Activities of Ramón JÁUREGUI ATONDO related to 2009/0142(COD)
Shadow opinions (1)
OPINION Proposal for a Regulation of the European Parliament and of the Council establishing a European Banking Authority
Amendments (38)
Amendment 87 #
Proposal for a regulation
Title
Title
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing a European Banking AuthoritySupervisory Authority on Banking
Amendment 89 #
Proposal for a regulation
Recital 1
Recital 1
(1) The financial crisis in 2007/2008 exposed important shortcomings in financial supervision, both in particular cases and in relation to the financial system as a whole. Nationally-based supervisory models have lagged behind the financial globalisation and the integrated and interconnected reality of European financial markets, in which many financial firms operate across borders. The crisis exposed shortcomings in the area of cooperation, coordination, consistent application of CommunityEU law and trust between national supervisors.
Amendment 90 #
Proposal for a regulation
Recital 7
Recital 7
(7) The European System of Financial Supervisorsion (ESFS) should be an integrated network of national and CommunityEuropean supervisory authorities, leaving ordinary day-to-day supervision of financial institutions at the national levelcompetent authorities of Member States, and according a central role in the supervision of cross-border groups to colleges of supervisors. Greater harmonisation and theconsistent and coherent application of ruleEuropean rules and standards for financial institutions and markets across the CommunityEuropean should also be achieved. A European Banking AuthoritySupervisory Authority on Banking should be established, along with a European Supervisory Authority on Insurance and Occupational Pensions Authority and a European Securities and Markets Authority (the European Supervisory Authorities)and a European Supervisory Authority on Securities and Markets (the European Supervisory Authorities) as well as a Joint Committee among them. The European Systemic Risk Board, as European Authority in macro supervision, completes the ESFS. The ESFS is a progressive supervisory system that should evolve according to best practices recognised at European and international level. One line to follow may be the establishment of a new level of direct supervision by the Authority; to avoid international distortions and to strengthen the European System of Financial Supervision, its introduction should be previously and carefully evaluated and considered in order to add value to the supervision of large financial institutions, mainly those whose parent company is based in a third country, above all when they develop wholesale banking or other sensitive activities on the internal market, and those systemic financial institutions once they have been defined and identified at international level. This issue shall be further studied in the first revision of this Regulation, which should take place not later than three years from its entry into force.
Amendment 91 #
Proposal for a regulation
Recital 14
Recital 14
(14) There is a need to introduce an effective instrument to establish harmonised technical standards in financial services to ensure, also through a single rulebook, a level playing field and an adequate protection of depositors, investors and consumers across Europe. As a body with highly specialised expertise, it is efficient and appropriate to entrust the Authority, in aAs a body with highly specialised expertise, it is efficient and appropriate to entrust the Authority, in level 2 Lamfalussy regulations (in areas defined by European law or at request of the Commission) and in level 3 Lamfalussy supervisory measureas defined by Community law(following its own initiative), with the elaboration of draft technical standards, which do not involve policy choices. The Commission should endorse those draft technical standards in accordance with Community law in order to give them binding legal effect and must respect the principle of proportionality. The draft technical standards have to be adopted by the Commission. They w as Regulatory Standards could be subject to amendment if, for example,by the Commission. In the case of Supervisory Standards, the Commission shall endorse those draft technical standards were incompatible with Community Law, would not respect the principle of proportionality or would run counter tohen they are in accordance with European law in order to give them binding legal effect. The Commission is empowered to adopt Regulatory Standards in financial services as Delegated Acts in accordance with the Article 290 of the Treaty on the fFundamental principles of the internal market for financial services as reflected ctioning of the European Union. The Supervisory Standards should be endorsed as Implementing Acts in accordance with a procedure following the acquis of Community financial services legislatArticle 291 of the Treaty on the Functioning of the European Union. To ensure a smooth and expedited adoption process for those standards, the Commission shcould be subject to a time limit for itsboth its resolution on adoption or decision on the endorsement.
Amendment 92 #
Proposal for a regulation
Recital 15
Recital 15
Amendment 93 #
Proposal for a regulation
Recital 16
Recital 16
(16) In areas not covered by technicalRegulatory or Supervisory standards, the Authority should have the power to issue non-binding guidelines and recommendations on the application of CommunityEU legislation to promote best practices. In order to ensure full transparency and strengthen compliance by national supervisory authorities and financial institutions with those guidelines and recommendations, national authorities should be obliged to state their reasons where they do not comply with those guidelines and recommendations. and the financial institutions should be obligated to report if they comply with these guidelines and recommendations when reporting.
