Activities of Syed KAMALL related to 2018/0179(COD)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council on disclosures relating to sustainable investments and sustainability risks and amending Directive (EU) 2016/2341 PDF (798 KB) DOC (113 KB)
Amendments (32)
Amendment 48 #
Proposal for a regulation
Recital 1 a (new)
Recital 1 a (new)
(1a) Trends in responsible investment, including environmental, social and governance factors, can realise benefits beyond the financial markets. Markets and financial market participants, led by their end-investors, should provide the necessary information to enable comparability of investments and informed investment decisions. This process can only succeed where legally agreed definitions are put in place.
Amendment 54 #
Proposal for a regulation
Recital 2 a (new)
Recital 2 a (new)
(2a) Taking into account environmental, social and governance factors in the investment decision-making process helps to facilitate informed investment decisions.
Amendment 55 #
Proposal for a regulation
Recital 2 b (new)
Recital 2 b (new)
(2b) The regulation looks at disclosure rules for investors regarding investment products and investment advice. Given the scope of the regulation credit institutions could be included, insofar as they offer financial products as environmentally sustainable investments or related advisory services.
Amendment 56 #
Proposal for a regulation
Recital 3
Recital 3
(3) In the absence of harmonised Union rules on sustainability-related disclosures to end-investors, it is likely that diverging measures will continue to be adopted at national level and different approaches in different financial services sectors might persist. Such divergent measures and approaches would continue to cause significant distortions of competition resulting from significant differences in disclosure standards. In addition, a parallel development of market-based practices, based on commercially-driven priorities that produce divergent results currently causes further market fragmentation and might even further exacerbate the functioning of the internal market in the future. Divergent disclosure standards and market-based practices make it very difficult to compare between different financial products and services and create an uneven playing field between these products and services and between distribution channels, and erect additional barriers to the internal market. Such divergences can also be confusing for end- investors and can distort their investment decisions. In ensuring compliance with the Paris Climate Agreement, Member States are likely to adopt divergent national measures which could create obstacles to the smooth functioning of the internal market and be detrimental to financial market participants and financial advisors. In addition, the lack of harmonised rules relating to transparency makes it difficult for end-investors to effectively compare different financial products and services in different Member States as to their environmental, social and governance risks and sustainable investment targets. It is therefore necessary to address existinglook to the functioning of the internal market and to preventenable comparability of financial products in order to avoid likely future investment obstacles.
Amendment 59 #
Proposal for a regulation
Recital 4
Recital 4
(4) To ensure a coherent application of this Regulation and that the disclosure obligations laid down in this Regulation are clearly and consistently applied by financial market participants, it is necessary to lay down a harmonisfirst conclude the [PO: Please insert reference to Regulation on the establishment of a framework to facilitate sustainable investment] and the taxonomy therein, thereby working from an agreed definition of ‘sustainable investments’.
Amendment 63 #
Proposal for a regulation
Recital 5
Recital 5
(5) Remuneration policies of financial market participants and financial advisors should be consistent with the integration of sustainability risks and, where relevant, sustainable investment targets and should be designed to contribrms should be consistent with Directive (EU) 2017/828. Environmental, social and governance risks should be considered based on a firm's internal and operational performance against certain ESG criteria, rather than based on the investment management activities it is performing as part of its fiduciary dutey to lits clients. Long-term sustainviable growth. Pre-contractual disclosures should therefore include information on how the remuneration policies of those entities are consistent with the integration of sustainability risks and are in line should take into account this criteria and, where relevant, with the sustainable investment targets of the financial products and services that the financial market participants make available or financial advisors advise onobjectives. Pre- contractual disclosures should be consistent with this.
Amendment 71 #
Proposal for a regulation
Recital 8
Recital 8
(8) To enhance transparency and inform end-investors, access to information on how material sustainability risks are integcorporated by financial market participants in the investment decision making processes and by financial advisors in advisory processes should be regulatedpossible by requiring those entities to maintain that information on their websites.
Amendment 73 #
Proposal for a regulation
Recital 9
Recital 9
(9) The currentre are many disclosure requirements already set out by Union legislation do not provide that all. These need to include the information necessary to properly inform end-investors about the sustainability- related impact of their investments must be disclosed. Therefore, it is appropriate to set out more specific disclosure requirements with regard to sustainable investments. For instance, the overall sustainability-related impact of financial products should be reported regularly by means of indicators relevant for the chosen sustainable investment target. Where an appropriate index has been designated as reference benchmark that information should also be provided for the designated index and to a broad market index to allow for comparison. Information on the constituents of the designated index and of the broad market index along with their weightings should also be disclosed, to provide further information on how the sustainable investments targets are achieved. Where EuSEF managers make available information on the positive social impact targeted by a given fund, the overall social outcome achieved and the related methods used in accordance with Regulation (EU) No 346/2013, they may, where appropriate, use this information for the purposes of the disclosures under this Regulation, to enable comparability, with regard to these sustainable investments.
