Activities of Wolf KLINZ related to 2012/0150(COD)
Plenary speeches (1)
Framework for the recovery and resolution of credit institutions and investment firms - Deposit guarantee schemes (debate)
Shadow reports (1)
REPORT on the proposal for a directive of the European Parliament and of the Council establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directives 77/91/EEC and 82/891/EC, Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC and 2011/35/EC and Regulation (EU) No 1093/2010 PDF (1 MB) DOC (640 KB)
Amendments (121)
Amendment 150 #
Proposal for a directive
Recital 8 a (new)
Recital 8 a (new)
(8a) To ensure consistency in the regulatory framework, central counterparties as defined in the Regulation (EU) No 648/2012 (EMIR) and central securities depositories as defined in the Regulation (EU) No XXXX/20XX (CSDR) should be covered by a separate legislative initiative establishing a recovery and resolution framework for these institutions, which should be proposed by the European Commission as soon as possible.
Amendment 151 #
Proposal for a directive
Recital 10
Recital 10
(10) National Authorities should take into account the risk, size, shareholding structure and interconnectedness of an institution in the context of recovery and resolution plans and when using the different tools at their disposal, making sure that the regime is applied in an appropriate way.
Amendment 157 #
Proposal for a directive
Recital 11
Recital 11
(11) In order to ensure the required speed of action, to guarantee independence from economic actors and to avoid conflicts of interest, Member States should appoint public administrative authorities to perform the functions and tasks in relation to resolution pursuant to this Directive. Member States should ensure that appropriate resources are allocated to those resolution authorities. The designation of public authorities should not exclude delegation under the responsibility of the resolution authority. However, it is not necessary to prescribe the exact authority that Member States should appoint as the resolution authority. While harmonisation of that aspect may facilitate coordination, it would also considerably interfere with the constitutional and administrative systems of Member Statrefore resolution authorities should be allocated within competent supervisory authorities. A sufficient degree of coordination can still be achieved with a less intrusive requirement: all the national authorities involved in the resolution of institutions should be represented in resolution colleges, where coordination at cross- border or Union level should take place. Member States should, therefore, be free to choose which supervisory authorities should be responsible for applying the resolution tools and exercising the powers provided for in this Directive.
Amendment 171 #
Proposal for a directive
Recital 17
Recital 17
(17) Where an institution does not present an adequate recovery plan, supervisors should be empowered to require that institution to take any measure necessary to redress the deficiencies of the plan, including making assessment of possible changes to its business model or to its funding strategy. That requirement may affect the freedom to conduct a business as guaranteed by Article 16 of the Charter of Fundamental Rights. The limitation of that fundamental right is however necessary to meet the objectives of financial stability and for protecting depositors and creditors. More specifically, such a limitation is necessary in order to strengthen the business of institutions and avoid that institutions grow excessively or take excessive risks without being able to tackle setbacks and losses and to restore their capital base. The limitation is also proportionate as only preventative action can ensure that adequate precautions are taken and therefore complies with Article 52 of the Charter of Fundamental Rights of the European Union.
Amendment 191 #
Proposal for a directive
Recital 23
Recital 23
(23) In order to preserve financial stability, it is important that competent authorities be able to remedy the deterioration of an institution’s financial and economic situation before that institution reaches a point at which authorities have no other alternative than to resolve it. To this end, competent authorities should be granted early intervention powers, including the power to replace the management body of an institution with a specialthe new managerment; this would serve as a means of exerting pressure on the institution in question to take measures to restore its financial soundness and/or to reorganise its business so as to ensure its viability at an early stage. The task of the specialnew managerment should be to take all measures necessary and promote solutions in order to redress the financial situation of the institution. The appointment of the special manager should not howeverre should be no derogateion from any rights of the shareholders or owners or procedural obligations established under Union or national company law and should respect international obligations of the Union or Member States, relating to investment protection. . The early intervention powers should include those already specified under Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions for circumstances other than those considered as early intervention as well as other situations considered necessary to restore the financial soundness of an institution.
Amendment 194 #
Proposal for a directive
Recital 24
Recital 24
(24) The resolution framework should provide for timely entry into resolution before a financial institution is balance- sheet insolvent and before all equity has been fully wiped out. Resolution should be initiated when a firm is no longer viable or likely to be no longer viable and other measures have proved insufficient to prevent failure. The fact that an institution does not meet the requirements for authorization should not justify per-se the entry into resolution, especially if the institution is still or likely to be still viable. An institution should be considered as failing or likely to fail when it is or is to be in breach of the capital requirements for continuing authorisation because it has incurred or is likely to incur in losses that are to deplete all or substantially all of its own funds, when the assets of the institution are or are to be less than its liabilities, when the institution is or is to be unable to pay its obligations as they fall due, or when the institution requires extraordinary public financial support. The need for emergency liquidity assistance from a central bank should not in itself be a condition that sufficiently demonstrates that an institution is or will be, in the near-term, unable to pay its liabilities as they fall due. In order to preserve financial stability, in particular in case of a systemic liquidity shortage, State guarantees on liquidity facilities provided by central banks or State guarantees on newly issued liabilities should not trigger the resolution framework provided that a number of conditions are met. In particular the State guarantee measures should to be approved under the State aid framework and should not be part of a larger aid package, and the use of the guarantee measures should be strictly limited in time. In both instances, the bank needs to be solvent.
