57 Amendments of Bilyana Ilieva RAEVA related to 2008/2148(INI)
Amendment 1 #
Motion for a resolution
Recital A
Recital A
A. whereas the condition set out in Rule 39(2), that no proposal should be in preparation, is duly fulfilled, apart from the review of Directives 2006/48/EC and 2006/49/EC and expected proposal on Credit Rating Agencies,
Amendment 3 #
Motion for a resolution
Recital B
Recital B
B. whereas the Commission has not fully taken into account Parliament's earlier requests, including those made in its above- mentioned resolutions, the annex to this resolution therefore includes a list of possible suggestions as to how to improve the functioning of financial markets supervision,
Amendment 7 #
Motion for a resolution
Recital B a (new)
Recital B a (new)
Ba. whereas any suggestion made by Parliament should be principle based, details such as presented in the annex need to be developed in cooperation with the supervisory authorities, financial markets participants and other relevant bodies,
Amendment 13 #
Motion for a resolution
Recital C
Recital C
C. whereas the current financial crisis, which was triggered by US subprime mortgages, has spread worldwide due to the increasingly integrated and contagious nature of markets, indicating that existing financial market regulation and supervision could not cope with it and a significant reform isis not sufficiently integrated on either EU or international level and a significant review and the reforms being undertaken are therefore welcome,
Amendment 21 #
Motion for a resolution
Recital E
Recital E
E. whereas poorinsufficiently regulated capital market s disintermediation and the shadow banking system have emerged asnew kinds of financial vehicles have emerged providing both benefits and new sources of systemic risk globally; whereas the exponential growth in derivatives has increasedfollowed new risk mand facilitatedagement strategies also creating risks including new methods of speculation,
Amendment 23 #
Motion for a resolution
Recital F
Recital F
F. whereas the possibility to transfer credit riskerception that credit risk could be transferred through an "origination and e-to-distributione" model has weakened incentives to evaluate and monitor risk, and has led to a breakdown in due diligence; whereas the "originate- to-distribute" model has, however, in may cases properly facilitated competition, lower prices and access to credit for less well off consumers,
Amendment 25 #
Motion for a resolution
Recital G
Recital G
G. whereas herding,improper practices by some actors such as inadequate risk management, irresponsible lending, and excessive debt (leverage), and illiquid and complex financial instruments pose significant risks to financial stabilpose significant risks to financial institutions which in some cases has transferred to wider financial stability, as can market stress that leads to herding and illiquidity,
Amendment 29 #
Motion for a resolution
Recital H
Recital H
H. whereas financial regulation and innovation, which was designed to diminish risk at the micro level, has led to risk concentration and has exacerbated risk at the macro level, thus amplifyingand innovation may not have adequately anticipated and dispersed risk concentration and systemic risk,
Amendment 35 #
Motion for a resolution
Recital I
Recital I
I. whereas harmful regulatory arbitrage must be prevented,
Amendment 37 #
Motion for a resolution
Recital J
Recital J
J. whereas adequate levels of transparency towards the public, investors and supervisory authorities must be restoensured,
Amendment 39 #
Motion for a resolution
Recital K
Recital K
K. whereas many of the current compensremuneration schemes reward excessive risk at the expense ofmay create incentives that reward risk over a short time horizon at the expense of longer term performance and prudence,
Amendment 44 #
Motion for a resolution
Recital L
Recital L
L. whereas conflicts of interest that may arise from the business model used by some financial institutions, credit rating agencies, and audit and law firms must be addressed and monitored,
Amendment 48 #
Motion for a resolution
Recital M
Recital M
M. whereas failures by credit rating agencies generated substantial negative externalities and market uncertainties; whereas credit rating agencies have offered unin respect of complex structured products and misconception of the meaning of ratings by market participants were factors leading to the illiquidity in the markets; whereas credit rating agencies have been too slow in achieving sufficiently comprehensive and satisfactory selfregulatory solutions,
Amendment 53 #
Motion for a resolution
Recital N
Recital N
