71 Amendments of Jens ROHDE related to 2013/0314(COD)
Amendment 8 #
Proposal for a regulation
Recital 9 a (new)
Recital 9 a (new)
(9a) Whereas physical commodities present unique characteristics which must be taken into account in order to avoid undermining the integrity of commodity benchmarks and ensure the existing transparency in the commodity market. Accordingly Annex III of this regulation reflects the principles developed for commodities benchmarks by IOSCO, the International Energy Agency and the International Energy Forum specially designed to apply to all commodity benchmarks within this regulation.
Amendment 9 #
Proposal for a regulation
Recital 26
Recital 26
(26) The integrity and accuracy of benchmarks depends on the integrity and accuracy of the input data provided by contributors. It is essential that the obligations of the contributors in respect of this input data are clearly specified,contributors can be relied on and are consistent with the benchmark administrator's controls and methodology. It is therefore necessary that the bBenchmark administrators should therefore produces a code of conduct to specify these requirements and that the contributors are bound by that code of conductas far as is practicable, bearing in mind not all contributors are within the Union but may be needed for an accurate benchmark, the contributors are required to sign a binding code of conduct. Where a signature cannot be obtained, the continued provision of data from a contributor after communication of the code of conduct to them by the administrator shall constitute evidence of a legally binding agreement between the parties involved.
Amendment 14 #
Proposal for a regulation
Recital 37 a (new)
Recital 37 a (new)
Amendment 15 #
Proposal for a regulation
Recital 41
Recital 41
(41) This Regulation respects the fundamental rights and observes the principles recognised in the Treaty on the Functioning of the European Union (TFEU) and in the Charter of Fundamental Rights of the European Union, in particular the right to respect for private and family, the protection of personal data, the right to freedom of expression and information, the freedom to conduct a business, the right to property, the right to consumer protection, the right to an effective remedy, the right of defence. Therefore, this Regulation should be interpreted and applied in accordance with those rights and principles. Accordingly, this Regulation should be interpreted and applied in accordance with those rights and principles. Notably, when this Regulation refers to rules governing the freedom of the press and the freedom of expression in other media and the rules or codes governing the journalist professions, consideration should be given to these freedoms as they are guaranteed in the Union and in the Member States and as recognised under Article 11 of the Charter of Fundamental Rights and other relevant provisions.
Amendment 30 #
Proposal for a regulation
Article 5 – paragraph 1 – point a
Article 5 – paragraph 1 – point a
Amendment 31 #
Proposal for a regulation
Article 5 – paragraph 1 – point a – subparagraph 2
Article 5 – paragraph 1 – point a – subparagraph 2
Amendment 32 #
Proposal for a regulation
Article 5 – paragraph 1 – point b
Article 5 – paragraph 1 – point b
Amendment 33 #
Proposal for a regulation
Article 5 – paragraph 1 – point c
Article 5 – paragraph 1 – point c
Amendment 34 #
Proposal for a regulation
Article 5 – paragraph 1 – point d
Article 5 – paragraph 1 – point d
Amendment 35 #
Proposal for a regulation
Article 5 – paragraph 1
Article 5 – paragraph 1
Amendment 36 #
Proposal for a regulation
Article 6 – paragraph 2
Article 6 – paragraph 2
2. Where outsourcing takes place, an administrator shall ensure that the outsourcing requirements set out in Section B of Annex 1 or Annex III as applicable are satisfied.
Amendment 39 #
Proposal for a regulation
Article 7 – paragraph 2
Article 7 – paragraph 2
2. An administrator shall comply with the requirements concerning input data and methodology set out in Section C of Annex I or Annex III as applicable.
Amendment 40 #
Proposal for a regulation
Article 8 – paragraph 1
Article 8 – paragraph 1
1. The administrators of benchmarks under Article 5 shall ensure that there are adequate systems and effective controls designed to ensure the integrity of the input data for the purpose of paragraph 2.