Amendment 210 #
Proposal for a directive
Recital 35
Recital 35
(35) The resolution tools should be applied before any public sector injection of capital or equivalent extraordinary public financial support to an institution. This, however, should not impede the use, for the purpose of financing resolution, of funds from the deposit guarantee schemes or the resolution fundaccording to the sectoral Union legislation regarding the limits of use and financing aspects of such schemes. In this respect, the use of extraordinary public financial support or resolution funds, including deposit guarantee funds, including a potential use the ESM, to assist in the resolution of failing institutions should be assessed in accordance with relevant State aid provisions.
Amendment 221 #
Proposal for a directive
Recital 47
Recital 47
(47) It is not appropriate to apply the bail- in tool to claims in so far as they are secured, collateralised or otherwise guaranteed. However, in order to ensure that the bail-in tool is effective and achieves its objectives, it is desirable that it can be applied to as wide a range of the unsecured liabilities of a failing institution as possible. Nevertheless, it is appropriate to exclude certain kinds of unsecured liability from the scope of application of the bail-in tool. For reasons of public policy and effective resolution, the bail-in tool should not apply to those deposits that are protected under Directive 94/19/EC of the European Parliament and of the Council of 30 May 1994 on deposit- guarantee schemes, to liabilities to employees of the failing institution or to commercial claims that relate to goods and services necessary for the daily functioning of the institution.
Amendment 228 #
Proposal for a directive
Recital 50
Recital 50
(50) To avoid institutions structuring their liabilities in a manner that impedes the effectiveness of the bail in tool it is appropriate to establish that theeach institutions should have at all times an aggregate amount of own funds, subordinated debt and senio, senior liabilities and other liabilities subject to the bail in tool expressed as a percentage of the total liabilities of the institution, that do not qualify as own funds for the purposes of Directive 2006/48/EC or Directive 2006/49/EC. That amount should be expressed in resolution plans for each institution. Resolution authorities should also be able to require that this percentage is totally or partially composed of own funds and subordinated debt.
Amendment 231 #
Proposal for a directive
Recital 51
Recital 51
(51) Member States should ensure that Additional Tier 1 and Tier 2 capital instruments fully absorb losses at the point of non-viability of the issuing institution. Accordingly, resolution authorities should be required at that point to write down those instruments in full, or to convert them to Common Equity Tier 1 instruments, at the point of non-viability and before any other resolution action is taken. For this purpose, the point of non- viability should be understood as the point at which the relevant national authority determines that the institution meets the conditions for resolution orand the point at which the authority decides that the institution ceases to be viable if those capital instruments are not written down. The fact that the instruments are to be written down or converted by authorities in the circumstances required by this Directive should be recognised in the terms governing the instrument, and in any prospectus or offering documents published or provided in connection with the instruments.
Amendment 233 #
Proposal for a directive
Recital 52
Recital 52
(52) The bail-in tool, maintaining the institution as a going concern, should maximise the value of the creditors’ claims, improve market certainty and reassure counterparties. In order to reassure investors and market counterparties and to minimise its impact it is necessary to allow not to apply the bail-in tool until 1 January 20185.
Amendment 238 #
Proposal for a directive
Recital 68
Recital 68
(68) There are circumstances when the effectiveness of the resolution tools applied may depend on the availability of short- term funding for the institution or a bridge institution, the provision of guarantees to potential purchasers, or the provision of capital to the bridge institution. Notwithstanding the role of central banks in providing liquidity to the financial system even in times of stress, it is important that Member States uset up financing arrang the means from Deposit Guarantee Schements to avoid that the funds needed for such purposes come from the national budgets. It should be the financial industry, as a whole, that finances the stabilisation of the financial system.
Amendment 240 #
Proposal for a directive
Recital 69
Recital 69
(69) As a principle, contributions to the deposit guarantee schemes should be collected from the industry prior to and independently of any operation of resolution. When prior funding is insufficient to cover the losses or costs incurred by the use of the financing arrangdeposit guarantee schements, additional contributions should be collected ex-post to bear the additional cost or loss.
Amendment 243 #
Proposal for a directive
Recital 70
Recital 70
(70) In order to reach a critical mass and to avoid pro-cyclical effects which would arise if financing arrangdeposit guarantee schements had to rely solely on ex post contributions in a systemic crisis, it is indispensable that the ex-ante available financial means of the national financing arrangdeposit guarantee schements amount to a certain target level of 1.5% of covered deposits.
Amendment 245 #
Proposal for a directive
Recital 71
Recital 71
(71) In order to ensure a fair calculation of contributions to the deposit guarantee schemes and provide incentives to operate under a less risky model, contributions to national financing deposit guarrangtee schements should also take account of the degree of risk incurred by credit institutions.
Amendment 248 #
Proposal for a directive
Recital 72
Recital 72
(72) Ensuring effective resolution of failing financial institutions within the Union is an essential element in the completion of the internal market. The failure of such institutions has an effect not only on the financial stability of the markets where it directly operates but also on the whole Union financial market. With the completion of the internal market in financial services the interplay between the different national financial systems is reinforced. Institutions operate outside their Member State of establishment and are interrelated to each other through the interbank and other markets which, in essence are pan-European. Ensuring effective financing of the resolution of those institutions at equal conditions across Member States is in the best interest of the Member States in which they operate but also of all the Member States in general as a means to ensure equal conditions of competition and improve the functioning of the single Union financial market. Setting up a European System of FinancEventually, setting up a harmonized European framework for funding Aarrangements shcould potentially ensure that all institutions that operate in the Union are subject to equally effective resolutiondeposit guarantee funding arrangements and contribute to the stability of the single market.
