44 Amendments of Thierry CORNILLET related to 2017/0359(COD)
Amendment 44 #
Proposal for a regulation
Recital 21
Recital 21
(21) The K-factors under RtF capture an investment firm's exposure to the default of their trading counterparties (K-TCD) in accordance with simplified provisions for counterparty credit risk based on CRR, concentration risk in an investment firm's large exposures to specific counterparties based on CRR-provisions for large exposures risk in the trading book (K- CON), and operational risks from an investment firm's daily trading flowoperational risk (K- DTFOPR).
Amendment 47 #
Proposal for a regulation
Recital 22
Recital 22
(22) The overall capital requirement under the K-factors is the sum of the requirements of the K-factors under RtC, RtM and RtF. K-AUM, K-ASA, K-CMH, K-COH and K-DTFCOH relate to the volume of activity referred to by each K-factor. The volumes for K-CMH, K-ASA, K- COH, and K-DTFCOH are calculated on the basis of a rolling average from the previous three months, while for K-AUM it is based on the previous year. K-OPR is the measurement of operational risk into CRR. The volumes are multiplied by the corresponding coefficients set out in this Regulation in order to determine the capital requirement. The capital requirements for K-NPR is derived from CRR, while the capital requirements for K-CON and K-TCD use a simplified application of the corresponding requirements under CRR for, respectively, the treatment of large exposures in the trading book and of counterparty credit risk. The amount of a K-factor is zero if a firm does not undertake the relevant activity.
Amendment 51 #
Proposal for a regulation
Recital 25
Recital 25
(25) For investment firms which deal on own account, the K-factors for K-TCD and K-CON under RtF constitute a simplified application of CRR rules on counterparty credit risk and large exposure risk, respectively. K-TCD captures the risk to an investment firm of counterparties in over- the-counter (OTC) derivatives, repurchase transactions, securities and commodities lending or borrowing transactions, long- settlement transactions and margin lending transactions failing to fulfil their obligations by multiplying the value of the exposures, based on replacement cost and an add-on for potential future exposure, by risk factors based on Regulation (EU) No 575/2013, accounting for the mitigating effects of effective netting and the exchange of collateral. K-CON captures concentration risk in relation to individual or highly connected private sector counterparties with whom firms have exposures above 25% of their regulatory capital, or specific alternative thresholds in relation to credit institutions or other investment firms, by imposing a capital add-on in line with Regulation (EU) No 575/2013 for excess exposures above these limits. Finally, K-DTFOPR captures the operational risks to an investment firm in large volumes of trades concluded for its own account or for clients in its own name in one day which could result from inadequate or failed internal processes, people and systems or from external events, based on the notional value of daily trades.
Amendment 62 #
Proposal for a regulation
Article 4 – paragraph 1 – point 31
Article 4 – paragraph 1 – point 31
(31) ‘K-DTFOPR’ or ‘K-factor in relation to daily trading flow (DTFoperational risk (OPR)’ means the capital requirement relative to the daily value of transactionsoperational risk that an investment firm enters through dealing on own account or the execution of orders on behalf of clients in its own nameis subject to;
Amendment 67 #
Proposal for a regulation
Article 6 – title
Article 6 – title
Exemptions for investment firms within banking groups
Amendment 69 #
Proposal for a regulation
Article 6 – paragraph 1 – point d – point i
Article 6 – paragraph 1 – point d – point i
Amendment 74 #
Proposal for a regulation
Article 6 a (new)
Article 6 a (new)
Article 6a Exemptions for investment firms within investment firms groups Competent authorities may exempt an investment firm from the application of Article 5 in respect of Parts Two to Seven, where all of the following apply: (a) the investment firm is a subsidiary and is included in the k-factor consolidation of a Union parent investment firm, a Union parent investment holding company or a Union parent mixed financial holding company pursuant to Article 8 of this Regulation; (b) both the investment firm and its parent undertaking are subject to authorisation and supervision by the same Member State; (c) own funds are distributed adequately between the parent undertaking and the investment firm and all of the following conditions are satisfied: (i) there is no current or foreseen material practical or legal impediment to the prompt transfer of capital or repayment of liabilities by the parent undertaking; (ii) upon prior approval by the competent authority, the parent undertaking declares that it guarantees the commitments entered into by the investment firm or that the risks in the investment firm are of negligible interest; (iii) the risk evaluation, measurement and control procedures of the parent undertaking include the investment firm; and (iv) the parent undertaking holds more than 50% of the voting rights attached to shares in the capital of the investment firm or has the right to appoint or remove a majority of the members of the investment firm’s management body.
