43 Amendments of Piia-Noora KAUPPI related to 2008/2148(INI)
Amendment 4 #
Motion for a resolution
Recital B
Recital B
B. whereas the Commission has not taken into account all of Parliament's earlier requests, including those made in its above- mentioned resolutions,
Amendment 14 #
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 is therefore welcomeneeds to be reviewed,
Amendment 19 #
Motion for a resolution
Recital E
Recital E
Amendment 27 #
Motion for a resolution
Recital G
Recital G
G. whereas a combination of factors (e.g. herding, inadequate risk management by some institutions, irresponsible lending in certain segments of unregulated markets, excessive debt (leverage), and illiquid and via complex financial instruments posein certain sectors, weak due diligence by certain market participants, and a sudden withdrawal of liquidity) have had the cumulative effect of posing significant risks to financial stability,
Amendment 42 #
Motion for a resolution
Recital K
Recital K
K. whereas some of the current compensation schemes reward excessive risk at the expense of prudence,
Amendment 45 #
Motion for a resolution
Recital L
Recital L
L. whereas conflicts of interest that may arise from the business model used by financial institutions, and credit rating agencies, and audit and law firms should be addressed mainly through industry codes of conduct,
Amendment 50 #
Motion for a resolution
Recital M
Recital M
M. whereas failures by credit rating agencies and over-reliance on ratings by investor generated substantial negative externalities and market uncertainties; whereas credit rating agencies have offered unsatisfactoryproduced selfregulatory solutions, which should be allowed time to function in order to properly assess their impact,
Amendment 61 #
Motion for a resolution
Recital P
Recital P
P. whereas a comprehensive reformvision of current EU regulatory and supervisory arrangements is necessary together with measures to improve global supervisory cooperation; whereas such a reformvision should refer to the capital adequacy framework, transparency, and governance as key prerequisites for improved and effective regulatory and supervisory arrangements,
Amendment 62 #
Motion for a resolution
Recital P a (new)
Recital P a (new)
Pa. whereas the supervisory approach should be adapted to specificities of the business and aspects of it that are already regulated; whereas the objectives of financial market supervision and prudential supervision of particular institutions are different,
Amendment 67 #
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 proposals on an EU supervisory configuration, credit rating agencies and other relevant issues, followcovering the matters dealt with ing the detailed recommendations below.
Amendment 74 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Considers that, where appropriate, the financial implications of the requested proposal or proposals should be covered by EU budgetary allocations for the establishment of any EU supervisory authority.
Amendment 85 #
Motion for a resolution
Annex – recommendation 1 – point 1.1 – point a
Annex – recommendation 1 – point 1.1 – point a
(a) imposreview the scope of the capital requirements on all entities operating on financial markets;
Amendment 99 #
Motion for a resolution
Annex – recommendation 1 – point 1.1 – point e
Annex – recommendation 1 – point 1.1 – point e
Amendment 105 #
Motion for a resolution
Annex – recommendation 1 – point 1.1 – point f
Annex – recommendation 1 – point 1.1 – point f
(f) require disclosure, as appropriate for the needs of market participants, 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 111 #
Motion for a resolution
Annex – recommendation 1 – point 1.2 – point a
Annex – recommendation 1 – point 1.2 – point a
(a) Securitisation: Foster transparency, clarity, and the provision of data (quarterly) on complex financial products and the securitisation process, taking account of the industry initiatives under way.
Amendment 118 #
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 encourage the International Accountrol to ensure that companies and financial institutions cannot artificially keeping Standards Board (IASB) to review IAS 27 and SIC-12, to ensure that material special purpose vehicles or SIVs, etc. off their balance sheetsuritisation vehicles continue to be properly reviewed for appropriate accounting treatment;
Amendment 122 #
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) require rules on valuation and pricing standards of complex financial productsencourage the IASB to continue to refine its valuation guidance within the context of IAS 39.