Amendment 249 #
Proposal for a directive
Recital 73
Recital 73
Amendment 256 #
Proposal for a directive
Recital 77
Recital 77
Amendment 269 #
Proposal for a directive
Article 1 – paragraph 1 a (new)
Article 1 – paragraph 1 a (new)
Public special credit institutions owned by regional or central governments and/or provided with explicit guarantee arrangements or comparable liability instruments by these governments shall be exempted from the regulatory scope of this Directive.
Amendment 307 #
Proposal for a directive
Article 2 – paragraph 3
Article 2 – paragraph 3
Amendment 309 #
Proposal for a directive
Article 3 – paragraph 1
Article 3 – paragraph 1
1. Each Member States shall designate one or more resolution authoritiesy that areis empowered to apply the resolution tools and exercise the resolution powers.
Amendment 317 #
Proposal for a directive
Article 3 – paragraph 3
Article 3 – paragraph 3
3. Resolution authorities may beshall be organised within the competent authorities for supervision for the purposes of Directives 2006/48/EC and 2006/49/EC, central banks, competent ministries or other public administrative authorities, provided that. Member States shall adopt rules and arrangements necessary to avoid conflicts of interest between the functions of supervision pursuant to Directives 2006/48/EC and 2006/49/EC or the other functions of the relevant authority and the functions of the resolution authoritiesy pursuant to this Directive. In particular, Member States shall ensure that, within the competent authorities, central banks, competent ministries or other public administrative authorities there is an organisational separation between the resolution function and the supervisory or other functions of the relevant authority.
Amendment 323 #
Proposal for a directive
Article 3 – paragraph 4
Article 3 – paragraph 4
Amendment 337 #
Proposal for a directive
Article 3 – paragraph 7
Article 3 – paragraph 7
Amendment 342 #
Proposal for a directive
Article 3 – paragraph 8
Article 3 – paragraph 8
8. Member States shall inform European Banking Authority (EBA) of the national authority or authorities appointed as resolution authoritiesy and contact authority and, where relevant, their specific functions and responsibilities. EBA shall publish the list of those resolution authorities.
Amendment 351 #
Proposal for a directive
Article 4 – paragraph 1 – introductory part
Article 4 – paragraph 1 – introductory part
1. Having regard to the impact that the failure of the institution could have, due to the nature of its business, its shareholding structure, its size or its interconnectedness to other institutions or to the financial system in general, on financial markets, on other institutions, on funding conditions, or on the real economy, Member States shall ensure that competent and resolution authorities determine the extent to which the following apply to institutions:
Amendment 360 #
Proposal for a directive
Article 4 – paragraph 1 – point a a (new)
Article 4 – paragraph 1 – point a a (new)
(aa) the frequency with which institutions shall update their recovery and resolution plans provided for in Articles 5, 7, 9 and 11;
Amendment 375 #
Proposal for a directive
Article 4 – paragraph 2
Article 4 – paragraph 2
2. The Commission shall be empowered to adopt delegated acts in accordance with Article 103 in orderEBA shall develop draft regulatory technical standards to specify the criteria referred to in paragraph 1, for assessing, in accordance with paragraph 1, the impact of an institution failure on financial markets, on other institutions and on funding conditions. , on funding conditions and on the real economy. EBA shall submit those draft implementing technical standards to the Commission within twelve months from the date of entry into force of this Directive. Power is conferred on the Commission to adopt the implementing technical standards submitted by EBA in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Amendment 379 #
Proposal for a directive
Article 4 – paragraph 3
Article 4 – paragraph 3
3. Competent and resolution authorities shall inform EBA of the way they have applied the requirement referred to in paragraph 1 to institutions in their jurisdiction. EBA shall report to the Commission by 1st January 2018 at the latest, the European Parliament and the Council annually on the implementation of the requirement referred to in paragraph 1. In particular EBA shall report to the Commission whether there are divergences regarding the implementation at national level of that requirement.
Amendment 396 #
Proposal for a directive
Article 5 – paragraph 2
Article 5 – paragraph 2
2. Member States shall ensure that the institutions update their recovery plans at least annually or after change to the legal or organisational structure of the institution, its business or its financial situation, which could have a material effect on, or necessitates a change to the recovery plan. Competent authorities may require institutions to update their recovery plans more frequently.
Amendment 412 #
Proposal for a directive
Article 5 – paragraph 5 a (new)
Article 5 – paragraph 5 a (new)
5a. The competent authorities may waive the requirement of this Article where they deem that the arrangements for an institution whose parent undertaking or institution is established in another Member State and subject to consolidated supervision are appropriately addressed in the group recovery plan prepared in accordance with Article 7.
Amendment 449 #
Proposal for a directive
Article 6 – paragraph 4 – point d
Article 6 – paragraph 4 – point d
(d) makassess possible changes to the funding strategy so as to improve the resilience of the core business lines and critical operations;
Amendment 451 #
Proposal for a directive
Article 6 – paragraph 4 – point e
Article 6 – paragraph 4 – point e
(e) makassess possible changes to the governance structure of the institution.
Amendment 497 #
Proposal for a directive
Article 8 – paragraph 2 – subparagraph 1
Article 8 – paragraph 2 – subparagraph 1
The competent authorities shall endeavour to reach the joint decision within a period of fourthree months.
Amendment 499 #
Proposal for a directive
Article 8 – paragraph 2 – subparagraph 2
Article 8 – paragraph 2 – subparagraph 2
In the absence of a joint decision between the competent authorities within fourthree months, the consolidating supervisor shall make its own decision on the review and assessment of the group recovery plan or on the measures required in accordance with Article 6(4). The decision shall be set out in a document containing the fully reasoned decision and should take into account the views and reservations of the other competent authorities expressed during the four-month period. The consolidating supervisor shall notify the decision to the parent undertaking of the institution subject to consolidated supervision and to the other competent authorities.
