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Activities of Thomas HÄNDEL related to 2013/0214(COD)

Shadow reports (1)

2016/11/22
Committee: ECON
Dossiers: 2013/0214(COD)
Documents: PDF(403 KB) DOC(224 KB)

Amendments (24)

Proposal for a regulation
Recital 3

(3) Financing for projects, regarding t~~ransport infrastructure, sustainable energy generation or distribution, social infrastructure (housing or hospitals),~~he roll- out of new technologies and systems that reduce use of resources and energy or the further growth of SMEs, can be scarce. As the financial crisis has shown, complementing bank financing with a wider variety of financing sources that better mobilise capital markets could help tackle financing gaps. ELTIFs can play a crucial role in this respect.

2013/12/05
Committee: ECON

Proposal for a regulation
Recital 15

(15) In order to ensure that ELTIFs target long-term investments, rules on the portfolio of ELTIFs should require a clear identification of the categories of assets that should be eligible for investment by ELTIFs and of the conditions under which they should be eligible. An ELTIF should invest at least 790% of its capital in eligible investment assets. To ensure the integrity of ELTIFs it is also desirable to prohibit an ELTIF from engaging in certain financial transactions that might endanger its investment strategy and objectives by raising additional risks different to those that might be expected for a fund targeting long-term investments. In order to ensure a clear focus on long term investments, as may be useful for retail investors unfamiliar with less conventional investment strategies, an ELTIF should not be allowed to invest in financial derivative instruments other than for the purpose of hedging the duration and currency risk of the other assets. Given the liquid nature of commodities and financial derivative instruments that give an indirect exposure to them, investments in commodities do not require a long-term investor commitment and therefore should be excluded. This rationale does not apply to investments in infrastructure or companies related to commodities or whose performance is linked indirectly to the performance of commodities, such as farms in the case of agricultural ~~commodities or power plants in the case of energy~~ commodities.

2013/12/05
Committee: ECON

Proposal for a regulation
Recital 16

(16) The definition of what constitutes a long-term investment is broad. ~~Without necessarily requiring long-term holding periods for the ELTIF manager, e~~Eligible investment assets are generally illiquid, require commitments for a certain period of time, and have an economic profile of a long-term nature. Eligible investment assets are non-transferable securities and therefore do not have access to the liquidity of secondary markets. They often require fixed term commitments which restrict their marketability. The economic cycle of the investment sought by ELTIFs is essentially of a long-term nature due to the high capital commitments and the length of time required to produce returns. As a result such assets do not suit investments with redemption rights.

2013/12/05
Committee: ECON

Proposal for a regulation
Recital 17

(17) An ELTIF should be allowed to invest in assets other than eligible investment assets, as may be necessary to efficiently manage its cash flow, but only so long as this is consistent with the ELTIF’s long term investment strategy.deleted

2013/12/05
Committee: ECON

Proposal for a regulation
Recital 18

(18) Eligible investment assets must be understood to include participations, such as equity or quasi-equity instruments, debt instruments in qualifying portfolio undertakings and loans provided to them. They should also include participation in other funds that are focused on assets such as investments in non-listed undertakings that issue equity or debt instruments for which there is not always a readily identifiable buyer. Direct holdings of real assets, unless they are securitised, should also form a class of eligible assets.deleted

2013/12/05
Committee: ECON

Proposal for a regulation
Recital 19

(19) Quasi-equity instruments must be understood to comprise a type of financing instrument, which is a combination of equity and debt, where the return on the instrument is linked to the profit or loss of the qualifying portfolio undertaking, and where the repayment of the instrument in the event of default is not fully secured. Such instruments include a variety of financing instruments such as subordinated loans, silent participations, participating loans, profit participating rights, convertible bonds and bonds with warrants.deleted

2013/12/05
Committee: ECON

Proposal for a regulation
Recital 23

(23) Due to the scale of infrastructure projects, these require large amounts of capital that have to remain invested for long periods of time. Such infrastructure projects include ~~public building infrastructure such as schools, hospitals or prisons, social infrastructure such as social housing, transport infrastructure such as roads, mass transit systems or airports,~~ energy infrastructure such as energy grids, climate adaptation and mitigation projects, ~~power plants or~~ pipelines, water management infrastructure ~~such as water supply systems, sewage or irrigation systems~~, communication infrastructure such as networks and waste management infrastructure such as recycling or collection systems.

