18 Amendments of Burkhard BALZ related to 2011/0298(COD)
Amendment 268 #
Proposal for a directive
Recital 47
Recital 47
(47) These potential risks from increased use of technology are best mitigated by a combination of specific risk controls directed at firms who engage in algorithmic or high frequency trading and other measures directed at operators of all trading venues that are accessed by such firms. It is desirable to ensure that all high frequency trading firms be authorised when they are a direct member of a trading venue. This should ensure they are subject to organisational requirements under the Directive and are properly supervised. It is also appropriate that in cases of direct market access it is ensured that all reasonable steps are taken to avoid the risk that could arise if firms use insufficient controls including that market participants can be identified and held accountable for any disorderly conditions for which they are responsible.
Amendment 277 #
Proposal for a directive
Recital 49
Recital 49
(49) In addition to measures relating to algorithmic and high frequency trading it is appropriate to include controlsmust be ensured that effective controls are set up relating to investment firms providing direct electronic access to market access for clients as electronic trading can be carried out via a firm providing electronicdirect market access and many similar risks. It is also appropriate that firms providing direct electronicmarket access ensure that persons using this service are properly qualified and that risk controls are imposed on the use of the service. It is appropriate that detailed organisational requirements regarding these new forms of trading should be prescribed in more detail in delegated acts. This should ensure that requirements may be amended where necessary to deal with further innovation and developments in this area.
Amendment 300 #
Proposal for a directive
Recital 53
Recital 53
(53) Investment firms are allowed to provide investment services that only consist of execution and/or the reception and transmission of client orders, without the need to obtain information regarding the knowledge and experience of the client in order to assess the appropriateness of the service or the instrument for the client. Since these services entail a relevant reduction of clients' protections, it is appropriate to improve the conditions for their provision. In particular, it is appropriate to exclude the possibility to provide these services in conjunction with the ancillary service consisting of granting credits or loans to investors to allow them to carry out a transaction in which the investment firm is involved, since this increases the complexity of the transaction and makes more difficult the understanding of the risk involved. It is also appropriate to better define the criteria for the selection of the financial instruments to which these services should relate in order to exclude the. It is also appropriate that more attention be paid to the transparency instead of the structure of financial instruments, including like collective investment in transferable securities (UCITS), which embed a derivative or incorporate a structure which makes it difficult for the client to understand the risk involved, given that the structure and the degree of the complexity do not necessarily determine whether a financial product is risky or not. If necessary the risk that a product cannot be understood by a client, should be subject to a future overhaul on basis of an impact assessment, whereby regulated product information for investors like key investor information for UCITS should have the chance to prove its worth.
Amendment 445 #
Proposal for a directive
Article 3 – paragraph 1 – subparagraph 1 – indent 2
Article 3 – paragraph 1 – subparagraph 1 – indent 2
– are not allowed to provide any investment service except the provision of investment advice, with or without the reception and transmission of orders in transferable securities and units in collective investment undertakings, and the reception and transmission of orders in transferable securities and units in collective investment undertakings at the initiative of the client, and
Amendment 446 #
Proposal for a directive
Article 3 – paragraph 1 – subparagraph 1 – closing part
Article 3 – paragraph 1 – subparagraph 1 – closing part
provided that the activities of those persons are authorised and regulated at national level. National regimes should submit those persons to requirements which are at least analogous to the following requirements under the present directive taking into account their size, risk profile and legal nature:
Amendment 449 #
Proposal for a directive
Article 3 – paragraph 1 – subparagraph 2
Article 3 – paragraph 1 – subparagraph 2
Member States shall require persons excluded from the scope of this Directive under paragraph 1 to be covered under an investor-compensation scheme recognized in accordance with Directive 97/9/EC or under a system ensuring equivalent protection to their clients. Member States may allow professional indemnity insurances as an alternative coverage, where this would be appropriate and proportionate in the view of the size, risk profile and legal nature of the persons excluded from the scope of this Directive under paragraph 1.
Amendment 529 #
Proposal for a directive
Article 9 – paragraph 3
Article 9 – paragraph 3
3. Member States shall require investment firms, where appropriate and proportionate in view of the nature, scale and complexity of their business, to take into account diversity as one of the criteria for selection of members of the management body. In particular, taking into account the size of their management body, investment firms shall put in place a policy promoting gender, age, educational, professional and geographical diversity on the management body.