Amendment 508 #
Proposal for a directive
Article 8 – paragraph 2 – subparagraph 3
Article 8 – paragraph 2 – subparagraph 3
EBA may on its own initiativeat request of the competent authorities assist the competent authorities in reaching an agreement in accordance with Article 19 of Regulation (EU) No 1093/2010.
Amendment 512 #
Proposal for a directive
Article 8 – paragraph 3
Article 8 – paragraph 3
3. Any competent authority that disagrees with the assessment of the group recovery plan or any action that the parent undertaking or institution would be required to take as a result of that assessment in accordance with Article 6(2) and (4) of this Directive, may refer the matter to EBA in accordance with Article 19 of Regulation (EU) No 1093/2010. The matter may not be referred to EBA after the end of the fourthree-month period or after a joint decision has been reached.
Amendment 515 #
Proposal for a directive
Article 8 – paragraph 4
Article 8 – paragraph 4
4. EBA shall take its decision within one month, and the fourthree-month period referred to in paragraph 3 will be treated as the conciliation period within the meaning of Regulation (EU) No 1093/2010.
Amendment 524 #
Proposal for a directive
Article 9 – paragraph 1
Article 9 – paragraph 1
1. Resolution authorities, in consultation with competent authorities, shall draw up a resolution plan for each institution that is not part of a group subject to consolidated supervision pursuant to Articles 125 and 126 of Directive 2006/48/EC. The resolution plan shall provide for the resolution actions which the resolution and competent authorities may take where the institution meets the conditions for resolution.
Amendment 533 #
Proposal for a directive
Article 9 – paragraph 2
Article 9 – paragraph 2
2. The resolution plan shall take into consideration a range of scenarios including that the event of failure may be idiosyncratic or may occur at a time of broader financial instability or system wide events. The resolution plan shall not assume any extraordinary public financial support besides the use of the financing arrangements established in accordance with Article 91nor any central bank emergency liquidity assistance.
Amendment 539 #
Proposal for a directive
Article 9 – paragraph 3 a (new)
Article 9 – paragraph 3 a (new)
3a. The competent authorities may derogate from the requirement of this Article where they deem that the arrangements for an institution whose parent undertaking or institution is established in another Member State and subject to consolidated supervision are appropriately addressed in the group resolution plan prepared in accordance with Article 11.
Amendment 540 #
Proposal for a directive
Article 9 – paragraph 4 – introductory part
Article 9 – paragraph 4 – introductory part
4. The resolution plan shall set out options for applying the resolution tools and resolution powers, especially those referred to in Title IV, to the institution. It shall include:
Amendment 593 #
Proposal for a directive
Article 12 – paragraph 4 – subparagraph 1
Article 12 – paragraph 4 – subparagraph 1
The group resolution plan shall take the form of a joint decision of the group level resolution authority and the other relevant resolution authorities. The resolution authorities shall make a joint decision within a period of fourthree months from the date of the transmission by the group level resolution authority of the information referred to in the second subparagraph of paragraph 1.
Amendment 597 #
Proposal for a directive
Article 12 – paragraph 4 – subparagraph 2
Article 12 – paragraph 4 – subparagraph 2
In the absence of such a joint decision between the resolution authorities within fourthree months, the group level resolution authority shall make its own decision. The decision shall be set out in a document containing the fully reasoned decisions and shall take into account the views and reservations of the other competent authorities expressed during the fourthree- month period. The group level resolution authority shall provide the decision to the parent undertakings or institution which is subject to consolidated supervision and to other resolution authorities.
Amendment 605 #
Proposal for a directive
Article 12 – paragraph 4 – subparagraph 3
Article 12 – paragraph 4 – subparagraph 3
EBA may on its own initiativethe request of the competent authorities assist the competent authorities in reaching an agreement in accordance with Article 19 of Regulation (EU) No 1093/2010.
Amendment 610 #
Proposal for a directive
Article 12 – paragraph 5
Article 12 – paragraph 5
5. A resolution authority that disagrees with any element of the group resolution plan may refer the matter to EBA in accordance with Article 19 of Regulation (EU) No 1093/2010. The matter may not be referred to EBA after the end of the fourthree-month period or after a joint decision has been reached.
Amendment 614 #
Proposal for a directive
Article 12 – paragraph 6
Article 12 – paragraph 6
6. EBA shall take a decision within one month, and the fourthree-month period shall be treated as the conciliation period within the meaning of that Regulation. The subsequent decision of the group level resolution authority shall comply with the decision of EBA.
Amendment 620 #
Proposal for a directive
Article 13 – paragraph 1
Article 13 – paragraph 1
1. Member States shall ensure that resolution authorities, in consultation with competent authorities, assess the extent to which institutions and groups are resolvable without the assumption of extraordinary public financial support besides the use of the financing arrangements established in accordance with Article 91. An institution or group shall be deemed resolvable if it is feasible and credible for the resolution authority to either liquidate it under normal insolvency proceedings or to resolve it by applying the different resolution tools and powers to the institution and group without giving rise to significant adverse consequences for the financial systems, including in circumstances of broader financial instability or system wide events, of the Member State in which the institution is situated, having regard to the economy or financial stability in that same or other Member State or the Union and with a view to ensure the continuity of critical functions carried out by the institution or group either because they can be easily separated in a timely manner or by other means.