Amendment 43 #
Proposal for a regulation
Article 9 – paragraph 2
Article 9 – paragraph 2
2. The code of conduct shall be signed by the administrator and the contributors and shall be legally binding on all parties to itinsofar as practicable with regard to the nature and location of the contributor shall be legally binding on all parties to it. Where a signature cannot be obtained, the continued provision of data from a contributor after communication of the code of conduct to them by the administrator shall constitute evidence of a legally binding agreement between the parties involved.
Amendment 46 #
Proposal for a regulation
Article 9 – paragraph 3 – subparagraph 2
Article 9 – paragraph 3 – subparagraph 2
The Commission shall take into account the different characteristics of benchmarks and contributors, notably in terms of differences in input data and methodologies, whether the contributors are voluntary, the risks of input data being manipulated and international convergence of supervisory practices in relation to benchmarks. and the proportionality of this Regulation. ESMA shall provide guidelines, after close consultation with ACER, with regard to applicability of legally binding codes of conduct in particular with regard to non-regulated entities and price reporting agencies within the EU.
Amendment 49 #
Proposal for a regulation
Article 11 – paragraph 1 – point a
Article 11 – paragraph 1 – point a
(a) The supervised contributor shall ensure that the provision of input data is not affected by any existing or potential conflict of interest and that, where any discretion is required, it is independently and honestly exercised based on relevant information in accordance with the code of conduct where applicable (‘Conflicts of interest’).
Amendment 51 #
Proposal for a regulation
Article 11 – paragraph 1 – point b
Article 11 – paragraph 1 – point b
(b) The supervised contributor shall have a control framework that ensures the integrity, accuracy and reliability of the input data and that the input data is provided in accordance with the provisions of this Regulation and the code of conduct where applicable (‘Adequate controls’).
Amendment 55 #
Proposal for a regulation
Article 12 – paragraph 2
Article 12 – paragraph 2
2. In addition to the requirements of the Title II,For commodity benchmarks only the specific requirements set out in Annex III shall apply to commodity benchmarks.
Amendment 58 #
Proposal for a regulation
Article 12 – paragraph 3 – introductory part
Article 12 – paragraph 3 – introductory part
3. The Commission shall be empowered to adopt delegated acts in accordance with Article 39 to specify, or adjust, in light of market and technological developments and international developments, the following elements of Annexes II and I II:
Amendment 59 #
Proposal for a regulation
Article 12 – paragraph 3 – point j
Article 12 – paragraph 3 – point j
Amendment 62 #
Proposal for a regulation
Article 12 – paragraph 3 – point k
Article 12 – paragraph 3 – point k
Amendment 63 #
Proposal for a regulation
Article 12 – paragraph 3 – point l
Article 12 – paragraph 3 – point l
Amendment 71 #
Proposal for a regulation
Article 15 a (new)
Article 15 a (new)
Article 15 a Disclosure or dissemination of information in the media Where information is disclosed or disseminated and where recommendations are produced or disseminated for the purpose of journalism, such disclosure or dissemination of information shall be assessed taking into account the rules governing the freedom of expression, the freedom and pluralism of the media and the rules or codes governing the journalist profession, unless: (a) the persons concerned or persons closely associated with them derive, directly or indirectly, an advantage or profits from the disclosure or the dissemination of the information in question; or (b) the disclosure or the dissemination is made with the intention of misleading the market as to the supply of, demand for, or price of financial instruments.
Amendment 73 #
Proposal for a regulation
Article 16 – paragraph 1
Article 16 – paragraph 1
1. An administrator shall publish the input data or the methodology used to determine the benchmark immediately after publicationat appropriate intervals proportionate to the sectoral importance of the benchmark except where publication wcould have serious adverse consequences for the contributors or adversely affect the reliability or integrity of the benchmark. In such cases publication may be delayed for a period that significantly diminishes these consequences. Any pPersonal data included in input data shall not be published without consent.
