BETA

Activities of Arlene McCARTHY related to 2011/0203(COD)

Plenary speeches (1)

2016/11/22
Dossiers: 2011/0203(COD)

Amendments (22)

Arlene McCARTHY

Proposal for a directive
Article 75 – paragraph 4 – subparagraph 2

The risk committee, or, when such a committee has not been established, the management body in its supervisory function, shall determine the nature, the amount, the format, and the frequency of the information on risk it shall receive from senior management. The risk committee to assist sound compensation policies and practices, shall demonstrate that incentives provided by the compensation system take into consideration risk, capital, liquidity and the likelihood and timing of earnings.

2012/03/07
Committee: ECON

Arlene McCARTHY

Proposal for a directive
Article 88 – paragraph 2 – point c a (new)

(ca) the management body, in its supervisory function, of the institution sets and periodically reviews a limit, expressed in terms of a ratio, to the extent to which the total remuneration of persons referred to in this paragraph may exceed the average total remuneration paid to members of the staff of the institution.

2012/03/07
Committee: ECON

Arlene McCARTHY

Proposal for a directive
Article 90 – paragraph 1 – subparagraph 1 – point c a (new)

(ca) guaranteed bonuses are not consistent with sound risk management or the pay-for-performance principle and shall not be a part of prospective compensation plans;

2012/03/07
Committee: ECON

Arlene McCARTHY

Proposal for a directive
Article 90 – paragraph 1 – subparagraph 1 – point d

(d) guaranteed variable remuneration is exceptional ~~and~~, occurs only when hiring new staff and is limited to the first year of employment, provided that the institution has a sound and strong capital base;

2012/03/07
Committee: ECON

Arlene McCARTHY

Proposal for a directive
Article 91 – paragraph 2

2. Competent authorities shall ensure that the remuneration committee is responsible for the preparation of decisions regarding remuneration, including those which have implications for the risk and risk management of the credit institution concerned and which are to be taken by the management body in its supervisory function. The Chair and the members of the remuneration committee shall be members of the management body who do not perform any executive functions in the credit institution concerned. The remuneration committee shall include employee representatives and shall ensure its rules enable shareholders to act in concert. When preparing such decisions, the remuneration committee shall take into account the long- term interests of shareholders, investors and other stakeholders in the institution.

2012/03/07
Committee: ECON

Arlene McCARTHY

Proposal for a directive
Article 102 – paragraph 1 – subparagraph 1 – point b a (new)

(ba) the decisions including their reasons, which they have taken in accordance with Article 94(3) and Articles 97, 98 and 99; and

2012/03/07
Committee: ECON

Arlene McCARTHY

Proposal for a directive
Article 102 – paragraph 1 – subparagraph 1 – point b b (new)

(bb) any other information relevant to best practice in the area of supervisory reviews, evaluations and measures.

2012/03/07
Committee: ECON

Arlene McCARTHY

Proposal for a directive
Article 102 – paragraph 1 – subparagraph 2

~~Competent authorities shall notify EBA of the decisions including their reasons, which they have taken in accordance with Articles 94(3) and Articles 97, 98 and 99.~~deleted

2012/03/07
Committee: ECON

Arlene McCARTHY

Proposal for a directive
Article 102 – paragraph 2 – subparagraph 1

EBA shall annually report to the European Parliament and the Council on the developments in best supervisory practice and the degree of convergence of the application of the provisions of this Chapter between Member States.

2012/03/07
Committee: ECON

Arlene McCARTHY

Proposal for a directive
Article 102 – paragraph 2 – subparagraph 2

In order to spread best practice and increase the degree of such convergence, EBA shall conduct peer reviews in accordance with Article 30 of Regulation (EU) No 1093/2010.

2012/03/07
Committee: ECON

Arlene McCARTHY

Proposal for a directive
Article 102 – paragraph 3 – point a

(a) the common minimum standards regarding the procedure and methodology for review and evaluation systems referred to in paragraph 1 and in Article 92;

2012/03/07
Committee: ECON

Arlene McCARTHY

Proposal for a directive
Article 102 – paragraph 3 – point b

(b) the ~~criteria~~minimum criteria that must be considered concerning the organisation and treatment of the risks referred to in Articles 75 to 85 and the minimum criteria on review and evaluation by the competent authorities as referred to in Article 92.

2012/03/07
Committee: ECON

Arlene McCARTHY

Proposal for a directive
Chapter 4 – Section I – title

Capital Conservation ~~and~~, Countercyclical Capital and Systemic Buffers

2012/03/07
Committee: ECON

Arlene McCARTHY

Proposal for a directive
Article 122 – paragraph 1 – point 2

(2) ‘Combined Buffer Requirement’ means the total Common Equity Tier 1 capital required to meet the requirement for the Capital Conservation Buffer extended by an institution specific Countercyclical Capital Buffer or a Systemic Buffer, if more than 0% of risk weighted assets;

2012/03/07
Committee: ECON

Arlene McCARTHY

Proposal for a directive
Article 122 – paragraph 1 – point 5 a (new)

(5a) 'Global systemic institution' means an institution which in case of failure or malfunction could lead to systemic risk on a global level;

2012/03/07
Committee: ECON

Arlene McCARTHY

Proposal for a directive
Article 122 – paragraph 1 – point 5 b (new)

(5b) 'Domestic systemic institution' means an institution which in case of failure or malfunction could lead to systemic risk within a Member State;

2012/03/07
Committee: ECON

Arlene McCARTHY

Proposal for a directive
Article 122 – paragraph 1 – point 5 c (new)