Amendment 76 #
Proposal for a regulation
Article 7 – paragraph 1 – introductory part
Article 7 – paragraph 1 – introductory part
1. ABy way of derogation from Article 8, Member States may provide the option for competent authorities to require that a Union parent investment firm, a Union parent investment holding company, a Union parent mixed financial holding company shall hold at least enough own funds to cover the sum of the following:
Amendment 77 #
Proposal for a regulation
Article 7 – paragraph 1 a (new)
Article 7 – paragraph 1 a (new)
1a. Competent authorities may exercise the derogation provided for in paragraph 1 only where they have asserted that the group structure is sufficiently simple for the group capital test to avoid double gearing of own funds to the same extent as k-factor consolidation.
Amendment 79 #
Proposal for a regulation
Article 8 – paragraph 1 – introductory part
Article 8 – paragraph 1 – introductory part
The competent authorities of a Union parent investment firm or the competent authorities determined in accordance with Article 42(2) of Directive (EU)----/--[IFD] mayshall require a Union parent investment firm, a Union parent investment holding company or a Union parent mixed financial holding company to comply with the requirements set out in Article 15 on the basis of the K-factor consolidated situation where either of the following conditions applies:.
Amendment 81 #
Proposal for a regulation
Article 8 – paragraph 1 – point a
Article 8 – paragraph 1 – point a
Amendment 83 #
Proposal for a regulation
Article 8 – paragraph 1 – point b
Article 8 – paragraph 1 – point b
Amendment 98 #
Proposal for a regulation
Article 12 – paragraph 1 – subparagraph 1 – point e
Article 12 – paragraph 1 – subparagraph 1 – point e
Amendment 118 #
Proposal for a regulation
Article 15 – paragraph 2 – table 1 – column Coefficient – second row
Article 15 – paragraph 2 – table 1 – column Coefficient – second row
Client money held K-CMH0 0.451.6%
Amendment 120 #
Proposal for a regulation
Article 15 – paragraph 2 – table 1 – 2 rows “Daily trading flow”
Article 15 – paragraph 2 – table 1 – 2 rows “Daily trading flow”
Amendment 170 #
Proposal for a regulation
Article 24 – paragraph 1 – subparagraph 1
Article 24 – paragraph 1 – subparagraph 1
K-TCD +K-DTFOPR + K-CON
Amendment 171 #
Proposal for a regulation
Article 24 – paragraph 1 – subparagraph 2 – subparagraph 2
Article 24 – paragraph 1 – subparagraph 2 – subparagraph 2
Amendment 173 #
Proposal for a regulation
Article 24 – paragraph 1 – subparagraph 2 – subparagraph 5
Article 24 – paragraph 1 – subparagraph 2 – subparagraph 5
K-DTF shall be based on the transactions recorded in the trading book of an investment firm dealing on own account, whether for itself or on behalf of a client, and the transactions that an investment firm enters into through the execution of ordersOPR is equal to the own funds requirement for operational risk which is the maximum between 15% of the average over three years of the relevant indicator as set out in Article 316 of Regulation (EU) No 575/2013 and own behalf of clients in its own namefunds requirements from the other K-factors.
Amendment 180 #
Proposal for a regulation
Article 27 – paragraph 1 – subparagraph 1
Article 27 – paragraph 1 – subparagraph 1
Exposure value = Max (0; α (RC + PFE - C))
Amendment 182 #
Proposal for a regulation
Article 27 – paragraph 1 – subparagraph 2 – introductory part
Article 27 – paragraph 1 – subparagraph 2 – introductory part
where: α = 1.4
Amendment 184 #
Proposal for a regulation
Article 27 – paragraph 1 – subparagraph 2 – subparagraph 3
Article 27 – paragraph 1 – subparagraph 2 – subparagraph 3
Amendment 187 #
Proposal for a regulation
Article 27 – paragraph 1 – subparagraph 2 – subparagraph 4
Article 27 – paragraph 1 – subparagraph 2 – subparagraph 4
The replacement cost (RC) and collateral (C) shall apply to all transactions referred to in Article 25.