Amendment 79 #
Proposal for a regulation
Article 20 – paragraph 1 – introductory part
Article 20 – paragraph 1 – introductory part
1. Benchmarks provided by an administrator established in a third country may be used by supervised entities in the Union provided that the following conditions are complied with: unless they would have fallen by analogy into the qualifying benchmark category in Article 5.1. Benchmarks that would fall by analogy in the qualifying benchmark categories may be used provided that the legal framework, supervisory practice, or rules of the producer or administrator of the benchmark in that third country follow IOSCO principles for financial benchmarks or any subsequently agreed international standards for benchmarks; the supervised entity shall notify its competent authority and ESMA of the actual or prospective benchmarks that it uses and the basis on which it relies to demonstrate compliance with IOSCO or international standards for benchmarks. Administrators of third country benchmarks may submit demonstration of compliance with IOSCO principles directly to ESMA, which may then be referenced by supervised entities ESMA shall maintain a register of third countries and benchmark providers that it considers can be relied upon as a basis for compliance with international standards without further evidence. ESMA shall update this list using its own information and in consideration of evidence submitted by supervised entities or received from third country administrators, national competent authorities or ACER. In the event of dispute between competent authorities of Member States concerning the use of a third country benchmark by a supervised entity that has extensive cross border use, ESMA may conduct binding mediation. Six months before the entry into force of this regulation ESMA shall produce a report on the implementation of IOSCO principles. The procedure under this paragraph shall be reviewed after five years in the light of international regulatory convergence and in particular whether to extend the duration of its application.
Amendment 80 #
Proposal for a regulation
Article 20 – paragraph 1 – point a
Article 20 – paragraph 1 – point a
Amendment 81 #
Proposal for a regulation
Article 20 – paragraph 1 – point c
Article 20 – paragraph 1 – point c
Amendment 82 #
Proposal for a regulation
Article 20 – paragraph 1 – point d
Article 20 – paragraph 1 – point d
Amendment 83 #
Proposal for a regulation
Article 20 – paragraph 1 – point e
Article 20 – paragraph 1 – point e
Amendment 91 #
Proposal for a regulation
Article 30 – paragraph 2 – subparagraph 2
Article 30 – paragraph 2 – subparagraph 2
For the exercise of those powers, competent authorities shall have in place adequate and effective safeguards in regard to the right of defence, confidentiality and fundamental rights.
Amendment 99 #
Proposal for a regulation
Article 39 – paragraph 4
Article 39 – paragraph 4
4. The use of a benchmark shall be permitted by the relevant competent authority of the Member State where the administrator is located until such time as the benchmark referencesthe termination of the financial instruments and financial contracts worth no more than 5% by value of thethat referenced this benchmark at the time of entry into force of this Regulation. No new financial instruments andor financial contracts tshatll referenced this such an existing benchmark atfter the time of entry into force of this Regulation. No financial instruments or financial contracts shall reference such an existing benchmark after the entry into application of this Regulation. entry into application of this Regulation. ESMA shall develop draft regulatory technical standards, after close consultation with ACER in the case of point (c), to specify: a) information to be provided by an administrator in the application for authorisation in order to reasonably demonstrate that frustration, force majeure or breach of a contract could happen; b) the circumstances in which frustration, force majeure and breach of the terms of any financial contract are regarded to occur in accordance with this Regulation; c) calibrated and proportional transitional procedures for critical and sectoral benchmarks in particular for interest- rates and commodities. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with the procedure laid down in Articles 10 to 14 of Regulation (EU) No 1095/2010 and subject to a third month extension [as provided for in Omnibus 2]
Amendment 112 #
Proposal for a regulation
Annex III – point 1 – point e
Annex III – point 1 – point e
(e) criteria that address the assessment periods where the submitted data fall below the methodology's recommended transaction data threshold or the requisite administrator's quality standards, including any alternative methods of assessment including theoretical estimation models. The criteria shall explain the procedures used where no transaction data exists;
Amendment 113 #
Proposal for a regulation
Annex III – point 6 – introductory part
Annex III – point 6 – introductory part
6. An administrator shall describe and publish with each calculation, to the extent possireasonable without prejudicing due publication of the benchmarkdelaying a price reporting deadline:
Amendment 115 #
Proposal for a regulation
Annex III – point 12
Annex III – point 12
12. An administrator shall ensure that its other business operations have in place appropriate procedures and mechanisms designed to minimise the likelihood that conflicts of interest will affect the integrity of benchmark calculations.
