Activities of Diogo FEIO related to 2012/0150(COD)
Plenary speeches (1)
Framework for the recovery and resolution of credit institutions and investment firms - Deposit guarantee schemes (debate)
Amendments (55)
Amendment 200 #
Proposal for a directive
Recital 29
Recital 29
(29) When applying resolutions tools and exercising resolution powers, resolution authorities should make sure that shareholders and creditors bear an appropriate share of the losses, that the managers that have been involved in decisions leading to the imminent threat of failure of the credit institution or investment firm are replaced, that the costs of the resolution of the institution are minimised, and that all creditors of an insolvent institution that are of the same class are treated in a similar manner. When the use of the resolution tools involves the granting of State aid, interventions should have to be assessed in accordance with the relevant State aid provisions. State aid may be involved, inter alia, where resolution funds or deposit guarantee funds intervene to assist in the resolution of failing institutions.
Amendment 218 #
Proposal for a directive
Recital 46
Recital 46
(46) Where the bail-in tool is applied with the objective of restoring the capital of the failing institution to enable it to continue to operate as a going concern, the resolution through bail-in should always be accompanied by replacement of management and a subsequentthe application of other resolution tools in order to restructuring ofe the institution and its activities in a way that addresses the reasons for its failure. That restructuring should be achieved through the implementation of a business reorganisation plan. Where applicable, such plans should be compatible with the restructuring plan that the institutions is required to submit to the Commission under the Union State aid framework. In particular, in addition to measures aiming at restoring the long term viability of the institution, the plan should include measures limiting the aid to the minimum and burden sharing, and measures limiting distortions of competition.
Amendment 219 #
Proposal for a directive
Recital 46 a (new)
Recital 46 a (new)
(46a) The resolution authorities shall only apply the bail-in tool after the completion of a thorough evaluation of the institution that led to the conclusion that, no other alternative resolution tools would be enough to achieve the resolution objectives, either when applied per se, or in conjunction.
Amendment 227 #
Proposal for a directive
Recital 50
Recital 50
Amendment 311 #
Proposal for a directive
Article 3 – paragraph 1
Article 3 – paragraph 1
1. Each Member States shall designate one or more resolution authoritiesy that areis empowered to apply the resolution tools and exercise the resolution powers.
Amendment 327 #
Proposal for a directive
Article 3 – paragraph 5
Article 3 – paragraph 5
5. Where the designated authority in accordance with paragraph 1 is not the competent ministry in a Member State, any decision of the designated authority pursuant to this Directive shall be taken in consultation with the competent ministry. However, if such decision may lead to systemic or national implications and/or if it arises out of a systemic international crisis, than the competent ministry shall have the ultimate decision making regarding any decision of the designated authority.
Amendment 380 #
Proposal for a directive
Article 4 – paragraph 3 a (new)
Article 4 – paragraph 3 a (new)
3a. The contents of the plans referred to in Articles 5, 7, 9 and 11 shall not be revealed to anyone, including the institution’s shareholders, with the exception of the competent authorities, resolution authorities, and the persons involved in their preparation and approval.
Amendment 386 #
Proposal for a directive
Article 5 – paragraph 1
Article 5 – paragraph 1
1. Member States shall ensure that each institution that is not part of a group draws up and maintains a recovery plan providing, through measures to be taken by the management of the institution or by a group entity, for the restoration of its financial situation following significant deterioration. The host competent authority may request a specific recovery plan to be drawn up for the subsidiary in that Member State if the operations of the institution's subsidiary constitute a significant share of that Member State's financial system. Recovery plans shall be considered as a governance arrangement within the meaning of Article 22 of Directive 2006/48/EC.
Amendment 401 #
Proposal for a directive
Article 5 – paragraph 3
Article 5 – paragraph 3
3. Recovery plans shall not assume any access to or receipt of extraordinary public financial support but shall include, where applicable, an analysis of how and when an institution may apply for the use of central bank facilities in stressed conditions and available collateral.
