Activities of Arlene McCARTHY related to 2009/0099(COD)
Plenary speeches (2)
Capital requirements for the trading book and for re-securitisations, and the supervisory review of remuneration policies - Remuneration of directors of listed companies and remuneration policies in the financial services sector (debate)
Capital requirements for the trading book and for re-securitisations, and the supervisory review of remuneration policies - Remuneration of directors of listed companies and remuneration policies in the financial services sector (debate)
Reports (1)
REPORT Report on the proposal for a directive of the European Parliament and of the Council amending Directives 2006/48/EC and 2006/49/EC as regards capital requirements for the trading book and for re-securitisations, and the supervisory review of remuneration policies PDF (619 KB) DOC (970 KB)
Amendments (7)
Amendment 82 #
Proposal for a directive – amending act
Recital 5 a (new)
Recital 5 a (new)
(5a) To minimise incentives for excessive risk-taking bonuses should be a smaller proportion of total remuneration. It is essential that an employee's salary represents a sufficiently high proportion of their total remuneration to allow the operation of a fully flexible bonus policy, including the possibility to pay no bonus.
Amendment 159 #
Proposal for a directive – amending act
Annex I – point 1
Annex I – point 1
Directive 2006/48/EC
Annex V – section 11 – point 22 – point d a (new)
Annex V – section 11 – point 22 – point d a (new)
(da) the remuneration of the senior officers in the risk management and compliance functions is directly overseen by the remuneration committee;
Amendment 161 #
Proposal for a directive – amending act
Annex I – point 1
Annex I – point 1
Directive 2006/48/EC
Annex V – section 11 – point 22 – point e a (new)
Annex V – section 11 – point 22 – point e a (new)
(ea) in the case of credit institutions where the costs attributable to staff remuneration represent more than 25 % of total revenue, shareholders have a vote on the allocation of surplus revenues;
Amendment 209 #
Proposal for a directive – amending act
Annex II – point 1 – point a a (new)
Annex II – point 1 – point a a (new)
Directive 2006/49/EC
Annex I – point 14 a (new)
Annex I – point 14 a (new)
(aa) The following point is inserted: "14a. By way of derogation from point 14, an institution may determine the specific risk capital charge for the correlation trading portfolio as follows: the institution computes (i) the total specific risk capital charges that would apply just to the net long positions of the correlation trading portfolio and (ii) the total specific risk capital charges that would apply just to the net short positions of the correlation trading portfolio. The larger of these total amounts shall be the specific risk capital charge for the correlation trading portfolio. For the purpose of this Directive, the correlation trading portfolio shall consist of securitisation positions and nth-to- default credit derivatives that meet the following criteria: (a) the positions are neither re- securitisation positions, nor options on a securitisation tranche, nor any other derivatives of securitisation exposures that do not provide a pro-rata share in the proceeds of a securitisation tranche (for example, inter alia synthetically leveraged super-senior tranche are excluded from the correlation trading portfolio); and (b) all reference instruments are single- name instruments, including single-name credit derivatives, for which a liquid two- way market exists. This shall also include commonly traded indices based on these reference entities. A two-way market is deemed to exist where there are independent bona fide offers to buy and sell so that a price reasonably related to the last sales price or current bona fide competitive bid and offer quotations can be determined within one day and settled at such price within a relatively short time conforming to trade custom."
Amendment 219 #
Proposal for a directive – amending act
Annex II – point 3 – point c
Annex II – point 3 – point c
Directive 2006/49/EC
Annex V – point 5 – paragraph 4 a (new)
Annex V – point 5 – paragraph 4 a (new)
An institution shall not be required to capture default and migration risks for traded debt instruments in its internal model where it is capturing these risks through the requirements set out in points 5a to 5k.
Amendment 221 #
Proposal for a directive – amending act
Annex II – point 3 – point f
Annex II – point 3 – point f
Directive 2006/49/EC
Annex V – point 8 – paragraph 1
Annex V – point 8 – paragraph 1
For the purposes of point 10b(a) and 10b(b), the multiplication factor (m+) shall be increased by a plus-factor of between 0 and 1 in accordance with Table 1, depending on the number of overshootings for the most recent 250 business days as evidenced by the institution's back-testing of the value-at-risk measure as set out in point 10. Competent authorities shall require the institutions to calculate overshootings consistently on the basis of back-testing on hypothetical and clean changes in the portfolio's value. An overshooting is a one- day change in the portfolio's value that exceeds the related one-day value-at-risk measure generated by the institution's model. For the purpose of determining the plus-factor the number of overshootings shall be assessed at least quarterly and shall be equal to the higher of the number of overshootings under hypothetical and clean changes in the value of the portfolio.
Amendment 225 #
Proposal for a directive – amending act
Annex II – point 3 – point h – point i
Annex II – point 3 – point h – point i
Directive 2006/49/EC
Annex V – point 10 – point c
Annex V – point 10 – point c
(c) a 10-day equivalent holding period (institutions may use value-at-risk numbers calculated according to shorter holding periods scaled up to 10 days by, for example, the square root of time. An institution using this approach shall periodically justify the reasonableness of its approach to the satisfaction of the competent authorities);