33 Amendments of Piia-Noora KAUPPI related to 2007/2238(INI)
Amendment 9 #
Motion for a resolution
Recital A
Recital A
A. whereas although there is at present insufficientno specific EU regulation of hedge funds and private equity, there is a body of both EU and national legislation that directly or indirectly applies to these entities,
Amendment 17 #
Draft opinion
Paragraph 3
Paragraph 3
3. Calls on the Commission to consider extenincluding in the definition of the “prudent person” principle in such a way as to require, where the principle is incorporated in the existing Community legislation, the requirement for investors to verify that the alternative investment funds in which they invest abide by appropriate legislation and the industry's best practice standards;
Amendment 20 #
Motion for a resolution
Recital E
Recital E
E. whereas several global, EU and national institutions have, long before the current financial crisis, voiced theiranalysed potential concerns in relation to hedge funds and private equity abouts regards financial stability, inadequate risk management standards, excessive debt (leverage) and the valuation of illiquid and complex financial instruments; whereas the analysis carried out by the Financial Stability Forum in 2007 concluded that financial stability concerns were best addressed through prime brokers and supervisors; whereas any concerns specifically relevant to hedge funds or private equity have largely not materialised in the light of the current financial crisis,
Amendment 21 #
Draft opinion
Paragraph 5
Paragraph 5
5. Takes the view that, in order to satisfy the need to monitor market activity for supervisory purposes, information on hedge fund holdingexposures and lending should be made available to competent supervisory authorities via prime brokers; stresses that the information requirements should not be such as to place an excessive burden on prime brokers and that the national supervisory authorities should aim, where necessary and/or appropriate, to harmonise their requirements;
Amendment 22 #
Draft opinion
Paragraph 6
Paragraph 6
6. Recognises that excessive leverage may pose risks to the financial stability of companies and the financial markets; takes the view, however, that risk is part of those markets and that it must be left to participants in the markets concerned to assess the appropriate level of risk to take; does not support, therefore, the idea of setting a legal maximum level of leverage;
Amendment 24 #
Motion for a resolution
Recital F
Recital F
F. whereas there is empirical evidence that hedge funds engage in are less prone to herding than otherd ingvestors in times of market turmoil, thus giving rise tomitigating financial stability concerns,
Amendment 30 #
Motion for a resolution
Recital H
Recital H
H. whereas such long-term investment requires well-functioning financial markets in the EU and globally, contributing to the real economy, which can only be achieved by ensuring the presence in the European Union of a competitive and innovative financial industry,
Amendment 35 #
Motion for a resolution
Recital I
Recital I
I. whereas hedge funds and private equity in many cases provide liquidity and demand for innovative productss well as increased market efficiency by creating demand for innovative products, aiding price discovery and providing for market diversification,
Amendment 39 #
Motion for a resolution
Recital J
Recital J
J. whereas financial stability also requires better supervisory cooperation, including at global levely, which logically requires, in due course, a comprehensive revisionncurrent gradual improvement of current EU supervisory arrangements,
Amendment 45 #
Motion for a resolution
Recital K
Recital K
K. whereas enhanced appropriate levels of transparency towards the public, investors and supervisory authorities, potentially including, in future, any new EU supervisory bodycommon EU arrangements, are crucial to ensure such well-functioning and stable financial markets as well as for promoting competition between market actors and products,
Amendment 54 #
Motion for a resolution
Recital L
Recital L
L. whereas excessive debt required by much of the activities ofthe lack of proper management of debt by hedge funds and private equity might threatens financial stability, prejudices the realisation of the long-term investment, growth and jobs agenda and is, moreover, unfairly favoured in national ; whereas the systemic impacts of debt held by hedge funds and private equity is best addressed in regulation by ensuring that prime brokers continue to provide for an adequate level of capitaxl regimequirements,
Amendment 61 #
Motion for a resolution
Recital M
Recital M
M. wWhereas the recent increase in private equity transactions has significantly increased the number of employees, whose jobs are ultimately controlled by equity funds, due regard should be given to existing national employment laws, and Community employment law (in particular, Directive 2001/23/EC) was formulated when this was not so, on the basis of fair and appropriate treatment of all economic actors with similar responsibilities towards employees,
Amendment 64 #
Motion for a resolution
Recital N
Recital N
N. whereas in the event of extreme debt loads, private equity leveraged buy-outs affect the viability of the target companiescompanies present a higher risk profile,
Amendment 71 #
Motion for a resolution
Recital O
Recital O
O. whereas there are manypotential conflicts of interest either arising from the business model of private equity or hedge funds or from the relationships between those vehicles and other actors in financial marketof hedge funds and private equity are covered by the Market abuse Directive (2003/6/EC); whereas guidelines on the management of conflicts of interest covering hedge funds and private equity also exist, including at global level, such as the IOSCO principles for the management of conflicts of interest by Collective Investment Schemes and market intermediaries,
Amendment 82 #
Motion for a resolution
Recital P
Recital P
P. whereas whilst there is no evidence that those vehicles caused the current financial crisis, they have been involved in the business of non-regulated and highly complex structured products; whereas not being adequately capitalised and thus volatile to turbulences, those vehicles enhanced the crisis,
Amendment 85 #
Motion for a resolution
Recital Q
Recital Q
Q. whereas in order to minimise the risk of future financial crises and given the strong interactions across markets and between market participants and given the objective of a level playing field across borders and between regulated and unregulated market participants, the EU needs better,several initiatives are under way, in the EU and at global level, to secure more coherent and harmonised regulation across the board,
Amendment 107 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Requests the Commission to submit to Parliament by 30 November 2008,undertake without undue delay, an examination of all existing Community legislation relevant to financial markets in order to identify any lacunae as regards the regulation of hedge funds and private equity and, based on the results of such examination, and on the basis of Article 44, Article 47(2), or Article 95 of the EC Treaty, to submit to Parliament a legislative proposal or proposals on amending the existing Directives where necessary to better regulate hedge funds, private equity and other relevant actors, following the detailed recommendations below;
Amendment 109 #
Motion for a resolution
Paragraph 3
Paragraph 3
Amendment 123 #
Motion for a resolution
Annex – recommendation 1 – point a
Annex – recommendation 1 – point a
(a) Capital requirements Investment firms, insurance companies, credit institutions, conventional funds (such as UCITS and pension funds/IORPs) have to comply with capital requirements. Whatever the legal structure of hedge fund and private equity vehicles, including limited partnerships, tThe Commission shcould ensure thatxamine the need for an appropriate capital requirement isto be introduced at the level of the entity that controls the investment of the fund or funds concerned (i.e. management firm), covering all funds regardless of their place of registration and the implications thereof.
