16 Amendments of Vicky FORD related to 2009/0099(COD)
Amendment 78 #
Proposal for a directive – amending act
Recital 4 a (new)
Recital 4 a (new)
(4a) This Directive lays down core principles on remuneration policy. Those principles should be applied in a manner and to the extent that is proportionate to the nature, scope, complexity and riskiness of the activities and the size and internal structure of the credit institution or investment firm concerned. Member States should apply this Directive in a proportionate manner, in accordance with the risks of individual institutions.
Amendment 96 #
Proposal for a directive – amending act
Recital 14
Recital 14
(14) There should bIt is appropriate to introduce a separate capital treatment for securitisations which re- package other securitisations and are subject to a higher credit risk than normal securitisations and provides credit institutions and investment firms with clear disincentives against investment in securitisations of particularly high complexity and risktranche pools of exposures containing one or more securitisation positions since such re- securitisations are subject to a higher credit risk than normal securitisations.
Amendment 98 #
Proposal for a directive – amending act
Recital 15
Recital 15
(15) Banks investing in re-securitisations are required under Directive 2006/48/EC to exercise due diligence also with regard to the underlying securitisations and the non-securitisation exposures ultimately underlying the former. Depending on the complexityCredit institutions should assess whether exposures in the context of asset backed commercial paper programmes constitute re-securitisation exposures, including those in the context of programmes that acquire senior tranches of separate pools of whole loans where none of those layers ofoans is a securitisation structures and depending on the complexity and the diversity (or both) of the non-securitisation exposures that ultimately underlie the re-securitisations, the required due diligence may be impossible or uneconomical (or both) to carry out. This is in particular the case where the ultimate underlying exposures are, for example, leveraged buy-out or project finance debt. In these cases, institutions should not invest in such highly complex re-securitisations. In their review of the required due diligence, competent authorities should devote particular attention to such highly complex securitisations and require their full deduction from capital, unor re-securitisation exposure, and where the first-loss protection for each investment is provided by the seller of the loans. In the latter situation, a pool-specific liquidity facility should generally not be considered a re-securitisation exposure because it represents a tranche of a single asset pool (that is, the applicable pool of whole loans) which contains no securitisation exposures. By contrast, a programme- wide credit enhancement covering only some of the losses above the seller- provided protection across the various pools generally should be considered to constitute a tranching of the risk of a pool of multiple assets containing at least one securitisation exposure, and should therefore be considered a re-securitisation exposure. Nevertheless, it has been convincingly demonstrated to their satisfaction that in each individual case of highly complex re-securitisation exposures, the institution has performed the due diligence required by Directive 2006/48/EC, including with regard to the ultimate underlyingf such a programme funds itself entirely with a single class of commercial paper, and if either the programme-wide credit enhancement is not a re-securitisation or the commercial paper is fully supported by the sponsoring credit institution, leaving the commercial paper investor effectively exposed to the default risk of the sponsor instead of the underlying pools or assets, then that commercial paper should not be considered a re- securitisation exposures. .
Amendment 101 #
Proposal for a directive – amending act
Recital 16
Recital 16
Amendment 114 #
Proposal for a directive – amending act
Article 1 – point 1
Article 1 – point 1
Directive 2006/48/EC
Article 4 – points 40 a and 40 b
Article 4 – points 40 a and 40 b
(1) In Article 4, the following points (40a) and (40b) are inserted: "(4036a) 're-securitisation' means a securitisation where one or more of thethe risk associated with an underlying pool of exposures meet the definition ofis tranched and at least one of the underlying exposures is a securitisation position; (4036b) 're-securitisation position' means an exposure to a re-securitisation;"
Amendment 122 #
Proposal for a directive – amending act
Article 1 – point 8
Article 1 – point 8
Directive 2006/48/EC
Article 101 – paragraph 1
Article 101 – paragraph 1
1. The following shall not, with a view to reducing potential or actual losses to investors, provide support to the securitisation beyond its contractual obligations: (a) anyA sponsor credit institution, or an originator credit institution which, in respect of a securitisation, has done any of the following: (i) made use of Article 95 in the calculation of risk- weighted exposure amounts; (ii) or has sold instruments from its trading book to an SSPE to the effect that it doeis not hold capital for the specific longer required to hold own funds for the risks of these instruments anymore; (b) a sponsor credit institu, shall not, with a view to reducing potential or actual losses to investors, provide support to the securitisation beyond its contractual obligations.
Amendment 124 #
Proposal for a directive – amending act
Article 1 – point 9
Article 1 – point 9
Directive 2006/48/EC
Article 122b
Article 122b
Amendment 142 #
Proposal for a directive – amending act
Article 2 – point 3 a (new)
Article 2 – point 3 a (new)
Directive 2006/49/EC
Article 51 – paragraph 1 a (new)
Article 51 – paragraph 1 a (new)
(3a) In Article 51, the following paragraph is added: "The Commission shall report to the European Parliament and the Council on any measures agreed at international level regarding the methodology for capital charges for credit derivatives including the setting of a maximum loss cap. In the event that there is international agreement regarding such a floor, the Commission shall adopt delegated acts in accordance with Articles 42, 42a and 42b."