Amendment 643 #
Proposal for a directive
Article 14 – paragraph 3 – subparagraph 1 a (new)
Article 14 – paragraph 3 – subparagraph 1 a (new)
In identifying alternative measures, the resolution authority shall demonstrate how the measures proposed by the institution were not able to remove the impediment to resolution and how the alternative measures proposed are proportionate in removing impediments to resolution, and how other less intrusive measures are not sufficient.
Amendment 648 #
Proposal for a directive
Article 14 – paragraph 4 – point b
Article 14 – paragraph 4 – point b
(b) requiring the institution to limit its maximum individual and aggregate exposures in accordance with Regulation EU [.../...CRR];
Amendment 667 #
Proposal for a directive
Article 14 – paragraph 4 – point i
Article 14 – paragraph 4 – point i
Amendment 679 #
Proposal for a directive
Article 14 – paragraph 7
Article 14 – paragraph 7
7. Before indentifying any measure referred to in paragraph 3, resolution authorities shall duly consider the potential effect of those measures on the particular institution, on the stability of the financial system in other Member States and Union as a whole.
Amendment 708 #
Proposal for a directive
Article 15 – paragraph 5 – subparagraph 2
Article 15 – paragraph 5 – subparagraph 2
EBA may on its own initiativethe request of resolution authorities assist the resolution authorities in reaching an agreement in accordance with Article 19 of Regulation (EU) No 1093/2010.
Amendment 734 #
Proposal for a directive
Article 16 – paragraph 1
Article 16 – paragraph 1
1. Member States shall ensure that a parent institution in a Member State, or a Union parent institution, or a company referred to in points (c) and (d) of Article 1 and its subsidiaries in another Member States or third countries that are institutions or financial institutions covered by the supervision of the parent undertaking, may enter into an agreement to provide financial support to any other party to the agreement that experiences financial difficulties, provided that the conditions laid down in this chapter are satisfied.
Amendment 753 #
Proposal for a directive
Article 17 – paragraph 5
Article 17 – paragraph 5
5. In the absence of a joint decision between the competent authorities within fourthree months, the consolidating supervisor shall make its own decision on the application. The decision shall be set out in a document containing the full reasoning and shall take into account the views and reservations of the other competent authorities expressed during the fourthree- month period. The consolidating supervisor shall notify the decision to the applicant and the other competent authorities.
Amendment 759 #
Proposal for a directive
Article 17 – paragraph 6
Article 17 – paragraph 6
6. If, at the end of the fourthree-month period, any of the competent authorities concerned has referred the matter to EBA in accordance with Article 19 of Regulation (EU) No 1093/2010, the consolidating supervisor shall defer its decision and await any decision that EBA may take in accordance with Article 19(3) of that Regulation, and shall take its decision in conformity with the decision of EBA. The fourthree-month period shall be deemed the conciliation period within the meaning of that Regulation. EBA shall take its decision within one month. The matter shall not be referred to EBA after the end of the fourthree- month period or after a joint decision has been reached.
Amendment 765 #
Proposal for a directive
Article 18 – paragraph 1
Article 18 – paragraph 1
1. Member States mayshall require that any proposed agreement that has been authorised by the competent authorities be submitted for approval to the shareholders meeting of every group entity that proposes to enter into the agreement. In this case, the agreement shall be valid only in respect of those parties whose shareholders' meeting has approved the agreement.
Amendment 769 #
Proposal for a directive
Article 18 – paragraph 2
Article 18 – paragraph 2
2. Where Member States avail themselves of the option provided for in paragraph 1, they shall require that in accordance with the group financial support agreement, the shareholders of every group entity that will be a party to the agreement authorise the respective management body referred to in Article 11 of Directive 2006/48/EC to make a decision that the entity shall provide financial support in accordance with the terms of the agreement and in accordance with the conditions set out in this Chapter. No further approval by the shareholders nor any additional meeting for any specific transaction undertaken in accordance with the agreement shall be required.
Amendment 775 #
Proposal for a directive
Article 19 – paragraph 1 – point b
Article 19 – paragraph 1 – point b
(b) the provision of financial support has the objective of preserving or restoring the financial stability of the group as a whole or any of the entities of the group;
Amendment 776 #
Proposal for a directive
Article 19 – paragraph 1 – point c
Article 19 – paragraph 1 – point c
Amendment 782 #
Proposal for a directive
Article 20 – paragraph 1 – point a
Article 20 – paragraph 1 – point a
(a) how the financial support preserves or restores the financial stability of the group as a whole or any of the entities of the group;
Amendment 786 #
Proposal for a directive
Article 21 – paragraph 1
Article 21 – paragraph 1
1. BeforeWhen providing support in accordance with a group financial support agreement, the management body of an entity that intends to provide financial support shall notify its competent authority and EBA, where applicable, the consolidated supervisory authority. The notification shall include details of the proposedfinancial support.
Amendment 787 #
Proposal for a directive
Article 21 – paragraph 2
Article 21 – paragraph 2
Amendment 788 #
Proposal for a directive
Article 21 – paragraph 3
Article 21 – paragraph 3
Amendment 790 #
Proposal for a directive
Article 21 – paragraph 4
Article 21 – paragraph 4
Amendment 794 #
Proposal for a directive
Article 21 – paragraph 5
Article 21 – paragraph 5
Amendment 799 #
Proposal for a directive
Article 22 – paragraph 3 – subparagraph 1
Article 22 – paragraph 3 – subparagraph 1
Member States shall ensure that institutions that have entered into a group financial support agreement pursuant to Article 16 to make public a descriptionnotice of the agreement and the names of the entities that are party to it and update that information at least annually.
