27 Amendments of Cornelis VISSER related to 2008/0191(COD)
Amendment 143 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 1
Article 122a – paragraph 1
1. A credit institution shall only be exposed to the credit risk of an obligation or potential obligation or a pool of obligati, other than an originator, spons or potential obligations where it was not involved in directly negotiating, structuring and documenting the original agreement which created the obligations or potential obligations, if: (a) the persons or entities that directly negotiated, structured and documented the original agreement with the obligor or potential obligor; or alternatively and where applicable, (b) the persons or entities that manage and purchase such obligatior original lender, shall be exposed to the credit risk of a securitisation position in its trading book or non-trading book only if the originator, spons or potential obligations directly or indirectly on behalf of the credit institution, have issued an explicit commitmentor original lender has explicitly disclosed to the credit institution to mainhat it will retain, on an ongoing basis, a material net economic interest andwhich, in any event not less than 5 per cent in positions having the same risk profile as the one that the credit institution is exposed toshall be no less than 5%.
Amendment 149 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 1 a (new)
Article 122a – paragraph 1 a (new)
1a. For this purpose, retention of net economic interest shall mean either: (a) retention of not less than 5% of the nominal value of each of the tranches sold or transferred to the investors; or (b) in the case of securitisations of revolving exposures, retention of originator's interest of not less than 5% of the nominal value of the securitised exposures; or (c) retention of randomly selected exposures, equivalent to not less than 5% of the nominal amount of the securitised exposures, where these would otherwise have been securitised in the securitisation provided that the number of potentially securitised exposures is not less than 100 at origination; or (d) retention of the first loss tranche and, if necessary, other tranches having the same or more severe risk profile and not maturing any earlier than those transferred or sold to investors, so that the retention equals in total not less than 5% of the nominal value of the securitised exposures.
Amendment 153 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 1 b (new)
Article 122a – paragraph 1 b (new)
1b. Net economic interest is measured at the origination and shall be maintained on an ongoing basis. It shall not be subject to any credit risk mitigation or any short positions or any other hedge. The net economic interest shall be determined by the notional value for off-balance- sheet items.
Amendment 156 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 1 c (new)
Article 122a – paragraph 1 c (new)
1c. For the purpose of this Article, "ongoing basis” shall mean that retained positions, interest or exposures shall not be hedged or sold.
Amendment 159 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 1 d (new)
Article 122a – paragraph 1 d (new)
1d. Where an EU parent credit institution or an EU financial holding company, or one of its subsidiaries, as an originator or sponsor, securitises exposures from several credit institutions, investment firms or financial institutions which are included in the scope of supervision on a consolidated basis, the requirement referred to in the first subparagraph may be satisfied on the basis of the consolidated situation of the related EU parent credit institution or EU financial holding company. This paragraph shall apply only where credit institutions, investment firms or financial institutions which created the securitised exposures have committed themselves to comply with the requirements set out in paragraph 6 and deliver, in a timely manner, to the originator or sponsor and to the EU parent credit institution or an EU financial holding company, the information needed to satisfy the requirements referred to in paragraph 7.
Amendment 163 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 2 – subparagraph 1 – introductory part
Article 122a – paragraph 2 – subparagraph 1 – introductory part
2. Paragraph 1 shall not apply to obligations or potential obligations that constitutwhere the securitised exposures are claims or contingent claims on or guaranteed by:
Amendment 166 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 2 – subparagraph 1 – point a a (new)
Article 122a – paragraph 2 – subparagraph 1 – point a a (new)
(aa) regional governments, local authorities and public sector entities of Member States;
Amendment 168 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 2 – subparagraph 1 – point b
Article 122a – paragraph 2 – subparagraph 1 – point b
(b) institutions to which a credit quality step of 3 or better applies according to Annex VI, Part 1, point 2950% risk weight or less is assigned under Articles 78 to 83; and
Amendment 173 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 2 – subparagraph 2
Article 122a – paragraph 2 – subparagraph 2
Paragraph 1 shall not apply either to syndicated loanto: (i) transactions based on an index, where the underlying reference entities are identical to those that make up an index of entities that is widely traded, or are other tradable securities other than securitisation positions; (ii) syndicated loans, purchased receivables or credit default swaps where these instruments are not used to package and/or hedge an oblig securitisation that is covered by paragraph 1.
