BETA
Home MEPs Dossiers Committees Subjects Blog About Dumps
download json
This is a historical view (2020/09/07)

Changes: 2023/08/03events.date, procedure.title, docs, events, 2021/12/18events.docs, events, docs.docs.url, committees, events.docs.url, docs, events.type, 2021/03/02procedure.final, procedure.stage_reached, events, 2021/02/24committees, 2021/02/23events.summary, docs, 2021/02/17events, committees, docs, procedure.stage_reached, forecasts

View current state | View Changes for this date

Sorry, but we failed to recreate history before 2021-02-16T18:26:25


2020/0152(COD) Markets in financial instruments: information requirements, product governance and position limits to help the recovery from the COVID-19 pandemic
Next event: Debate in plenary scheduled 2021/02/10 more...

Progress: Awaiting Parliament's position in 1st reading

RoleCommitteeRapporteurShadows
Lead ECON FERBER Markus (icon: Unknown Group Unknown Group) HEINÄLUOMA Eero (icon: Unknown Group Unknown Group), YON-COURTIN Stéphanie (icon: Renew Renew), KRAH Maximilian (icon: Unknown Group Unknown Group), URTASUN Ernest (icon: Unknown Group Unknown Group), EPPINK Derk Jan (icon: Unknown Group Unknown Group), GUSMÃO José (icon: Confederal Group of the European United Left Confederal Group of the European United Left)
Committee Opinion DEVE
Committee Opinion ITRE
Lead committee dossier:
Legal Basis:
TFEU 053-p1

Events

2021/02/10
   Debate in plenary scheduled
2021/02/10
   Vote in plenary scheduled
2021/01/14
   EP - Approval in committee of the text agreed at 1st reading interinstitutional negotiations
2020/12/16
   CSL - Coreper letter confirming interinstitutional agreement
Documents
GEDA/A/(2020)007618
2020/11/25
   EP - Decision by Parliament, 1st reading/single reading
Details

The European Parliament adopted by 361 votes to 156, with 179 abstentions, amendments to the proposal for a Directive of the European Parliament and of the Council amending Directive 2014/65/EU as regards information requirements, product governance and position limits to help the recovery from the COVID-19 pandemic.

The matter was referred back to the committee responsible for inter-institutional negotiations.

As a reminder, the main aim of the proposal is to make targeted adjustments to the requirements of the Markets in Financial Instruments Directive (MIFID II) to facilitate the economic recovery post COVID-19 pandemic.

The main amendments adopted in plenary concern the following points:

Aim of the amendments

Members stressed that the changes introduced should remove unnecessary red tape and provide for temporary exceptions that are considered effective in alleviating economic hardship.

The amendments should avoid making changes that result in more burdens on the sector and leave complex legislative questions to be settled during the planned review of MIFID II.

To better enhance investor protection, Parliament stressed that it is critical that the debt level of retail investors is taken into account in the suitability assessment, in particular given the rising level of consumer debt due to the COVID-19 pandemic.

Assessing the ancillary nature of a trading activity

The amendments clarify that quantitative tests should remain the basic rule regarding the exemption for ancillary activities. Alternatively, national supervisory authorities should be able to be authorised to rely on qualitative elements, subject to clearly defined conditions.

The European Securities and Markets Authority (ESMA) would be empowered to provide guidance on the circumstances under which national authorities could apply a qualitative approach and to develop draft technical regulatory standards on qualitative criteria.

Investment research services

Member States would be required to ensure that investment firms can pay jointly for the provision of execution services and the provision of investment research services, provided that a number of conditions are met.

Members clarified the definition of ‘investment research’, i.e. research material or services enabling an opinion to be formed on financial instruments, assets or issuers in this sector or in a given market.

Loss reporting thresholds

Investment firms providing the service of portfolio management or holding the account of a retail client including positions in leveraged financial instruments or contingent liability transactions shall inform the client, where the initial value of any instrument depreciates by 10 %.

