27 Amendments of Syed KAMALL related to 2014/0020(COD)

Proposal for a regulation
Article 1 – paragraph 1 – point g a (new)

(g a) to refute any market assumption that large credit institutions benefit from an implicit government subsidy.

2015/02/04
Committee: ECON

Proposal for a regulation
Article 2 – paragraph 1 – point b a (new)

(b a) the introduction of a liquidity transfer pricing mechanism to eliminate cross subsidisation of trading activities by deposits eligible under the Deposit Guarantee Scheme in accordance with Directive 2014/49/EU1a; __________________ 1aDirective 2014/49/EU of the European Parliament and of the Council of 16 April 2014 on deposit-guarantee schemes. OJ L 173, 12.06.2014, p.149

2015/02/04
Committee: ECON

Proposal for a regulation
Article 3 – paragraph 1 – point a

(a) any credit institution ~~or an EU parent~~, including all its branches and subsidiaries irrespective of where they are located, when it or its EU parent is identified as a global systemically important institution (G-SIIs) in application of Article 131 of Directive 2013/36/EU;

2015/02/04
Committee: ECON

Proposal for a regulation
Article 4 – paragraph 1 – point a

(a) EU branches of credit institutions established in third countries or financial holding companies or subsidiaries of credit institutions established in third countries if they are subject to a legal framework deemed equivalent in accordance with Article 27(1);

2015/02/04
Committee: ECON

Proposal for a regulation
Article 4 – paragraph 1 – point c a (new)

(c a) building societies or credit unions.

2015/02/04
Committee: ECON

Proposal for a regulation
Article 4 – paragraph 1 a (new)

1a. Chapter III of this regulation shall not apply to any entity or EU parent where qualifying deposits held within the Union in a credit institution or credit institutions are less than EUR 50 billion.

2015/02/04
Committee: ECON

Proposal for a regulation
Article 5 – paragraph 1 – point 4

4. ‘proprietary trading’ means using own capital or borrowed money to ~~take positions in~~enter into any type of transaction to purchase, sell or otherwise acquire or dispose of any financial instrument or commodities for the sole purpose of making a profit for own account, and without any connection to actual or anticipated client activity or for the purpose of hedging the entity’s risk as result of actual or anticipated client activity, through the use of desks, units, divisions or individual traders specifically dedicated to such position taking and profit making, including through dedicated web- based proprietary trading platforms;

2015/02/04
Committee: ECON

Proposal for a regulation
Article 5 – paragraph 1 – point 16

16. ‘core credit institution’ means a credit institution that at the minimum takes deposits eligible under the Deposit Guarantee Scheme in accordance with Directive 94/19/EC33 ; __________________ 33Directive 94/19/EC of the European Parliament and of the Council of 30 May 1994 on deposit-guarantee schemes, OJ L 135, 31.05.1994 pages 0005 to 0014.qualifying deposits;

2015/02/04
Committee: ECON

Proposal for a regulation
Article 5 – paragraph 1 – point 16 a (new)

16 a. "qualifying deposits" are deposits eligible under the Deposit Guarantee Scheme in accordance with Directive 2014/49/EU1a, excluding deposits from individuals who have held assets to the value of at least €250,000 for a period of at least 12 months and excluding deposits from large undertakings with income of not less than €6.5m, a balance sheet not less than €3.25m, or not less than 50 employees. __________________ 1aDirective 2014/49/EU of the European Parliament and of the Council of 16 April 2014 on deposit-guarantee schemes. OJ L 173, 12.06.2014, p.149

2015/02/04
Committee: ECON

Proposal for a regulation
Article 6 – paragraph 3

3. The restrictions laid down in point (b) of paragraph 1 shall not apply with regard to closed-ended ~~and un~~AIFs, which are not significantly leveraged ~~AIFs~~ as defined in Directive 2011/61/EU ~~where those AIFs are established in the Union or, if they are not established in the Union, they are marketed in the Union according to Articles 35 or 40 of Directive 2011/61/EU ,~~and Article 111 of the Regulation 231/2013 to qualifying venture capital funds as defined in Article 3(b) of Regulation (EU) No 345/2013, to qualifying social entrepreneurship funds as defined in Article 3(b) of Regulation (EU) No 346/2013, and to AIFs authorized as ELTIFs in accordance with Regulation (EU) No [XXX/XXXX].