Amendment 94 #
Proposal for a regulation
Recital 17
Recital 17
(17) Ensuring the correct and full application of CommunityEuropean law is a core prerequisite for the integrity, transparency, efficiency and orderly functioning of financial markets, the stability of the financial system, and for neutral conditions of competition for financial institutions in the Community. A mechanism should therefore be established whereby the Authority addresses instances of incorrect or insufficient application of Community law. This mechanism should apply in areas where Community legislation defines clear and unconditional obligations.
Amendment 95 #
Proposal for a regulation
Recital 22
Recital 22
(22) In order to ensure efficient and effective supervision and a balanced consideration of the positions of the competent authorities in different Member States, the Authority should be able to settle disagreements between those competent authorities with binding effect, including within colleges of supervisors. A conciliation phase should be provided for, during which the competent authorities may reach an agreement. The Authority's competence should cover disagreements on procedural obligations in the cooperation process as well as on the interpretation and application of Community law in supervisory decisions; compliance with binding decisions adopted does not prevent the exercise of additional prudential discretion by the competent authority in conformity with international principles on cross-border supervision. Existing conciliation mechanisms provided for in sectoral legislation have to be respected. In the event of inaction by the national supervisory authorities concerned, the Authority should be empowered to adopt, as a last resort, decisions directly addressed to financial institutions in areas of Community law directly applicable to them.
Amendment 96 #
Proposal for a regulation
Recital 22 a (new)
Recital 22 a (new)
(22a) The crisis has exposed major fault lines in existing approaches to supervision of cross-border financial institutions, particularly the biggest and most complex institutions the bankruptcy of which is capable of producing systemic damages. Those fault lines arise from the different areas of activity of the financial institutions and from the supervisory bodies on the other. The former act in a market without borders, the latter check on a daily basis although their jurisdictions end at national borders. In order to address such misalignments it is necessary to foster more supervisory convergence and integration within the European Union and at international level.
Amendment 97 #
Proposal for a regulation
Recital 22 b (new)
Recital 22 b (new)
(22b)According to the Turner Review, published in March 2009, “existing single market rules can create unacceptable risks to depositors and taxpayers” and "the current arrangements, combining branch passporting rights, home country supervision, and purely national deposit insurance, are not sound basis for the future regulation and supervision of European cross-border retail banks".
Amendment 98 #
Proposal for a regulation
Recital 22 c (new)
Recital 22 c (new)
(22c) As the Turner review also states, "sounder arrangements require either increased national powers, implying a less open single market, or a greater degree of European integration. A mix of both seems appropriate: the extent to which more national powers are required will depend on how effective 'more Europe' options can be".
Amendment 99 #
Proposal for a regulation
Recital 22 d (new)
Recital 22 d (new)
(22d) The European solution calls for the creation of a new European Union institutional structure, an independent Authority with legal powers, a standard setter and overseer in the area of cross border supervision, the reinforcement of the colleges of supervisors in the supervision of cross-border institutions and for a coherent and increased empowerment of supervisory powers at both national and EU level.
Amendment 100 #
Proposal for a regulation
Recital 22 e (new)
Recital 22 e (new)
(22e) The Authority should have the power to develop supervisory standards to foster the uniform application of the Single Rule Book. The Authority should also have a key role as sectoral coordinator and consultive body for the Colleges of Supervisors with a view to streamlining the functioning of the information-exchange process, to foster convergence and consistency across colleges in the application of EU law. The Authority should act as leader coordinator in supervising banking institutions operating in the European Union. The Authority should also have a legally binding mediation role to solve conflicts between competent supervisors.
Amendment 101 #
Proposal for a regulation
Recital 22 f (new)
Recital 22 f (new)
(22f) Colleges of supervisors should play an important role in the efficient, effective and consistent supervision of cross-border financial institutions in EU. There is little usefulness in working towards the convergence of basic financial regulations if the supervision practices remain fragmented. As the de Larosière Report points out, "competition distortions and regulatory arbitrage stemming from different supervisory practices must be avoided, because they have the potential of undermining financial stability – inter alia by encouraging a shift of financial activity to countries with lax supervision. The supervisory system has to be perceived as fair and balanced".
Amendment 103 #
Proposal for a regulation
Recital 29
Recital 29
(29) Given the globalisation of financial services and the increased importance of international standards, the Authority should fosterrepresent the European Union in the dialogue and cooperation with supervisors outside the Community. It shall fully respect the existing roles and competences of the European Institutions in relations with authorities outside the Community and in international forumsUnion. National competent authorities may continue to contribute to such fora as pertain to national issues and issues relevant for their own functions and competences under EU law.