Review clause

By 31 July 2021 at the latest, after consulting ESMA, the Commission should present a proposal for a review of Directive 2014/65/EU and Regulation (EU) No 600/2014. The review should be broad and should take into account issues such as those related to market structure, data, trading and post trading, research rules, rules on payment of inducements to advisors, level of professional qualifications of advisers in Europe, client categorisation and Brexit.

Documents
T9-0317/2020
2020/11/25
   EP - Matter referred back to the committee responsible
2020/11/23
   EP - Debate in Parliament
Documents
Debate in Parliament
2020/11/03
   EP - Committee report tabled for plenary, 1st reading/single reading
Documents
A9-0208/2020
2020/11/03
   EP - Committee report tabled for plenary, 1st reading/single reading
Documents
A9-0208/2020
2020/10/28
   PT_PARLIAMENT - Contribution
Documents
COM(2020)0280
2020/10/28
   EP - Vote in committee, 1st reading/single reading
2020/10/28
   EP - Rejection by committee to open interinstitutional negotiations with report adopted in committee
2020/10/23
   ES_PARLIAMENT - Contribution
Documents
COM(2020)0280
2020/10/14
   EP - Amendments tabled in committee
Documents
PE658.929
2020/09/18
   EP - Committee draft report
Documents
PE657.375
2020/09/14
   EP - Committee referral announced in Parliament, 1st reading/single reading
2020/09/07
   EP - FERBER Markus (Unknown Group) appointed as rapporteur in ECON
2020/07/27
   EC - Document attached to the procedure
Documents
EUR-Lex
SWD(2020)0120
2020/07/24
   EC - Legislative proposal published
Details

PURPOSE: to make targeted adjustments to the requirements of the Markets in Financial Instruments Directive (MIFID II) to facilitate the economic recovery post COVID-19 pandemic.

PROPOSED ACT: Directive of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: Directive 2014/65/EU on markets in financial instruments (MiFID II) lays down rules for investment firms operating in EU financial markets. These rules determine how investment firms should interact with investors and how they should organise the trading venues.

The rules on investment services have an important role to play in promoting the recapitalisation of European firms in the aftermath of the crisis. In the light of the current COVID-19 pandemic, formal burdens that are not strictly necessary should be removed. The Commission therefore strives to recalibrate investor protection requirements to strike the right balance between a sufficient level of transparency for the client, the highest standards of protection and acceptable compliance costs for firms.

This legislative proposal amending MiFID II is part of a set of measures to facilitate the economic recovery post-COVID-19 pandemic, which includes also legislative proposals amending the Prospectus Regulation the Securitisation Regulation and the Capital Requirements Regulation .

CONTENT: the proposal primarily aims at providing, for exceptional reasons in the context of the current COVID-19 pandemic, for a streamlined application of the regulatory requirements, keeping high safeguards for retail clients while allowing for more flexibility for wholesale clients and ensures that fully functioning commodity markets can play their important role in the recovery of EU economies.

This legislative proposal also aims to complement the objectives of the Capital Markets Union to diversify market-based sources of financing for European companies and facilitate cross-border investments.

Amendments to information requirements

The changes to the current regime provide a precise calibration of the rules applicable to retail clients, professional customers and eligible counterparties. The majority of the proposed changes shall consist of relief for professional clients and eligible counterparties, namely:

- the phasing out of paper-based default method: documents shall be provided in electronic format. However, retail clients may opt-in to paper based information;

- as regards the indication of costs and charges, the introduction of an exemption for eligible counterparties and professional clients for services other than investment advice and portfolio management. In addition, in case of distance communication all clients using all services shall be able, under certain conditions, to receive costs and charges information just after the transaction;

- lighter ex-post reporting obligations: these reports shall no longer apply in respect of eligible counterparties; professional clients shall be able to choose whether or not to receive them;

- the temporary suspension of best execution reporting;

- the waiver by professional investors of cost-benefit analysis in the event of a change of product during the course of the relationship;

- the lifting of the product governance requirements for simple corporate bonds with make-whole clauses (which are investor-protective features). The aim of this exemption is to make more plain vanilla corporate bonds available to retail investors.

