36 Amendments of Wolf KLINZ related to 2013/0306(COD)
Amendment 49 #
Proposal for a regulation
Recital 6 a (new)
Recital 6 a (new)
Amendment 56 #
Proposal for a regulation
Recital 23
Recital 23
(23) Asset Backed Commercial Papers (ABCPs) should be considered eligible money market instruments to the extent that they respect additional requirements. Due to the fact that during the crisis certain securitisations were particularly unstable, it is necessary to impose maturity limits and quality criteria on the underlying assets. Not all categories of underlying assets should be eligible because some were more confronted to instability than others. For this reason the underlying assets should be exclusively composed of short-term debt instruments that have been issued by corporates in the course of their business activity, such as trade receivables. Instruments such as auto loans and leases, equipment leases, consumer loans, residential mortgage loans, credit card receivables or any other type of instrument linked to the acquisition or financing of services or goods by consumers should not be eligibleundergo a thorough examination. ESMA should be entrusted with drafting regulatory technical standards to be submitted for endorsement by the Commission with regard to the conditions and circumstances under which the underlying exposure or pool of exposures is considered to exclusively consist of corporate debt and the conditions and numerical thresholds determining when corporate debt is of high credit quality and liquid.
Amendment 57 #
Proposal for a regulation
Recital 23 a (new)
Recital 23 a (new)
(23a) In order to assess the eligibility of certain instruments and their underlying assets, ESMA shall develop a set of criteria to define 'high-quality securitisation'. These criteria should take into consideration the need for more standardisation and transparency to avoid securitisation structures of high complexity.
Amendment 77 #
Proposal for a regulation
Recital 39
Recital 39
(39) It is important that the risk management of MMFs not be biased by short-term decisions influenced by the possible rating of the MMF. Therefore, it is necessary to prohibit a MMF or its manager from requesting that the MMF is rated by a credit rating agency in order to avoid that this external rating is used for marketing purposes. The MMF or its manager should also refrain from using alternative methods for obtaining a rating of the MMF. Should the MMF be awarded an external rating, either on the own initiative of the credit rating agency or following request by a third party that is independent of the MMF or the manager and does not act on behalf of any of them, the MMF manager should refrain from relying on criteria that would be attached to that external rating. For ensuring appropriate liquidity management it is necessary that the MMFs establish sound policies and procedures to know their investors. The policies that the manager has to put in place should help understanding the MMF's investor base, to the extent that large redemptions could be anticipated. In order to avoid that the MMF faces sudden massive redemptions, particular attention should be paid to large investors representing a substantial portion of the MMF's assets, as with one investor representing more than the proportion of daily maturing assets. In this case the MMF should increase its proportion of daily maturing assets to the proportion of that investor. The manager should whenever possible look at the identity of the investors, even if they are represented by nominee accounts, portals or any other indirect buyer.
Amendment 88 #
Proposal for a regulation
Recital 45
Recital 45
Amendment 94 #
Proposal for a regulation
Recital 46
Recital 46
Amendment 100 #
Proposal for a regulation
Recital 48
Recital 48
(48) Investors should be clearly informed, before they invest in a MMF, if the MMF is of a short-term nature or of a standard nature and if the MMF is of a CNAV type or not. In order to avoid misplaced expectations from the investor it must also be clearly stated in any marketing document that MMFs are not a guaranteed investment vehicle. CNAV MMFs should clearly explain to investors the buffersafeguard mechanisms they are applying to maintain the constant NAV per unit or shareand reinforce their resilience to losses and their ability to satisfy significant redemption requests.