Amendment 116 #
Proposal for a regulation
Annex III – point 13 – introductory part
Annex III – point 13 – introductory part
13. An administrator shall ensure it has appropriate segregated reporting lines amongst its managers, assessors and other employees and from the managers to the administrator's most senior level management and its board to ensure:
Amendment 151 #
Proposal for a regulation
Recital 9 a (new)
Recital 9 a (new)
(9 a) Physical commodities markets present unique characteristics which must be taken into account in order to avoid undermining the integrity of commodity benchmarks and negatively impacting commodity market transparency, European security of supply, competitiveness and the interests of consumers. Accordingly, certain articles in this Regulation are not appropriate to apply to commodity benchmarks. Annex III of this Regulation, which closely reflects principles developed for commodities benchmarks by IOSCO in collaboration with the International Energy Agency and the International Energy Forum among others, is specifically designed to apply to all commodity benchmarks which fall within the scope of this Regulation and sets out which of the requirements in the Regulation will not apply to commodity benchmarks.
Amendment 164 #
Proposal for a regulation
Recital 23
Recital 23
(23) Any discretion that can be exercised in providing input data creates an opportunity to manipulate a benchmark. Where the input data is transaction based data, there is less discretion and therefore the opportunity to manipulate the data is reduced. As a general rule benchmark administrators should therefore use actual transaction input data where possible but other data may be used in those cases where the transaction data is insufficient to ensure the integrity and accuracy of the benchmark. In cases where transaction data is not sufficiently available, the administrator should retain flexibility to use the inputs it believes are appropriate under its methodology to ensure the quality and integrity of the benchmark.
Amendment 165 #
Proposal for a regulation
Recital 26
Recital 26
(26) The integrity and accuracy of benchmarks depends on the integrity and accuracy of the input data provided by contributors. It is essential that the obligations of the contributors in respect of this input data are clearly specified,contributors can be relied on and are consistent with the benchmark administrator's controls and methodology. It is therefore necessary that the benchmark administrator produces a code of conduct to specify these requirements and that the contributors are bound by that code of conduct. as far as is practicable, bearing in mind not all contributors are within the EU but may be needed for an accurate benchmark, the contributors are bound by that code of conduct. Where it becomes evident that a contributor does not comply with the code of conduct administrators should take remedial action which may include, but not be limited to, refusing submissions from that contributor.
Amendment 185 #
Proposal for a regulation
Recital 34
Recital 34
(34) This Regulation should take into account the Principles for financial benchmarks issued by the International Organization of Securities Commissions (IOSCO) (hereinafter referred to as ‘'IOSCO Principles’') on the 17 July 2013 which serve as a global standard for regulatory requirements for benchmarks. It is necessary for investor protection that an assessment that the supervisions and regulation in any third country are equivalent to Union supervision and regulation of benchmarks takes place before any benchmark provided from that third country can be used in the Un, which may include reliance on administrator rules, in any third country follows IOSCO standards. Given that many third country benchmarks are in use for international trade involving EU corporates and institutions, it is important that such international trade is not disrupted by premature or inappropriate application of regulation.
Amendment 309 #
Proposal for a regulation
Article 7 – paragraph 2
Article 7 – paragraph 2
2. An administrator shall comply with the requirements concerning input data and methodology set out in Section C of Annex I or Annex III as applicable.