Measures affecting energy derivatives markets

The proposal introduces changes to the regime applicable to commodities with a view to enabling businesses in the real economy to cope with market volatility, while at the same time allowing the emergence of new commodity contracts, which is also important for promoting the international role of the euro.

The proposed amendments recalibrate precisely the position limit regime and the scope of the hedging exemption. They shall not concern agricultural commodities, in particular products for human consumption.

Documents
COM(2020)0280
EUR-Lex

Documents

  • Coreper letter confirming interinstitutional agreement: GEDA/A/(2020)007618
  • Decision by Parliament, 1st reading/single reading: T9-0317/2020
  • Debate in Parliament: Debate in Parliament
  • Committee report tabled for plenary, 1st reading/single reading: A9-0208/2020
  • Committee report tabled for plenary, 1st reading/single reading: A9-0208/2020
  • Contribution: COM(2020)0280
  • Contribution: COM(2020)0280
  • Amendments tabled in committee: PE658.929
  • Committee draft report: PE657.375
  • Document attached to the procedure: EUR-Lex
  • Document attached to the procedure: SWD(2020)0120
  • Legislative proposal published: COM(2020)0280
  • Legislative proposal published: EUR-Lex
  • Document attached to the procedure: EUR-Lex SWD(2020)0120
  • Committee draft report: PE657.375
  • Amendments tabled in committee: PE658.929
  • Committee report tabled for plenary, 1st reading/single reading: A9-0208/2020
  • Coreper letter confirming interinstitutional agreement: GEDA/A/(2020)007618
  • Contribution: COM(2020)0280
  • Contribution: COM(2020)0280

Activities

History

(these mark the time of scraping, not the official date of the change)

