35 Amendments of Neena GILL related to 2013/0306(COD)
Amendment 182 #
Proposal for a regulation
Recital 45
Recital 45
(45) In order to be able to absorb day-to- day fluctuations in the value of a EU public debt CNAV MMF's assets and allow it to offer a constant NAV per unit or share, the CNAV MMF should have at all times a NAV buffer amounting to at least 3% of its assets. The NAV buffer should serve as an absorbing mechanism for maintaining the constant NAV. All differences between the constant NAV per unit or share and the NAV per unit or share should be neutralized by using the NAV buffer. During stressed market situations, when the differences can rapidly increase, a procedure should ensure that the whole chain of management is involved. This escalation procedure should permit the senior management to take rapid remedy actionsEU public debt CNAV MMF should establish and maintain a capital buffer of up to 3%, to be built up by 2020, which should be calculated in accordance with the risk weightings assigned to the assets classes the MMF has invested in.
Amendment 191 #
Proposal for a regulation
Recital 46
Recital 46
(46) As an EU public debt CNAV MMF that does not maintain the NAV buffer at the required level is not capable of sustaining a constant NAV per unit or share, it should be required to fluctuate the NAV and cease to be an EU public debt CNAV MMF. Therefore, where despite the use of the escalation procedure the amount of the NAV buffer remains for one month below the required 3% by 10 basis points, the EU public debt CNAV MMF should automatically convert into a MMF that is not allowed to use amortised cost accounting or rounding to the nearest percentage point. If before the end of the one month allowed for the replenishment a competent authority has justifiable reasons demonstrating the incapacity of the EU public debt CNAV MMF to replenish the buffer, it should have the power to convert the EU public debt CNAV MMF into a MMF other than an EU public debt CNAV MMF. The NAV buffer is the only vehicle through which external support to an EU public debt CNAV MMF can be provided.
Amendment 208 #
Proposal for a regulation
Recital 48
Recital 48
(48) Investors should be clearly informed, before they invest in a MMF, if the MMF is of a short-term nature or of a standard nature and if the MMF is of a CNAV type or not. In order to avoid misplaced expectations from the investor it must also be clearly stated in any marketing document that MMFs are not a guaranteed investment vehicle. EU public debt CNAV MMFs should clearly explain to investors the buffer mechanism they are applying to maintain the constant NAV per unit or share.
Amendment 243 #
Proposal for a regulation
Article 2 – paragraph 1 – point 12 a (new)
Article 2 – paragraph 1 – point 12 a (new)
Amendment 254 #
Proposal for a regulation
Article 2 – paragraph 1 – point 22 a (new)
Article 2 – paragraph 1 – point 22 a (new)
(22a) "EU public debt CNAV MMF" means a CNAV MMF which, by 2020, invests at least 60% of its assets in EU public debt instruments as defined in point (22c). EU public debt CNAV MMF should build up this investment in public debt gradually. The European Commission shall make a progress report after 3 years.
Amendment 380 #
Proposal for a regulation
Article 14 – paragraph 5 – introductory part
Article 14 – paragraph 5 – introductory part
5. Notwithstanding the individual limits laid down in paragraphs 1 and 3, a MMF shall not combine, where this would lead to investment of more than 108% of its assets in a single body, any of the following:
Amendment 394 #
Proposal for a regulation
Article 15 – paragraph 1
Article 15 – paragraph 1
1. A MMF may not hold more than 108% of the money market instruments issued by a single body.
Amendment 506 #
Proposal for a regulation
Article 25 – paragraph 2
Article 25 – paragraph 2
2. In addition, in the case of CNAV MMFs, the stress tests shall estimate for different scenarios the difference between the constant NAV per unit or share and the NAV per unit or share, including the impact of the difference on the NAV buffer for EU public debt CNAV MMFs.