Amendment 179 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 3
Article 122a – paragraph 3
Amendment 184 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 4 – introductory part
Article 122a – paragraph 4 – introductory part
4. BeforeCredit investing and on an ongoing basis, credit institutions shall be able to demonstrate at all timestutions other than originators or sponsors or original lenders, shall be able to demonstrate, from the moment they invest, to the competent authorities for each of their individual securitisation positions, that they have a comprehensive and thorough understanding of and have implemented formal policies and procedures appropriate to their trading book and non-trading book and commensurate with the risk profile of their investments in securitised positions for analysing and recording, in writing:
Amendment 188 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 4 – point a
Article 122a – paragraph 4 – point a
(a) the commitment,information disclosed under paragraph 1, ofby originators and/or sponsors to maintain aspecify the net economic interest in the securitisation and the period for which such commitment is givethat they maintain, on an ongoing basis, in the securitisation;
Amendment 195 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 4 – point d
Article 122a – paragraph 4 – point d
(d) the reputation and loss experience in earlier securitisations of the originators or sponsors in the relevant exposure classes underlying the securitizsation position;
Amendment 199 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 4 – point e
Article 122a – paragraph 4 – point e
(e) the statements made by the originators and or sponsors, or its agent or advisor, about theits due diligence undertaken by themto ensure the quality onf the obligorsecuritised exposures and, where applicable, on the collateral quality of the exposures underlying the securitization positionsecuritised exposures;
Amendment 201 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 4 – point f
Article 122a – paragraph 4 – point f
(f) where applicable, the methodologies and concepts on which the valuation of collateral supporting the exposures underlying the securitization positionsecuritised exposures is based and the policies adopted by the originators or sponsor to ensure the independence of the valuer; and
Amendment 204 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 4 – point g
Article 122a – paragraph 4 – point g
(g) all the structural features of the securitisation that can materially impact the performance of the credit institution's securitisation position. To this end, cCredit institutions shall prior to investing and regularly thereafter perform and record appropriate stress tests, such stress tests to be conducted independently of the ECAI or ECAIs who have rated the securitisation and to be based on all relevant information provided by the originator for this purposeregularly perform their own stress tests appropriate to their securitisation positions. To this end, credit institutions shall not only rely on stress tests performed by an ECAI.
Amendment 208 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 5 – save for last sentence
Article 122a – paragraph 5 – save for last sentence
5. Credit institutions shall establish formal procedure, other than originators or sponsors or original lenders, shall establish formal procedures appropriate to their trading book and non-trading book and commensurate with the risk profile of their investments in securitised positions to monitor on an ongoing basis and in a timely manner performance information on the exposures underlying their securitisation positions. Where relevantappropriate, this shall include, at a minimum: the exposure type, the length of time the exposures have been held by the originator including the percentage held by the originator for less than 2 years, the percentage of loans more than 30, 60 and 90 days past due, default rates, prepayment rates, loans in foreclosure, collateral type and occupancy, frequency distribution of credit scores or other measures of credit worthiness across underlying exposures, industry and geographical diversification, frequency distribution of loan to value ratios with band widths that facilitate adequate sensitivity analysis. Where the underlying exposures are themselves securitisation positions, the requirements tcredit institutions shall have the above listed information not only on the underlying securitisation tranches, such as the issuer name and credit quality, but also monitor and be able to access information shall apply to the characteristics and performance of the pools underlying securitisation tranches. Credit institutions shall have a thorough understanding of all structural features of a securitisation transaction that would materially impact the performance of their exposures underlying these securitization positionsto the transaction such as the contractual waterfall and waterfall related triggers, credit enhancements, liquidity enhancements, market value triggers, and deal-specific definition of default.