2021-02-16Show (8) Changes | Timetravel
committees/0
type
Responsible Committee
body
EP
committee_full
Economic and Monetary Affairs
committee
ECON
associated
False
rapporteur
name: FERBER Markus date: 2020-09-07T00:00:00 group: ??? abbr: Unknown Group
shadows
committees/0
type
Responsible Committee
body
EP
committee_full
Economic and Monetary Affairs
committee
ECON
associated
False
rapporteur
name: FERBER Markus date: 2020-09-07T00:00:00 group: Group of European People's Party abbr: EPP
shadows
docs/4
date
2020-12-16T00:00:00
docs
title: GEDA/A/(2020)007618
type
Coreper letter confirming interinstitutional agreement
body
CSL
docs/4
date
2020-11-25T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2020-0317_EN.html title: T9-0317/2020
type
Text adopted by Parliament, partial vote at 1st reading/single reading
body
EP
events/6/summary
  • The European Parliament adopted by 361 votes to 156, with 179 abstentions, amendments to the proposal for a Directive of the European Parliament and of the Council amending Directive 2014/65/EU as regards information requirements, product governance and position limits to help the recovery from the COVID-19 pandemic.
  • The matter was referred back to the committee responsible for inter-institutional negotiations.
  • As a reminder, the main aim of the proposal is to make targeted adjustments to the requirements of the Markets in Financial Instruments Directive (MIFID II) to facilitate the economic recovery post COVID-19 pandemic.
  • The main amendments adopted in plenary concern the following points:
  • Aim of the amendments
  • Members stressed that the changes introduced should remove unnecessary red tape and provide for temporary exceptions that are considered effective in alleviating economic hardship.
  • The amendments should avoid making changes that result in more burdens on the sector and leave complex legislative questions to be settled during the planned review of MIFID II.
  • To better enhance investor protection, Parliament stressed that it is critical that the debt level of retail investors is taken into account in the suitability assessment, in particular given the rising level of consumer debt due to the COVID-19 pandemic.
  • Assessing the ancillary nature of a trading activity
  • The amendments clarify that quantitative tests should remain the basic rule regarding the exemption for ancillary activities. Alternatively, national supervisory authorities should be able to be authorised to rely on qualitative elements, subject to clearly defined conditions.
  • The European Securities and Markets Authority (ESMA) would be empowered to provide guidance on the circumstances under which national authorities could apply a qualitative approach and to develop draft technical regulatory standards on qualitative criteria.
  • Investment research services
  • Member States would be required to ensure that investment firms can pay jointly for the provision of execution services and the provision of investment research services, provided that a number of conditions are met.
  • Members clarified the definition of ‘investment research’, i.e. research material or services enabling an opinion to be formed on financial instruments, assets or issuers in this sector or in a given market.
  • Loss reporting thresholds
  • Investment firms providing the service of portfolio management or holding the account of a retail client including positions in leveraged financial instruments or contingent liability transactions shall inform the client, where the initial value of any instrument depreciates by 10 %.
  • Review clause
  • By 31 July 2021 at the latest, after consulting ESMA, the Commission should present a proposal for a review of Directive 2014/65/EU and Regulation (EU) No 600/2014. The review should be broad and should take into account issues such as those related to market structure, data, trading and post trading, research rules, rules on payment of inducements to advisors, level of professional qualifications of advisers in Europe, client categorisation and Brexit.
events/8
date
2021-01-14T00:00:00
type
Approval in committee of the text agreed at 1st reading interinstitutional negotiations
body
EP
forecasts
  • date: 2021-02-10T00:00:00 title: Debate in plenary scheduled
  • date: 2021-02-10T00:00:00 title: Vote in plenary scheduled
procedure/Legislative priorities/0
title
Joint Declaration 2021
url
https://oeil.secure.europarl.europa.eu/oeil/popups/thematicnote.do?id=2066000&l=en
2020-12-09Show (8) Changes | Timetravel
commission
  • body: EC dg: Financial Stability, Financial Services and Capital Markets Union commissioner: MCGUINNESS Mairead
committees/0
type
Responsible Committee
body
EP
committee_full
Economic and Monetary Affairs
committee
ECON
associated
False
rapporteur
name: FERBER Markus date: 2020-09-07T00:00:00 group: Group of European People's Party abbr: EPP
