[ParlTrack]

Proposal for a regulation
Recital 23

(23) If, when assessing the trading activities, the competent authority concludes that they exceed certain metrics in terms of relative size, leverage, complexity, profitability, associated market risk, as well as interconnectedness, and further deems that there is a threat to the financial stability of the core credit institution or to the whole or part of the Union financial system, taking into account the objectives of this Regulation, it should require their separation from the core credit institution unless the core credit institution can demonstrate to the satisfaction of the competent authority that those trading activities do not pose a threat to the financial stability of the core credit institution or to the Union financial system as a whole, taking into account the objectives set out in this Regulation.'

2015/02/04
Committee: ECON

Neena GILL

Proposal for a regulation
Article 1 – paragraph 1 – point b a (new)

(b a) the management and structuring of certain trading activities when they are deemed to pose a risk to the institution or to the safeguarding of depositors, thereby building up systemic risk.

2015/02/04
Committee: ECON

Neena GILL

Proposal for a regulation
Article 1 – paragraph 1 – point e

(e) to reduce interconnectedness within the financial sector leading to systemic risk by safeguarding depositors, addressing risks and improving resilience;

2015/02/04
Committee: ECON

Neena GILL

Proposal for a regulation
Article 1 – paragraph 1 – point g a (new)

(g a) preserve financial stability by assuring the continuity of core services such as taking deposits.

2015/02/04
Committee: ECON

Neena GILL

Proposal for a regulation
Article 3 – paragraph 1 – point b a (new)

(b a) any credit institution directly supervised under the Single Supervisory Mechanism in accordance with Council Regulation 1024/2013.

2015/02/04
Committee: ECON

Neena GILL

Proposal for a regulation
Article 3 – paragraph 1 –subparagraph 1 a (new)

with the exception of credit institutions or EU parents listed under points (a) and (b) of the first subparagraph that hold less than EUR [25] billion of deposits from retail depositors and SMEs eligible under the Deposit Guarantee Scheme in accordance with Directive 2014/49/EC;

2015/02/04
Committee: ECON

Neena GILL

Proposal for a regulation
Article 4 – paragraph 1 a (new)

In addition to point (b) of paragraph 1, a competent authority may exempt from the requirements of Chapter III: (a) subsidiaries and branches of EU parents established in third countries if that competent authority is satisfied that: (i) there is a resolution strategy agreed upon between the group level resolution authority in the Union and the third country host authority; (ii) the resolution strategy for the subsidiary or branch of an EU parent established in a third country has no adverse effect on the financial stability of the Member State(s) where the EU parent and other group entities are established.

2015/02/04
Committee: ECON

Neena GILL

Proposal for a regulation
Article 5 – paragraph 1 – point 4

4. ‘proprietary trading’ means using own capital or borrowed money to take positions , in reaction to and with the motivation of exploiting actual or expected movements in market valuations, in any type of transaction to purchase, sell or otherwise acquire or dispose of any financial instrument or commodities for the sole purpose of making a profit for own account, and without any connection to actual or anticipated client activity or for the purpose of hedging the entity’'s risk as a result of actual or anticipated client activity, through the use of desks, units, divisions or individual traders specifically dedicated to such position taking and profit making, including through dedicated web- based proprietary trading platforms. This definition includes any such transaction undertaken with the aim of making profit, irrespective of whether such profit would be realised in the short term or in the longer term, or is in fact realised;

2015/02/04
Committee: ECON

Neena GILL

Proposal for a regulation
Article 6 – paragraph 1 – point b – introductory part

(b) with its own capital or borrowed money ~~and for the sole purpose of making a profit for own account~~:

2015/02/03
Committee: ECON

Neena GILL

Proposal for a regulation
Article 6 – paragraph 3

3. The restrictions laid down in point (b) of paragraph 1 shall not apply with regard to closed-ended and unleveraged AIFs as defined in Directive 2011/61/EU where those AIFs are established in the Union or, if they are not established in the Union, they are marketed in the Union according to Articles 35 or 40 of Directive 2011/61/EU , to qualifying venture capital funds as defined in Article 3(b) of Regulation (EU) No 345/2013, to qualifying social entrepreneurship funds as defined in Article 3(b) of Regulation (EU) No 346/2013, and to AIFs authorized as ELTIFs in accordance with Regulation (EU) No [XXX/XXXX].deleted

2015/02/03
Committee: ECON

Neena GILL

Proposal for a regulation
Article 9 – paragraph 1 – point a a (new)

(a a) Paragraph 1(a) shall not apply to a core credit institution which does not engage in the regulated activity of dealing in investments as principal and holding trading assets, with the exceptions of risk mitigating activities for the purpose of prudently managing its capital, liquidity and funding and of providing limited risk management services to customers.