Amendment 127 #
Motion for a resolution
Annex – recommendation 1 – point b
Annex – recommendation 1 – point b
Amendment 130 #
Motion for a resolution
Annex – recommendation 1 – point b
Annex – recommendation 1 – point b
(b) EU public credit rating agency The Commission should establish an EU Public Credit Rating Agency in order to foster competition and improve transparency in that sector. The Commission should also, in its revisHedge funds and private equity The Commission should undertake an examination of all existing Community legislation relevant to financial markets in order to identify any lacunae as regards the regulation of the Directive 2006/48/EC, introduce a provision that, where a creddge funds and private equity assessment of an External Credit Assessment Institution (ECAI) is required for the calculation of a credit institution's risk- weighted exposure, the credit assessment of the EU Public Credit Rating Agency will also be required.nd, based on the results of such examination, to submit to Parliament a legislative proposal or proposals on amending the existing Directives where necessary to better regulate hedge funds, private equity and other relevant actors;
Amendment 133 #
Motion for a resolution
Annex – recommendation 1 – point c
Annex – recommendation 1 – point c
Amendment 137 #
Motion for a resolution
Annex – recommendation 1 – point d
Annex – recommendation 1 – point d
(d) Valuation The Commission should propose precise rules on theexamine how to best promote better valuation of illiquid financial instruments in order better to protect investors and the stability of financial markets, taking into account the various initiatives on valuation currently underway in the EU and globally.
Amendment 142 #
Motion for a resolution
Annex – recommendation 1 – point e
Annex – recommendation 1 – point e
Amendment 144 #
Motion for a resolution
Annex – recommendation 1 – point f
Annex – recommendation 1 – point f
(f) Venture capital The Commission should implement, without delay, the policy proposals set out in its communication on Removing obstacles to cross-border investments by venture capital funds, including proposing legislation to provide a harmonised EU-wide framework for venture capital and so to ensure cross- border access to such capital for the SME sector in line with the Lisbon Agenda. The proposed harmonised EU-framework should be in line with principles of good regulation and avoid additional legal, fiscal and administrative complexities at EU level.
Amendment 145 #
Motion for a resolution
Annex – recommendation 1 – point g
Annex – recommendation 1 – point g
Amendment 157 #
Motion for a resolution
Annex – recommendation 2 – point a
Annex – recommendation 2 – point a
Amendment 164 #
Motion for a resolution
Annex – recommendation 2 – point b
Annex – recommendation 2 – point b
(b) Notification (i.e. approval) of wholesale investment vehicles In order to encourage funds to be located onshore in the EU, the Commission should propose a separate directive along the lines of the EU-wide private placement regime, currently under discussion, to apply to the marketing and distribution in the EU of hedge funds and private equity funds. Such a regime should function on a single entry point basis: once authorised, it should be possible to offer those wholesale investment vehicles to professional, institutional investors throughout the EU. In order to promote a well-functioning single European financial market, the Commission should ensure the investment vehicle discloses the following: - general investment strategy and immediate information on any changes thereto, - leverage/debt exposure, - overall fees as well as breakdown of fees (including any stock options awarded to employees), - source and amount of funds raised, - past performance, - risk-management system and portfolio valuation methods, - information on the administrator of the fund, and - share of the fund contributed by the management company and its staff. That information should be set out in a uniform format (also to facilitate the database proposal below)Private Placement Regime The Commission should submit a legislative proposal for the establishment of a European Private Placement Regime allowing for cross-border distribution of alternative investment products to eligible groups of sophisticated investors.
Amendment 168 #
Motion for a resolution
Annex – recommendation 2 – point c
Annex – recommendation 2 – point c
Amendment 172 #
Motion for a resolution
Annex – recommendation 2 – point d
Annex – recommendation 2 – point d
Amendment 180 #
Motion for a resolution
Annex – recommendation 2 – point e
Annex – recommendation 2 – point e
(e) Private equity and protection of employees The Commission should propose amendments to Directive 2001/23/EC so that the same protections afforded employees by that Directiveensure that Directive 2001/23/EC, including the right to be informed and consulted, apply whenever control of the undertaking or business concerned is transferred by means of a private equity transaction by any investors, including private equity and hedge funds.
Amendment 183 #
Motion for a resolution
Annex – recommendation 3
Annex – recommendation 3
Amendment 201 #
Motion for a resolution
Annex – recommendation 4
Annex – recommendation 4