shadows
committees/0
type
Responsible Committee
body
EP
committee_full
Economic and Monetary Affairs
committee
ECON
associated
False
rapporteur
name: FERBER Markus date: 2020-09-07T00:00:00 group: Group of European People's Party abbr: EPP
shadows
docs/4
date
2020-11-25T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2020-0317_EN.html title: T9-0317/2020
type
Text adopted by Parliament, partial vote at 1st reading/single reading
body
EP
events/5
date
2020-11-23T00:00:00
type
Debate in Parliament
body
EP
docs
url: https://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20201123&type=CRE title: Debate in Parliament
events/6
date
2020-11-25T00:00:00
type
Decision by Parliament, 1st reading/single reading
body
EP
docs
url: https://www.europarl.europa.eu/doceo/document/TA-9-2020-0317_EN.html title: T9-0317/2020
events/7
date
2020-11-25T00:00:00
type
Matter referred back to the committee responsible
body
EP
forecasts
  • date: 2020-11-23T00:00:00 title: Debate in plenary scheduled
  • date: 2020-11-25T00:00:00 title: Vote in plenary scheduled
2020-11-20Show (2) Changes | Timetravel
forecasts/0/title
Old
Indicative plenary sitting date, 1st reading/single reading
New
Debate in plenary scheduled
forecasts/1
date
2020-11-25T00:00:00
title
Vote in plenary scheduled
2020-11-16Show (3) Changes | Timetravel
docs/3
date
2020-11-03T00:00:00
docs
url: https://www.europarl.europa.eu/doceo/document/A-9-2020-0208_EN.html title: A9-0208/2020
type
Committee report tabled for plenary, 1st reading/single reading
body
EP
events/4/docs
  • url: https://www.europarl.europa.eu/doceo/document/A-9-2020-0208_EN.html title: A9-0208/2020
forecasts
  • date: 2020-11-23T00:00:00 title: Indicative plenary sitting date, 1st reading/single reading
2020-11-03Show (2) Changes | Timetravel
events/4
date
2020-11-03T00:00:00
type
Committee report tabled for plenary, 1st reading/single reading
body
EP
procedure/stage_reached
Old
Awaiting committee decision
New
Awaiting Parliament's position in 1st reading
2020-11-01Show (5) Changes | Timetravel
docs/3
date
2020-10-23T00:00:00
docs
url: http://www.connefof.europarl.europa.eu/connefof/app/exp/COM(2020)0280 title: COM(2020)0280
type
Contribution
body
ES_PARLIAMENT
docs/4
date
2020-10-28T00:00:00
docs
url: http://www.connefof.europarl.europa.eu/connefof/app/exp/COM(2020)0280 title: COM(2020)0280
type
Contribution
body
PT_PARLIAMENT
events/2
date
2020-10-28T00:00:00
type
Vote in committee, 1st reading/single reading
body
EP
events/3
date
2020-10-28T00:00:00
type
Rejection by committee to open interinstitutional negotiations with report adopted in committee
body
EP
forecasts
  • date: 2020-10-27T00:00:00 title: Vote scheduled in committee, 1st reading/single reading
2020-10-23Show (1) Changes | Timetravel
committees/1/opinion
False
2020-10-22Show (3) Changes | Timetravel
docs/2/docs/0/url
https://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE658.929
procedure/instrument/0
Directive
procedure/instrument/0
Regulation
2020-10-14Show (1) Changes | Timetravel
docs/2
date
2020-10-14T00:00:00
docs
title: PE658.929
type
Amendments tabled in committee
body
EP
2020-10-13Show (1) Changes | Timetravel
committees/0/shadows/5
name
GUSMÃO José
group
Confederal Group of the European United Left - Nordic Green Left
abbr
GUE/NGL
2020-10-08Show (1) Changes | Timetravel
forecasts
  • date: 2020-10-27T00:00:00 title: Vote scheduled in committee, 1st reading/single reading
2020-10-06Show (1) Changes | Timetravel
committees/0/shadows/3
name
URTASUN Ernest
group
Group of the Greens/European Free Alliance
abbr
Verts/ALE
2020-09-27Show (6) Changes | Timetravel
committees/0/shadows
  • name: HEINÄLUOMA Eero group: Group of Progressive Alliance of Socialists and Democrats abbr: S&D
  • name: YON-COURTIN Stéphanie group: Renew Europe group abbr: Renew
  • name: KRAH Maximilian group: Identity and Democracy abbr: ID
  • name: EPPINK Derk Jan group: European Conservatives and Reformists Group abbr: ECR
docs/1
date
2020-09-18T00:00:00
docs
url: https://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE657.375 title: PE657.375
type
Committee draft report
body
EP
events/1
date
2020-09-14T00:00:00
type
Committee referral announced in Parliament, 1st reading/single reading
body
EP
procedure/Legislative priorities
  • title: The EU’s response to the Covid-19 pandemic url: https://oeil.secure.europarl.europa.eu/oeil/popups/thematicnote.do?id=2065000&l=en
procedure/dossier_of_the_committee
  • ECON/9/03676
procedure/stage_reached
Old
Preparatory phase in Parliament
New
Awaiting committee decision
2020-09-11Show (1) Changes | Timetravel
committees/0/rapporteur
  • name: FERBER Markus date: 2020-09-07T00:00:00 group: Group of European People's Party abbr: EPP
2020-09-10Show (1) Changes | Timetravel
committees/2/opinion
False
