Activities of John PURVIS related to 2008/0191(COD)
Plenary speeches (1)
Credit requirements directives: Directives 2006/48/EC and 2006/49/EC - Community programme for financial services, financial reporting and auditing
Amendments (19)
Amendment 29 #
Proposal for a directive – amending act
Recital 3
Recital 3
(3) Therefore, it is important to lay down criteria for those capital instruments to be eligible for original own funds of credit institutions and to align the provisions in Directive 2006/48/EC to that agreement while taking into account the importance of a strong core capital base to be able to absorb losses. The amendments to Annex XII to Directive 2006/48/EC result directly from the establishment of those criteria. The eligibility criteria should refer to the most subordinated instruments of a credit institution that does not have proprietors or shareholders under national law, such as certain members' certificates of cooperative banks, insofar as the respective capital has been paid up and ranks after all other claims. Original own funds referred to in Article 57(a) of Directive 2006/48/EC include all instruments that are regarded under national law as equity capital, rank pari passu with ordinary shares during liquidation and fully absorb losses pari passu with ordinary shares on a going concern basis. These may include instruments providing preferential rights for dividend payment on a non cumulative basis, provided that they are included in Article 22 of Directive 86/635/EEC, rank pari passu with ordinary shares during liquidation and fully absorb losses on a going concern basis pari passu with ordinary shares. Original own funds referred to in Article 57(a) of Directive 2006/48/EC also include any other instrument under credit institutions' statutory terms taking into account the specific constitution of mutuals, cooperative societies and similar institutions and which are deemed equivalent to ordinary shares in terms of their capital qualities. Instruments that do not rank pari passu with ordinary shares during liquidation or that do not absorb losses on a going concern basis pari passu with ordinary shares are included in the category of hybrids referred to in Article 57(ca) of Directive 2006/48/EC.
Amendment 58 #
Proposal for a directive – amending act
Recital 19 a (new)
Recital 19 a (new)
(19a) By 31 December 2009, the Commission should report to the European Parliament and the Council on the appropriateness and expected impact of requiring institutions to retain a material net economic interest in their securitisations in the light of international market and policy developments. If the Commission concludes that retaining a material net economic interest is appropriate, it should put forward proposals with that report.
Amendment 106 #
Proposal for a directive – amending act
Article 1 – point 19 – point a
Article 1 – point 19 – point a
Directive 2006/48/EC
Article 111 – paragraph 1 – subparagraph 3
Article 111 – paragraph 1 – subparagraph 3
Amendment 138 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 1
Article 122a – paragraph 1
Amendment 140 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 1
Article 122a – paragraph 1
1. A credit institution shall only be exposed to the credit risk of an obligation or potential obligation or a pool of obligations or potential obligations where it was not involved in directly negotiating, structuring and documenting the original agreement which created the obligations or potential obligations, if: (a) the persons or entities that directly negotiated, structured and documented the original agreement with the obligor or potential obligor; or alternatively and where applicable, (b) the persons or entities that manage and purchase such obligations or potential obligations directly or indirectly on behalf of the credit institution, have issued either an explicit commitment to the credit institution to maintain, on an ongoing basis, a material net economic interest and in any event not less than 5 per cent in positions having the same risk profile as the one that the credit institution is exposed to or an explicit and unconditional warranty that they have carried out due diligence on the obligation and the obligor concerned and have properly defined and disclosed the risk profiles thereof.
Amendment 177 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 2 – subparagraph 2 a (new)
Article 122a – paragraph 2 – subparagraph 2 a (new)
Paragraph 1 shall not apply to securitisation positions which a credit institution holds or intends to hold on a short-term basis for the purposes of market making or providing liquidity.
Amendment 180 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 3 a (new)
Article 122a – paragraph 3 a (new)
3a. The Commission shall adopt implementing measures to specify: (a) the conditions and procedures for a suspension of the requirement set out in paragraph 1 in the event of a temporary breach of the explicit commitment; (b) the transitional measures to be applied in the event of a permanent breach of the explicit commitment; and (c) the manner in which the explicit commitment shall be disclosed.
Amendment 182 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 4 – introductory part
Article 122a – paragraph 4 – introductory part
4. Before investing, and on an ongoing basis, credit institutions, as appropriate thereafter, credit institutions, other than originators or sponsors or original lenders, shall be able to demonstrate at all times to the competent authorities for each of their individual securitisation positions that they have a comprehensive and thorough understanding of their securitisation positions and have implemented formal policies and procedures for analysing and recording, in writto ensure that appropriate due care and attention has been taken, which is appropriate to their trading book and non-trading book and is commensurate with the risk profile of their investments in securitised positions, and that they have implemented review and recording procedures regarding:
Amendment 186 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 4 – point a
Article 122a – paragraph 4 – point a
Amendment 187 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 4 – point a
Article 122a – paragraph 4 – point a
(a) the commitment, under paragraph 1, of originators and/or sponsors either to maintain a net economic interest in or an explicit and unconditional warranty regarding the securitisation and the period for which such commitment is given;
Amendment 189 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 4 – point b
Article 122a – paragraph 4 – point b
(b) the risk characteristics of the individualsecuritisation positions including structural features of the securitisation positransaction;
Amendment 192 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 4 – point c
Article 122a – paragraph 4 – point c
(c) the risk characteristics of the exposures underlying their securitisation positions;
Amendment 194 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 4 – point d
Article 122a – paragraph 4 – point d
(d) the reputation and loss experience in earlier securitisations of the originators or sponsors in the relevant exposure class or classes underlying the securitizsation positions;
Amendment 196 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 4 – point d a (new)
Article 122a – paragraph 4 – point d a (new)
(da) consideration of the likely impact of stress events, provided that the institution does not solely rely on stress tests performed by an ECAI;
Amendment 197 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 4 – point e
Article 122a – paragraph 4 – point e
Amendment 200 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 4 – point f
Article 122a – paragraph 4 – point f
Amendment 202 #
Proposal for a directive – amending act
Article 1 – point 27
Article 1 – point 27
Directive 2006/48/EC
Article 122a – paragraph 4 – point g
Article 122a – paragraph 4 – point g
(g) all the structural features of the securitisation that can materially impact the performance of the credit institution's securitisation positions. To this end, cCredit institutions shall prior to investing and regularly thereafter perform and record appropriate stress tests, such stress tests to be conducted independently of the ECAI or ECAIs who have rated the securitisation and to be based on all relevant information provided by the originator for this purposeregularly perform stress tests appropriate to their securitisation positions.
Amendment 282 #
Proposal for a directive – amending act
Article 2 – point 7
Article 2 – point 7
Directive 2006/49/EC
Article 45 – paragraph 1
Article 45 – paragraph 1
(7). In Article 45(1) the date "31 December 2010" is replaced by "31 December 20124".
Amendment 284 #
Proposal for a directive – amending act
Article 2 – point 8
Article 2 – point 8
Directive 2006/49/EC
Article 48 – paragraph 1
Article 48 – paragraph 1
(8). In Article 48(1) the date "31 December 2010" is replaced by "31 December 20124".