Amendment 572 #
Proposal for a regulation
Article 29 – paragraph 2 – introductory part
Article 29 – paragraph 2 – introductory part
2. An EU public debt CNAV MMF shall satisfy all the following additional requirements:
Amendment 582 #
Proposal for a regulation
Article 29 – paragraph 2 – point b
Article 29 – paragraph 2 – point b
(b) the competent authority of the EU public debt CNAV MMF is satisfied with a detailed plan by the EU public debt CNAV MMF specifying the modalities of the use of the buffer in accordance with Article 31;
Amendment 587 #
Proposal for a regulation
Article 29 – paragraph 2 – point c
Article 29 – paragraph 2 – point c
(c) the competent authority of the EU public debt CNAV MMF is satisfied with the EU public debt CNAV MMF's arrangements to replenish the buffer and with the financial strength of the entity expected to fund the replenishment;
Amendment 594 #
Proposal for a regulation
Article 29 – paragraph 2 – point f
Article 29 – paragraph 2 – point f
(f) the EU public debt CNAV MMF has established clear and effective communication tools towards investors that ensure prompt information in relation to any use or replenishment of the NAV buffer and the conversion of the EU public debt CNAV MMF;
Amendment 600 #
Proposal for a regulation
Article 29 – paragraph 2 – point g
Article 29 – paragraph 2 – point g
(g) the rules or instruments of incorporation of the EU public debt CNAV MMF state clearly that the EU public debt CNAV MMF cannot receive external support other than through the NAV buffer.
Amendment 614 #
Proposal for a regulation
Article 30 – title
Article 30 – title
EU public debt NAV buffer
Amendment 616 #
Proposal for a regulation
Article 30 – paragraph 1 – subparagraph 1
Article 30 – paragraph 1 – subparagraph 1
Amendment 621 #
Proposal for a regulation
Article 30 – paragraph 1 – subparagraph 2
Article 30 – paragraph 1 – subparagraph 2
The NAV buffer shall be used exclusively to cover differences between the EU public debt CNAV MMF's constant NAV per unit or share and the EU public debt CNAV MMF's NAV per unit or share as laid down in Article 31.
Amendment 623 #
Proposal for a regulation
Article 30 – paragraph 2
Article 30 – paragraph 2
2. The amounts in the NAV buffer shall not be included in the calculation of the NAV or constant NAV of the EU public debt CNAV MMF.
Amendment 629 #
Proposal for a regulation
Article 30 – paragraph 5
Article 30 – paragraph 5
5. The reserve account shall be used solely for the benefit of the EU public debt CNAV MMF. A transfer of funds from the reserve account shall only be made under the conditions laid down in Article 31(2)(b) and Article 31(3)(a).
Amendment 631 #
Proposal for a regulation
Article 30 – paragraph 6
Article 30 – paragraph 6
6. The depositary of the EU public debt CNAV MMF shall verify that any transfer from the reserve account is in accordance with the provisions of this Chapter.
Amendment 632 #
Proposal for a regulation
Article 30 – paragraph 7 – subparagraph 1
Article 30 – paragraph 7 – subparagraph 1
The EU public debt CNAV MMF shall establish in writing clear and detailed arrangements with the entity expected to fund the replenishment of the NAV buffer. The arrangements shall contain an explicit commitment to fund the replenishment and require the entity to fund the replenishment using its own financial resources.
Amendment 633 #
Proposal for a regulation
Article 30 – paragraph 7 – subparagraph 2
Article 30 – paragraph 7 – subparagraph 2
The arrangements for the replenishment and the identity of the entity expected to fund the replenishment shall be disclosed in the fund rules or instruments of incorporation of the EU public debt CNAV MMF.
Amendment 647 #
Proposal for a regulation
Article 32 – paragraph 1
Article 32 – paragraph 1
1. An EU public debt CNAV MMF shall establish and implement an escalation procedure that ensures that the negative difference between the constant NAV per unit or share and the NAV per unit or share is considered by persons competent to act for the fund in a timely manner.