2015/02/03
Committee: ECON

Neena GILL

Proposal for a regulation
Article 9 – paragraph 1 – point b a (new)

(b a) An assessment under paragraph 1(b) shall not affect any core credit institution within the group which is legally separated from group entities that engage in the regulated activity of dealing in investments as a principal or hold trading assets and which: - is able to make decisions independently of other group entities; - has a management body that is independent of other group entities; - is subject to capital and liquidity requirements in its own right; and - may not enter into contracts or transactions with other group entities other than on terms similar to those referred to in Article 13(7). Where all core credit institutions within the group meet those conditions, paragraph 1(b) shall not apply.

2015/02/03
Committee: ECON

Neena GILL

Proposal for a regulation
Article 10 – paragraph 1

1. Where the competent authority concludes that, following the assessment referred to in Article 9(1), the limits and conditions linked to the metrics referred to in points (a) to (h) of Article 9(2) and specified in the delegated act referred to in paragraph 5 are met, and it therefore deems that there is a threat to the financial stability of the core credit institution or to the whole or part of the Union financial system as a whole, taking into account the objectives referred to in Article 1, it shall, no later than two months after the finalisation of that assessment, start the procedure leading to a decision as referred to in the second subparagraph of paragraph 3.

2015/02/03
Committee: ECON

Neena GILL

Proposal for a regulation
Article 10 – paragraph 2

2. Where the limits and conditions referred to in paragraph 1 are not met, the competent authority may still start the procedure leading to a decision as referred to in the third subparagraph of paragraph 3 where it concludes, following the assessment referred to in Article 9(1), that any trading activity, with the exception of trading in derivatives other than those permitted under Article 11 and 12, carried out by the core credit institution, poses a threat to the financial stability of the core credit institution or to the whole or to part of the Union financial system as a whole taking into account the objectives referred to in Article 1.'

2015/02/03
Committee: ECON

Neena GILL

Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 2

Unless the core credit institution demonstrates, within the time limit referred to in the first subparagraph, to the satisfaction of the competent authority, that the re~~asons leading to the conclusions are not justified~~levant trading activities do not pose a threat to the financial stability of the core credit institution or to the whole or part of the Union financial system, the competent authority shall adopt a decision addressing the core credit institution and requiring it not to carry out the trading activities specified in those conclusions. The competent authority shall state the reasons for its decision and publicly disclose it.

2015/02/03
Committee: ECON

Neena GILL

Proposal for a regulation
Article 10 – paragraph 5 – point b – introductory part

(b) specify which type of securitisation is not considered to pose a threat to the financial stability of the core credit institution or to the whole or part of the Union financial system as a whole with regard to each of the following aspects:

2015/02/03
Committee: ECON

Neena GILL

Proposal for a regulation
Article 13 – paragraph 5 – subparagraph 2

Notwithstanding the first subparagraph, the competent authority may decide to allow core credit institutions that meet the requirements set out in Article 49(3)(a) or (b) of Regulation (EU) No 575/2013 to hold capital instruments or voting rights in a trading entity where the competent authority considers that holding such capital instruments or voting rights is indispensable for the functioning of the group and that the core credit institution has taken sufficient measures in order to appropriately mitigate the relevant risks.deleted

2015/02/03
Committee: ECON

Neena GILL

Proposal for a regulation
Article 13 – paragraph 8

8. A majority of the members of the management body of the core credit institution and of the trading entity respectively shall consist of persons who are not members of the management body of the other entity. No member of the management body of either entity shall perform an executive function in both entities ~~with the exception for the risk management officer of the parent undertaking~~.

2015/02/03
Committee: ECON

Neena GILL

Proposal for a regulation
Article 21

~~[...]~~deleted

2015/02/03
Committee: ECON

Neena GILL

Proposal for a regulation
Article 21 – paragraph 1

~~[...]~~deleted

2015/02/03
Committee: ECON

Jakob von WEIZSÄCKER, Neena GILL, Peter SIMON, Renato SORU, Pervenche BERÈS

Proposal for a regulation
Article 21 – paragraph 1 – introductory part

1. A~~t the request of a Member State, the Commission may grant a derogation from the requirements of this Chapter to a~~ credit institution taking deposits from individuals and SMEs that ~~are~~is subject to national primary legislation ~~adopted before 29 January 2014 when the national legislation complies with~~requiring structural separation of deposits and adopted before 29 January 2014 shall be deemed compliant with the requirements in this Chapter as regards to the requirement not to carry out trading activities or certain trading activities when the institution meets the following requirements:

2015/02/03
Committee: ECON

Neena GILL

Proposal for a regulation
Article 21 – paragraph 1 – point a

~~(a) it aims at preventing financial stress or failure and systemic risk referred to in Article 1;~~deleted

2015/02/03
Committee: ECON

Neena GILL

Proposal for a regulation
Article 21 – paragraph 1 – point b

(b) it prevents credit institutions taking eligible deposits from individuals and SMEs from engaging in the regulated activity of dealing in investments as principal and holding trading assets; however, the national legislation may provide for limited exceptions to allow the credit institution taking deposits from individuals and SMEs to undertake risk- mitigating activities for the purpose of prudently managing its capital, liquidity and funding and to provide limited risk management services to customers;deleted