2015/02/03
Committee: ECON

Proposal for a regulation
Article 7

Without prejudice to the remuneration rules laid down in Directive 2013/36/EU, the remuneration policy of the entities referred to in Article 3 shall be designed and implemented in such a way that it does not, directly or indirectly, encourage or reward the carrying out by any staff member of activities prohibited in Article 6(1).Article 7 deleted Rules on remuneration

2015/02/03
Committee: ECON

Proposal for a regulation
Article 8 – paragraph 1 – point a

(a) taking deposits that are eligible under the Deposit Guarantee Scheme in accordance with Directive 94/19/EC of the European Parliament and of the Council40 ; __________________ 40Directive 94/19/EC of the European Parliament and of the Council of 30 May 1994 on deposit-guarantee schemes (OJ L 135, 31/05/1994, pages 0005 to 0014).qualifying deposits;

2015/02/03
Committee: ECON

Proposal for a regulation
Article 9 – paragraph 1 a (new)

1 a. Notwithstanding paragraph 1, the competent authority may decide not to review the activities of any credit institution for the purposes of this Chapter, provided that: (a) the core credit institution shall be statutorily prevented from engaging in the regulated activity of dealing in investments as principal and holding trading assets, with limited exceptions to allow the core credit institution to undertake risk-mitigating activities for the purpose of prudently managing its capital, liquidity and funding and to provide limited risk management services to customers; or (b) if the core credit institution belongs to a group, it shall be legally separated from group entities that engage in the regulated activity of dealing in investments as principal or hold trading assets and meets the following conditions: (i) it is able to make decisions independently of other group entities; (ii) it has a management body that is independent of other group entities and independent of the credit institution itself; (iii)it is subject to capital and liquidity requirements in its own right; (iv) it may not enter into contracts or transactions with other group entities other than on terms similar to those referred to in Article 13(7). Separation or restrictions under national legislation must be achieved on a timetable comparable to separation under this Regulation.

2015/02/03
Committee: ECON

Proposal for a regulation
Article 10 – paragraph 1

1. Where the competent authority concludes that, following the assessment referred to in Article 9(1), the limits and conditions linked to the metrics referred to in points (a) to (h) of Article 9(2) and specified in the delegated act referred to in paragraph 5 are met, and it therefore deems that there is a threat to the resolvability or the financial stability of the core credit institution or to the Member State or the Union financial system as a whole, taking into account the objectives referred to in Article 1, it shall, no later than two months after the finalisation of that assessment, start the procedure leading to a decision as referred to in the second subparagraph of paragraph 3.

2015/02/03
Committee: ECON

Bernd LUCKE, Syed KAMALL

Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 1 a (new)

Notwithstanding a decision by the competent authority to require a credit institution to not carry out trading activities listed in its conclusions, in due course and with due respect to market conditions, the competent authority may require capital ratios or liquidity requirements significantly larger than under CRR/CRD IV.

2015/02/03
Committee: ECON

Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 2

Unless the core credit institution demonstrates, within the time limit referred to in the first subparagraph, to the satisfaction of the competent authority, that the reasons leading to the conclusions are not justified, the competent authority shall adopt a decision addressing the core credit institution ~~and~~, requiring it to not to carry out the trading activities specified in those conclusions. TIf a decision by the competent authority ~~shall state the reasons for its decision and publicly disclose it~~does not include a requirement to stop certain activities, the core credit institution shall implement measures necessary to protect retail depositors eligible under the Deposit Guarantee Scheme in accordance with Directive 2014/49//EU by addressing any cross- subsidisation of risky trading activity through the introduction of a liquidity transfer pricing mechanism according to next subparagraph.

2015/02/03
Committee: ECON

Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 2 a (new)

The liquidity transfer pricing mechanism must ensure the full and fair remuneration of deposits eligible under the Deposit Guarantee Scheme in accordance with Directive 2014/49/EU used to fund trading activities. The mechanism shall ensure the fair allocation of specific liquidity costs to trading activities as far as is possible at an individual transaction level. The mechanism shall ensure the full and fair remuneration of deposits eligible under the Deposit Guarantee Scheme in accordance with Directive 2014/49/EU based on the prevailing market rates for wholesale funding and terms of funding transactions between third party entities.