Amendment 649 #
Proposal for a regulation
Article 32 – paragraph 2 – point a
Article 32 – paragraph 2 – point a
(a) where the negative difference reaches 10 basis points or its equivalent when the NAV is published in a currency unit, the senior management of the manager of the EU public debt CNAV MMF be informed;
Amendment 650 #
Proposal for a regulation
Article 32 – paragraph 2 – point b
Article 32 – paragraph 2 – point b
(b) where the negative difference reaches 15 basis points or its equivalent when the NAV is published in a currency unit, the board of directors of the manager of the EU public debt CNAV MMF, the competent authorities of the EU public debt CNAV MMF and ESMA be informed; ;
Amendment 660 #
Proposal for a regulation
Article 33 – paragraph 2 – subparagraph 1
Article 33 – paragraph 2 – subparagraph 1
When the NAV buffer has not been replenished and for one month the amount of the NAV buffer stays below the 3% referred to in Article 30(1) by 10 basis points the MMF shall automatically cease to be an EU public debt CNAV MMF and be prohibited from using the amortised cost or rounding methods.
Amendment 661 #
Proposal for a regulation
Article 33 – paragraph 2 – subparagraph 2
Article 33 – paragraph 2 – subparagraph 2
The EU public debt CNAV MMF shall inform immediately each investor thereof in writing and in a clear and comprehensible way.
Amendment 670 #
Proposal for a regulation
Article 34 – paragraph 1
Article 34 – paragraph 1
1. The competent authority of the EU public debt CNAV MMF shall be immediately notified of any decrease below 3% in the amount of the NAV buffer.
Amendment 673 #
Proposal for a regulation
Article 34 – paragraph 2
Article 34 – paragraph 2
2. The competent authority of the EU public debt CNAV MMF and ESMA shall be immediately notified when the amount of the NAV buffer decreases by 10 basis points below the 3% referred to in Article 30(1).
Amendment 675 #
Proposal for a regulation
Article 34 – paragraph 3
Article 34 – paragraph 3
3. Following the notification referred to in paragraph 1, the competent authority shall closely monitor the EU public debt CNAV MMF.
Amendment 676 #
Proposal for a regulation
Article 34 – paragraph 4
Article 34 – paragraph 4
4. Following the notification in paragraph 2, the competent authority shall control that the NAV buffer has been replenished or the MMF has ceased to hold itself as an EU public debt CNAV MMF and informed accordingly its investors.
Amendment 700 #
Proposal for a regulation
Article 35 – paragraph 3 a (new)
Article 35 – paragraph 3 a (new)
3a. MMFs other than EU public debt CNAV MMFs shall not be allowed to receive external support, except under the conditions laid down in Article 36.
Amendment 725 #
Proposal for a regulation
Article 37 – paragraph 5
Article 37 – paragraph 5
5. In addition to the information to be provided in accordance with paragraphs 1 to 4, a CNAV MMF shall explain clearly to investors and potential investors the use of the amortised cost method and/or of rounding. An EU public debt CNAV MMF shall indicate the amount of its NAV buffer, the procedure to equalise the constant NAV per unit or share and the NAV per unit or share and shall state clearly the role of the buffer and the risks related to it. The EU public debt CNAV MMF shall clearly indicate the modalities of replenishing the NAV buffer and the entity expected to fund the replenishment. It shall make available to investors all information concerning compliance with the conditions set out in Article 29(2)(a) to (g).
Amendment 777 #
Proposal for a regulation
Article 43 – paragraph 3 – point a
Article 43 – paragraph 3 – point a
(a) (a) up to 1% of the total value of the CNAV MMF's assets, within one year from the entry into force of this Regulation; proportion of assets not invested in EU public debt, , within one year from the date of application of the regulatory technical standards defining the risk weightings referred to in Article 30(1);
Amendment 779 #
Proposal for a regulation
Article 43 – paragraph 3 – point b
Article 43 – paragraph 3 – point b
(b) up to 2% of the total value of the CNAV MMF's assets, within two years from the entry into force of this Regulationproportion of assets not invested in EU public debt, within two years from the date of application of the regulatory technical standards defining the risk weightings referred to in Article 30(1);
Amendment 781 #
Proposal for a regulation
Article 43 – paragraph 3 – point c
Article 43 – paragraph 3 – point c
(c) up to 3% of the total value of the CNAV MMF's assets, within three years from the date of entry into force of this Regulationproportion of assets not invested in EU public debt, within three years from the date of application of the regulatory technical standards defining the risk weightings referred to in Article 30(1).