Amendment 646 #
Proposal for a regulation
Annex 3 – paragraph 1
Annex 3 – paragraph 1
This Annex is the only Annex in this Regulation which applies to ‘commodity benchmarks’ which means a benchmark where the underlying asset for the purposes of Article 3(1)(c) is a commodity within the meaning of point (2) of Article 2 of Commission Regulation (EC) No 1287/200628 . __________________ 28[1] which fall within this Regulation. Article 5(1), 5(2), 7(1), 8(2), 9(2) and 15 shall not apply. Although this Annex articulates uniform requirements, it does not contemplate a ‘one-size-fits-all’ method of implementation to achieve compliance. For example, differences in methodological approach or in the specific measures implemented by administrators to obtain bona fide data and other information are consistent with these provisions, as long as the approaches and measures meet the objectives set out in this Annex. Nothing in this Annex is intended to restrict an administrator from adopting its own unique methodologies or from adapting their methodologies to changing market conditions. The various measures set out in this Annex shall be implemented in accordance with a ‘reasonableness’ standard. (1a)(new) An administrator should formalise, document, and make public any methodology that it uses for a benchmark. (1b)(new) A methodology should aim to achieve benchmarks which are reliable indicators of market value, free from distortion and representative of the particular market to which they relate. __________________ 28 OJ L 241, 2.9.2006, p. 1. OJ L 241, 2.9.2006, p. 1.
Amendment 647 #
Proposal for a regulation
Annex 3 – point 1 – introductory part
Annex 3 – point 1 – introductory part
1. For the purposes of Articles 8, 9 and 16, the methodology and the description of the methodology in the benchmark statement shall include the following elementsThe methodology shall contain and describe:
Amendment 648 #
Proposal for a regulation
Annex 3 – point 1 – point c
Annex 3 – point 1 – point c
(c) the relative importance that generally shall be assigned to each criterion used in benchmark calculation, in particular the type of market data used, and the type of criterion used to guide judgement so as to ensure the quality and integrity of the benchmark calculation. This is not intended to restrict the specific application of the relevant methodology but is to ensure the quality and integrity of the benchmark;
Amendment 649 #
Proposal for a regulation
Annex 3 – point 1 – point e
Annex 3 – point 1 – point e
(e) criteria that address the assessment periods where the submitted data fall below the methodology’s recommended transaction data threshold or the requisite administrator’s quality standards, including any alternative methods of assessment including theoretical estimation models. Those criteria should explain the procedures used where no transaction data exists;
Amendment 650 #
Proposal for a regulation
Annex 3 – point 3 – introductory part
Annex 3 – point 3 – introductory part
3. In accordance with Article 7(1)(e) aAn administrator shall adopt and make public to users’ explicit procedures and the rationale of any proposed material change in its methodology. Those procedures shall be consistent with the overriding objective that an administrator must seek to ensure the continued integrity of its benchmark calculations and implement changes for good order of the particular market to which such changes relate. Such procedures shall provide:
Amendment 652 #
Proposal for a regulation
Annex 3 – point 4 a (new)
Annex 3 – point 4 a (new)
4a. An administrator shall establish and maintain a permanent and effective oversight function, which operates independently, to review and approve procedures for cessation of the benchmark, including any consultation about a cessation.
Amendment 653 #
Proposal for a regulation
Annex 3 – point 5 – introductory part
Annex 3 – point 5 – introductory part
5. In accordance with Article 8 and 9, aAn administrator shall:
Amendment 654 #
Proposal for a regulation
Annex 3 – point 5 – point b – introductory part
Annex 3 – point 5 – point b – introductory part
(b) giveutilise input data, giving priority to input data in the following order, where consistent with the administrator’s methodologiesapproach to ensuring the quality and integrity of a benchmark:
Amendment 655 #
Proposal for a regulation
Annex 3 – point 5 – point b – paragraph 1
Annex 3 – point 5 – point b – paragraph 1
Amendment 656 #
Proposal for a regulation
Annex 3 – point 5 – point d
Annex 3 – point 5 – point d
(d) establish and employ procedures to identify anomalous or suspicious(i.e. in the context of an administrator’s methodology) transaction data and keep records of decisions to exclude transaction data from the administrator’s benchmark calculation process;
Amendment 657 #
Proposal for a regulation
Annex 3 – point 5 – point f
Annex 3 – point 5 – point f
(f) employ a system of appropriate measures so to enassure that, to the extent possible, contributors comply with the administrator’s quality and integrity standards for market data.