Amendment 805 #
Proposal for a directive
Article 23 – paragraph 1 – introductory part
Article 23 – paragraph 1 – introductory part
1. Where an institution does not meet or is likely to breach the requirements of Directive 2006/48/EC regarding either capital or liquidity, Member States shall ensure that competent authorities, have at their disposal, in addition to the measures referred to in Article 136 of Directive 2006/48/EC where applicable, in particular, the following measures:
Amendment 847 #
Proposal for a directive
Article 24
Article 24
Amendment 861 #
Proposal for a directive
Article 25 – title
Article 25 – title
Coordination of early intervention measures and appointment of special manager in relation to groups
Amendment 863 #
Proposal for a directive
Article 25 – paragraph 1
Article 25 – paragraph 1
1. Where the conditions for the imposition of requirements under Article 23 of this Directive or the appointment of a special manager in accordance with Article 24 of this Directive are met in relation to a parent undertaking or an institution subject to consolidated supervision pursuant to Articles 125 and 126 of Directive 2006/48/EC or any of its subsidiaries, the competent authority that intends to take a measure in accordance with those Articles 23 shall notify other relevant competent authorities within the supervisory college and EBA of its intention.
Amendment 866 #
Proposal for a directive
Article 25 – paragraph 2 – subparagraph 1
Article 25 – paragraph 2 – subparagraph 1
The consolidating supervisor and the other relevant competent authorities shall consider whether it is necessary to take measures in accordance with Article 23 or appoint a special manager in accordance with Article 24 in relation to other group entities and whether the coordination of the measures to be taken is desirable. The consolidating supervisor and other relevant authorities shall consider whether any alternative measure would be more likely to restore the viability of the individual entities and preserve the financial soundness of the group as a whole. Where more than one competent authority intends to appoint a special manager in relation to an entity affiliated to a group, authorities shall consider whether it is more appropriate to appoint the same special manager for all the entities concerned or for the whole group in order to facilitate solutions redressing the financial soundness of the group as a whole.
Amendment 938 #
Proposal for a directive
Article 27 – paragraph 5
Article 27 – paragraph 5
5. The Commission, taking into account, where appropriate, the experience acquired in the application of EBA guidelines, shallmay adopt delegated acts in accordance with Article 103 aimed at specifying the circumstances when an institution shall be considered as failing or likely to fail.
Amendment 973 #
Proposal for a directive
Article 29 a (new)
Article 29 a (new)
Article 29a Special management 1. Member States shall ensure that in the resolution of an institution competent authorities may appoint a special manager to replace the management of the institution. Competent authorities shall make public the appointment of a special manager. Member States shall further ensure that the special manager has the qualifications, ability and knowledge required to carry out his or her functions. 2. The special manager shall have all the powers of the management of the institution under the statutes of the institution and under national law, including the power to exercise all the administrative functions of the management of the institution. However, the special manager may only exercise the power to convene the general meeting of the shareholders of the institution and to set the agenda with the prior consent of the competent authority. 3. The special manager shall have the statutory duty to take all the measures necessary and to promote solutions in order to redress the financial situation of the institution and restore the sound and prudent management of its business and organization. Where necessary, that duty shall override any other duty of management in accordance with the statutes of the institution or national law, insofar as they are inconsistent. Those solutions may include an increase of capital, reorganisation of the ownership structure of the institution or takeovers by institutions that are financially and organisationally sound. 4. Competent authorities may set limits to the action of a special manager or require that certain acts of the special manager be subject to the competent authority's prior consent. The competent authorities may remove the special manager at any time. 5. Member States shall require that a special manager draw up reports for the appointing competent authority on the economic and financial situation of the institution and on the acts performed in the conduct of his duties, at regular intervals set by the competent authority and at the beginning and the end of its mandate. 6. Subject to the provisions in paragraphs 1 to 5 the appointment of the special manager shall not prejudice the rights of the shareholders or owners provided for in accordance Union or national company law.
Amendment 1088 #
Proposal for a directive
Article 38 – paragraph 2 – subparagraph 1 – point b a (new)
Article 38 – paragraph 2 – subparagraph 1 – point b a (new)
(b a) covered bonds as defined in Article 22(4) of Council Directive 86/611/EEC,
Amendment 1092 #
Proposal for a directive
Article 38 – paragraph 2 – subparagraph 1 – point d
Article 38 – paragraph 2 – subparagraph 1 – point d
Amendment 1119 #
Proposal for a directive
Article 38 – paragraph 2 – subparagraph 2
Article 38 – paragraph 2 – subparagraph 2
Points (a) and (b) of paragraph 2 shall not prevent resolution authorities, where appropriate, from exercising those powers in relation to any part of a secured liability or a liability for which collateral has been pledged that exceeds the value of the assets, pledge, lien or collateral against which it is secured. Member States may exempt from this provision covered bonds as defined in Article 22(4) of Council Directive 86/611/EEC.
Amendment 1136 #
Proposal for a directive
Article 38 – paragraph 3
Article 38 – paragraph 3
3. Until the implementing technical standards in paragraph 4 of this Article are adopted the following provision shall apply. Where resolution authorities apply the bail-in tool, they mayshall exclude from the application of the write-down and conversion powers liabilities arising from derivatives that do not fall within the scope of point (d) of paragraph 2, if that exclusion is necessary or appropriate to achieve the objectives specified in points (a) and (b) of Article 26(2).