Amendment 413 #
Proposal for a directive
Article 5 – paragraph 6
Article 5 – paragraph 6
Amendment 565 #
Proposal for a directive
Article 11 – paragraph 1
Article 11 – paragraph 1
1. Member States shall ensure that resolution authorities draw up group resolution plans. Group resolution plans shall include both a plan for resolution at the level of the parent undertaking or institution subject to consolidated supervision pursuant to Article 125 and 126 of Directive 2006/48/EC and the resolution plans for both the individual subsidiary institutions and, where systematically relevant, the resolution plans for individual branches, all drawn up in accordance with Article 9 of this Directive. The group resolution plans shall also include plans for the resolution of the companies referred to in points (c) and (d) of Article 1 and plans for the resolution of institutions with branches in other Member States in compliance with the provisions of Directive 2001/24/EC.
Amendment 580 #
Proposal for a directive
Article 11 – paragraph 3 – point e
Article 11 – paragraph 3 – point e
(e) identify how the group resolution actions could be financed and, where appropriate, set out principles for sharing responsibility, on an equitable basis, for that financing between sources of funding in different Member States. The plan shall not assume extraordinary public financial support besides the use of the financing arrangements established in accordance with Article 91. Those principles shall be set out on the basis of equitable and balanced criteria and shall take into account, in particular, the economic impact of the resolution in the Member States affected and the distribution of the supervisory powers between the different competent authorities.
Amendment 694 #
Proposal for a directive
Article 15 – paragraph 1
Article 15 – paragraph 1
1. The group level resolution authorities and, the resolution authorities of the subsidiaries and the relevant branches, in consultation with the relevant competent authorities, shall consult each other within the resolution college and shall take all reasonable steps to reach a joint decision in regards to the application of measures identified in accordance with Article 14(3).
Amendment 700 #
Proposal for a directive
Article 15 – paragraph 2
Article 15 – paragraph 2
2. The group level resolution authority, in cooperation with the consolidating supervisor and EBA in accordance with Article 25(1) of Regulation (EU) No 1093/2010, shall prepare and submit a report to the parent undertakings or institution subject to consolidated supervision and to the resolution authorities of the subsidiaries and relevant branches. The report shall be prepared in consultation with the competent authorities, and shall analyse the substantive impediments to the effective application of the resolution tools and the exercising of the resolution powers in relation to the group. The report shall also recommend any proportionate and targeted measures that, in the authorities' view, are necessary or appropriate to remove those impediments.
Amendment 705 #
Proposal for a directive
Article 15 – paragraph 4
Article 15 – paragraph 4
4. The group level resolution authority shall communicate any measure proposed by the parent undertakings or institution subject to consolidated supervision to the consolidating supervisor, EBA and, the resolution authorities of the subsidiaries and the resolution authorities of relevant branches. The group level resolution authorities and the resolution authorities of the subsidiaries, in consultation with the competent authorities, shall do everything within their power to reach a joint decision within the resolution college regarding the identification of the material impediments, and if necessary, the assessment of the measures proposed by the parent undertakings or institution subject to consolidated supervision and the measures required by the authorities in order to address or remove the impediments.
Amendment 736 #
Proposal for a directive
Article 16 – paragraph 1
Article 16 – paragraph 1
1. In order to overcome potential legal impediments to providing financial support within a group of institutions, Member States shall ensure that a parent institution in a Member State, or a Union parent institution, or a company referred to in points (c) and (d) of Article 1and its subsidiaries that are institutions or financial institutions covered by the supervision of the parent undertaking, may enter into an agreement to provide financial support to any other party to the agreement that experiences financial difficulties, provided that the conditions laid down in this chapter are satisfied. The provisions in this chapter shall not restrict the operation of centralised funding within a group of institutions in normal circumstances.
Amendment 740 #
Proposal for a directive
Article 16 – paragraph 1 a (new)
Article 16 – paragraph 1 a (new)
1a. The agreements referred to in paragraph 1 are optional between institutions of the group, and, in case of existence, they should be kept strictly confidential, having the institutions the right to decide whether it is of their interest to participate in these arrangements.