Amendment 658 #
Proposal for a regulation
Annex 3 – point 6 – introductory part
Annex 3 – point 6 – introductory part
6. An administrator shall describe and publish with each calculationregularly with each benchmark, to the extent possireasonable without prejudicing due publication of the benchmark:
Amendment 659 #
Proposal for a regulation
Annex 3 – point 6 – point a
Annex 3 – point 6 – point a
(a) a concise explanation, sufficient to facilitate a benchmark subscriber’s or competent authority’s ability to understand how the calculation was developed, including, at a minimum, the size and liquidity of the physical market being assessed (such asmeaning the number and volume of transactions submitted), the range and average volume and range and average of price, and indicative percentages of each type of market data that have been considered in a calculation; terms referring to the pricing methodology shall be included such as ‘transaction-based’, ‘spread-based’ or ‘interpolated or extrapolated’;
Amendment 660 #
Proposal for a regulation
Annex 3 – point 6 – point b
Annex 3 – point 6 – point b
(b) a concise explanation of the extent to which, and the basis upon which, judgment including the(meaning exclusions of data which otherwise conformed to the requirements of the relevant methodology for that calculation, basing prices on spreads or interpolation, extrapolation, or weighting bids or offers higher than concluded transactions), if any, was used in any calculation.
Amendment 661 #
Proposal for a regulation
Annex 3 – point 7 – introductory part
Annex 3 – point 7 – introductory part
7. In accordance with Article 5, aAn administrator shall:
Amendment 662 #
Proposal for a regulation
Annex 3 – point 7 a (new)
Annex 3 – point 7 a (new)
7a. Code of Conduct for contributors In accordance with Article 9(1), an administrator shall adopt a code of conduct which shall: (a) specify the responsibilities of contributors with respect to the input data provided to administrators (b) encourage the provision of input data that is consistent with the administrator’s approach to ensuring the quality and integrity of a benchmark (c) provide guidance as to who may contribute input data to the administrator (d) encourage contributors to provide all relevant input data (e) encourage contributors to establish: (i) procedures for submitting input data; (ii) policies preventing the misuse of discretion by the contributor in providing input data; (iii) record keeping policies of the contributors; (iv) conflict management processes (f) encourage contributors to comply with all applicable laws.
Amendment 663 #
Proposal for a regulation
Annex 3 – point 8 – introductory part
Annex 3 – point 8 – introductory part
8. In accordance with Article 5, aAn administrator shall:
Amendment 664 #
Proposal for a regulation
Annex 3 – point 8 – point b
Annex 3 – point 8 – point b
(b) maintain continuity and succession planning in respect of its assessors in order to seek to ensure that calculations are made consistently and by employees who possess the relevant levels of expertise;
Amendment 665 #
Proposal for a regulation
Annex 3 – point 8 – point c
Annex 3 – point 8 – point c
(c) institute internal control procedures designed to ensure the integrity and reliability of calculations. At a minimum, such internal controls and procedures shall require (a) the on-going supervision of assessors to seek to ensure that the methodology was properly applied; and (b) procedures for internal sign-off by a supervisor prior to releasing benchmarks for dissemination to the market.
Amendment 666 #
Proposal for a regulation
Annex 3 – point 9 – introductory part
Annex 3 – point 9 – introductory part
9. In accordance with Article 5, aAn administrator shall have rules and procedures in place to document contemporaneously relevant information, including:
Amendment 667 #
Proposal for a regulation
Annex 3 – point 10
Annex 3 – point 10
10. In accordance with Article 5, aAn administrator shall have rules and procedures in place to ensure that an audit trail of relevant information is retained for at least five years in order to document the construction of its calculations.
Amendment 668 #
Proposal for a regulation
Annex 3 – point 11 – introductory part
Annex 3 – point 11 – introductory part
11. In accordance with Article 5, an An administrator’s conflicts of interest policies and procedures shall be designed to:
Amendment 669 #
Proposal for a regulation
Annex 3 – point 12
Annex 3 – point 12
12. An administrator shall ensure that its other business operations have in place appropriate procedures and mechanisms designed to minimise the likelihood that conflicts of interest will affect the integrity of benchmark calculations.
