20 Amendments of Syed KAMALL related to 2011/0298(COD)
Amendment 242 #
Proposal for a directive
Recital 16
Recital 16
(16) Insurance or assurance undertakings the activities of which are subject to appropriate monitoring by the competent prudential-supervision authorities and which are subject to Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) should be excluded, except as described in Article 1(4).
Amendment 243 #
Proposal for a directive
Recital 17 a (new)
Recital 17 a (new)
(17a) Investments are often sold to clients in the form of insurance contracts as an alternative to or substitute for financial instruments regulated under this Directive. To deliver consistent protection for retail clients, it is important that investments under insurance contracts are subject to the same conduct of business standards – in particular those relating to managing conflicts of interest, restrictions on inducements, and rules on ensuring the suitability of advice or appropriateness of non-advised sales. The investor protection and conflicts of interest requirements in this Directive should therefore be applied equally to those investments packaged under insurance contracts. Since investments involving insurance can have specific features that differ from other financial instruments (for example, because such investment products can involve an element of life insurance and so may need to be personalised to the client), the Directive provides for ESMA and EIOPA to work together to ensure as much consistency as possible in the conduct of business standards for insurance packaged retail investment products subject to this Directive, and any subsequent provisions in level 2 as relevant.
Amendment 370 #
Proposal for a directive
Article 1 – paragraph 3
Article 1 – paragraph 3
3. The following provisions shall also apply to credit institutions authorised under Directive 2006/48/EC, when providing one or more investment services and/or performing investment activities and when selling or advising clients in relation to deposits other than those with a rate of return which is determined in relation to an interest rate : – Articles 2(2), 9(6), 14, 16, 17 and 18, – Chapter II of Title II excluding second subparagraph of Article 29(2), – Chapter III of Title II excluding Articles 36(2), (3) and (4) and 37(2), (3), (4), (5), (6), (9) and (10), – Articles 69 to 80 and Articles 84, 89 and 90linked solely and directly to a key benchmark interest rate at Member State or EU level, or at a generally accepted international reference interest rate of a third country.
Amendment 375 #
Proposal for a directive
Article 1 – paragraph 3 a (new)
Article 1 – paragraph 3 a (new)
3a. The following provisions shall also apply to insurance undertakings and insurance intermediaries, including tied insurance intermediaries, authorised or registered under, respectively, Directive 2002/83/EC, Directive 2009/138/EC or Directive 2002/92/EC, when selling or advising clients in relation to insurance- based investments: - Article 16(3); - Articles 23 to 26; and - Articles 69-80 and 83-91 where necessary for competent authorities to give effect to the above Articles in relation to insurance-based investments.
Amendment 378 #
Proposal for a directive
Article 2 – paragraph 1 – point a
Article 2 – paragraph 1 – point a
(a) insurance undertakings or undertakings carrying on the reinsurance and retrocession activities referred to in Directive 2009/138/EC, except as described in Article 1(4);
Amendment 490 #
Proposal for a directive
Article 4 – paragraph 2 – point 33 a (new)
Article 4 – paragraph 2 – point 33 a (new)
33a) 'Insurance-based investments' means insurance contracts where the amount payable to the client is exposed to the market value of an asset or payout from an asset or reference value, and where the client does not directly hold the asset;
Amendment 494 #
Proposal for a directive
Article 4 – paragraph 2 – point 33 b (new)
Article 4 – paragraph 2 – point 33 b (new)
33b) "Total provider cost" means all the costs which a client is required to pay to an investment firm when purchasing an investment service or financial instrument, which shall include, calculated on a per annum basis: a) the annual management charge; b) custody and administration costs; c) performance fees, based on the latest 12 months disclosed performance fee or average of up to 3 years if the data is available; d) dealing costs, based on the latest 12 months disclosed performance fee or average of up to 3 years if the data is available; e) the total costs of all underlying funds in terms of their ongoing charges when the fund invests in any UCITS funds, ETFs or closed ended investment funds or any other pooled vehicle; f) any other costs not included above; The total provider cost shall be calculated as a percentage on a per annum basis.
Amendment 496 #
Proposal for a directive
Article 4 – paragraph 2 – point 33 c (new)
Article 4 – paragraph 2 – point 33 c (new)
33c) "Total cost of investment" means all the costs which a client is required to pay when purchasing an investment service or financial instrument via a sales channel, which shall include the total provider cost and, calculated on a percentage per annum basis: a) platform fees, where not already included in the total provider cost; b) entry and exit costs, amortized over five years as the assumed length of the investment unless otherwise stated; c) adviser fees less any rebates returned to clients, amortised over five years as the assumed length of the investment unless otherwise stated; d) any other costs not included above. The total cost of the investment shall be calculated on a percentage per annum basis.
Amendment 671 #
Proposal for a directive
Article 23 – paragraph 2 a (new)
Article 23 – paragraph 2 a (new)
2a. Member States shall ensure that any income received directly by any fund should be returned net of all direct costs to the fund's holders. Where these direct costs are set by associate companies of the fund management group, they must be proportionate to equivalent external costs and signed off by independent directors.