N. whereas market integration, while generally beneficial, does not necessarily enhance financial stability and should be accompanied by an appropriately integrated approach to supervision,
Amendment 56 #
Motion for a resolution
Recital O
Recital O
O. whereas the EUglobally there is a needs for more coherent and harmonis, compatible and integrated regulation and supervision in order to mitigate the risk of future financial crises and to ensure a level playing field across borders and between regulated and unregulated market participants; whereas the EU should play a leading international role as well as reinforce consistent implementation and convergence of its own regulation and supervision,
Amendment 59 #
Motion for a resolution
Recital P
Recital P
P. whereas a comprehensive review and considered reform of current EU regulatory and supervisory arrangements is necessary together with ongoing measures to improve global supervisory cooperation; whereas such a reform should refer to the capital adequacy framework, transparency, and governance as key prerequisites for improved and effective regulatory and supervisory arrangements,
Amendment 63 #
Motion for a resolution
Recital P a (new)
Recital P a (new)
Pa. whereas the middle- to long-term goal should be to establish a European supervisory system that is similar to the European System of Central Banks (ESCB); whereas the Commission should be urged to work on proposals towards this end,
Amendment 66 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Requests the Commission to submit to Parliament, by 30 November 2008, on the basis of Article 44, Article 47(2), Article 55, Article 95, Article 105(6), Article 202, Article 211 or Article 308 of the EC Treaty, a legislative proposal or appropriate other proposals or proposals on an EU supervisory configuration, credit rating agencies and other relevant issues, following the detailed recommendations below following the detailed recommendations below and taking into account the body of work underway following the ECOFIN Council conclusions of October 2007, December 2007 and April 2008.
Amendment 73 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Considers that the financial implications of the requested proposal or proposalsuggestions should be covered by EU budgetary allocationeither Member States for the establishment of any EU supervisory authorityEU budgetary allocations.
Amendment 75 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Instructs its President to forward this resolution and the accompanying detailed recommendalist of possible suggestions to the Commission, the Council and the governments and parliaments of the Member States.
Amendment 77 #
Motion for a resolution
Annex – recommendation 1 – introductory part
Annex – recommendation 1 – introductory part
The European Parliament considers that the proposals, legislative act(s) or recommendations to be adopted should aim to regulate:
Amendment 78 #
Motion for a resolution
Annex – recommendation 1 – point 1.1 – title
Annex – recommendation 1 – point 1.1 – title
Amendment 79 #
Motion for a resolution
Annex – recommendation 1 – point 1.1 – introductory part
Annex – recommendation 1 – point 1.1 – introductory part
Amendment 80 #
Motion for a resolution
Annex – recommendation 1 – point 1.1 – introductory part
Annex – recommendation 1 – point 1.1 – introductory part
Capital adequacy framework: In particularRecognising the ongoing review of Directives 2006/48/EC and 2006/49/EC promotes the following points:
Amendment 82 #
Motion for a resolution
Annex – recommendation 1 – point 1.1 – point a
Annex – recommendation 1 – point 1.1 – point a
Amendment 83 #
Motion for a resolution
Annex – recommendation 1 – point 1.1 – point a
Annex – recommendation 1 – point 1.1 – point a
(a) impose capital requirements on all entities operating on financial marketenhance the scope of regulatory capital requirements, including a consideration as to whether to impose capital requirements on all entities operating on financial markets taking into account the level of risk and the entity exposed, systemic impact and whether there is or can be cover through related entities or counterparties;
Amendment 87 #
Motion for a resolution
Annex – recommendation 1 – point 1.1 – point b
Annex – recommendation 1 – point 1.1 – point b
Amendment 88 #
Motion for a resolution
Annex – recommendation 1 – point 1.1 – point b
Annex – recommendation 1 – point 1.1 – point b
(b) strengthenenhance the resilience of the capital adequacy framework in extreme situationsto cope with financial market disruption, whilst respecting national authorities' responsibilities for crisis management;
Amendment 90 #
Motion for a resolution