Amendment 800 #
Proposal for a directive
Article 22 – paragraph 3 – subparagraph 1
Article 22 – paragraph 3 – subparagraph 1
Member States shall ensure that institutions that have entered into a group financial support agreement pursuant to Article 16 to make public a description of the agreement and the names of the entities that are party to it and update that information at least annuallynotify supervisory authorities about the existence of such agreements. There should be no public disclosure whatsoever, neither regarding the existence of the agreements, nor its contents, except to supervisory and/or resolution authorities. The confidentiality includes non-disclosure to shareholders, even in the case of listed or otherwise publicly traded companies.
Amendment 814 #
Proposal for a directive
Article 23 – paragraph 1 – point a
Article 23 – paragraph 1 – point a
(a) require the management of the institution to implement one or more of the arrangements and measures set out in the recovery plan, or to update such recovery plan when the circumstances that led to the Early Intervention are different from the assumptions set out in the initial recovery plan;
Amendment 816 #
Proposal for a directive
Article 23 – paragraph 1 – point b
Article 23 – paragraph 1 – point b
(b) upon verification of different assumptions, require the management of the institution to examine the situation, identify measures to overcome any problems identified and draw up an action program new recovery plan to overcome those problems and a timetable for its implementation;
Amendment 821 #
Proposal for a directive
Article 23 – paragraph 1 – point d
Article 23 – paragraph 1 – point d
(d) requirplace the senior management of the institution to remove and replace one or more board members or managing directors if these persons are found unfit to perform their duties pursuant to Article 11 of Directive 2006/48/EC, or in cases of fraud or of proven bad management;
Amendment 824 #
Proposal for a directive
Article 23 – paragraph 1 – point e
Article 23 – paragraph 1 – point e
Amendment 827 #
Proposal for a directive
Article 23 – paragraph 1 – point f
Article 23 – paragraph 1 – point f
Amendment 830 #
Proposal for a directive
Article 23 – paragraph 1 – point g
Article 23 – paragraph 1 – point g
Amendment 855 #
Proposal for a directive
Article 24 – paragraph 2 a (new)
Article 24 – paragraph 2 a (new)
2a. The special manager shall: (1) Conduct a fair valuation of the company under the terms of Article 24a; (2) Elaborate a report on the institution's situation based on the valuation conducted under the terms of Article 24a where it: i. updates the institution's financial situation; ii. grants an opinion regarding the institution's future viability; iii. recommends the restructuring of the institution or its entering into resolution; (3) Submit both options to the competent authorities, for approval; (4) Upon a decision of restructuring, the special manager shall draw up a restructuring plan that may include, among other measures, the voluntary renegotiation of debt with some or all of its creditors; (5) Gather information and take the necessary steps in order to prepare the institution for Resolution, if that is to be the case; (6) Contact potential purchasers in order to prepare for the resolution of the institution, subject to the conditions laid down in Article 33(2) and the confidentiality provisions laid down in Article 77.
Amendment 860 #
Proposal for a directive
Article 24 a (new)
Article 24 a (new)
Amendment 951 #
Proposal for a directive
Article 29 – paragraph 1 – point c
Article 29 – paragraph 1 – point c
Amendment 974 #
Proposal for a directive
Article 30 – title
Article 30 – title
Amendment 1069 #
Proposal for a directive
Article 37 – paragraph 3 – subparagraph 2
Article 37 – paragraph 3 – subparagraph 2
Amendment 1071 #
Proposal for a directive
Article 37 – paragraph 3 a (new)
Article 37 – paragraph 3 a (new)
3 a. The resolution authorities shall apply bail-in after having proceeded to an evaluation of the institution that led to the conclusion that no other alternative resolution tools would be enough to achieve the resolution objectives, either when applied per se, or in conjunction.
