13 Amendments of Wolf KLINZ related to 2009/0099(COD)
Amendment 77 #
Proposal for a directive – amending act
Recital 4 a (new)
Recital 4 a (new)
(4a) This Directive lays down minimum core principles on remuneration policy. Those principles should be applied in a manner that is proportionate to the nature, scope, complexity and riskiness of the activities, size and internal structure of the credit institution or investment firm concerned. This Directive should urge Member States to implement common measures which guarantee a level playing field.
Amendment 87 #
Proposal for a directive – amending act
Recital 9 a (new)
Recital 9 a (new)
Amendment 107 #
Proposal for a directive – amending act
Recital 26
Recital 26
(26) Given recent weak performance, the standards for internal models to calculate market risk capital requirements should be strengthened. In particular, their capture of risks should be completed regarding credit risks in the trading book. Furthermore, capital charges should include a component adequate to stress conditions to strengthen capital requirements in view of deteriorating market conditions and in order to reduce the potential for pro- cyclicality. Financial institutions should also carry out reverse stress tests to examine what scenarios could challenge the viability of the bank unless they can prove that such a test is dispensable. Given the recent particular difficulties of treating securitisation positions using approaches based on internal models, institutions' ability to model securitisation risks in the trading book should be limited and a standardised capital charge for securitisation positions in the trading book should be required by default.
Amendment 116 #
Proposal for a directive – amending act
Article 1 – point 1
Article 1 – point 1
Directive 2006/48/EC
Article 4 – point 40a
Article 4 – point 40a
(40a) 're-securitisation' means a securitisation where one or moremore than 10 % of the underlying exposures as measured by the exposure value meet the definition of a securitisation position;
Amendment 117 #
Proposal for a directive – amending act
Article 1 – point 2 – point a
Article 1 – point 2 – point a
Directive 2006/48/EC
Article 22 – paragraph 1– subparagraph 1 a (new)
Article 22 – paragraph 1– subparagraph 1 a (new)
1a. With regard to transparency, financial institutions acting as prime brokers shall be required to inform their competent authorities on all credit positions they have issued to hedge funds and other professional investors.
Amendment 125 #
Proposal for a directive – amending act
Article 1 – point 9
Article 1 – point 9
Directive 2006/48/EC
Article 122b
Article 122b
Amendment 160 #
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
Annex V – section 11 – point 22 – point e
(e) Where remuneration is performance related, the total amount of remuneration is based on a combination of the assessment of the performance of the individual and of the business unit concerned and of the overall results of the credit institution and performance itself denotes the degree to which the employees' contractual objectives have been achieved;
Amendment 171 #
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 g
Annex V – section 11 – point 22 – point g
(g) payments related to the early termination of a contract reflect performance achieved over time and are designed in a way that does not reward failure and contracts are designed in a way that makes it possible to punish acts of gross negligence by payment deductions, gross negligence occurring where necessary diligence, in particular, is not respected, in which case the remuneration committee establishes that the deduction is not merely of symbolic nature but contributes substantially to paying for the damage caused; in addition, financial institutions are to be urged to make use of a malus, which means the return of performance-related compensation as a result of the discovery of poor performance;
Amendment 184 #
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 i
Annex V – section 11 – point 22 – point i
(i) payment of the major part of a significant bonus is deferred for an appropriate period and is linked to the future performance of the firm whereby the pay-out of a bonus in shares or share- linked instruments or where appropriate in other non-cash instruments is in line with the long-term value creation and the time horizons of risk of the respective financial institution.
Amendment 194 #
Proposal for a directive – amending act
Annex I – point 3 – point a a (new)
Annex I – point 3 – point a a (new)
Directive 2006/48/EC
Annex IX – part 3 – point 1 – point c a (new)
Annex IX – part 3 – point 1 – point c a (new)
(aa) In Part 3, point 1, the following point is added: "(ca) With regard to Directive 1060/2009/EC, the credit assessment must be based on a scientific methodology and on attributable operating figures which have to be forwarded to the responsible authorities. Ratings which demonstrably are not based on a concrete reflection of facts and a sound methodology shall not be used for calculating risk weighted exposures for securitisation or re- securitisation positions."
Amendment 198 #
Proposal for a directive – amending act
Annex I – point 4 – point a
Annex I – point 4 – point a
Directive 2006/48/EC
Annex XII – part 2 – point 10 – point a – point iv
Annex XII – part 2 – point 10 – point a – point iv
(iv) a description of the approaches used for back-testing and validating the accuracy and consistency of the internal models and modelling processes; whereby the benchmark for accuracy shall be based on ex-post evaluation, among other things, the divergence between the calculated and the true capital requirements in cases of occurred stress scenarios;
Amendment 224 #
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+c and ms) 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 10b(a). Competent authorities shall require the institutions to calculate overshootings consistently on the basis of back-testing on hypothetical 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.
Amendment 227 #
Proposal for a directive – amending act
Annex II – point 3 – point i
Annex II – point 3 – point i
Directive 2006/49/EC
Annex V – point 10b a (new)
Annex V – point 10b a (new)
(10ba) Financial institutions shall also carry out reverse stress tests.