Amendment 188 #
Proposal for a regulation
Part 3 – title 2 – chapter 4 – section 2 – title
Part 3 – title 2 – chapter 4 – section 2 – title
Amendment 190 #
Proposal for a regulation
Article 32 – title
Article 32 – title
Measuring DTFOPR for the purposes of calculating K-DTFOPR
Amendment 193 #
Proposal for a regulation
Article 32 – paragraph 1
Article 32 – paragraph 1
1. For the purposes of calculating K- DTF, DTF shall be the rolling average of the value of the total daily trading flow, measured at the end of each business day over the previous 6 calendar months, excluding the 3 most recent calendar months. DTF shall be the average or simple arithmetic mean of the daily measurements for the remaining 3 calendar months K-DTF shall be calculated within the first 14 days of each quarter.An investment firm which meets the criteria of Article 12 [small and non- interconnected] of this Regulation shall apply the capital requirement for operational risk using the elementary approach as defined in Articles 315 and 316 of Regulation (EU) No 575/2013. The own funds requirement for operational risk shall be the maximum between 15% of the average over three years of the relevant indicator as set out in Article 316 of Regulation (EU) No 575/2013 and own funds requirements from the other K-factors. K-OPR = MAX (0; OPR EFP - SUM(RTC K-factors))
Amendment 200 #
Proposal for a regulation
Article 32 – paragraph 2
Article 32 – paragraph 2
Amendment 205 #
Proposal for a regulation
Article 32 – paragraph 3
Article 32 – paragraph 3
Amendment 210 #
Proposal for a regulation
Article 32 – paragraph 4
Article 32 – paragraph 4
Amendment 273 #
Proposal for a regulation
Article 60 – paragraph 1 – point 1 a (new)
Article 60 – paragraph 1 – point 1 a (new)
Regulation (EU) No 575/2013
Article 1 – paragraph 1 a (new)
Article 1 – paragraph 1 a (new)
1a. In Article 1, the following paragraph is added: "This Regulation shall also apply to undertakings which carry out any of the activities referred to in points (3) and (6) of Section A of Annex I of Directive 2014/65/EU and where one of the following applies, but the undertaking is not a credit institution, a commodity and emission allowance dealer, a collective investment undertaking or an insurance undertaking: (i) the total value of the assets of the undertaking exceeds EUR 5 billion for three consecutive quarters, or (ii) the gross revenues stemming from the activities referred to in points (3) and (6) of Section A of Annex I of Directive 2014/65/EU exceeds EUR 500 million for two consecutive years;"
Amendment 281 #
Proposal for a regulation
Article 60 – paragraph 1 – point 2 – point a
Article 60 – paragraph 1 – point 2 – point a
Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point b – point ii
Article 4 – paragraph 1 – point b – point ii
(ii) the total value of the assets of the undertaking is below EUR 30 billion, and the undertaking is part of a group in which the combined total value of the consolidated assets of all undertakings in the group that carry out any of the activities referred to in points (3) and (6) of Section A of Annex I of Directive 2014/65/EU and have total assets below EUR 30 billion exceeds EUR 30 billion, or
Amendment 285 #
Proposal for a regulation
Article 60 – paragraph 1 – point 2 – point a
Article 60 – paragraph 1 – point 2 – point a
Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point b – point iii
Article 4 – paragraph 1 – point b – point iii
(iii) the total value of the assets of the undertaking is below EUR 30 billion, and the undertaking is part of a group in which the combined total value of the consolidated assets of all undertakings in the group that carry out any of the activities referred to in points (3) and (6) of Section A of Annex I of Directive 2014/65/EU exceed EUR 30 billion, where the consolidating supervisor in consultation with the supervisory college so decides in order to address potential risks of circumvention and potential risks for the financial stability of the Union.
Amendment 296 #
Proposal for a regulation
Article 61 – paragraph 1 – point 1 – point -a (new)
Article 61 – paragraph 1 – point 1 – point -a (new)
Regulation (EU) No 600/2014
Article 46 – paragraph 1
Article 46 – paragraph 1
Amendment 300 #
Proposal for a regulation
Article 61 – paragraph 1 – point 1 – point a a (new)
Article 61 – paragraph 1 – point 1 – point a a (new)
Regulation (EU) No 600/2014
Article 46 – paragraph 4 a (new)
Article 46 – paragraph 4 a (new)
(aa) the following paragraph is inserted: “4a. The third-country firm shall comply with the obligations laid down in paragraphs 3 and 6 to 10 of Article 16, in Articles 17, 23, 24, 25, 27, 28 and 30 of Directive 2014/65/EU and in Articles 14 to 28 of this Regulation and the measures adopted pursuant there to and shall be subject to the supervision of ESMA. Where the registered third-country firm chooses to establish a branch in the EU, ESMA shall have the right to examine branch arrangements and to request such changes as are needed to enable it to enforce the obligations and measures referred to in the first subparagraph with respect to the services and/or activities provided by the branch in the Union.”