2015/02/03
Committee: ECON

Neena GILL

Proposal for a regulation
Article 21 – paragraph 1 – point c

(c) if the credit institution taking eligible deposits from individuals and SMEs belongs to a group, it ensures that the credit institution is legally separated from group entities that engage in the regulated activity of dealing in investments as a principal or hold trading assets, and the national legislation specifies the following: (i) the credit institution taking eligible deposits from individuals and SMEs is able to make decisions independently of other group entities; (ii) the credit institution taking eligible deposits from individuals and SMEs has a management body that is independent of other group entities and independent of the credit institution itself; (iii) the credit institution taking eligible deposits from individuals and SMEs is subject to capital and liquidity requirements in its own right; (iv) the credit institution taking eligible deposits from individuals and SMEs may not enter into contracts or transactions with other group entities other than on terms similar to those referred to in Article 13(7).deleted

2015/02/03
Committee: ECON

Neena GILL

Proposal for a regulation
Article 21 – paragraph 2 – subparagraph 1

A Member State wishing to obtain a derogation for a credit institution subject to the national legislation in question, shall send a request for derogation, accompanied by a positive opinion issued by the competent authority supervising the credit institution that is subject to the request for derogation, to the Commission. That request shall provide all the necessary information for the appraisal of the national legislation and specify the credit institutions the derogation is applied for. Where the Commission considers that it does not have all the necessary information, it shall contact the Member State concerned within two months of receipt of the request and specify what additional information is required.deleted

2015/02/03
Committee: ECON

Neena GILL

Proposal for a regulation
Article 21 – paragraph 2 – subparagraph 2

Once the Commission has all the information it considers necessary for appraisal of the request for derogation, it shall within one month notify the requesting Member State that it is satisfied with the information.deleted

2015/02/03
Committee: ECON

Neena GILL

Proposal for a regulation
Article 21 – paragraph 2 – subparagraph 3

Within five months of issuing the notification referred to in the second subparagraph, the Commission shall, after having consulted the EBA on the reasons underlying its envisaged decision and on the potential impact of such a decision on the financial stability of the Union and the functioning of the internal market, adopt an implementing decision declaring the national legislation not incompatible with this Chapter and granting the derogation to the credit institutions specified in the request referred to in paragraph 1. Where the Commission intends to declare the national legislation incompatible and to not grant the derogation it shall set out its objections in detail and provide the requesting Member State with the opportunity to submit written comments within one month from the date of notification of the Commission objections. The Commission shall within three months from the end of the time limit for submission adopt an implementing decision granting or rejecting the derogation.deleted

2015/02/03
Committee: ECON

Neena GILL

Proposal for a regulation
Article 21 – paragraph 2 – subparagraph 4

~~Where the national legislation is amended, the Member State shall notify the amendments to the Commission. The Commission may review the implementing decision referred to in the third subparagraph.~~deleted

2015/02/03
Committee: ECON

Neena GILL

Proposal for a regulation
Article 21 – paragraph 2 – subparagraph 5

Where the national legislation not declared incompatible with this Chapter no longer applies to a credit institution that has been granted derogation from the requirements of this Chapter, that derogation shall be withdrawn with regard to that credit institution.deleted

2015/02/03
Committee: ECON

Neena GILL

Proposal for a regulation
Article 21 – paragraph 2 – subparagraph 6

The Commission shall notify its decisions to the EBA. The EBA shall publish a list of the credit institutions that have been granted a derogation in accordance with this Article. The list shall be continuously kept up-to-date.deleted

2015/02/03
Committee: ECON

Neena GILL

Proposal for a regulation
Article 21 a (new)

Article 21 a Treatment of Credit Institutions subject to mandatory separation 1. The activities of any credit institution shall be outside of the scope of this Chapter, where that core credit institution is subject to all the following statutory restrictions: a) the core credit institution is statutorily prevented from engaging in the regulated activity of dealing in investments as principal and holding trading assets, with limited exceptions to allow the core credit institution to undertake risk-mitigating activities for the purpose of prudently managing its capital, liquidity and funding and to provide limited risk management services to customers; and in addition (b) if the core credit institution belongs to a group, it shall be legally separated from group entities that engage in the regulated activity of dealing in investments as principal or hold trading assets and meets the following conditions: (i) it is able to make decisions independently of other group entities; (ii) it has a management body that is independent of other group entities and independent of the credit institution itself; (iii) it is subject to capital and liquidity requirements in its own right; (iv) it may not enter into contracts or transactions with other group entities other than on terms similar to those referred to in Article 13(7). Separation or restrictions under national legislation must be achieved on a timetable comparable to separation under this Regulation. The Commission and EBA shall be notified when the Member State establishes national legislation which provides for mandatory separation within the meaning of this Article.

2015/02/03
Committee: ECON

31 Amendments of Neena GILL related to 2014/0020(COD)

ParlTrack - 2011-2024