Annex – recommendation 1 – point 1.1 – point c
Annex – recommendation 1 – point 1.1 – point c
Amendment 91 #
Motion for a resolution
Annex – recommendation 1 – point 1.1 – point c
Annex – recommendation 1 – point 1.1 – point c
(c) ensure that the rules are anti-cyclicalforce the recently implemented capital rules for excessive pro-cyclicality and if need be include further measures to counter pro-cyclical behaviour at times of stress;
Amendment 94 #
Motion for a resolution
Annex – recommendation 1 – point 1.1 – point d
Annex – recommendation 1 – point 1.1 – point d
Amendment 96 #
Motion for a resolution
Annex – recommendation 1 – point 1.1 – point d
Annex – recommendation 1 – point 1.1 – point d
(d) reform the framework to improve implementation of risk management and not to rely excessivelyto ensure the adequacy and appropriate use onf mathematical models and consider whether to widen the scope of stress testing of assumptions;
Amendment 98 #
Motion for a resolution
Annex – recommendation 1 – point 1.1 – point e
Annex – recommendation 1 – point 1.1 – point e
Amendment 101 #
Motion for a resolution
Annex – recommendation 1 – point 1.1 – point e
Annex – recommendation 1 – point 1.1 – point e
(e) require higherestablish appropriate risk weighting and capital charges for complex financial products and derivatives on the basis of the principle "same risk- same capital charge";
Amendment 103 #
Motion for a resolution
Annex – recommendation 1 – point 1.1 – point f
Annex – recommendation 1 – point 1.1 – point f
Amendment 106 #
Motion for a resolution
Annex – recommendation 1 – point 1.1 – point f
Annex – recommendation 1 – point 1.1 – point f
(f) requirimprove disclosure of off-balance-sheet items, structured investment vehicles (SIVs) and any liquidity assistance facility, and require proper assessment of the risks that they pose.
Amendment 107 #
Motion for a resolution
Annex – recommendation 1 – point 1.2 – title
Annex – recommendation 1 – point 1.2 – title
Amendment 108 #
Motion for a resolution
Annex – recommendation 1 – point 1.2 – point a
Annex – recommendation 1 – point 1.2 – point a
Amendment 109 #
Motion for a resolution
Annex – recommendation 1 – point 1.2 – point a
Annex – recommendation 1 – point 1.2 – point a
(a) Securitisation: FosterImplement and monitor the industry led initiatives from the European Securitisation Forum to foster appropriate levels of transparency, clarity, and disclosure of underlying data (quarterly) on complex financial products and the securitisation process.
Amendment 112 #
Motion for a resolution
Annex – recommendation 1 – point 1.2 – point b
Annex – recommendation 1 – point 1.2 – point b
Amendment 114 #
Motion for a resolution
Annex – recommendation 1 – point 1.2 – point b
Annex – recommendation 1 – point 1.2 – point b
(b) Complex Financial Products (CFS): Require investors to develop methodologies to evaluate and monitor risk of CFS. Consistent rating terminology that clearly differentiates rating for such products should be established and ratings should reflect the vulnerability of such products toredit rating agencies should provide consistent and concise rating disclosures that clearly distinguish, where appropriate, how such products differ from other products especially in terms of volatility, complexity and vulnerability to market stress and downgrades.
Amendment 115 #
Motion for a resolution
Annex – recommendation 1 – point 1.2 – point c – introductory part
Annex – recommendation 1 – point 1.2 – point c – introductory part
Amendment 116 #
Motion for a resolution
Annex – recommendation 1 – point 1.2 – point c – point i
Annex – recommendation 1 – point 1.2 – point c – point i
Amendment 119 #
Motion for a resolution
Annex – recommendation 1 – point 1.2 – point c – point i
Annex – recommendation 1 – point 1.2 – point c – point i
(i) require rules on secure the International Accountrol to ensureing Standards Board (IASB) review of IAS 27 and SIC-12 to ensure that material securitisation vehicles are given appropriate accounting treatment so that companies and financial institutions cannot artificially keep material special purpose vehicles or SIVs, etc. off their balance sheets;
Amendment 120 #
Motion for a resolution
Annex – recommendation 1 – point 1.2 – point c - point ii
Annex – recommendation 1 – point 1.2 – point c - point ii
Amendment 123 #
Motion for a resolution
Annex – recommendation 1 – point 1.2 – point c – point ii
Annex – recommendation 1 – point 1.2 – point c – point ii
(ii) requireimplement with the IASB and other competent international bodies rules on valuation and pricing standards of complex financial products in particular in the context of IAS 39.