Amendment 82 #
Proposal for a regulation
Recital 18
Recital 18
(18) Since the objectives of this Regulation, namely to strengthen investment choice and protection for end- investors and improve disclosures to them regarding how material environmental, social and governance risks are incorporated into the investment decision making process, including in cases of cross-border purchases for end-investors, cannot be sufficiently achieved by the Member States but can be better achieved at Union level because of the need to lay down uniform disclosure requirements at Union level the Union may adopt measures, in accordance with principle of subsidiarity as set out in Article 5 of the Treaty on the European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives,
Amendment 122 #
Proposal for a regulation
Article 3 – paragraph 1
Article 3 – paragraph 1
1. Financial market participants shall publish written policies on the integcorporation of material sustainability risks in the investment decision-making process on their websites.
Amendment 135 #
Proposal for a regulation
Article 3 – paragraph 2
Article 3 – paragraph 2
2. Insurance intermediaries which provide insurance advice with regard to IBIPs and investment firms which provide investment advice shall publish written policies on the integcorporation of material sustainability risks in investment advice or insurance advice on their websites.
Amendment 141 #
Proposal for a regulation
Article 4 – paragraph 1 – introductory part
Article 4 – paragraph 1 – introductory part
1. FWhere a financial product has objectives relating to sustainable investments or investments with similar characteristics the financial market participants shall include descriptions of the following in pre-contractual disclosures:
Amendment 147 #
Proposal for a regulation
Article 4 – paragraph 1 – point a
Article 4 – paragraph 1 – point a
(a) the procedures and conditions applied for integcorporating material sustainability risks in investment decisions;
Amendment 151 #
Proposal for a regulation
Article 4 – paragraph 1 – point b
Article 4 – paragraph 1 – point b
(b) the extent to which sustainability risks are expected to have a relevant impact on the returns ofthe returns of the financial product are expected to be impacted by sustainability risks and/or the non-financial products made availableimpacts the product is expected to have on environmental, social and governance issues;
Amendment 158 #
Proposal for a regulation
Article 4 – paragraph 1 – point c
Article 4 – paragraph 1 – point c
(c) how the remuneration policies of financial market participants are consistent with the integration of sustainability risks and are in line, where relevant, with the sustainable investment target of the financial productthe firm are consistent with Directive (EU) 2017/828, follow the firm's ESG internal and operational performance criteria, whilst delivering long-term viable growth objectives.
Amendment 164 #
Proposal for a regulation
Article 4 – paragraph 2 – introductory part
Article 4 – paragraph 2 – introductory part
2. IWhere an insurance product has objectives relating to sustainable investments or investments of similar characteristics the insurance intermediaries which provide insurance advice with regard to those IBIPs and investment firms which provide investment advice shall include descriptions of the following in pre- contractual disclosures:
Amendment 175 #
Proposal for a regulation
Article 4 – paragraph 2 – point c
Article 4 – paragraph 2 – point c
(c) how the remuneration policies of investment firms which provide investment advice and insurance intermediaries which provide insurance advice with regard to IBIPs are consistent with Directive (EU) 2017/828, the integration of sustainability risks and are in line, where relevant, with the sustainable investments target of the financial product advised on.
Amendment 184 #
Proposal for a regulation
Article 5 – paragraph 1 – introductory part
Article 5 – paragraph 1 – introductory part
1. Where a financial product has as its targetobjective sustainable investments or investments with similar characteristics, and an benchmark index has been designated as a reference benchmarkreferenced for this, the information to be disclosed pursuant to Article 4(1) shall be accompanied by the following:
Amendment 188 #
Proposal for a regulation
Article 5 – paragraph 1 – point a
Article 5 – paragraph 1 – point a
(a) information on how the designated index is aligned with that targetobjective;
Amendment 190 #
Proposal for a regulation
Article 5 – paragraph 1 – point b
Article 5 – paragraph 1 – point b
Amendment 195 #
Proposal for a regulation
Article 5 – paragraph 2
Article 5 – paragraph 2
2. Where a financial product has as its targetobjective sustainable investments or investments with similar characteristics and no index has been designated as athere is no referenced benchmark index, the information referred to in Article 4(1) shall include an explanation on how that target isobjective is to be reached.