2013/12/05
Committee: ECON

Proposal for a regulation
Recital 27

(27) In order to allow managers of ELTIFs a certain degree of flexibility in the investment of their funds, trading in assets other than long-term investments should be permitted up to a maximum threshold of 30 % of their capital.deleted

2013/12/05
Committee: ECON

Proposal for a regulation
Recital 28

(28) In order to limit risk-taking by ELTIFs it is essential to reduce counterparty risk by subjecting the portfolio of ELTIFs to clear diversification requirements. All over-the counter (OTC) derivatives should be subject to Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories9. __________________ 9 OJ L 201. 27.7.2012. p.1deleted

2013/12/05
Committee: ECON

Proposal for a regulation
Recital 32

(32) Notwithstanding the fact that ELTIFs do not offer redemption rights before the end of life of the ELTIF, nothing should prevent an ELTIF from seeking admission of these shares or units to a regulated market as defined in Article 4(14) of Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments10, to a multilateral trading facility as defined in Article 4(15) of Directive 2004/39/EC, or to an organised trading facility as defined in point (…) of Regulation (…), thus providing investors with an opportunity to sell their units or shares before the end of life of the ELTIF. The rules or instruments of incorporation of an ELTIF should therefore not prevent units or shares from being admitted to or from being dealt in regulated markets, nor should they prevent investors from freely transferring their shares or units to third parties who wish to purchase those shares or units. __________________ 10deleted OJ L 145, 30.4.2004, p. 1 .

2013/12/05
Committee: ECON

Proposal for a regulation
Article 8 – paragraph 1 – point b

~~(p) assets referred to in Article 50(1) of Directive 2009/65/EC of the European Parliament and of the Council18. __________________ 18~~deleted OJ L 302, 17.11.09, p. 1.

2013/12/05
Committee: ECON

Proposal for a regulation
Article 8 – paragraph 2 – point d

(t) using financial derivative instruments~~, except where the underlying instrument consists of interest rates or currencies and it solely serves the purpose of hedging the duration and exchange risks inherent to other investments of the ELTIF~~.

2013/12/05
Committee: ECON

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

(a a) in the case of a long-term investment of more than 10 years’ duration in assets which do not contravene the objectives of the EU and which promote sustainable environmental and social economies.

2013/12/05
Committee: ECON

Proposal for a regulation
Article 9 – paragraph 1 – point b

~~(c) debt instruments issued by a qualifying portfolio undertaking;~~deleted

2013/12/05
Committee: ECON

Proposal for a regulation
Article 9 – paragraph 1 – point c

~~(d) loans granted by the ELTIF to a qualifying portfolio undertaking;~~deleted

2013/12/05
Committee: ECON

Proposal for a regulation
Article 10 – paragraph 1 – point c – introductory part

(c) it shall be established in a Member State~~, or in a third country provided that the third country:~~.

2013/12/05
Committee: ECON

Proposal for a regulation
Article 10 – paragraph 1 – point c – point i

~~i) is not a high-risk and non-cooperative jurisdictions identified by the Financial Action Task Force (FATF);~~deleted

2013/12/05
Committee: ECON

Proposal for a regulation
Article 10 – paragraph 1 – point c – point ii

ii) has signed an agreement with the home Member State of the manager of the ELTIF and with every other Member State in which the units or shares of the ELTIF are intended to be marketed to ensure that the third country fully complies with the standards laid down in Article 26 of the OECD Model Tax Convention on Income and on Capital and ensures an effective exchange of information in tax matters, including any multilateral tax agreements.deleted

2013/12/05
Committee: ECON

Proposal for a regulation
Article 11 – paragraph 1

An ELTIF shall not invest in an eligible investment asset in which the manager has or takes a direct or indirect interest~~, other than by holding units or shares of the ELTIF it manages~~.

2013/12/05
Committee: ECON

Proposal for a regulation
Article 12 – paragraph 1

(1) An ELTIF shall invest at least 790% of its capital in eligible investment assets.

2013/12/05
Committee: ECON

Proposal for a regulation
Article 12 – paragraph 2 – point d

~~(g) 5% of its capital in assets referred to in Article 8(1)(b) where those assets have been issued by any single body.~~deleted

2013/12/05
Committee: ECON

Proposal for a regulation
Article 12 – paragraph 4

~~(4) The aggregate risk exposure to a counterparty of the ELTIF stemming from over the counter (OTC) derivative transactions or reverse repurchase agreements shall not exceed 5% of its capital.~~deleted

2013/12/05
Committee: ECON

Proposal for a regulation
Article 13 – paragraph 2

~~(2) The concentration limits laid down in Article 56(2) of Directive 2009/65/EC shall apply to investments in the assets referred to in Article 8(1)(b) of this Regulation.~~deleted

2013/12/05
Committee: ECON

Proposal for a regulation
Article 17 – paragraph 1

(1) The ELTIF rules or instrument of incorporation shall not prevent units or shares of an ELTIF from being admitted to trading on a regulated market as defined in Article 4(14) of Directive 2004/39/EC or on a multilateral trading facility as defined in Article 4(15) of Directive 2004/39/EC or on an organised trading facility as defined in point (…) of Regulation (…).deleted

2013/12/05
Committee: ECON