Amendment 126 #
Motion for a resolution
Annex – recommendation 1 – point 1.2 – point d
Annex – recommendation 1 – point 1.2 – point d
(d) Unregulated markets: Requireview appropriate ways to increased transparency of over-the-counter (OTC) markets and address major sources of systemic risk (i.e. counterparty concentration risk), e.g. by requiringincluding ways to create incentives, where appropriate, for OTC trades to be cleared in clearing houses.
Amendment 141 #
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 aview the liability regime addressing fines and other penalties for failure to comply with financial services legislation. Ensure that executives in financial institutions in case of omission of duties or wrongful trading can be disqualified from working in the financial sector.
Amendment 145 #
Motion for a resolution
Annex – recommendation 1 – point 1.3 – point d
Annex – recommendation 1 – point 1.3 – point d
(d) Credit rating agencies: Measures addressing e.g. conflicts of interests, quality assurance systems and oversight in a manner similar to those applicable to auditors. Ensure that credit rating agencies apply differentiated symbols for the rating of complex debt products, mortgage related products and traditional debt. Ensure that full transparency is practised in ratings and that credit rating agencies do not turn sub-investments into investment grade securitiesconsistent with the considered recommendations of the Financial Stability Forum, the International Organization of Securities Commissions, the Committee of European Securities Regulators and the European Securities Markets Expert Group relating to potential enhancement of credit rating processes. Ensure that credit rating agencies provide enhanced information as to the particular characteristics of complex debt products, mortgage related products and traditional debt. Ensure that credit rating agencies provide enhanced transparency as to the methodology and criteria relevant to particular ratings of complex debt products, mortgage related products and traditional debt.
Amendment 150 #
Motion for a resolution
Annex – recommendation 2 – point b
Annex – recommendation 2 – point b
Amendment 157 #
Motion for a resolution
Annex – recommendation 2 – point c – point i – indent 2
Annex – recommendation 2 – point c – point i – indent 2
- set up an EU early-intervention mechanism for dealing with weak and failing banks if the EU financial stability is threatened. Such a mechanism should be well-defined, clear, and able to prompt action, and financed by the financial institutions;
Amendment 164 #
Motion for a resolution
Annex – recommendation 2 – point c – point i – indent 4
Annex – recommendation 2 – point c – point i – indent 4
Amendment 170 #
Motion for a resolution
Annex – recommendation 2 – point c – point i – indent 5
Annex – recommendation 2 – point c – point i – indent 5
- set clear and binding rulguidelines on cross- border crisis management and clarify state aid rules in cases of cross-border crisis;
Amendment 174 #
Motion for a resolution
Annex – recommendation 2 – point d
Annex – recommendation 2 – point d
(d) AmendEnsure EU rules on deposit guarantees to introduce obligatory ex-ante schemes financed by contributions from financial institutions and administered independently of these institutions. The level of refund should be significantly increased and made available to retail clients within a clearly defined and short timeframeare sufficiently coordinated to guarantee a level playing field for financial institutions. The availability of refunds to retail clients in the case of a financial institution failing should be assured within a reasonable timeframe also in cross-border situations.
Amendment 179 #
Motion for a resolution
Annex – recommendation 2 – point e
Annex – recommendation 2 – point e
(e) Similar rules should be developed for insurance guaranteesRules on insurance guarantees should also be assessed based on the same criteria, of course taking into account the differences of the insurance sector.
Amendment 181 #
Motion for a resolution
Annex – recommendation 2 – point f
Annex – recommendation 2 – point f
Amendment 187 #
Motion for a resolution
Annex – recommendation 2 – point g
Annex – recommendation 2 – point g
Amendment 234 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 − point a
Annex – recommendation 3 – point 3.3 − point a
(a) By Autumn 2008 a regulation shall require transforming the existing Lamfalussy Level 3 committees into a configuration of EU supervision and giving the Lamfalussy Level 3 committees the status of supervisory agencies with an executive board (similar to the Eurosystem) and appropriate staffing and resourcesThe status and the accountability of the Lamfalussy Level 3 committees must be strengthened and clarified.