Amendment 149 #
Proposal for a directive – amending act
Article 3 – paragraph 1 – subparagraph 1
Article 3 – paragraph 1 – subparagraph 1
1. Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 31 December 2010 at the latestJanuary 2011. They shall forthwith communicate to the Commission the text of those provisions and a correlation table between those provisions and this Directive.
Amendment 153 #
Proposal for a directive – amending act
Annex I – point 1
Annex I – point 1
Directive 2006/48/EC
Annex V – section 11 – point 22 – introductory part
Annex V – section 11 – point 22 – introductory part
22. When establishing and applying the remuneration policies for those categories of staff, including senior management, whose professional activities have a material impact on their risk profile, credit institutions shall comply with the following principles in a way and to an extent that is appropriate to their size, internal organisation and the nature, the scope and the complexity of their activities:
Amendment 164 #
Proposal for a directive – amending act
Annex I – point 1
Annex I – point 1
Directive 2006/48/EC
Annex V – section 11 – point 22 – point e a (new)
Annex V – section 11 – point 22 – point e a (new)
(ea) in the case of credit institutions that benefit from exceptional government intervention, remuneration shall be limited as a percentage of net revenues when it is inconsistent with the maintenance of a sound capital base;
Amendment 192 #
Proposal for a directive – amending act
Annex I – point 3 – point a
Annex I – point 3 – point a
Directive 2006/48/EC
Annex IX – part 3 – point 1 – point c
Annex IX – part 3 – point 1 – point c
(c) The credit assessment shall not be based or partly based on unfunded support provided by the credit institution itself unless the support cannot be regarded in any way, an enhancement to the credit risks.
Amendment 199 #
Proposal for a directive – amending act
Annex I – point 4 – point b
Annex I – point 4 – point b
Directive 2006/48/EC
Annex XII – part 2 – point 14 – point n – point i
Annex XII – part 2 – point 14 – point n – point i
(i) the total amount of outstanding exposures securitised by the credit institution, separately for traditional and synthetic securitisations and securitisations for which the credit institution acts only as sponsor but, where a firm has not retained any securitisation positions in a transaction originated prior to the implementation of Article 122a, no exposures securitised;
Amendment 203 #
Proposal for a directive – amending act
Annex I – point 4 – point c
Annex I – point 4 – point c
Directive 2006/48/EC
Annex XII – part 2 – point 15– point e a (new)
Annex XII – part 2 – point 15– point e a (new)
Amendment 210 #
Proposal for a directive – amending act
Annex II – point 1 –point a a (new)
Annex II – point 1 –point a a (new)
Directive 2006/49/EC
Annex I – point 14 a (new)
Annex I – point 14 a (new)
(aa) The following point is inserted: "14a. By way of derogation from point 14, an institution may determine the specific risk capital charge for the correlation trading portfolio as follows: the institution computes (i) the total specific risk capital charges that would apply just to the net long positions of the correlation trading portfolio, and (ii) the total specific risk capital charges that would apply just to the net short positions of the correlation trading portfolio. The larger of these total amounts shall be the specific risk capital charge for the correlation trading portfolio. For the purpose of this Directive, the correlation trading portfolio shall consist of securitisation positions and nth-to- default credit derivatives that meet the following criteria: (a) the positions are neither re- securitisation positions, nor options on a securitisation tranche, nor any other derivatives of securitisation exposures that do not provide a pro-rata share in the proceeds of a securitisation tranche (excluding inter alia synthetically leveraged super-senior tranche), unless, with the approval of the relevant competent authority by 1 January 2012, they constitute an option on a securitisation tranche or synthetically leveraged super-senior relating to a securitisation or securitisations of underlying assets originated before 1 July 2008 and which was a position of the financial institution by 31 December 2009; and (b) all reference instruments are single- name instruments, including single-name credit derivatives, for which a liquid two- way market exists. This shall also include commonly traded indices based on these reference entities. A two-way market is deemed to exist where there are independent bona fide offers to buy and sell so that a price reasonably related to the last sales price or current bona fide competitive bid and offer quotations can be determined within one day and settled at such price within a relatively short time conforming to trade custom."
Amendment 214 #
Proposal for a directive – amending act
Annex II – point 1 – point b
Annex II – point 1 – point b
Directive 2006/49/EC
Annex I – point 16 a – point b
Annex I – point 16 a – point b
(b) for securitisation positions that would be subject to the Internal Ratings Based Approach in the same institution's non- trading book, 8% of the risk-weighted exposure amounts under the Internal Ratings Based Approach as set out in Part 4 of Annex IX to Directive 2006/48/EC. The Supervisory Formula Method may only be used with supervisory approval by institutions other than an originator institution that may apply it for the same securitisation position in its non-trading book. Where relevant, estimates of PD and LGD as inputs to the Supervisory Formula Method shall be determined in accordance with Articles 84 to 89 of directive 2006/48/EC or alternatively and subject to separate supervisory approval, based on an approach as set out in point 5a of Annex V. Subject to supervisory approval, an institution may also use the treatment of unrated positions set out in point 9 of Part 4 of Annex IX of Directive 2006/48/EC;