Amendment 1141 #
Proposal for a directive
Article 38 – paragraph 4 – introductory part
Article 38 – paragraph 4 – introductory part
4. The Commission shall be empowered to adEBA shall developt delegated acts adopted in accordance with Article 103 in order to specify furtherraft regulatory technical standards to specify the following in order to ensure uniform application of this Directive:
Amendment 1144 #
Proposal for a directive
Article 38 – paragraph 4 – point a
Article 38 – paragraph 4 – point a
Amendment 1146 #
Proposal for a directive
Article 38 – paragraph 4 – point b a (new)
Article 38 – paragraph 4 – point b a (new)
(b a) EBA shall submit those draft regulatory technical standards to the Commission within twelve months from the date of entry into force of this Directive. Power is conferred on the Commission to adopt the implementing technical standards submitted by EBA in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Amendment 1152 #
Proposal for a directive
Article 39 – paragraph 1 – subparagraph 1 a (new)
Article 39 – paragraph 1 – subparagraph 1 a (new)
The sufficient aggregate amount of own funds and eligible liabilities shall be determined by competent authorities after consultation with resolution authorities for each institution individually and be expressed in resolution plans provided for in Articles 9 and 11.
Amendment 1173 #
Proposal for a directive
Article 39 – paragraph 3 – point c
Article 39 – paragraph 3 – point c
(c) the size, the businessshareholding structure, the business model, the funding model and the risk profile of the institution;
Amendment 1182 #
Proposal for a directive
Article 39 – paragraph 3 a (new)
Article 39 – paragraph 3 a (new)
3 a. No later than five years after entry into force of this Directive, systemic institutions determined in accordance with Directive 2006/48/EC shall maintain an additional minimum amount of instruments that satisfy the conditions set out in paragraph 2 ("targeted bail-in instruments"). This amount shall be equal to 5% of all assets but lowered proportionately if the systemic risk buffer applicable to the institution exceeds 1%.
Amendment 1183 #
Proposal for a directive
Article 39 – paragraph 5
Article 39 – paragraph 5
5. Resolution authorities shall require and verify that institutions maintain the aggregate amount provided for in paragraph 1, and take any decision pursuant to paragraph 4 in the course of developing and maintaining resolution plans. Resolution authorities shall ensure that institutions issue subordinated debt instruments and subordinated loans to meet the aggregate amount over an appropriate time period but no later than three years after entry into force of this Directive.
Amendment 1187 #
Proposal for a directive
Article 39 – paragraph 6
Article 39 – paragraph 6
6. Resolution authorities shall inform EBA of the minimum amount they have determined for each institution under their jurisdiction. on a confidential basis. Starting from 2015 EBA shall report to the Commission by 1 January 2018annually at the latest on the implementation of the requirement under paragraph 1 and (3a). In particular EBA shall report to the Commission whether there are divergences regarding the implementation at national level of that requirement.
Amendment 1192 #
Proposal for a directive
Article 39 – paragraph 7
Article 39 – paragraph 7
Amendment 1200 #
Proposal for a directive
Article 40 – paragraph 1 – introductory part
Article 40 – paragraph 1 – introductory part
1. Resolution authorities may choose toshall apply the minimum requirement established in Article 39(1) and (3) also on a consolidated basis to groups which are subject to consolidated supervision, provided that the following conditions are satisfied:
Amendment 1207 #
Proposal for a directive
Article 40 – paragraph 2
Article 40 – paragraph 2
2. When making a decision in accordance with paragraph 1, resolution authorities shall take into account the way in which the group structures its operations and in particular the extent to which funding, liquidity and risk are centrally managed and whether the relevant Member State has taken a decision in accordance with Article 69(3) of Directive 2006/48/EC.
Amendment 1208 #
Proposal for a directive
Article 40 – paragraph 3
Article 40 – paragraph 3
3. Resolution authorities shall take the decision to apply the minimum requirement also on a consolidated basis pursuant to paragraph 1 of this Article in the course of developing and maintaining resolution plans pursuant to Article 9 of this Directive. For groups subject to consolidated supervision in accordance with Articles 125 and 126 of Directive 2006/48/EC, resolution authorities shall take the decision to apply the minimum requirement on a consolidated basis in accordance with the procedure laid down in Article 12 of this Directive.
Amendment 1248 #
Proposal for a directive
Article 47 – paragraph 1
Article 47 – paragraph 1
1. Member States shall require that, within [one month] after the application of the bail- in tool to an institution in accordance with point (a) of Article 37(2), the administrator appointed under Article 46 shall draw up and submit to the resolution authority, the Commission and EBA and competent authority a business reorganisation plan that satisfies the requirements of paragraphs 2 and 3 of this Article. Where the Union State aid framework is applicable, Member States shall ensure that such plan is compatible with the restructuring plan that the institution is required to submit to the Commission under that framework.
Amendment 1251 #
Proposal for a directive
Article 47 – paragraph 2 – subparagraph 1
Article 47 – paragraph 2 – subparagraph 1
A business reorganisation plan shall set out measures aimed at restoring the long term viability of the institution or parts of its business within a reasonable timescale no longer than two years. Those measures shall be based on realistic assumptions as to the economic and financial market conditions under with the institution will operate.