Amendment 301 #
Proposal for a regulation
Article 61 – paragraph 1 – point 1 – point a b (new)
Article 61 – paragraph 1 – point 1 – point a b (new)
Regulation (EU) No 600/2014
Article 46 – paragraph 5
Article 46 – paragraph 5
(ab) paragraph 5 is replaced by the following: “5. Third-country firms providing services in accordance with this Article shall inform clients established in the Union, before the provision of any investment services, that they are not allowed to provide services to clients other than eligible counterparties and professional clients within the meaning of Section I of Annex II to Directive 2014/65/EU and that they are not subject to supervision by ESMA in the Union only as regards the requirements referred to in paragraph 4a. They shall indicate the name and the address of the competent authority responsible for supervisionwhich authorised the third- country firm in the third country. The information in the first subparagraph shall be provided in writing and in a prominent way. Member States shall ensure that where an eligible counterparty or professional client within the meaning of Section I of Annex II to Directive 2014/65/EU established or situated in the Union initiates at its own exclusive initiative the provision of an investment service or activity by a third-country firm, this Article does not apply to the provision of that service or activity by the third- country firm to that person including a relationship specifically related to the provision of that service or activity. An initiative by such clients shall not entitle the third-country firm to market new categories of investment product or investment service to that individual.” ” Or. en (https://eur-lex.europa.eu/legal- content/EN/TXT/HTML/?uri=CELEX:32014R0600&from=FR)
Amendment 304 #
Proposal for a regulation
Article 61 – paragraph 1 – point 1 – point a c (new)
Article 61 – paragraph 1 – point 1 – point a c (new)
Regulation (EU) No 600/2014
Article 46 – paragraph 6
Article 46 – paragraph 6
Amendment 310 #
Proposal for a regulation
Article 61 – paragraph 1 – point 2 – point a
Article 61 – paragraph 1 – point 2 – point a
Regulation (EU) No 600/2014
Article 47 – paragraph 1 – subparagraph 1 – point a
Article 47 – paragraph 1 – subparagraph 1 – point a
(a) that firms authorised in that third country comply with legally binding prudential and business conductorganisational requirements which have equivalent effect to the requirements set out in this Regulation, in Directive 2013/36/EU, in Regulation (EU) No 575/2013, in Directive (EU) ----/-- [IFD] and in Regulation (EU)--- -/---[IFR] and in Articles 5 to 13, 15, and in paragraphs 2, 4 and 5 of Article 16 of Directive 2014/65/EU and in the corresponding implementing measures adopted under those Regulations and Directives;
Amendment 313 #
Proposal for a regulation
Article 61 – paragraph 1 – point 2 – point a
Article 61 – paragraph 1 – point 2 – point a
Regulation (EU) No 600/2014
Article 47 – paragraph 1 – subparagraph 1 – point b
Article 47 – paragraph 1 – subparagraph 1 – point b
(b) that firms authorised in that third country are subject to effective supervision and enforcement ensuring compliance with the applicable legally binding prudential and business conductorganisational requirements; and
Amendment 316 #
Proposal for a regulation
Article 61 – paragraph 1 – point 2 – point a
Article 61 – paragraph 1 – point 2 – point a
Regulation (EU) No 600/2014
Article 47 – paragraph 1 – subparagraph 2
Article 47 – paragraph 1 – subparagraph 2
Amendment 320 #
Proposal for a regulation
Article 61 – paragraph 1 – point 2 – point a a (new)
Article 61 – paragraph 1 – point 2 – point a a (new)
Regulation (EU) No 600/2014
Article 47 – paragraph 1 – subparagraph 2
Article 47 – paragraph 1 – subparagraph 2
(aa) the second subparagraph of paragraph 1 is replaced by the following: “The prudential and business conduct organisational framework of a third country may be considered to have equivalent effect where that framework fulfils all the following conditions: (a) firms providing investment services and activities in that third country are subject to authorisation and to effective supervision and enforcement on an ongoing basis; (b) firms providing investment services and activities in that third country are subject to sufficient capital requirements and appropriate requirements applicable to shareholders and members of their management body; (c) firms providing investment services and activities are subject to adequate organisational requirements in the area of internal control functions; (d) services and activities are subject to appropriate conduct of business rules; (e) and integrity by preventing market abuse in the form of insider dealing and market manipulation” , outsourcing and security mechanisms.” firms providing investment it ensures market transparency Or. en (https://eur-lex.europa.eu/legal- content/EN/TXT/HTML/?uri=CELEX:32014R0600&from=FR)
Amendment 327 #
Proposal for a regulation
Article 61 – paragraph 1 – point 2 – point c a (new)
Article 61 – paragraph 1 – point 2 – point c a (new)
Regulation (EU) No 600/2014
Article 47 – paragraph 5 a (new)
Article 47 – paragraph 5 a (new)
(ca) the following paragraph is added: “5a. The Commission shall make ad hoc assessments of equivalence provisions based on reasoned requests from the European Parliament, the Council, ESMA and where relevant the ECB, NCAs and the ESRB.’’