Amendment 606 #
Proposal for a directive
Article 17 – paragraph 4
Article 17 – paragraph 4
4. An investment firm that provides direct electronicmarket access to a trading venue shall have in place effective systems and controls which ensure a proper assessment and review of the suitability of persons using the service, that persons using the service are prevented from exceeding appropriate pre set trading and credit thresholds, that trading by persons using the service is properly monitored and that appropriate risk controls prevent trading that may create risks to the investment firm itself or that could create or contribute to a disorderly market or be contrary to Regulation (EU) No [MAR] or the rules of the trading venue. The investment firm shall ensure that there is a binding written agreement between the firm and the person regarding the essential rights and obligations arising from the provision of the service and that under the agreement the firm retains responsibility for ensuring trading using that service complies with the requirements of this Directive, the Regulation (EU) No [MAR] and the rules of the trading venue.
Amendment 693 #
Proposal for a directive
Article 24 – paragraph 3 – subparagraph 1 – indent 1
Article 24 – paragraph 3 – subparagraph 1 – indent 1
– the investment firm and its services; when investment advice or portfolio management is provided, information shall specify in advance whether the advice is provided on an independent basior portfolio management is provided in conjunction with the acceptance or receipt of third-party inducements and whether it is based on a broad or on a more restricted analysis of the market and shall indicate whether the investment firm will provide the client with the on- goinga periodical assessment of the suitability of the financial instruments recommended to clients,
Amendment 726 #
Proposal for a directive
Article 24 – paragraph 5 – introductory part
Article 24 – paragraph 5 – introductory part
5. When the investment firm informs the client that investment advice is provided on an independent basis, theor portfolio management is provided on fee-paying basis, the firm shall also inform the client whether the financial instruments recommended will be limited to financial instruments issued or provided by entities having close links with the investment firm: .
Amendment 727 #
Proposal for a directive
Article 24 – paragraph 5 – point i
Article 24 – paragraph 5 – point i
Amendment 728 #
Proposal for a directive
Article 24 – paragraph 5 – point ii
Article 24 – paragraph 5 – point ii
Amendment 759 #
Proposal for a directive
Article 24 – paragraph 6
Article 24 – paragraph 6
Amendment 819 #
Proposal for a directive
Article 25 – paragraph 3 – subparagraph 1 – point a – point iv
Article 25 – paragraph 3 – subparagraph 1 – point a – point iv
(iv) shares or units in UCITS excluding structured UCITS as referred to in Article 36 paragraph 1 subparagraph 2 of Commission Regulation 583/2010;
Amendment 831 #
Proposal for a directive
Article 25 – paragraph 5
Article 25 – paragraph 5
5. The client must receive from the investment firm adequate reports on the service provided to its clients. These reports shall include periodic communications to clients, taking iIf advisory services are provided on a periodical basis, firms shall inform clientos accbount the type and the complexity of financial instruments involved and the nature of tfrequency of the communications. The service provided to the client and reports shall include, where applicable, the costs associated with the transactions and services undertaken on behalf of the client. When providing investment advice pursuant to Article 24 (3), the investment firm shall specify how the advice given meets the personal characteristics of the client.
Amendment 1017 #
Proposal for a directive
Article 51 – paragraph 4 – subparagraph 1
Article 51 – paragraph 4 – subparagraph 1
Member States shall require a regulated market that permits direct electronicmarket access to have in place effective systems procedures and arrangements to ensure that members or participants are only permitted to provide such services if they are an authorised investment firm under this Directive, that appropriate criteria are set and applied regarding the suitability of persons to whom such access may be provided and that the member or participant retains responsibility for orders and trades executed using that service.
Amendment 1021 #
Proposal for a directive
Article 51 – paragraph 4 – subparagraph 2
Article 51 – paragraph 4 – subparagraph 2
Member States shall also require that the regulated market set appropriate standards regarding risk controls and thresholds on trading through such access and is able to distinguish and if necessary to stop orders or trading by a person using direct electronic access separately from orders or trading by the member or participant.
Amendment 1050 #
Proposal for a directive
Article 51 – paragraph 7 – point d
Article 51 – paragraph 7 – point d
(d) to establish controls concerning direct electronicmarket access;