14 Amendments of Neena GILL related to 2015/0226(COD)
Amendment 119 #
Proposal for a regulation
Recital 4
Recital 4
(4) Securitisation is an important element of well-functioning financial markets. Soundly structured securitisation is an important channel for diversifying funding sources and allocating risk more efficiently within the Union financial system. It allows for a broader distribution of financial sector risk and can help to free up originator's balance sheets to allow for further lending to the economy. Overall, it can improve efficiencies in the financial system and provide additional investment opportunities. Securitisation can create a bridge between credit institutions and capital markets with an indirect benefit for businesses and citizens (through, for example, less expensive loans and business financing, credits for immovable property and credit cards). Securitisation may also allow individual credit institutions to lower their balance sheet rigidities, to better manage their portfolio risk concentrations and to create simpler, long term financial instruments for investors. Those capabilities may collectively improve financial sector flexibility and encourage broader, long term investment in the real economy. At the same time, securitisation can raise the risks of increased interconnectedness and of excessive leverage. It also has the potential to encourage speculative, short term investment and for regulatory arbitrage. This Regulation therefore encourages the strict monitoring by competent authorities of a financial institution's participation in the market.
Amendment 133 #
Proposal for a regulation
Recital 11
Recital 11
(11) Investments in or exposures to securitisations will not only expose the investor to credit risks of the underlying loans or exposures, but the structuring process of securitisations could also lead to other risks such as agency risks, model risk, legal and operational risk, counterparty risk, servicing risk, liquidity risk, concentration risk and risks of operational nature. Therefore, it is essential that institutional investors, including asset managers, are subject to proportionate due diligence requirements ensuring that they properly assess the risks arising from all types of securitisations, to the benefit of end investors. Due diligence can thus also enhance confidence in the market and between individual originators, sponsors and investors. It is necessary that investors also exercise appropriate due diligence with regard to STS securitisations.. They can inform themselves with the information disclosed by the securitising parties, in particular the STS notification and the related information disclosed in this context, which should provide investors with all the relevant information on the way STS criteria are met. Institutional investors should be able to place appropriate reliance on the STS notification and the information disclosed by the originator, sponsor and SSPE on whether a securitisation meets the STS requirements.
Amendment 141 #
Proposal for a regulation
Recital 13
Recital 13
(13) The ability of investors and prospective investors to exercise due diligence and thus make an informed assessment of the creditworthiness of a given securitisation instrument depends on their access to reliable and easy-to-use information on those instruments.. Based on the existing acquis, it is important to create a comprehensive system under which investors will have access to all theand prospective investors can easily access all relevant information over the entire life of the transactions and to reduce originators', sponsors' and SSPE's reporting tasks and to facilitate investors' continuous; easy and free access to reliable information on securitisations. . To enhance market transparency, a data repository providing easy access to data on aggregate market trends, comparisons with standard securitisation structure as well as granular data on the supporting securitisation collateral should be established. This data repository, known as the European Securities Data Repository (ESDR), need not generate and manage all of this information itself. Similar non-mandatory initiatives already exist, which have led to the establishment of infrastructure such as the European DataWarehouse. The information required to be disclosed should therefore rely on existing templates and exploit existing infrastructure insofar as practical. The ESDR's effort will extend beyond existing infrastructure to capture data on potential systemic risks. As such, the ESDR should focus upon reducing risk asymmetries, generating transparency that supports systemic risk management and which, in turn, encourages market discipline. At the same time, the ESDR should encourage and support the market's long-term, sustainable development while engaging with all three of its major constituents, that is the risk sellers, the risk buyers and the supervisors. ESDR governance should emulate the governance established for the Global LEI Foundation (GLEIF). Specifically, oversight of the ESDR should be shared between risk selling, risk buying and supervisory community representatives. ESMA should co-ordinate and lead the supervisory community's oversight effort. Other European Supervisory Authorities, notably the European Systemic Risk Board (ESRB), the European Central Bank and the European Insurance and Occupational Pensions Authority (EIOPA) should also consider how this data repository might help them respond to their respective responsibilities.
Amendment 159 #
Proposal for a regulation
Recital 20
Recital 20
(20) Where originators, sponsors and SSPE's would like their securitisations to use the STS designation, they should notify investors, competent authorities and ESMA thaof their intent to list the securitisation as meetsing the STS requirements. ESMA should then publish itOnce the ESDR has confirmed that data for all applicable disclosure points has been received, ESMA should then publish the nominated transaction on a list of transactions made available on its website for information purposes. The same list of transactions should also appear on the ESDR's website. The inclusion of a securitisation issuance in ESMA’'s list of notified STS securitisations does not imply that ESMA or other competent authorities have certified that the securitisation meets the STS requirements or that the data provided is accurate and timely. The compliance with the STS requirements remains solely the responsibility of the originators, sponsors and SSPEs. This will ensure that originators, sponsors and SSPE's take responsibility for their claim that the securitisation is STS, that the data they provide is accurate and timely and that there is transparency on the market.
Amendment 169 #
Proposal for a regulation
Recital 24
Recital 24
(24) Member States should designate competent authorities and provide them with the necessary supervisory, investigative and sanctioning powers to supervise participants in the STS market. Administrative sanctions and remedial measures should, in principle, be published. Since investors, originators, sponsors, original lenders and SSPEs can be established in different Member States and supervised by different sectoral competent authorities close cooperation between relevant competent authorities, including the European Central Bank (ECB) in accordance with Council Regulation (EU) No 1024/201324 , and with the ESAs should be ensured by the mutual exchange of information and assistance in supervisory activities. __________________ 24 Council Regulation (EU) No 1024/2013 of 15 October 2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions (OJ L 287, 29.10.2013. p. 263).