Amendment 1082 #
Proposal for a directive
Article 38 – paragraph 2 – subparagraph 1 – point a
Article 38 – paragraph 2 – subparagraph 1 – point a
(a) all deposits that are guaranteed in accordance with Directive 94/19/EC;
Amendment 1086 #
Proposal for a directive
Article 38 – paragraph 2 – subparagraph 1 – point b
Article 38 – paragraph 2 – subparagraph 1 – point b
(b) secured liabilities, such as covered bonds in a covered pool or register;
Amendment 1105 #
Proposal for a directive
Article 38 – paragraph 2 – subparagraph 1 – point d
Article 38 – paragraph 2 – subparagraph 1 – point d
(d) interbank money-market liabilities with an original maturity of less than one month;
Amendment 1109 #
Proposal for a directive
Article 38 – paragraph 2 – subparagraph 1 – point e a (new)
Article 38 – paragraph 2 – subparagraph 1 – point e a (new)
(e a) arising from positions in derivatives in case the underlying assets are held by the institution and have been excluded from bail-in;
Amendment 1113 #
Proposal for a directive
Article 38 – paragraph 2 – subparagraph 1 – point e b (new)
Article 38 – paragraph 2 – subparagraph 1 – point e b (new)
(e b) derivatives that have been contractualised between institutions that do not have a Credit Support Annex agreement;
Amendment 1114 #
Proposal for a directive
Article 38 – paragraph 2 – subparagraph 1 – point e c (new)
Article 38 – paragraph 2 – subparagraph 1 – point e c (new)
(e c) deposit guarantee schemes;
Amendment 1124 #
Proposal for a directive
Article 38 – paragraph 2 – subparagraph 3
Article 38 – paragraph 2 – subparagraph 3
Amendment 1135 #
Proposal for a directive
Article 38 – paragraph 3
Article 38 – paragraph 3
3. Where resolution authorities apply the bail-in tool, they may exclude from the application of the write-down and conversion powers liabilities arising from derivatives that do not fall within the scope of point (d) of paragraph 2, if that exclusion is necessary or appropriate to achieve the objectives specified in points (a) and (b) and (d) of Article 26(2). except if those liabilities derived from positions that were closed by counterparties that exercised termination clauses related to the credit situation of the institution;
Amendment 1145 #
Proposal for a directive
Article 38 – paragraph 4 – point a
Article 38 – paragraph 4 – point a
Amendment 1148 #
Proposal for a directive
Article 39
Article 39
Amendment 1198 #
Proposal for a directive
Article 40
Article 40
Amendment 1213 #
Proposal for a directive
Article 42 – paragraph 1 – point a
Article 42 – paragraph 1 – point a
Amendment 1275 #
Proposal for a directive
Article 51 – paragraph 1 – introductory part
Article 51 – paragraph 1 – introductory part
1. Resolution authorities may only apply the bail-in tool after having proceeded to an evaluation of the situation and of the institution that led to the conclusion that no other alternative resolution tools are enough to achieve the resolution objectives, either when applied per se or in conjunction. Member States shall require that before any resolution action is taken, resolution authorities exercise the write down power, in accordance with the provisions of Article 52 and without delay, in relation to relevant capital instruments issued by an institution when one or more of the following circumstances apply:
Amendment 1292 #
Proposal for a directive
Article 56 – paragraph 1 – point j
Article 56 – paragraph 1 – point j
Amendment 1347 #
Proposal for a directive
Article 75 – paragraph 5
Article 75 – paragraph 5
5. The resolution authority shall ensure that the documents providing proof of the instruments referred to in paragraph 4 are sent to the known shareholders and creditors of the institution under resolution, if the latter's share or instruments of ownership are not admitted to trading on a regulated market.
Amendment 1425 #
Proposal for a directive
Article 91 – paragraph 1
Article 91 – paragraph 1
1. Member States shall establish financing arrangements for the purpose of ensuring the effective application by the resolution authority of the resolution tools and powers. The financing arrangements shall be used only in accordance with the resolution objectives and the principles set out in Articles 26 and 29 and be completely separate and independent from deposit guarantee schemes.