Amendment 107 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
2. The Authority shall act within the scope of this Regulation and of Directive 2006/48/EC, Directive 2006/49/EC, Directive 2002/87/EC, Directive 2005/60/EC, Directive 2002/65/EC and Directive 94/19/EC, including all directives, regulations, and decisions based on these acts, and of any further CommunityEU act which confers tasks on the Authority.
Amendment 108 #
Proposal for a regulation
Article 1 a (new)
Article 1 a (new)
Amendment 111 #
Proposal for a regulation
Article 6 – paragraph 1 – point b
Article 6 – paragraph 1 – point b
(b) contribute to a consistent application of Communitystandards and legislation, in particular by contributing to a common supervisory culture, ensuring consistent, efficient and effective application of this Regulation and the legislation referred to in Article 1(2), preventing regulatory arbitrage, mediating and settling disagreements between competent authorities, promotensuring a coherent functioning of colleges of supervisors and taking actions, inter alia in emergency situations;
Amendment 113 #
Proposal for a regulation
Article 7 – paragraph 1 – subparagraph 1
Article 7 – paragraph 1 – subparagraph 1
1. The Authority mayshall develop technical standards in the areas specifically set out in this Regulation and in the legislation referred to in Article 1(2) or at request of the Commission. Technical standards shall not include policy choices and shall reflect the principle of proportionality. The Authority shall submit its draft technical standards to the Commission for endorsementadoption as delegated dcts (regulatory standards) or endorsement as implementing acts (supervisory standards) in accordance with this Regulation and with the legislation referred to in Article 1(2). The draft standards shall also be transmitted at the same time to the European Parliament and the Council.
Amendment 114 #
Proposal for a regulation
Article 7 – paragraph 1 – subparagraph 2
Article 7 – paragraph 1 – subparagraph 2
Before submitting them to the Commission, the Authority shall, where appropriate, conduct open public consultations on technical standardwith all stakeholders and analyse the potential related costs and benefits, unless such consultations and analyses are disproportionate to the scope and impact of the technical standards concerned or to the particular urgency of the matter. The Authority shall also request an opinion or advice of the Banking Stakeholder Group referred to in Article 22.
Amendment 115 #
Proposal for a regulation
Article 7 – paragraph 1 – subparagraph 3
Article 7 – paragraph 1 – subparagraph 3
Within three months of receipt of the draft technical standards, the Commission shall decide whether to endorse the draft standards. The Commission may extend that period by one month. Tupervisory standards if they comply with Union legislation. Within the same period, the Commission may endorseadopt the draft standards only in part or with amendments where the Community interest so requirestechnical standards with amendments where they were drawn up as regulatory standards. In both cases, the Commission may extend that period by one month.
Amendment 116 #
Proposal for a regulation
Article 7 – paragraph 1 – subparagraph 4
Article 7 – paragraph 1 – subparagraph 4
Amendment 118 #
Proposal for a regulation
Article 7 – paragraph 2
Article 7 – paragraph 2
2. The standards shall be adopted by the Commission by means of Regulations or Decisions andOnce the due procedure has been completed, the standards shall be published in the Official Journal of the European Union bearing the title "EU Delegated Standards" or "EU Implementing Standards" respectively.
Amendment 119 #
Proposal for a regulation
Article 7 a (new)
Article 7 a (new)
Article 7a Exercise of the delegation 1. The powers to adopt regulatory standards referred to in Article 7 shall be conferred on the Commission for an indeterminate period of time, unless otherwise specified by sectoral legislation. 2. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council. 3. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in Articles 7b and 7c.
Amendment 120 #
Proposal for a regulation
Article 7 b (new)
Article 7 b (new)
Amendment 121 #
Proposal for a regulation
Article 7 c (new)
Article 7 c (new)
Amendment 122 #
Proposal for a regulation
Article 8 – subparagraph 2
Article 8 – subparagraph 2
The competent authorities and financial institutions shall make every effort to comply with those guidelines and recommendations.
Amendment 123 #
Proposal for a regulation
Article 8 – subparagraph 2 a (new)
Article 8 – subparagraph 2 a (new)
In its annual report the Authority shall state which national authority has not complied with its issued guidelines and recommendations and shall outline how the Authority intends to ensure that its recommendations and guidelines are followed in the future; it shall also include the same information for the main larger financial entities .