(5c) 'Systemic risk' means a risk of disruption in the financial system with the potential to have serious negative consequences for the financial system and the real economy;

2012/03/07
Committee: ECON

Arlene McCARTHY

Proposal for a directive
Article 122 – paragraph 1 – point 5 d (new)

(5d) 'Systemic Buffer' means the own funds that a specific systemic institution is required to maintain in accordance with Article 124a;

2012/03/07
Committee: ECON

Arlene McCARTHY

Proposal for a directive
Article 124 a (new)

Article 124a Requirement to maintain a Systemic Buffer 1. Competent authorities shall require a domestic systemic institution identified in accordance with Article 130b to maintain an appropriate Systemic Buffer equivalent to at least 1% of their total risk exposure amount calculated in accordance with Article 87 (3), on an individual or consolidated basis as applicable in accordance with Part One, Title II of Regulation (EU) No. .../2012 of ... [on prudential requirements for credit institutions and investment firms], to be held by the institution in the Member State, the parent institution in a Member State, the parent financial holding company in a Member State, or a parent mixed financial holding company in a Member State and held for the purposes of the domestic systemic institution. Member States shall consider the views of a jurisdiction that is the host supervisor of a branch that is identified as a domestic systemic institution in the host jurisdiction. 2. Competent authorities shall require any global systemic institution identified in accordance with Article 130b to maintain an appropriate Systemic Buffer equivalent to at least 1% of their total risk exposure amount calculated in accordance with Article 87 (3) on an individual or consolidated basis, as applicable in accordance with Part One, Title II of Regulation (EU) No. .../2012 of ... [on prudential requirements for credit institutions and investment firms]. 3. When setting the appropriate Systemic Buffer in accordance with paragraph 1 or 2, competent authorities shall take into account recommendations issued and maintained by the ESRB under Article 130a. 4. Global and domestic systemic institutions shall meet the requirement imposed by paragraph 1 or 2 with Common Equity Tier 1 capital, which shall be additional to any Common Equity Tier 1 capital maintained to meet the own funds requirement imposed by Article 87 of Regulation (EU) No. .../2012 of ... [on prudential requirements for credit institutions and investment firms], the requirement to maintain a Capital Conservation Buffer under Article 123, the requirement to maintain an institution specific countercyclical capital buffer under Article 124 and any requirement imposed under Article 100. 5. Competent authorities shall disclose the Systemic Buffer required under paragraphs 1 and 2. 6. Where a systemic institution fails to meet in full the requirement under paragraph 1 or 2, it shall be subject to the restrictions on distributions set out in paragraphs 2 and 3 of Article 131.

2012/03/07
Committee: ECON

Arlene McCARTHY

Proposal for a directive
Section II a (new)

SECTION IIa Identification of systemic institutions Article 130a ESRB recommendations on identifying global and domestic systemic institutions and setting Systemic Buffer rates The ESRB shall give, by way of recommendations in accordance with Article 16 of Regulation (EU) No. 1092/2010, guidance to competent authorities on identifying global and domestic systemic institutions and setting Systemic Buffer rates, taking into account internationally agreed standards or practices for global or domestic systemic institutions. 2. The ESRB recommendations shall include the following: (a) the identification of global systemic institutions and principles to guide competent authorities when exercising their judgement as to the identification of global systemic institutions in accordance with Article 130b; (b) principles to guide competent authorities when exercising their judgement as to the identification of domestic systemic institutions in accordance with Article 130b; (c) principles to guide the appropriate setting of a Systemic Buffer rate. 3. Where it has issued a recommendation under paragraph 1, the ESRB shall keep it under review and update it where necessary, in the light of experience of identifying global or domestic systemic institutions or setting buffers under this Directive or in the light of developments in internationally agreed standards or practices.

2012/03/07
Committee: ECON

Arlene McCARTHY

Proposal for a directive
Article 130 b (new) (under Section IIa)

Article 130b Identification of systemic institutions Competent authorities shall, based on quantitative and qualitative analysis, identify global and domestic systemic institutions within their jurisdiction, in particular taking account of the: (a) Size of the institution; (b) Substitutability of the services provided by the institution; (c) Interconnectedness with the financial system of the institution; (d) Complexity of the institution. 2. In identifying global systemic institutions competent authorities shall also take into account the institution's cross-border activities. 3. In identifying domestic systemic institutions, competent authorities shall consider the potential systemic risk posed within their Member State by their domestic operations and by any of the cross-border operations for which the domestically systemic institution is ultimately responsible for. 4. When exercising their judgement under paragraphs 1, 2 and 3, competent authorities shall take into account recommendations issued and maintained by the ESRB under Article 130a. 5. In addition to the global and domestic systemic institutions identified on the basis of paragraphs 1 to 4, competent authorities may take into account further structural variables to identify additional domestic systemic institutions for the purposes of this chapter. 6. The identified global and domestic systemic institutions shall be notified to the ESRB, EBA and the Commission.

2012/03/07
Committee: ECON

Arlene McCARTHY

Proposal for a directive
Article 130 c (new) (under Section IIa)

Article 130c Review of the provisions for systemic institutions By 1 January 2014 the Commission shall, after consulting the ESRB, review Article 124a and Articles 130a to 130c taking into account any internationally agreed standards for the identification of global and domestic systemic institutions and the setting of systemic buffer and, if appropriate, submit a legislative proposal to the European Parliament and the Council.

2012/03/07
Committee: ECON