Amendment 173 #
Proposal for a regulation
Recital 32
Recital 32
(32) In order to facilitate the process to investors, originators, sponsors and SSPE's, the same power to adopt acts should be delegated to the Commission in respect of the adoption of regulatory technical standards regarding the templateminimum data reporting requirements for STS notifications that will provide investors and competent authorities with sufficient information for their assessment of compliance with the STS requirements. In view of the expertise of ESMA, in defining the delegated acts, the Commission should make use of that expertise on the preparation of the delegated acts. ESMA should consult closely with the other two European Supervisory Authorities.
Amendment 175 #
Proposal for a regulation
Recital 37
Recital 37
(37) For securitisation positions outstanding as of the date of entry into force of this Regulation, originators, sponsors and SSPEs may use the designation 'STS' provided that the securitisation complies with the STS requirements. Therefore, originators, sponsors and SSPEs should be able to submit an STS notification pursuant to Article 14 (1) of this Regulation to ESMA as set out in Recital 20.
Amendment 278 #
Proposal for a regulation
Article 5 – paragraph 1 – introductory part
Article 5 – paragraph 1 – introductory part
1. The originator, sponsor and SSPE of a securitisation shall, in accordance with paragraph 2, make at least the following information available to holders of a securitisation position and to the competent authorities referred to in Article 15 of this Regulation. o capture and promote the flow of real time information on STS securitisations, to reduce information asymmetries between risk seller and risk buyer, to improve aggregate market transparency and to support the emergence of market discipline, a data repository will be created. This data repository will be known as the 'European Securitisation Data Repository' (ESDR). The ESDR will fulfil the above role as a stand alone, neutral, not for profit entity. The ESDR shall be established by the Commission contemporaneously with the date of application of this Regulation and after consultation with representatives of the STS originating, STS investing and STS supervisory communities (the ESDR's "Constituents"). The ESDR's legal structure and governance shall follow a structure similar to that used for the Global Legal Entity Identifier. ESDR publications shall be phased in as quickly as practical thereafter. The originator, sponsor and SSPE of a securitisation shall, in accordance with paragraph 2, channel all legally required communications to holders of a securitisation position and to the competent authorities referred to in Article 15 of this Regulation using communications channels to be established by the ESDR. This obligation will continue until all investors have been repaid and will include:
Amendment 285 #
Proposal for a regulation
Article 5 – paragraph 1 – point a a (new)
Article 5 – paragraph 1 – point a a (new)
Amendment 298 #
Proposal for a regulation
Article 5 – paragraph 2 – introductory part
Article 5 – paragraph 2 – introductory part
2. The originator, sponsor and SSPE of a securitisation shall designate amongst themselves one entity to fulfil the information requirements pursuant to paragraph 1 and paragraph 1a. The originator, sponsor and SSPE shall ensure that the information is available free of charge to the holder of a securitisation position andcommunicated to the ESDR and the competent authoritiesy without charge, in a timely and clear manner. The entity designated to fulfil the requirements set out in paragraph 1 shall make the information available by means of a website which shall;
Amendment 304 #
Proposal for a regulation
Article 5 – paragraph 3 – point b – introductory part
Article 5 – paragraph 3 – point b – introductory part
(b) the minimum communication services, data capture and publication requirements to be met by the websiteESDR as referred to in paragraph 2 on which thes 1 and 2 inf ormation shall be made available toder to support holders of securitisation positions, in particular with regard to: ensuring ease of data and information access.
Amendment 405 #
Proposal for a regulation
Article 14 – paragraph 1
Article 14 – paragraph 1
1. Originators, sponsors and SSPE's shall jointly notify ESMA by means of the templateESDR communications services referred to in paragraph 5 of this Article that the securitisation meets the requirements of Articles 7 to 10 or Articles 11 to 13 of this Regulation ('STS notification'). Both the ESDR and ESMA shall publish the STS notification on itstheir official website pursuant to paragraph 4. They shall also informProper use of the ESDR communication channel will ensure that their competent authorityies are notified in a timely manner. The originator, sponsor and SSPE of a securitisation shall designate amongst themselves one entity to be the first contact point for investors and competent authorities. Where the originator, sponsor and SSPE have not agreed between themselves which entity shall accomplish the requirements under this Article, the originator shall comply with those requirements.
Amendment 420 #
Proposal for a regulation
Article 14 – paragraph 3
Article 14 – paragraph 3
3. The originator, sponsor andor SSPE shall use the ESDR communications channels to immediately notify ESMA and their competent authority when a securitisation no longer meets the requirements of either Articles 7 to 10 or Articles 11 to 13 of this Regulation.
Amendment 424 #
Proposal for a regulation
Article 14 – paragraph 4
Article 14 – paragraph 4
4. The ESDR and ESMA shall each maintain a list of all securitisations for which the originators, sponsors and SSPEs have notified that they meet the requirements of Articles 7 to 10 or Articles 11 to 13 of this Regulation on its official website.n its website. The ESDA and ESMA shall update the list where the securitisations are no longer considered to be STS following a decision of competent authorities or a notification by the originator, sponsor or SSPE. Where the competent authority has imposed administrative sanctions or remedial measures in accordance with Article 17, it shall immediately notify ESMA thereof. using the ESDR's communications channel. The ESDR and ESMA shall immediately indicate on the list that a competent authority has imposed administrative sanctions or remedial measures in relation to the securitisation concerned.