Amendment 1272 #
Proposal for a directive
Article 50 – paragraph 3
Article 50 – paragraph 3
Amendment 1344 #
Proposal for a directive
Article 75 – paragraph 4 – point b
Article 75 – paragraph 4 – point b
(b) on the website of the competent authority, if different from the resolution authority, orand on the website of EBA;
Amendment 1350 #
Proposal for a directive
Article 76 – paragraph 1 – point d
Article 76 – paragraph 1 – point d
(d) employees or former employees of the authorities referred to in points (a), (b) and (bc);
Amendment 1352 #
Proposal for a directive
Article 76 – paragraph 1 – point e
Article 76 – paragraph 1 – point e
(e) special managers appointed under Article 24provisions of this Directive;
Amendment 1359 #
Proposal for a directive
Article 76 – paragraph 2 a (new)
Article 76 – paragraph 2 a (new)
2 a. Without prejudice to the generality of the requirements under paragraph 1, the persons referred to in that paragraph shall be prohibited from divulging: (a) the contents and details of recovery and resolution plans provided for in Articles 5, 7, 9, 10, and 11; (b) the results of any assessment carried out under Articles 6, 8 and 13.
Amendment 1361 #
Proposal for a directive
Article 76 – paragraph 3
Article 76 – paragraph 3
3. The confidentiality requirements set out in paragraphs 1, 2 and 2(2a) of this Article shall not prevent resolution authorities, including their employees, from sharing information with other Union resolution authorities, competent authorities, central banks, EBA, or, subject to Article 90, third country authorities that carry out equivalent functions to resolution authorities for the purposes of planning or carrying out a resolution action.
Amendment 1385 #
Proposal for a directive
Article 83 – paragraph 1 – introductory part
Article 83 – paragraph 1 – introductory part
1. Where a resolution authority decides, or is notified pursuant to Article 74(3), that an institution that is a subsidiary in a group is failing or likely to failaccording to Article 27 (1), that authority shall notify the following information without delay to the group level resolution authority, if different, and to the resolution authorities that are members of the resolution college for the group in question:
Amendment 1388 #
Proposal for a directive
Article 83 – paragraph 1 – point a
Article 83 – paragraph 1 – point a
Amendment 1408 #
Proposal for a directive
Article 85 – paragraph 2 – introductory part
Article 85 – paragraph 2 – introductory part
2. EBA shallmay recognise, except as provided for in Article 86, third country resolution proceedings relating to a third country institution that:
Amendment 1409 #
Proposal for a directive
Article 86 – paragraph 1 – introductory part
Article 86 – paragraph 1 – introductory part
1. EBA shall refuse, after consulting the national resolution authorities concerned, to recognise pursuant to Article 85(2) third country resolution proceedings if it considers that at least one of the following conditions is fulfilled:
Amendment 1418 #
Proposal for a directive
Article 90
Article 90
Amendment 1421 #
Proposal for a directive
Article 91
Article 91
Amendment 1438 #
Proposal for a directive
Article 92
Article 92
Amendment 1448 #
Proposal for a directive
Article 93
Article 93
Amendment 1467 #
Proposal for a directive
Article 94
Article 94
Amendment 1523 #
Proposal for a directive
Article 95
Article 95
Amendment 1529 #
Proposal for a directive
Article 96
Article 96
Amendment 1534 #
Proposal for a directive
Article 97
Article 97
Amendment 1567 #
Proposal for a directive
Article 98
Article 98
Amendment 1615 #
Proposal for a directive
Article 99 – paragraph 5
Article 99 – paragraph 5
Amendment 1620 #
Proposal for a directive
Article 99 – paragraph 6
Article 99 – paragraph 6
6. Member States shall ensure that the deposit guarantee scheme has arrangements in place to ensure that, following a contribution made by the deposit guarantee scheme under paragraphs 1 or 5 and where the depositors of the institution under resolution need to be reimbursed, the members of the scheme can immediately provide the scheme with the amounts that have to be paid.
Amendment 1623 #
Proposal for a directive
Article 99 – paragraph 7
Article 99 – paragraph 7
Amendment 1628 #
Proposal for a directive
Article 99 – paragraph 8 – subparagraph 1
Article 99 – paragraph 8 – subparagraph 1
Amendment 1631 #
Proposal for a directive
Article 99 – paragraph 8 – subparagraph 2
Article 99 – paragraph 8 – subparagraph 2
If the deposit guarantee scheme is, at the same time, requested to use its available financial means for the purposes specified in Article 92 or for the purpose of the first paragraph of this Article,resolution purposes and for the repayment of depositors under Directive 94/19/EC, and the available financial means are insufficient to satisfy all these requests, priority shall be given to the repayment of depositors under Directive 94/19/EC and to the actions specified under paragraph 1 of this Article, over the payments for the resolution purposes provided for in Article 92 of this Directive.
Amendment 1639 #
Proposal for a directive
Article 101 – paragraph 2 – point c
Article 101 – paragraph 2 – point c
Amendment 1640 #
Proposal for a directive
Article 101 – paragraph 2 – point d
Article 101 – paragraph 2 – point d
Amendment 1641 #
Proposal for a directive
Article 103 – paragraph 3
Article 103 – paragraph 3
3. The delegation of powers referred to in Articles 2, 4, 28, 37, 39, 43, 86, 94, 97 and 986 may be revoked at any time by the European Parliament or by the Council. A decision of revocation shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.
Amendment 1643 #
Proposal for a directive
Article 103 – paragraph 5
Article 103 – paragraph 5
5. A delegated act adopted pursuant to Articles 2, 4, 28, 37, 39, 43, 86, 94, 97 and 986 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or the Council.
Amendment 1662 #
Proposal for a directive
Article 115 – paragraph 1 – subparagraph 3
Article 115 – paragraph 1 – subparagraph 3