Amendment 670 #
Proposal for a regulation
Annex 3 – point 13 – introductory part
Annex 3 – point 13 – introductory part
13. An administrator shall ensure it has appropriate segregated reporting lines amongst its managers, assessors and other employees and from the managers to the administrator’s most senior level management and its board (if any), designed to ensure:
Amendment 671 #
Proposal for a regulation
Annex 3 – point 14
Annex 3 – point 14
14. An administrator shall disclose to its ustakeholders as soon as it becomes aware of a conflict of interest arising from the ownership of the administrator. An administrator shall put in place policies and procedures to specifically mitigate conflicts due to the administrator’s ownership or control, or due to other interests in its group or as a result of other persons that may exercise influence or control over the administrator in relation to setting the benchmark.
Amendment 672 #
Proposal for a regulation
Annex 3 – point 15 – introductory part
Annex 3 – point 15 – introductory part
15. In accordance with Article 5, aAn administrator shall have in place and publish written procedures for receiving, investigating and retaining records concerning complaints made about an administrator’s calculation process. Such complaint mechanisms shall ensure that:
Amendment 673 #
Proposal for a regulation
Annex 3 – point 16 a (new)
Annex 3 – point 16 a (new)
16a. An administrator shall establish and maintain a permanent and effective oversight function which operates independently and which shall assess internal and external audits or reviews, and monitor the implementation of identified actions.
Amendment 674 #
Proposal for a regulation
Annex 3 – point 16 b (new)
Annex 3 – point 16 b (new)
16b. An administrator shall appoint an internal function, with the necessary capability to review and report on the administrator’s adherence to the benchmark methodology and this Regulation.
Amendment 675 #
Proposal for a regulation
Annex 3 – point 16 c (new)
Annex 3 – point 16 c (new)
16c. Upon the request of the relevant competent authority the administrator shall provide or publish details of the reviews in point 17 or audits under point 18.
Amendment 676 #
Proposal for a regulation
Annex 3 – point 16 d (new)
Annex 3 – point 16 d (new)
16d. Oversight Functions 1. The oversight function shall be one of the following: (a) where the administrator is owned or controlled by contributors or users, a separate board or committee, whose composition ensures its independence and the absence of conflicts of interest. Where the administrator is owned or controlled by contributors, a majority of the committee should not be contributors. Where the administrator is owned or controlled by users, a majority of the committee should not be users; (b) where the administrator is not owned or controlled by its contributors or users, an internal board or committee. The members of the internal board or committee shall not be involved in the provision of any benchmark they oversee; (c) where the administrator is able to demonstrate that in view of the nature, scale and complexity of its provision of the benchmark, and the risk and impact of the benchmark, the requirements under points (a) and (b) are not proportionate, a natural person may provide the function of oversight officer. The oversight officer must not be involved in the provision of any benchmark they oversee. (d) The oversight function may exercise oversight of more than one benchmark provided by an administrator provided that it otherwise complies with the other requirements of this section.
Amendment 677 #
Proposal for a regulation
Annex 3 – point 16 e (new)
Annex 3 – point 16 e (new)
16e. Outsourcing Requirements 1. Where outsourcing takes place, an administrator shall ensure that the following conditions are satisfied: (a) the service provider shall have the ability, capacity, and any authorisation required by law to perform the outsourced functions, services or activities reliably and professionally; (b) the administrator shall be take appropriate action if it appears that the service provider may not be carrying out the functions effectively and in compliance with applicable laws and regulatory requirements; (c) the administrator shall retain the necessary expertise to supervise the outsourced functions effectively and to manage the risks associated with the outsourcing; (d) the service provider shall disclose to the administrator any development that may have a material impact on its ability to carry out the outsourced functions effectively and in compliance with applicable laws and regulatory requirements; (e) the service provider shall co-operate with the relevant competent authority in connection with the outsourced activities, and the administrator and the relevant competent authority shall have effective access to data related to the outsourced activities, as well as to the business premises of the service provider, and the relevant competent authority shall be able to exercise these rights of access; (f) the administrator shall be able to terminate the arrangements where necessary.