Amendment 109 #
Proposal for a regulation
Recital 54
Recital 54
(54) It is essential to carry out a review of this Regulation in order to assess the appropriateness of exempting certain CNAV MMFs that concentrate their investment portfolios on debt issued by the Member States from the requirement to establish a capital buffer that amounts to at least 3 % of the total value of the CNAV MMF's assetthe additional safeguards introduced to reinforce the CNAVs resilience to face significant redemptions. Therefore, during the three years after the entry into force of this Regulation, the Commission should analyse the experience acquired in applying this Regulation and the impacts on the different economic aspects attached to the MMFs. The debt issued or guaranteed by the Member States represents a distinct category of investment displaying specific credit and liquidity traits. In addition, sovereign debt plays a vital role in financing the Member States. The Commission should evaluate the evolution of the market for sovereign debt issued or guaranteed by the Member States and the possibility to create a special framework for MMF that concentrate their investment policy on that type of debt.
Amendment 135 #
Proposal for a regulation
Article 8 – paragraph 1 – point d a (new)
Article 8 – paragraph 1 – point d a (new)
(da) units or shares of other MMFs.
Amendment 184 #
Proposal for a regulation
Article 14 – paragraph 5 – point c a (new)
Article 14 – paragraph 5 – point c a (new)
(ca) units or shares of other MMFs.
Amendment 206 #
Proposal for a regulation
Article 17 – paragraph 2 – point a
Article 17 – paragraph 2 – point a
(a) the internal rating system shall be based on a single rating scale which exclusively reflects quantification of the credit risk of the issuer. The rating scale shall have six grades for non-defaulted issuers and one for defaulted issuers;
Amendment 233 #
Proposal for a regulation
Article 21 – paragraph 1 – point c
Article 21 – paragraph 1 – point c
(c) at least 105% of its assets shall be comprised of daily maturing assets. A short-term MMF shall not acquire any asset other than a daily maturing asset when such acquisition would result in the short-term MMF investing less than 105% of its portfolio in daily maturing assets;
Amendment 237 #
Proposal for a regulation
Article 21 – paragraph 1 – point d
Article 21 – paragraph 1 – point d
(d) at least 205% of its assets shall be comprised of weekly maturing assets. A short-term MMF shall not acquire any asset other than a weekly maturing asset when such acquisition would result in the short-term MMF investing less than 205% of its portfolio in weekly maturing assets.
Amendment 261 #
Proposal for a regulation
Article 23
Article 23
Amendment 264 #
Proposal for a regulation
Article 23 a (new)
Article 23 a (new)
Article 23a Each MMF needs to establish appropriate mechanisms for its internal credit risk assessment. External ratings should only be one out of several elements that the fund managers take into consideration when they assess the credit quality of a specific instrument.
Amendment 289 #
Proposal for a regulation
Article 25 – paragraph 2
Article 25 – paragraph 2
2. In addition, in the case of CNAV MMFs, the stress tests shall estimate for different scenarios the difference between the constant NAV per unit or share and the NAV per unit or share, including the impact of the difference on the NAV buffer.
Amendment 311 #
Proposal for a regulation
Article 29 – paragraph 2 – point a
Article 29 – paragraph 2 – point a
Amendment 314 #
Proposal for a regulation
Article 29 – paragraph 2 – point b
Article 29 – paragraph 2 – point b
Amendment 316 #
Proposal for a regulation
Article 29 – paragraph 2 – point c
Article 29 – paragraph 2 – point c
Amendment 318 #
Proposal for a regulation
Article 29 – paragraph 2 – point d
Article 29 – paragraph 2 – point d
Amendment 320 #
Proposal for a regulation
Article 29 – paragraph 2 – point f
Article 29 – paragraph 2 – point f
(f) the CNAV MMF has established clear and effective communication tools towards investors that ensure prompt information in relation to anythe use or replenishment of the NAV buffer and the conversion of the CNAV MMFf a temporary suspension of redemptions;
Amendment 324 #
Proposal for a regulation
Article 29 – paragraph 2 – point g
Article 29 – paragraph 2 – point g
(g) the rules or instruments of incorporation of the CNAV MMF state clearly that the CNAV MMF cannot receive external support other than through the NAV buffer.