Amendment 198 #
Where a financial product has as its targetobjective the reduction in carbon emissions, the information to be disclosed pursuant to Article 4(1) shall include the targeted low carbon emission exposurea quantification of that expected reduction.
Amendment 202 #
Proposal for a regulation
Article 5 – paragraph 4
Article 5 – paragraph 4
Amendment 205 #
Proposal for a regulation
Article 6 – paragraph 1 – subparagraph 1 – introductory part
Article 6 – paragraph 1 – subparagraph 1 – introductory part
Financial market participants shall publish, whilst respecting privacy laws and the protection of commercially sensitive information, and maintain on their websites, for each financial product referred to in paragraphs (1), (2) and (3) of Article 5, the following:
Amendment 213 #
Proposal for a regulation
Article 6 – paragraph 2 – subparagraph 1
Article 6 – paragraph 2 – subparagraph 1
EBA, EIOPA and ESMA shall, through the Joint Committee, develop draft regulatory technical standards further specifying the details of the presentation and content of information referred to in point (a) and (b) of paragraph 1, taking into account the [PO: Please insert reference to Regulation on the establishment of a framework to facilitate sustainable investment].
Amendment 216 #
Proposal for a regulation
Article 7 – paragraph 1 – introductory part
Article 7 – paragraph 1 – introductory part
1. Where financial market participants make availableproduce a periodical report for a financial product referred to in paragraphs (1), (2) and (3) of Article 5, they shall include a description of the following in periodical reports:sustainability objectives for that product.
Amendment 217 #
Proposal for a regulation
Article 7 – paragraph 1 – point a
Article 7 – paragraph 1 – point a
Amendment 220 #
Proposal for a regulation
Article 7 – paragraph 1 – point b
Article 7 – paragraph 1 – point b
Amendment 226 #
Proposal for a regulation
Article 7 – paragraph 4 – subparagraph 1
Article 7 – paragraph 4 – subparagraph 1
EBA, EIOPA and ESMA shall, through the Joint Committee, develop draft regulatory technical standards further specifying the details of the content and presentation of information referred to in paragraph 1, taking into account the [PO: Please insert reference to Regulation on the establishment of a framework to facilitate sustainable investment].
Amendment 232 #
Proposal for a regulation
Article 9 – paragraph 2 – subparagraph 1
Article 9 – paragraph 2 – subparagraph 1
EBA, EIOPA and ESMA may develop, through the Joint Committee, draft implementing technical standards to determine the standard presentation of information on sustainable investments, taking into account the [PO: Please insert reference to Regulation on the establishment of a framework to facilitate sustainable investment].
Amendment 236 #
Proposal for a regulation
Article 10
Article 10
Directive (EU) 2016/2341
Article 19 – paragraph 9, Article 60a (new)
Article 19 – paragraph 9, Article 60a (new)
Amendments to Directive (EU) 2016/2341 Directive (EU) 2016/2341 is amended as follows: (1) paragraph 9 is added: ‘9. The Commission is empowered to adopt, by means of delegated acts in accordance with Article 60a, measures ensuring that: (a) respect to the consideration of environmental, social and governance risks is taken into account; (b) governance factors in internal investment decisions and risk management processes are included. Those delegated acts shall take into account the size, nature, scale and complexity of the activities of the IORPs and of the risks inherent to these activities and ensure consistency with Article 14 of Directive 2009/65/EC, Article 132 of Directive 2009/138/EC and Article 12 of Directive 2011/61/EU.; ‘Article 60a Exercise of the delegation 1. is conferred on the Commission subject to the conditions laid down in this Article. 2. referred to in Article 19(9) shall be conferred on the Commission for an indeterminate period of time from the date of entry into force of this Regulation. 3. to in Article 19(9) may be revoked at any time by the European Parliament or by the Council. A decision to revoke 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. 4. act, the Commission shall notify it simultaneously to the European Parliament and to the Council. 5. to Article 19(9) shall enter into force only if no objectirticle 10 deleted In Article 19, the following the ‘prudent person’ rule with environmental, social and The power to adopt delegated acts The power to adopt delegated acts The delegation of powers referred As soon has been expressed either by the European Parliament or the Council within a period of three 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 three months at the initiative of the European Parliament or the Council..it adopts a delegated A delegated act adopted pursuant
Amendment 242 #
Proposal for a regulation
Article 12 – paragraph 2
Article 12 – paragraph 2
It shall apply after the application of the Regulation on the establishment of a framework to facilitate sustainable investment [PO: Please insert reference to Regulation] and from [PO: Please insert 12 months following the date of publication in the Official Journal of the European Union].