Amendment 686 #
Proposal for a directive
Article 24 – paragraph 2
Article 24 – paragraph 2
2. All information, including advertising and marketing communications, addressed by the investment firm to clients or potential clients shall be fair, clear and not misleading. Marketing communications shall be clearly identifiable as such. Any advertising or marketing communications shall specify clearly and prominently, in the format outlined in Annex IIa: a) the total provider cost, in the case of an investment service or financial instrument being promoted by an investment firm; b) the total cost of investment, in the case of an investment service or financial instrument being promoted via a sales channel whereby additional charges or rebates are applied.
Amendment 702 #
Proposal for a directive
Article 24 – paragraph 3 – subparagraph 1 – indent 2
Article 24 – paragraph 3 – subparagraph 1 – indent 2
– financial instruments and proposed investment strategies; this should include a full breakdown of all underlying holdings held both directly and indirectly, and a commitment to provide a full percentage breakdown on at least a quarterly basis with a maximum reporting delay of 60 days and appropriate guidance on and warnings of the risks associated with investments in those instruments or in respect of particular investment strategies,
Amendment 707 #
Proposal for a directive
Article 24 – paragraph 3 – subparagraph 1 – indent 4
Article 24 – paragraph 3 – subparagraph 1 – indent 4
– costs and associated charges, including a full breakdown of management fees, all underlying costs or charges, and: a) the total provider cost, in the case of an investment service or financial instrument being promoted to a client or potential client by an investment firm; b) the total cost of investment, in the case of an investment service or financial instrument being promoted to a client or potential client via a sales channel.
Amendment 797 #
Proposal for a directive
Article 25 – paragraph 3 – subparagraph 1 – introductory part
Article 25 – paragraph 3 – subparagraph 1 – introductory part
Member States shall allow investment firms when providing investment services that only consist of execution or the reception and transmission of client orders with or without ancillary services , with the exclusion of the ancillary service specified in Section B (1) of Annex 1 , to provide those investment services to their clients without the need to obtain the information or make the determination provided for in paragraph 2 where all the following conditions are met:
Amendment 803 #
Proposal for a directive
Article 25 – paragraph 3 – subparagraph 1 – point a – point i
Article 25 – paragraph 3 – subparagraph 1 – point a – point i
(i) shares admitted to trading on a regulated market or on an equivalent third-country market or on a MTF, where these are shares in companies, and excluding shares in non-UCITS collective investment undertakings and shares that embed a derivative;
Amendment 807 #
Proposal for a directive
Article 25 – paragraph 3 – subparagraph 1 – point a – point ii
Article 25 – paragraph 3 – subparagraph 1 – point a – point ii
(ii) bonds or other forms of securitised debt, admitted to trading on a regulated market or on an equivalent third country market or on a MTF, excluding those that embed a derivative or incorporate a structure which makes it difficult for the client to understand the risk involved;
Amendment 812 #
Proposal for a directive
Article 25 – paragraph 3 – subparagraph 1 – point a – point iii
Article 25 – paragraph 3 – subparagraph 1 – point a – point iii
(iii) money market instruments, excluding those that embed a derivative or incorporate a structure which makes it difficult for the client to understand the risk involved;
Amendment 821 #
Proposal for a directive
Article 25 – paragraph 3 – subparagraph 1 – point a – point iv
Article 25 – paragraph 3 – subparagraph 1 – point a – point iv
(iv) shares or units in UCITS excluding structured UCITS as referred to in Article 36 paragraph 1 subparagraph 2 of Commission Regulation 583/2010;
Amendment 828 #
Proposal for a directive
Article 25 – paragraph 3 – subparagraph 1 – point a – point v
Article 25 – paragraph 3 – subparagraph 1 – point a – point v
(v) other non-complex financial instruments for the purpose of this paragraph , including structured UCITS and shares in non- UCITS, which are assessed by an investment firm as non-complex.
Amendment 869 #
Proposal for a directive
Article 29 – paragraph 5 – subparagraphs 1 a and 1 b (new)
Article 29 – paragraph 5 – subparagraphs 1 a and 1 b (new)
Investment firms shall provide full and complete information on their investment services and financial instruments to tied agents, to be updated on at least a quarterly basis with a maximum reporting delay of 60 days. Tied agents shall be required to provide this information to the client or potential client in advance of receiving orders or placing financial instruments.
Amendment 1321 #
Proposal for a directive
Annex 2 a (new)
Annex 2 a (new)
Annex IIa Specifications of costs for advertising or marketing communications % Notes pa (All calculations based on minimum required investment or typical size if no minimum) % Annual Management Charge (AMC) % Custody & admin costs etc % Performance fee Based on 12 months disclosed performance fee or average of up to three years if data available. % Dealing costs Based on latest 12 months or average of up to three years if data available. Dealing costs = Portfolio Turnover Rate X estimated full cost buying/selling underlying assets. Most funds will simply use a common agreed schedule of costs. % Any other costs E.g. extra costs of underlying funds when investing in a “fund of fund” structure if not already included above. Less any other recurring E.g. net securities lending revenues or revenues other recurring income received based on last 12 months or average of up to last three years if data available. Total Provider Cost (TPC) This is the figure that should be advertised by fund managers. Platform fees via Sales Channel Where not already included in above A figures. Entry / Exit costs via Sales Any charges should be amortised over Channel A five years as the assumed length of investment unless stated otherwise e.g. for pensions. Advisor fees / rebates or any Amortised over five years unless clearly other charges/recurring revenues stated as per above. not included above via Sales Channel A Total Cost of Investment (TCI) This is the figure that should be via Sales Channel A advertised by the sales channel.