5 – point b
Article 1 – paragraph 1 – point 5 – point b
Regulation (EU) No 575/2013
Article 72 e – paragraph 5 – subparagraph 3
Article 72 e – paragraph 5 – subparagraph 3
For the purposes of this paragraph, the reference to eligible liabilities items shall also be understood as a reference to eligible liabilitiebe limited to the intermediate entities holdings of eligible instruments of the lower subsidiaries up to the lower subsidiaries’ loss absorption amount and recapitalization amount as rdeferred toined in Article 45f (2), point (a), (a) and (b) of Directive 2014/59/EU. For the purpose of calculating this limit, direct issuances of eligible instruments from lower subsidiaries to the relevant resolution entity should be accounted for through the reduction of the limit by the amount of eligible instruments already directly issued.
Amendment 72 #
Proposal for a regulation
Article 3 – paragraph 3
Article 3 – paragraph 3
However, Article 1, point (3), point (5)(b), and points (7), (8) and (9) and Article 2 shall apply from 1 January 2024. Article 2, points (1) and (3), shall apply by the date referred to in the second paragraph, first subparagraph. Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with Article 2, points (1) and (3), by [OP please insert the date = 612 months after date of entry into force]. from the date of entry into force of this amending Regulation]. They shall immediately communicate the text of those measures to the Commission. When Member States adopt those measures, they shall contain a reference to this Regulation or shall be accompanied by such reference on the occasion of their official publication. The methods of making such reference shall be laid down by Member States. Member States shall communicate to the Commission the text of the main provisions of national law which they adopt in the field covered by Article 2, points (1) and (3), of this Regulation.