Amendment 124 #
Motion for a resolution
Annex – recommendation 1 – point 1.2 – point d
Annex – recommendation 1 – point 1.2 – point d
Amendment 127 #
Motion for a resolution
Annex – recommendation 1 – point 1.2 – point d
Annex – recommendation 1 – point 1.2 – point d
(d) Unregulated markets: RequireEstablish increased transparency of over-the-counter (OTC) markets and address major sources of systemic risk (i.e. counterparty concentration risk), e.g. by requiringwhere feasible and not detrimental to liquidity and promote initiatives for OTC trades to be cleared in clearing houses.
Amendment 128 #
Motion for a resolution
Annex – recommendation 1 – point 1.3 – title
Annex – recommendation 1 – point 1.3 – title
Amendment 129 #
Motion for a resolution
Annex – recommendation 1 – point 1.3 – point a
Annex – recommendation 1 – point 1.3 – point a
Amendment 133 #
Motion for a resolution
Annex – recommendation 1 – point 1.3 – point a
Annex – recommendation 1 – point 1.3 – point a
(a) Securitisation: Require originators to assess and monitor risk and retain a significant portion of the debt or mortgage backed securities originated by them on their booksEnsure and monitor the frequency with which originators and credit rating agencies reassess and monitor ongoing risk; introduce measures to align interests of originators and investors including evaluating the effect of expecting originators to retain a representative portion of the products originated by them on their books unless there are good and disclosed reasons not to.
Amendment 134 #
Motion for a resolution
Annex – recommendation 1 – point 1.3 – point b
Annex – recommendation 1 – point 1.3 – point b
Amendment 135 #
Motion for a resolution
Annex – recommendation 1 – point 1.3 – point b
Annex – recommendation 1 – point 1.3 – point b
(b) Remuneration schemes: Require financial institutions to disclose their remuneration policy, remuneration of individual directors, and remuneration packages for individuals other than directors and that all elements in compensation packages are expensed. Ensure that all transactions involving management can be clearly identified in the financial statements. Require prudential supervisors to include in their assessment of risk management the influence of remuneration and bonus schemes to ensure that they contain balanced incentives and do not encourage extreme risk takingEncourage Member States to implement the existing Commission Recommendation 2004/913/EC on remuneration policy.
Amendment 138 #
Motion for a resolution
Annex – recommendation 1 – point 1.3 – point c
Annex – recommendation 1 – point 1.3 – point c
Amendment 140 #
Motion for a resolution
Annex – recommendation 1 – point 1.3 – point c
Annex – recommendation 1 – point 1.3 – point c
(c) Corporate liability regime: Require a liability regime addressingSecure agreement from Member States to ensure national liability regime provide appropriate fines and other penalties for failure to comply with financial services legislation. E and to widen the scope of liability regimes so as to ensure that executives in financial institutions in case of omission of duties or wrongful trading can be suspended or disqualified from working in all or relevant parts of the financial sector.
Amendment 142 #
Motion for a resolution
Annex – recommendation 1 – point 1.3 – point d
Annex – recommendation 1 – point 1.3 – point d
Amendment 319 #
Motion for a resolution
Annex – recommendation 3 – point 3.4 − point c − point v
Annex – recommendation 3 – point 3.4 − point c − point v
(v) act as rapid reaction forceadvisory body in case of a threat to financial stability;