2020-09-07Show (2) Changes | Timetravel
committees/1
type
Committee Opinion
body
EP
committee_full
Development
committee
DEVE
associated
False
committees/2
type
Committee Opinion
body
EP
committee_full
Industry, Research and Energy
committee
ITRE
associated
False
2020-08-27Show (2) Changes | Timetravel
docs/0
date
2020-07-24T00:00:00
docs
type
Legislative proposal
body
EC
events/0/summary
  • PURPOSE: to make targeted adjustments to the requirements of the Markets in Financial Instruments Directive (MIFID II) to facilitate the economic recovery post COVID-19 pandemic.
  • PROPOSED ACT: Directive of the European Parliament and of the Council.
  • ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.
  • BACKGROUND: Directive 2014/65/EU on markets in financial instruments (MiFID II) lays down rules for investment firms operating in EU financial markets. These rules determine how investment firms should interact with investors and how they should organise the trading venues.
  • The rules on investment services have an important role to play in promoting the recapitalisation of European firms in the aftermath of the crisis. In the light of the current COVID-19 pandemic, formal burdens that are not strictly necessary should be removed. The Commission therefore strives to recalibrate investor protection requirements to strike the right balance between a sufficient level of transparency for the client, the highest standards of protection and acceptable compliance costs for firms.
  • This legislative proposal amending MiFID II is part of a set of measures to facilitate the economic recovery post-COVID-19 pandemic, which includes also legislative proposals amending the Prospectus Regulation the Securitisation Regulation and the Capital Requirements Regulation .
  • CONTENT: the proposal primarily aims at providing, for exceptional reasons in the context of the current COVID-19 pandemic, for a streamlined application of the regulatory requirements, keeping high safeguards for retail clients while allowing for more flexibility for wholesale clients and ensures that fully functioning commodity markets can play their important role in the recovery of EU economies.
  • This legislative proposal also aims to complement the objectives of the Capital Markets Union to diversify market-based sources of financing for European companies and facilitate cross-border investments.
  • Amendments to information requirements
  • The changes to the current regime provide a precise calibration of the rules applicable to retail clients, professional customers and eligible counterparties. The majority of the proposed changes shall consist of relief for professional clients and eligible counterparties, namely:
  • - the phasing out of paper-based default method: documents shall be provided in electronic format. However, retail clients may opt-in to paper based information;
  • - as regards the indication of costs and charges, the introduction of an exemption for eligible counterparties and professional clients for services other than investment advice and portfolio management. In addition, in case of distance communication all clients using all services shall be able, under certain conditions, to receive costs and charges information just after the transaction;
  • - lighter ex-post reporting obligations: these reports shall no longer apply in respect of eligible counterparties; professional clients shall be able to choose whether or not to receive them;
  • - the temporary suspension of best execution reporting;
  • - the waiver by professional investors of cost-benefit analysis in the event of a change of product during the course of the relationship;
  • - the lifting of the product governance requirements for simple corporate bonds with make-whole clauses (which are investor-protective features). The aim of this exemption is to make more plain vanilla corporate bonds available to retail investors.
  • Measures affecting energy derivatives markets
  • The proposal introduces changes to the regime applicable to commodities with a view to enabling businesses in the real economy to cope with market volatility, while at the same time allowing the emergence of new commodity contracts, which is also important for promoting the international role of the euro.
  • The proposed amendments recalibrate precisely the position limit regime and the scope of the hedging exemption. They shall not concern agricultural commodities, in particular products for human consumption.
2020-08-14Show (1) Changes
procedure/instrument
Old
Regulation
New
  • Regulation
  • Amending Directive 2014/65 2011/0298(COD)
@parltrack
@parltrack@eupolicy.social
[javascript protected email address]
code AGPLv3.0+
data ODBLv1.0
site content CC-By-Sa-3.0

ParlTrack - 2011-2024

© European Union, 2011 – Source: European Parliament
Hosted by AS250.net Foundation