2015/02/03
Committee: ECON

Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 2 b (new)

The mechanism shall be developed and administered by an area of the credit institution independent of the trading function. The competent authority shall review and monitor the operation of the liquidity transfer mechanism to ensure all liquidity costs, benefits and risks are properly captured.

2015/02/03
Committee: ECON

Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 4 a (new)

For the purpose of the conclusions referred to in paragraphs 1 or 2 and any decision referred to in this paragraph, the competent authority shall take account of the activities of any EU branches of credit institutions established in third countries and of the activities of subsidiaries of a credit institution or EU Parent within scope of this Regulation where that subsidiary is legally constituted outside of the EU. The competent authority shall not address the conclusions referred to in paragraphs 1 or 2 and any decision referred to in this paragraph, in whole or in part, to the EU branches of credit institutions established in third countries or to the subsidiaries of a credit institution or EU Parent within scope of this Regulation where that subsidiary is legally constituted outside of the EU.

2015/02/03
Committee: ECON

Proposal for a regulation
Article 11 – paragraph 2

2. Without prejudice to the remuneration rules laid down in Directive 2013/36/EU, the remuneration policy applicable to staff of the core credit institution engaged in hedging activities shall: (a) aim at preventing any residual or hidden proprietary trading activities, whether disguised as risk management or otherwise; (b) reflect the legitimate hedging objectives of the core credit institution as a whole and ensure that remuneration awarded is not directly determined by reference to the profits generated by such activities but takes account of the overall effectiveness of the activities in reducing or mitigating risk. The management body shall ensure that the remuneration policy of the core credit institution is in line with the provisions set out in the first subparagraph, acting on the advice of the risk committee, where such a committee is established in accordance with Article 76(3) of Directive 2013/36/EU.deleted

2015/02/03
Committee: ECON

Proposal for a regulation
Article 20 – paragraph 1 – point a

(a) take deposits that are ~~eligible under the Deposit Guarantee Scheme in accordance with Directive 94/19/EC except where the said deposit relates to the exchange of collateral relating to trading activities;~~qualifying deposits

2015/02/03
Committee: ECON

Syed KAMALL, Beatrix von STORCH, Stanisław OŻÓG, Sampo TERHO

Proposal for a regulation
Article 21

~~[...]~~deleted

2015/02/03
Committee: ECON

Proposal for a regulation
Article 26 – paragraph 3

3. Competent authorities shall have the power to request an EU parent, that is not a regulated entity but that has at least one subsidiary which is a regulated entity, to ensure that its regulated subsidiaries comply with this Regulation.deleted

2015/02/03
Committee: ECON

Syed KAMALL, Beatrix von STORCH, Stanisław OŻÓG, Sampo TERHO

Proposal for a regulation
Article 26 – paragraph 4 – subparagraph 2

When the subsidiary of an EU parent is established in another Member State and supervised by a different supervisor than the EU parent ~~and when the subsidiary is significant in accordance with Article 6(4) of Regulation (EU) No 1024/2013~~, the consolidating supervisor shall consult endeavour to reach agreement with the competent authority of the home Member State of the ~~significant~~ subsidiary with regard to any decision to be made ~~by the consolidating supervisor pursua~~pursuant to this Regulation. Where it is not possible to reach such agreement, the decisions on the EU parent and the subsidiary shall be taken independently. Where it is not possible to reach such agreement, t~~o this Regulation~~he decisions on the EU parent and the subsidiary shall be taken independently.

2015/02/03
Committee: ECON

Syed KAMALL, Beatrix von STORCH, Stanisław OŻÓG, Sampo TERHO

Proposal for a regulation
Article 26 – paragraph 4 – subparagraph 2 a (new)

This Regulation shall not extend the powers of the ECB beyond the limits established in Regulation 1024/2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions, either in respect of territories covered, institutions within scope, or otherwise.

2015/02/03
Committee: ECON