Amendment 329 #
Proposal for a regulation
Article 61 – paragraph 1 – point 2 a (new)
Article 61 – paragraph 1 – point 2 a (new)
Regulation (EU) No 600/2014
Article 48 – paragraph 1
Article 48 – paragraph 1
(2a) in Article 48, paragraph 1 is replaced with the following: “ESMA shall keep a register of the third- country firms allowed to provide investment services or perform investment activities in the Union in accordance with Article 46. The register shall be publicly accessible on the website of ESMA and shall contain information on the services or activities which the third-country firms are permitted to provide or perform and the reference of the competent authority responsible for their supervisauthorisation in the third country.” Or. en (https://eur-lex.europa.eu/legal- content/EN/TXT/HTML/?uri=CELEX:32014R0600&from=FR)
Amendment 332 #
Proposal for a regulation
Article 61 – paragraph 1 – point 2 b (new)
Article 61 – paragraph 1 – point 2 b (new)
Regulation (EU) No 600/2014
Article 49 a (new)
Article 49 a (new)
(2b) The following Article is inserted: “Article 49a Provision of services at the exclusive initiative of the client 1. Where an eligible counterparty or professional client within the meaning of Section I of Annex II to Directive 2014/65/EU established or situated in the Union initiates at its own exclusive initiative the provision of an investment service or activity by a third-country firm, Article 46 shall not apply to the provision of that service or activity by the third- country firm to that person including a relationship specifically related to the provision of that service or activity. Where a third-country firm, including through an entity acting on its behalf or having close links with such third-country firm or another person acting on behalf of such entity, solicits clients or potential clients in the Union or promotes or advertises investment services or activities together with ancillary services in the Union, regardless of the means of communication used, it shall not be deemed as a service provided at the own exclusive initiative of the client. Any contractual clause or disclaimer purporting to state that a third country firm shall be deemed to respond to the exclusive initiative of the client shall be null and void. 2. An initiative by any client referred to in paragraph 1 shall not in itself entitle the third-country firm to market new categories of investment products or investment services to that client. 3. ESMA shall develop draft regulatory technical standards to further specify the conditions for considering that investment products or investment services constitute new categories of investment products or investment services for the purpose of paragraph 2. ESMA shall submit those draft regulatory technical standards to the Commission by [date to be inserted]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) No 1095/2010.”
Amendment 333 #
Proposal for a regulation
Article 61 – paragraph 2 – point 2 c (new)
Article 61 – paragraph 2 – point 2 c (new)
Regulation (EU) No 600/2014
Article 49 b (new)
Article 49 b (new)
(2c) The following Article is inserted: “Article 49b Operation of an MTF or OTF in the Union by a third-country firm The provisions of Articles 46 to49 shall not apply to the services and activities referred to in points 8 and 9of Section A of Annex I of Directive 2014/65/EU. Any third country firm wishing to provide such services or perform such activities in the Union shall set up a subsidiary in the Union and seek authorization according to the conditions of Article 5 of Directive 2014/65/EU.”
Amendment 335 #
Proposal for a regulation
Article 61 – paragraph 1 – point 2 d (new)
Article 61 – paragraph 1 – point 2 d (new)
Regulation (EU) No 600/2014
Article 52 – paragraph 11 a (new)
Article 52 – paragraph 11 a (new)
(2d) In Article 52, the following paragraph is inserted: "11a. By 3 July 2020, the Commission shall, after consulting ESMA, submit a report to the European Parliament and to the Council on whether Systematic internalisers’ quotes, and price improvements on those quotes, shall comply with tick sizes set in accordance with Article 49 of Directive 2014/65/EU."