Amendment 214 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 5 – last sentence
Article 122a – paragraph 5 – last sentence
Where the requirements in paragraph 4 and in this paragraph are not met, credit institutions shall apply a risk weight of 1250% to these securitisation positions under Annex IX, part 4 in any material respect, and by reason of negligence or omission, including, in the case of an investment made after 31 December 2010, failure to obtain and analyse from the originator or sponsor, from the moment they invest on, all relevant information required under paragraphs 4 and 5, credit institutions shall apply a risk weight of 1250% to these securitisation positions under Annex IX, part 4 except where competent authorities have decided to temporarily suspend the requirements referred to in paragraphs 1 and 2 during periods of general market liquidity stress.
Amendment 216 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 6
Article 122a – paragraph 6
6. Sponsor and oOriginator credit institutions shall apply the same sound and well-defined criteria for credit-granting in accordance with the requirements of Annex V, point 3 to exposures to be securitised as they apply to exposures to be held on their own non-trading book. To this end the same processes for approving and, where relevant, amending, renewing and re- financing credits shall be applied by the originator and sponsor credit institutions. Credit institutions shall also apply the same standards of analysis to participations and/or underwritings in securitization issues purchased from third parties whether such participations and/or underwritings are to be held on their trading or non-trading bookto securitisation positions purchased from third parties. The same standards of analysis should be applied to the underwriting of securitisation positions as applied to other underwritings undertaken by the credit institution.
Amendment 219 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 7 – save for last sentence
Article 122a – paragraph 7 – save for last sentence
7. Sponsor and originator credit institutions shall disclose to investors the level of their commitment under paragraph 1 to maintain a net economic interest that they maintain in the securitisation. Sponsor and originator credit institutions shall ensure that investors and prospective investors have readily available access to all materially relevant data on the securitisation exposure, such as the credit quality and performance of the individual underlying exposures, cash flows and collateral supporting a securitization exposure as well as such information that is necessary to conduct comprehensive and well informed stress tests on the cash flows and collateral values supporting the underlying exposureor the credit quality and performance of underlying pools of exposures where these exposures are assigned to the retail exposure class, and information that is necessary to conduct appropriate stress tests.
Amendment 222 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 7 – last sentence
Article 122a – paragraph 7 – last sentence
Where these requirements and those in paragraph 6 are not met, by an originator credit institution in any material respect, Article 95(1) shall not be applied by an originator credit institution which will not be allowed to exclude the securitizsed exposures from the calculation of its capital requirements under this Directive.
Amendment 224 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 8
Article 122a – paragraph 8
8. Paragraphs 41 to 7 shall apply to securitisations issued from the date that this Directive comes into effect and t1 January 2011. To existing securitisations where new underlying exposures are added or substituted after that date, paragraphs 1 to 7 shall apply from 1 January 2016. Competent authorities may decide to temporarily suspend the requirements referred to in paragraphs 1 and 2 during periods of general market liquidity stress.
Amendment 227 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 9 – introductory part and point a
Article 122a – paragraph 9 – introductory part and point a
9. Competent authorities shall disclose publicly at least annually: (a) thethe following information: (a) the general criteria and methodologies adopted to review the compliance with paragraphs 1 to 7 on 1 January 2011;
Amendment 228 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 9 – point b
Article 122a – paragraph 9 – point b
Amendment 229 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 9 – point c
Article 122a – paragraph 9 – point c
(c) the number and a summary description of thewithout prejudice to the provisions laid down in Chapter 1, Section 2, a summary description of the outcome of the supervisory review and description of the measures imposed in cases of non- compliance with paragraphs 1 to 7 identified during the past 12 monthson an annual basis starting from 31 December 2011.
Amendment 233 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 10 – first sentence
Article 122a – paragraph 10 – first sentence
10. The Committee of European Banking Supervisors wishall report annuallyevery two years to the Commission about the compliance by competent authorities with this Article. application of this Article, including on potential evidence of other risk transfer mechanisms and financial innovation with adverse incentives and on the implementation of paragraph 1d.
Amendment 234 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 10 – second sentence
Article 122a – paragraph 10 – second sentence