Amendment 124 #
Proposal for a regulation
Article 9 – paragraph 1
Article 9 – paragraph 1
1. Where a competent authority has not correctly applied the legally binding acts and legislation referred to in Article 1(2) or has applied them in a way which appears to be in breach of Union law, in particular by failing to ensure that a financial institution satisfies the requirements laid down in that legislation, the Authority shall have the powers set out in paragraphs 2, 3 and 6 of this Article.
Amendment 125 #
Proposal for a regulation
Article 9 – paragraph 2 – subparagraph 1
Article 9 – paragraph 2 – subparagraph 1
2. Upon request from one or more competent authorities, from the CommissionEuropean Parliament, the Council, the Commission or the Banking Stakeholder Group or on its own initiative and after having informed the competent authority concerned, the Authority may investigate the alleged incorrect breach or non-application of CommunityUnion law.
Amendment 127 #
Proposal for a regulation
Article 9 – paragraph 6 – subparagraph 1
Article 9 – paragraph 6 – subparagraph 1
6. Without prejudice to the powers of the Commission under Article 22658 of the Treaty on the Functioning of the European Union, where a competent authority does not comply with the decision referred to in paragraph 4 of this Article within the period of time specified therein, and where it is necessary to remedy in a timely manner the non compliance by the competent authority in order to maintain or restore neutral conditions of competition in the market or ensure the orderly functioning and integrity of the financial system, the Authority may, where the relevant requirements of the legislation referred to in Article 1(2) are directly applicable to financial institutions, adopt an individual decision addressed to a financial institution requiring the necessary action to comply with its obligations under CommunityUnion law including the cessation of any practice.
Amendment 128 #
Proposal for a regulation
Article 9 – paragraph 7 a (new)
Article 9 – paragraph 7 a (new)
7a. In its annual report, the Authority shall set out which national authorities and financial institutions have not complied with the decisions referred to in paragraphs 4 and 6.
Amendment 129 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. In the case of adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system in the Community, the CommissionEuropean Union, the ESRB, upon its own initiative or following a request by the Authority, the Council, or the ESRB, may adopt a decision addressed to the Authority, determinEuropean Parliament or a Member State may issue a warning declaring the existence of an emergency situation for the purposes of this regulation.
Amendment 132 #
Proposal for a regulation
Article 10 – paragraph 2
Article 10 – paragraph 2
2. Where the Commission has adopted a decision pursuant to paragraph 1, the Authority may adopt individual decisions requiring competent authorities to take the necessary actESRB has issued a warning pursuant to paragraph 1, or where the Commission or the Council, upon its own initiative or following a request by the Authority, the European Parliament or a Member State, adopts a decision determining the existence of similar or justified circumstances where co- ordinated action by national authorities is necessary in order to respond to adverse developments which may seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system in the European Union; the Authority may, without having to comply with any further requirements, adopt individual decisions in accordance with the legislation referred to in Article 1(2) to address any risks that may jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system by ensuring that financial institutions and competent authorities satisfy the requirements laid down in that legislation.
Amendment 139 #
Proposal for a regulation
Article 10 – paragraph 4 a (new)
Article 10 – paragraph 4 a (new)
4a. In its annual report, the Authority shall set out the individual decisions addressed to national authorities and financial institutions under paragraphs 3 and 4.
Amendment 145 #
Proposal for a regulation
Article 11 – paragraph 4 a (new)
Article 11 – paragraph 4 a (new)
4a. In its annual report, the Authority shall set out the disagreement between competent authorities, the agreements reached and the decision taken to settle such disagreements.
Amendment 147 #
Proposal for a regulation
Article 12 a (new)
Article 12 a (new)
Article 12a Evolution of the Authority The Authority shall evolve according to the best practices recognised at European and international level. One such approach could be the establishment of a new level of direct supervision by the Authority. To avoid international distortions and to strengthen the European System of Financial Supervision, the introduction of direct supervision should be carefully evaluated and considered in order to add value to the supervision of large financial institutions, many of which are global in nature and operate in the EU. This applies above all to those large financial institutions with wholesale banking or other activities that could pose a systemic risk to the internal market, and those systemic financial institutions defined and identified at an international level. This issue shall be further studied in the first review of this Regulation, as provided for in Article 66, which shall take place not later than three years after its entry into force.
Amendment 149 #
Proposal for a regulation
Article 18 – subparagraph 1
Article 18 – subparagraph 1
Without prejudice to the competences of the CommunityUnion Institutions and Member States, the Authority may develop contacts with supervisory authorities from third countries. It mayand enter into administrative arrangements with supervisory authorities, international organisations and the administrations of third countries.