Amendment 1452 #
Proposal for a directive
Article 93 – paragraph 1
Article 93 – paragraph 1
1. Member States shall ensure that, in a period no longer than 10 years after the entry into force of this directive, the available financial means of their financing arrangements reach at least 1[...]% of the amount of deposits liabilities excluding own funds and covered deposits, of all the credit institutions authorised in their territory which are guaranteed under Directive 94/19/EC.
Amendment 1460 #
Proposal for a directive
Article 93 – paragraph 2 – subparagraph 2
Article 93 – paragraph 2 – subparagraph 2
Member States may extend the initial period of time for a maximum of four years in case the financing arrangements make cumulated disbursements superior to 0.5[...]% of covered deposits.
Amendment 1464 #
Proposal for a directive
Article 93 – paragraph 3
Article 93 – paragraph 3
3. If, after the initial period of time referred to in paragraph 1, the available financial means diminish below the target level specified in paragraph 2, contributions raised in accordance with Article 94 shall resume until the target level is reached. Where the available financial means amount to less than half of the target level, the annual contributions shall not be less than 0.25% of[...]% of liabilities excluding own funds and covered deposits.
Amendment 1487 #
Proposal for a directive
Article 94 – paragraph 3
Article 94 – paragraph 3
3. The available financial means to be taken into account in order to reach the target level specified in Article 93 may include payment commitments which are fully backed by collateral of low risk assets unencumbered by any third party rights, at the free disposal and earmarked for the exclusive use by the resolution authorities for the purposes specified in the first paragraph of Article 92. The share of irrevocable payment commitments shall not exceed 350% of the total amount of contributions raised in accordance with this Article.
Amendment 1550 #
Proposal for a directive
Article 97 – paragraph 2 – subparagraph 1
Article 97 – paragraph 2 – subparagraph 1
Member States shall ensure that financing arrangements under their jurisdiction are obliged tomay lend to other financing arrangements within the Union in the circumstances specified under paragraph 1.
Amendment 1560 #
Proposal for a directive
Article 97 – paragraph 2 – subparagraph 2
Article 97 – paragraph 2 – subparagraph 2
Subject to the first subparagraph, national financing arrangements shall not be obliged tomay not lend to another national financing arrangement in those circonumstances when the resolution authority of the Member State of the financing arrangement considers that it would not have sufficient funds to finance any foreseeable resolution in the near future. In any case they should not be obliged tomay not lend more than half of the funds that the national financing arrangement has available at the moment when the borrowing request is formalised, or if the amount of the loan would result in reducing the national arrangement's funding to a level below the minimum threshold percentage.
Amendment 1663 #
Proposal for a directive
Annex 1 – section 1 – paragraph 1 – point 2
Annex 1 – section 1 – paragraph 1 – point 2
(2) a summary of the material changes to the institution since the most recently filed recovery plan. EBA shall develop draft regulatory technical standards specifying the meaning of of "material changes". EBA shall submit those draft regulatory standards to the Commission within twelve months from the date of entry into force of this Directive;
Amendment 1665 #
Proposal for a directive
Annex 1 – section 1 – paragraph 1 – point 6
Annex 1 – section 1 – paragraph 1 – point 6
(6) a detailed description of any material impediment to the effective and timely execution of the plan, including consideration of impact on the rest of the group, customers and counterparties. EBA shall develop draft regulatory technical standards specifying the meaning of of "material changes". EBA shall submit those draft regulatory standards to the Commission within twelve months from the date of entry into force of this Directive;
Amendment 1681 #
Proposal for a directive
Annex 1 – section 3 – paragraph 1 – point 10
Annex 1 – section 3 – paragraph 1 – point 10
(10) The extent to which the institution or the group has tested its management information systems under stress scenarios defined by the resolution authority. EBA shall develop draft regulatory technical standards on stress scenarios. EBA shall submit those regulatory technical standards to the Commission within twelve months from the date of entry into force of this Directive. Power is delegated to the Commission to adopt the draft regulatory technical standards referred to in the first subparagraph in accordance with the procedure laid down in Article 10 to 14 of Regulation (EU) No 1093/2010.