Amendment 242 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 − point b
Annex – recommendation 3 – point 3.3 − point b
(b) In addition to the advisory tasks the supervisory agenciLamfalussy Level 3 committees shall be given the task (and the tools and resources) to ensure supervisory convergence and a level playing field in the implementation and enforcement of EU legislation. This task and the primacy of the Committees' decisions must also be included in the mandates of the national supervisors and their mandates must be brought better in line with each other.
Amendment 252 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 − point d
Annex – recommendation 3 – point 3.3 − point d
(d) The supervisory agenciLamfalussy Level 3 committees should present an annual work plan. Parliament, the Council and the Commission should approve the annual work plans and reports.
Amendment 273 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 − point g
Annex – recommendation 3 – point 3.3 − point g
Amendment 280 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 − point h − introductory part
Annex – recommendation 3 – point 3.3 − point h − introductory part
Amendment 284 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 − point h − point i
Annex – recommendation 3 – point 3.3 − point h − point i
Amendment 289 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 − point h − point ii
Annex – recommendation 3 – point 3.3 − point h − point ii
Amendment 292 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 − point h − point iii
Annex – recommendation 3 – point 3.3 − point h − point iii
Amendment 296 #
Motion for a resolution
Annex – recommendation 3 – point 3.4 – title
Annex – recommendation 3 – point 3.4 – title
3.4. EU financial stability oversight bodyarrangements
Amendment 300 #
Motion for a resolution
Annex – recommendation 3 – point 3.4 − point a
Annex – recommendation 3 – point 3.4 − point a
(a) By Autumn 2008 a regulation shall require establishing an EU financial stability oversight body that is able toThe Commission should launch without delay an examination of the most appropriate arrangements for financial stability oversight at EU level. These arrangements should ensure efficient collection and analyseis of micro and macro prudential information with the central banks. This must be linked to monetfor early and macro-economic information. The oversight body should also act as a rapid reaction force in crisis situations with a systemic impact for the EUidentification of potential risks to financial stability.
Amendment 305 #
Motion for a resolution
Annex – recommendation 3 – point 3.4 − point b
Annex – recommendation 3 – point 3.4 − point b
(b) The oversight body should be composed of the chairs of the three Lamfalussy Level 3 supervisory committees, the chair of the presidium, the chair of the CCMC, a representative of the European System of Central Banks (which is composed of all EU central banks) and a representative of the Eurosystem and the (Vice)President of the ECB charged with prudential supervision. The ECB ((Vice)-President) could chair the oversight body and the chair of the presidium of the configuration of EU supervision could be vice-chairarrangements should most importantly aim to strengthen horizontal links between macro-economic and monetary policy and financial market supervision. Strengthening the ECB's role in this respect is necessary. Co-operation and information-sharing with Lamfalussy Level 3 committees and colleges of supervisors with the ECB and other non- eurozone EU central banks should be developed.
Amendment 311 #
Motion for a resolution
Annex – recommendation 3 – point 3.4 − point c − introductory part
Annex – recommendation 3 – point 3.4 − point c − introductory part
(c) The main tasks should be toSpecific issues to address include:
Amendment 315 #
Motion for a resolution
Annex – recommendation 3 – point 3.4 − point c − points i to iv
Annex – recommendation 3 – point 3.4 − point c − points i to iv
(i) establishing a proper system of supervisory data collection and exchange; (ii) analyseis and elaborateion of these data; (iii) developing procedures for provision and collection of confidential data; (iv) provideing early warning signals about dynamics that can endanger the stability of the financial system;
Amendment 320 #
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 asmechanisms for rapid reaction force in case of a threat to financial stability;
Amendment 324 #
Motion for a resolution
Annex – recommendation 3 – point 3.4 − point c − point vi
Annex – recommendation 3 – point 3.4 − point c − point vi
(vi ) representation of the EU in international bodies of supervisors such as the Financial Stability Forum and to be theidentifying an EU counterpart for supervisors in other parts of the world.