Amendment 327 #
Proposal for a regulation
Article 29 – paragraph 2 a (new)
Article 29 – paragraph 2 a (new)
2a. in case of the money market fund's weekly liquid assets falling below 15% of its total assets, the fund must impose a liquidity fee on all redemptions, unless the board of directors of the fund, including a majority of its independent directors, after having consulted the competent authority, concludes that imposing such a fee would not be in the best interest of the fund.
Amendment 328 #
Proposal for a regulation
Article 29 – paragraph 2 b (new)
Article 29 – paragraph 2 b (new)
2b. in case of the money market fund's weekly liquid assets falling below 15% of its total assets, the money market fund board, after having consulted the competent authority, is entitled to impose a temporary suspension of redemptions for a limited period of time, of up to 30 days, unless the board of directors of the fund, including a majority of its independent directors, after having consulted the competent authority, concludes that imposing such a temporary suspension would not be in the best interest of the fund.
Amendment 329 #
Proposal for a regulation
Article 29 – paragraph 2 c (new)
Article 29 – paragraph 2 c (new)
2c. ESMA shall develop the criteria for the additional safeguard mechanisms, in particular how the liquidty fee should be calculated as well as how the temporary suspension of redemptions should be designed.
Amendment 334 #
Proposal for a regulation
Article 30
Article 30
Amendment 346 #
Proposal for a regulation
Article 31
Article 31
Amendment 356 #
Proposal for a regulation
Article 33
Article 33
Amendment 361 #
Proposal for a regulation
Article 34
Article 34
Amendment 367 #
Proposal for a regulation
Article 35 – paragraph 1
Article 35 – paragraph 1
1. A CNAV MMF may not receive external support other than in the form and under the conditions laid down in Articles 30 to 34.
Amendment 369 #
Proposal for a regulation
Article 35 – paragraph 2
Article 35 – paragraph 2
2. MMFs other than CNAV MMFs shall not be allowed to receive external support, except under the conditions laid down in Article 36.
Amendment 373 #
Proposal for a regulation
Article 36 – paragraph 1 – introductory part
Article 36 – paragraph 1 – introductory part
1. In exceptional circumstances justified by systemic implications or adverse market conditions the competent authority may allow a MMF other than a CNAV MMF to receive external support referred to in Article 35 that is intended for or in effect would result in guaranteeing the liquidity of the MMF or stabilising the NAV per unit or share of the MMF provided that all of the following conditions are fulfilled:
Amendment 385 #
Proposal for a regulation
Article 37 – paragraph 5
Article 37 – paragraph 5
5. In addition to the information to be provided in accordance with paragraphs 1 to 4, a CNAV MMF shall explain clearly to investors and potential investors the use of the amortised cost method and/or of rounding. A CNAV MMF shall indicate the amount of its NAV bufferits additional safeguard mechanisms, the procedure to equalise the constant NAV per unit or share and the NAV per unit or share and shall state clearly the role of the buffer and the risks related to it. The CNAV MMF shall clearly indicate the modalities of replenishing the NAV buffer and the entity expected to fund the replenishment. It shall make available to investors all information concerning compliance with the conditions of all additional safeguard mechanisms set out in Article 29(2)(a) to (g).
Amendment 421 #
Proposal for a regulation
Article 43 – paragraph 3
Article 43 – paragraph 3
Amendment 426 #
Proposal for a regulation
Article 43 – paragraph 4
Article 43 – paragraph 4
Amendment 430 #
Proposal for a regulation
Article 45 – paragraph 1 – introductory part
Article 45 – paragraph 1 – introductory part
By three years after the entry into force of this Regulation, the Commission shall review the adequacy of this Regulation from a prudential and economic point of view. In particular the review shall consider the operation of the CNAV buffer and the operation of the CNAV buffer to those CNAV MMFs that, in future, might concentrate their portfolios on debt issued or guaranteed by the Member States. The review shall: