2020/2036(INI) | [ParlTrack]

Motion for a resolution
Citation 2 a (new)

- having regard to Article 31 of Directive (EU) 2019/2162 of the European Parliament and of the Council of 27 November 2019 on the issue of covered bonds and covered bond public supervision and amending Directives 2009/65/EC and 2014/59/EU, pursuant to which the European Commission shall adopt a report on the possibility of introducing a dual-recourse instrument named ‘European Secured Notes’ (ESNs),

Amendment 10 #

Motion for a resolution
Recital A

A. whereas all actions taken to create a Capital Markets Union (CMU) should have improving ~~the range of~~and diversifying stable and sustainable financing options offered to companies and citizens, as well as a greater range of more attractive investment offers, as their objective, while safeguarding economic stability and minimizing financial risk;

Amendment 100 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Motion for a resolution
Paragraph 2 a (new)

2a. Recalls that, under the current treatment of minority interest of subsidiaries, the Capital Requirements Regulation (CRR) de facto discourages listing on the stock markets, reduces investments held by parent companies in their subsidiaries, all the above turning into a reduction of banks’ ability to finance the real economy; calls on the Commission to amend the CRR in order to increase the amount of minority interests included in the consolidated Common Equity Tier 1 (CET1) capital;

Amendment 101 #

Motion for a resolution
Paragraph 2 a (new)

2a. Recalls that, through the current treatment of minority interest of subsidiaries, the CRR tend to discourage listing on the stock markets, reduces investment held by parent companies in their subsidiaries, thus generating a reduction of banks' ability to finance the real economy; calls on the Commission to amend the CRR in order to increase the amount of minority interests included in consolidated CET1;

Amendment 102 #

Motion for a resolution
Paragraph 2 a (new)

2a. Agrees with the CMU High Level Forum on the importance of providing the right incentives to develop a strong “market making” capacity in the EU; considers in this regard that adequate prudential rules should strike a balance between loss absorption capacity, incentives to support a critical mass of investments, and the impact on the EU's global competitiveness;

Amendment 103 #

2a. Calls for targeted adjustments to the regulatory framework of the European Long Term Investment Funds (ELTIF), to enable retail investors engage in the long-term financing of unlisted companies, infrastructure projects and sustainable investments;

Amendment 104 #

Motion for a resolution
Paragraph 3

Amendment 105 #

Clara PONSATÍ OBIOLS, Fabio Massimo CASTALDO

Motion for a resolution
Paragraph 3

3. ~~Call~~Warns for the acceleration of the development of EU venture capital (VC) and private equity markets by increasing the availability of funding for VC investments, developing larger late-stage VC funds~~, tax incentive schemes for VC and business angel investments, and active IPO markets for VC-backed companies~~; believes that the shift from debt-financed to equity-financed SMEs should develop gradually, since a rapid transition will create incentives for - mostly foreign - speculators to rapidly tighten their grip on the European economy;

Amendment 106 #

Motion for a resolution
Paragraph 3

3. Calls for the acceleration of the development of EU venture capital (VC) and private equity markets by increasing the availability of funding for VC investments, developing larger late-stage VC funds, ~~tax incentive schemes~~simplification of bureaucracy where possible for VC and business angel investments, and active IPO markets for VC-backed companies;

Amendment 107 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Paragraph 3

Amendment 108 #

Motion for a resolution
Paragraph 3

Amendment 109 #

Motion for a resolution
Paragraph 3

3. Calls for the acceleration of the development of EU venture capital (VC) and private equity markets by increasing the availability of funding for VC investments, developing larger late-stage VC funds, tax incentive schemes for VC and business angel investments, and active IPO markets for VC-backed companies, and by removing the current rigidities of the labour market, making legal systems more efficient and encouraging the development of local financial markets;

Amendment 11 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Linea SØGAARD-LIDELL, Ondřej KOVAŘÍK, Martin HLAVÁČEK, Nicola BEER, Monica SEMEDO, Ivars IJABS, Gilles BOYER, Engin EROGLU

Motion for a resolution
Recital A

A. whereas all actions taken to create a Capital Markets Union (CMU) should have as their core objectives improving the range of financing options offered to companies and citizens, as well as fostering the availability of a greater range of more attractive investment offers, ~~as their objective~~to incentivise financial participation and to turn savers into investors; whereas access to equity financing for SMEs, entrepreneurs and the social economy has become even more crucial for the COVID-19 recovery;

Amendment 110 #

Motion for a resolution
Paragraph 3

3. Calls for the acceleration of the development of EU venture capital (VC) and private equity markets by increasing the availability of funding for VC investments, developing larger late-stage VC funds, tax incentive schemes for VC and business angel investments, and active IPO markets for VC-backed companies; under a common, and transparent, EU level framework; underlines that these tax incentive schemes should be designed so as to be economically and socially viable and responsible, and be subject to systematic monitoring and evaluation;

Amendment 111 #

Alfred SANT, Eero HEINÄLUOMA, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Paragraph 3

3. Calls for the acceleration of the development of EU venture capital (VC) and private equity markets by increasing the availability of funding for VC investments, developing larger late-stage VC funds, tax incentive schemes for VC and business angel investments, and active IPO markets for VC-backed companies under a common, and transparent, EU level framework; underlines that these tax incentive schemes should be designed so as to be economically and socially viable and responsible;

Amendment 112 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Paragraph 3 a (new)

3a. Stresses the need to remove the existing equity-debt bias in corporate taxation which drives up leverage and encourages the use of complex financial instruments, increasing systemic risks in capital markets; considers that such tax distortions should be addressed by limiting the tax deductibility of interest, rather than introducing new corporate tax deductions for equity costs, which would result in greater losses of corporate income tax revenues without a real impact on value creation;

Amendment 113 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Ondřej KOVAŘÍK, Martin HLAVÁČEK, Monica SEMEDO, Ivars IJABS, Gilles BOYER

Motion for a resolution
Paragraph 3 a (new)

3a. Calls for a review of the ELTIF Regulation and of related prudential calibrations in the banking and insurance regulatory frameworks to enhance the take-up and attractiveness of this innovative European label; notes that creating of a new additional ELTIF regime, based on an open-ended fund structure with the possibility to redeem at set intervals, could offer a new opportunity for retail investors to benefit from a diversified portfolio of long-term investments;

Amendment 114 #

Motion for a resolution
Paragraph 3 a (new)

3a. Points out the necessity to increase transparency and reduce fragmentation within the European VC markets; boost European Long-Term Investment Fund (ELTIF), European Venture Capital Funds (EuVECA) and European Social Entrepreneurship Funds (EuSEF) to develop a pan- European vehicles for private equity;

Amendment 115 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Paragraph 3 b (new)

3b. Calls on the Commission to ensure full consistency and coherence of the CMU Action Plan with the EU sustainability objectives, including the EU Taxonomy for sustainable investments, and the imperative need to channel capital flows towards long-term sustainable investments, especially in the context of the post-COVID-19 recovery and the ecological transition; recommends to prioritise actions aimed at promoting access to ESG products and impact investing strategies, as well as measures to improve corporate governance and long-term shareholder and stakeholder engagement;

Amendment 116 #

Motion for a resolution
Paragraph 3 b (new)

3b. Calls for measures to revitalise securitization markets in Europe by making it attractive for issuers and investors; asks the ESAs and the Commission to finalize all Regulatory Technical Standards; calls to simplify and streamline regulatory requirements for disclosure, simple, transparent and standardised (STS) criteria, STS verification and provide simple and risk sensitive parameters for assessment of Significant Risk Transfer;

Amendment 117 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Paragraph 4

Amendment 118 #

Motion for a resolution
Paragraph 4

4. Requests the realignment of the treatment of cash and synthetic securitisations, of the treatment of regulatory capital and liquidity with that of covered bonds and loans, as well as with the disclosure and due diligence requirements for covered bonds and sNotes with concern the proposals put forward by the HLF on CMU for stimulating securitisation aim to circumvent the treatment of regulatory capital and liquidity, including the new Basel III framework, since it would endanger financial stability and amplify systemic risks, without any added value for the real economy; underlines that synthetic securitisations are highly complex, opaque and risky and that it would be misleading to include them under the definition of Simple, tTransparent and sStandardised (STS) securitisation; further stresses that granting to synthetic securitisations a preferential treatment would not be justified from a prudential perspective;

Amendment 119 #

Paul TANG

Motion for a resolution
Paragraph 4

4. ~~Requests the realignment of the treatment of cash and synthetic securitisations, of the treatment~~Welcomes the EBA report on a simple, transparent and standardised (STS) framework for synthetic securitisation; supports the report's conclusions regarding the benefits of cre~~gulatory capit~~ating an STS framework for bal an~~d liquidity with that of covered bonds and loans, as well as with the disclosure and due diligence requirements for covered bonds and simple, transparent and standardised (STS)~~ce- sheet synthetic securitisation only; highlights the nature of synthetic securitisation which creates specific prudential and systemic risks; seeks to ensure that any potential STS framework adequately addresses counter-party credit risks and well-structured credit protection agreements; is sceptical of offering preferential prudential treatment to STS synthetic securitisation products such as those offered to STS traditional securitisation products;

Amendment 12 #

Motion for a resolution
Recital A

A. whereas bank loan financing is in itself not sufficient to provide the amount of credit needed for the EU economy to recover from the crisis, but should instead be complemented with stronger market- based financing; whereas all actions taken to create a Capital Markets Union (CMU) should therefore have improving the range of financing options offered to companies and citizens, as well as a greater range of more attractive investment offers, as their objective;

Amendment 120 #

Christophe HANSEN, Danuta Maria HÜBNER, Lefteris CHRISTOFOROU

Motion for a resolution
Paragraph 4

4. Requests the realignment of the treatment of ~~cash and~~ synthetic securitisations, of the treatment of regulatory capital and liquidity with that of covered bonds and loans, as well as with the disclosure and due diligence requirements for covered bonds and simple, transparent and standardised (STS) securitisation;

Amendment 121 #

Motion for a resolution
Paragraph 4

4. Requests the strengthening of securitisation as a tool and a market through a series of measures to avoid a reduction of European bank lending in the fact of prudential regulation and the successful development of the CMU. These measures should include the realignment of the treatment of cash and synthetic securitisations, of the treatment of regulatory capital and liquidity with that of covered bonds and loans, as well as with the disclosure and due diligence requirements for covered bonds and simple, transparent and standardised (STS) securitisation, along with calibration of the Capital Requirements Regulation for the risk-weight floor calibration and a review of the eligibility criteria for securitisations in terms of the Liquidity Coverage Ration;

Amendment 122 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Ondřej KOVAŘÍK, Martin HLAVÁČEK, Nicola BEER, Monica SEMEDO, Ivars IJABS, Gilles BOYER, Engin EROGLU

Motion for a resolution
Paragraph 4

4. Requests the Commission to assess how targeted amendments to the Securitisation Regulation could free up financing capacity; such targeted amendments could include the realignment of the treatment of cash and synthetic securitisations, of the treatment of regulatory capital and liquidity with that of covered bonds and loans, as well as with the disclosure and due diligence requirements for covered bonds and simple, transparent and standardised (STS) securitisation;

Amendment 123 #

Motion for a resolution
Paragraph 4

4. Requests the realignment of the treatment of cash and synthetic securitisations, of the treatment of regulatory capital and liquidity with that of covered bonds and loans, as well as ~~with~~a review of the disclosure and due diligence requirements for third country securitisation, covered bonds and simple, transparent and standardised (STS) securitisation; requests a clearer role for Competent Authorities in Significant Risk Transfer assessments, improved credit underwriting standards, and reduction of NPLs;

Amendment 124 #

Motion for a resolution
Paragraph 5

5. Calls for targeted measures within securities market legislation to expedite the recovery after the COVID-19 crisis; supports changes in the Prospectus Regulation, the Markets in Financial Instruments Directive (MIFID), the Securitisation Regulation and the Market Abuse Regulation to facilitate investments in the real economy, in particular in SMEs, and to allow newcomers and new products to enter the markets, preserving consumer protection and market integrityEmphasises that a prime objective of securities market legislation is to safeguard transparency and market integrity to ensure a high degree of investor confidence and protection; stresses that the review of the Markets in Financial Instruments Directive (MIFID) should not be used to promote financial deregulation;

Amendment 125 #

Motion for a resolution
Paragraph 5

5. ~~Calls for targeted measures within securities market legislation to expedite the recovery after the COVID-19 crisis; supports changes in~~Stresses that the existing regulations must be complied with by Member-States (namely, the Prospectus Regulation, the Markets in Financial Instruments Directive (MIFID), the Securitisation Regulation and the Market Abuse Regulation ~~to facilitate inve~~); calls for a stmren~~ts in the real economy, in particular in SMEs, and to allow newcomers and new products to enter the markets, preserv~~gthened enforcement of the regulation regarding consumer protection and market integrity;

Amendment 126 #

Alfred SANT, Eero HEINÄLUOMA, Marc ANGEL, Costas MAVRIDES

5. ~~Calls for targeted measures within securities market legislation to expedite the recovery after the COVID-19 crisis; supports changes in~~Subject to the priority of safeguarding regulatory standards, favours the review of the Prospectus Regulation, the Markets in Financial Instruments Directive (MIFID), the Securitisation Regulation and the Market Abuse Regulation to facilitate investments in the real economy, in particular in SMEs, and to allow newcomers and new products to enter the markets, preserving consumer protection and market integrity while encouraging cross-border equity investments and trades;

Amendment 127 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Ondřej KOVAŘÍK, Martin HLAVÁČEK, Nicola BEER, Monica SEMEDO, Ivars IJABS, Gilles BOYER

Motion for a resolution
Paragraph 5

5. Calls for targeted measures within securities market legislation tohat could help expedite the recovery after the COVID-19 crisis~~; supports~~ as part of a broad package of measures to increase public and private financing; welcomes targeted changes in the Prospectus Regulation, the Markets in Financial Instruments Directive (MIFID), and the Securitisation Regulation a~~nd the Market Abuse Regulation~~s long as they aim to preserve market liquidity and transparency, and to facilitate investments in the real economy, in particular in SMEs, and tomid-caps; notes that, allowing newcomers and ~~new products to enter the markets, preserving consumer protection and market integrity;~~ incumbent market players to offer new innovative products while preserving consumer protection and market integrity, is one of the strongest assets of the EU single market;

Amendment 128 #

Motion for a resolution
Paragraph 5

5. Calls for targeted measures within securities market legislation to expedite the recovery after the COVID-19 crisis; supports changes in the Prospectus Regulation, the Markets in Financial Instruments Directive (MIFID), and the Securitisation Regulation ~~and the Market Abuse Regulation~~ to facilitate investments in the real economy, in particular in SMEs, and to allow newcomers and new products to enter the markets~~, preserving consumer protection and market integrity~~; underlines that any regulatory changes should preserve consumer protection and market integrity and ensure consumer and investor protection;

Amendment 129 #

Motion for a resolution
Paragraph 5

5. Calls for targeted measures within securities market legislation ~~to expedite the recovery after the COVID-19 crisis; support~~such as changes in the Prospectus Regulation, the Markets in Financial Instruments Directive (MIFID), the Securitisation Regulation and the Market Abuse Regulation to facilitate investments in the real economy, in particular in SMEs, and to allow newcomers and new products to enter the markets, preserving consumer protection and market integrity;

Amendment 13 #

Christophe HANSEN, Danuta Maria HÜBNER, Jessica POLFJÄRD, Lefteris CHRISTOFOROU

Motion for a resolution
Recital A a (new)

Aa. whereas capital markets offer opportunities for investors who seek income and for businesses that seek financing, but are also inherently risky and prone to short-termism; whereas the reasons for risk on capital markets comprise the excess of yield-seeking savings over good quality investment opportunities, weak supply of safe assets and persistently low interest rates; whereas those risks are likely to increase further in the short and medium term as a result of the extreme economic and fiscal uncertainty brought by the COVID-19 crisis and, in the medium and long term, by the financial risks related to climate change;

Amendment 130 #

Motion for a resolution
Paragraph 5

5. Calls for targeted measures in terms of alignment and simplification within securities market legislation to expedite the recovery after the COVID-19 crisis; supports changes in the Prospectus Regulation, the Markets in Financial Instruments Directive (MIFID), the Packaged Retail Investment and Insurance Products Regulation (PRIIPS), the Securitisation Regulation and the Market Abuse Regulation to facilitate investments in the real economy, in particular in SMEs, and to allow newcomers and new products to enter the markets, preserving consumer protection and market integrity;

Amendment 131 #

Motion for a resolution
Paragraph 5

5. Calls for targeted measures within securities market legislation to expedite the recovery after the COVID-19 crisis; supports changes in the Prospectus Regulation, the Markets in Financial Instruments Directive (MIFID), the Securitisation Regulation and the Market Abuse Regulation, which reduce the bureaucratic hurdles and the associated costs and make them easier to manage in practice, so as to facilitate investments in the real economy, in particular in SMEs, and to allow newcomers and new products to enter the markets, preserving consumer protection and market integrity;

Amendment 132 #

Motion for a resolution
Paragraph 5

5. Calls for targeted measures within securities market legislation to expedite the recovery after the COVID-19 crisis; supports changes in the Prospectus Regulation, the Markets in Financial Instruments Directive (MIFID), the Securitisation Regulation and the Market Abuse Regulation to facilitate investments in the real economy, in particular in SMEs, and to allow newcomers and new products, preferably of EU origin, to enter the markets, preserving consumer protection and market integrity; calls for extra safeguards and transparency requirements for non-EU newcomers and products, as to protect European SMEs against foreign speculation;

Amendment 133 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Paragraph 5

5. Calls for targeted measures within securities market legislation to expedite the recovery after the COVID-19 crisis; supports changes in the Prospectus Regulation, the Markets in Financial Instruments Directive (MIFID), the Securitisation Regulation and the Market Abuse Regulation to facilitate investments in the real economy, in particular in SMEs, and to allow newcomers and new products to enter the markets, preserving consumer protection and market integrity; furthermore calls on the Commission to amend the Share Trading Obligation (STO) and Derivative Trading Obligation (DTO) in the Markets in Financial Instruments Regulation (MiFIR) in order to eliminate frictions that can impact the ability of EU companies to raise capital at this time, especially at the end of the transition period between the EU and the UK;

Amendment 134 #

Motion for a resolution
Paragraph 5

5. Calls for targeted measures within securities market legislation to expedite the recovery after the COVID-19 crisis; supports ~~changes~~simplification in the Prospectus Regulation, the Markets in Financial Instruments Directive (MIFID), the Securitisation Regulation and the Market Abuse Regulation to facilitate investments in the real economy, in particular in SMEs, and to allow newcomers and new products to enter the markets, preserving consumer protection and market integrity;

Amendment 135 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Nicola BEER, Ivars IJABS, Gilles BOYER, Engin EROGLU

Motion for a resolution
Paragraph 5 a (new)

5a. Calls on the Commission to explore initiatives to incentivise employee share ownership, in order to promote the direct involvement of retail savers in financing the economy; such initiatives could include the creation of specific investment vehicles regulated under the AIFM Directive, with targeted changes to ease the operations of cross-border share- ownership plans, the encouragement of programmes to raise awareness throughout the EU, and the adoption of recommendations to Member States on relevant tax incentives;

Amendment 136 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Paragraph 5 a (new)

5a. Regrets the underdevelopment of EU market for crowdfunding as compared to other major economies. Welcomes the new rules agreed last December that should help to solve this situation and foster cross-border business funding. Asks ESMA and Commission to closely monitor the implementation of the new rules in order to react and propose changes if no significant improvements are observed in the crowdfunding as an alternative of finance for start-ups and SMEs;

Amendment 137 #

Inese VAIDERE

Motion for a resolution
Paragraph 5 a (new)

5a. Requests to postpone the enforcement of the Regulation 2019/815 for a period of at least three years, thus allowing companies to overcome the current economic difficulties, as well as providing sufficient time to prepare for the introduction of the new requirements; further asks to review the application of the Regulation 2019/815 so that the requirements laid down in the regulation are not applicable to companies qualifying for SME status.

Amendment 138 #

Motion for a resolution
Paragraph 5 a (new)

5a. Calls on the Commission, in light of the Wirecard accounting scandal, to review the Audit Directive as soon as possible to eliminate the perverse incentives that arise because the auditor is paid by the audited company to which it also often tries to sell consulting services; we further call upon the Commission to investigate whether the oligopoly on the audit market prevents effective control;

Amendment 139 #

Motion for a resolution
Paragraph 5 a (new)

5a. Notes that levels of bilateral trading off-venue remain high despite regulatory intentions; advocates a genuine shift towards competitive and on- exchange trading in European equity and derivatives markets; considers that encouraging this shift requires a certain openness to innovative exchange trading models that can meet investors' needs while bringing trading flow on-venue;

Amendment 14 #

Motion for a resolution
Recital A a (new)

Aa. whereas the CMU should provide a regulatory environment which mitigates risks to financial stability, and adequately protects the interests of retail investors, pensioners and consumers and safeguards environmental, social and governance (ESG) issues;

Amendment 140 #

Linea SØGAARD-LIDELL

Motion for a resolution
Paragraph 5 a (new)

5a. Calls on the Commission to promote the direct involvement of retail savers in financing the economy considering the possibility for return of investment for retail investors

Amendment 141 #

Jonás FERNÁNDEZ, Paul TANG

Motion for a resolution
Paragraph 5 a (new)

5a. Invites the Commission to review the settlement discipline regime under CSDR in view of COVID 19 crisis and Brexit

Amendment 142 #

Motion for a resolution
Paragraph 6

6. Asks the Member States to amend their national tax frameworks, in order to reduce tax obstacles to cross-border investments, including withholding tax procedures, and to increase financing by investors to long-term investment opportunities thereby improving returns on long-term savings for EU citizens;deleted

Amendment 143 #

Motion for a resolution
Paragraph 6

Amendment 144 #

Motion for a resolution
Paragraph 6

6. ~~Asks the Member States to amend their national tax frameworks, in order to reduce tax~~Stresses that different national tax frameworks and harmful tax competition within the EU undermine the sustainability of the CMU and the level playing field and that they are one of the key obstacles to cross- border investments~~, including withholding tax procedures, and to increase financing by investors to long-term investment opportunities thereby improving returns on long-term savings~~; believes that an EU-wide withholding tax would be desirable; emphasises that the integration of EU capital markets increases the urgency of adopting a common consolidated corporate tax base (CCCTB) and ensuring the level playing field for EU c~~itizen~~ompanies;

Amendment 145 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Ivars IJABS, Gilles BOYER, Engin EROGLU

Motion for a resolution
Paragraph 6

6. Asks the Member States to ~~amend their national tax frameworks, in order to reduce tax obstacles to cross-border investments, including withholding tax procedures, and to~~ increase financing by investors to long-term investment opportunities ~~thereby improving returns on long-term savings for EU citizens~~;

Amendment 146 #

Motion for a resolution
Paragraph 6

6. Asks the Member States to deliver on repeated calls to amend their national tax frameworks, in order to reduce tax obstacles to cross-border investments, including through harmonising withholding tax procedures~~, and to increas~~ and exploring a common, standardised, EU-wide system for withholding tax relief at source, inspired from the OECD TRACE Project, to rebalance the equity-debt bias penalising the financing byof in~~vestors to long-term investment opportunities thereby improving~~novation through private investment, and to incentivise long-term investment opportunities for retail investors in order to help EU citizens gain better returns on their long-term savings ~~for EU citizens~~;

Amendment 147 #

Alfred SANT, Eero HEINÄLUOMA, Marc ANGEL

Motion for a resolution
Paragraph 6

6. Aasks the Mmember Sstates to amend their national tax frameworks, in order to reduce tax obstacles to cross-border investments, ~~including withholding tax procedures~~most especially with reference to withholding tax procedures for which, beyond seeking to converge their national practices, tax authorities should participate in a pan-European digital platform where withholding tax liabilities and refunds across jurisdictions are cleared transparently such that retail investors are able to determine returns on their investment in real time, and to increase financing by investors to long- term investment opportunities thereby improving returns on long-term savings for EU citizens;

Amendment 148 #

Jonás FERNÁNDEZ, Paul TANG

Motion for a resolution
Paragraph 6

6. Asks the Member States to consider amending their national tax frameworks, in order to reduce tax obstacles to cross-border investments, including withholding tax procedures, and to increase financing by investors to long- term investment opportunities thereby improving returns on long-term savings for EU citizens;

Amendment 149 #

Motion for a resolution
Paragraph 6 a (new)

6a. Takes the view that amending national tax frameworks unilaterally within the EU to reduce tax obstacles to cross-border investments will further entrench the patchwork of tax rules that companies must comply with when operating cross border, with numerous costs, and offer further possibilities for tax avoidance; reiterates its call on Member States to agree on the adoption of the proposals concerning the Common Consolidated Corporate Tax Base simultaneously, taking into consideration Parliament’s opinion that already includes the concept of virtual permanent establishment and apportionment formulas; calls on the Member States to bridge their diverging positions on CCCTB, given the importance of this instrument to create a framework that fosters certainty, prevents double taxation, reduces administrative costs, thereby enhancing cross-border investments;

Amendment 15 #

Alfred SANT, Eero HEINÄLUOMA, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Recital A a (new)

Aa. whereas the CMU should provide a regulatory environment which mitigates risks to financial stability, and adequately protects the interests of retail investors, pensioners and consumers;

Amendment 150 #

Motion for a resolution
Paragraph 6 a (new)

6a. Stresses that the Capital Markets Union should be aligned as much as possible with the European Green deal and in particular with the Sustainable Europe Investment Plan; considers that the CMU should aim to direct investments towards environmentally friendly projects, thereby contributing to the EU's sustainable agenda;

Amendment 151 #

Motion for a resolution
Paragraph 7

7. Highlights the importance of increasing legal certainty ~~for cross-border investments by making national insolvency proceedings~~by further harmonising insolvency proceedings law in the EU, as well as security ownership regimes, namely the definition of “shareholder” and its inherent rights; more efficient and effective;

Amendment 152 #

Motion for a resolution
Paragraph 7

7. Highlights the importance of increasing legal certainty for cross-border investments by ~~mak~~harmonising national insolvency proceedings ~~more efficient and effective~~;

Amendment 153 #

7. Highlights the importance of increasing legal certainty for cross-border investments by making national insolvency proceedings more efficient and effective, thus mitigating home bias, legal risks and costs;

Amendment 154 #

Motion for a resolution
Paragraph 7

7. Highlights the importance of increasing legal certainty and law enforcement for cross-border investments by making national insolvency proceedings more efficient and effective;

Amendment 155 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Nicola BEER, Ivars IJABS, Gilles BOYER, Engin EROGLU

Motion for a resolution
Paragraph 7

7. Highlights the importance of increasing legal certainty for cross-border investments by making national insolvency proceedings more efficient and effective; , whilst taking into consideration the different legal systems across the Member States, and by further harmonising rules on corporate governance, including a common definition of “shareholder” to facilitate the exercise of shareholder rights and the engagement with investee companies across the EU; calls on the Commission to propose legislative initiatives and issue recommendations to Member States, as appropriate, with a specific timeline for delivery, and aiming to achieve significant progress swiftly;

Amendment 156 #

Othmar KARAS

Motion for a resolution
Paragraph 7

7. Highlights the importance of increasing legal certainty for cross-border investments by making national insolvency proceedings more efficient and effective; highlights the importance of ensuring a sound legal protection framework of the Union for cross-border investments within the EU after the termination of intra-EU- BITS; calls for the swift establishment of an adequate and efficient legal protection scheme for cross-border investments within the Single Market;

Amendment 157 #

Motion for a resolution
Paragraph 7

7. Highlights the importance of increasing legal certainty for cross-border investments by making national insolvency proceedings more efficient and effective; calls on the Commission to make ambitious legislative proposals to foster harmonisation of insolvency laws across the Union;

Amendment 158 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Pascal CANFIN, Ondřej KOVAŘÍK, Monica SEMEDO, Ivars IJABS, Gilles BOYER

Motion for a resolution
Paragraph 7 a (new)

7a. Emphasises that innovative and competitive EU financial products with global reach, such as UCITS and green bonds using the future EU Green Bond Standard, are channels to extend the EU’s influence on the global stage and to strengthen the international role of the euro; calls on the Commission to draw inspiration from these examples, if necessary through amending the respective legislation, in order to bring the same level of international recognition to other EU financial products such as ELTIFs and STS securitisations, and prospective future instruments such as social bonds;

Amendment 159 #

Othmar KARAS

Motion for a resolution
Paragraph 7 a (new)

7a. Highlights the importance of financial market participants’ long-term equity investments for supporting independent European enterprises in the Union, strong and resilient strategic sectors, sustainable economic growth and prosperity for the benefit of EU citizens.

Amendment 16 #

Motion for a resolution
Recital A a (new)

Aa. whereas the EU's internal market is characterised by open competition, a regulatory framework, reliance on international standards and supervisory cooperation; whereas the CMU strategy should therefore be based on the same principles;

Amendment 160 #

Motion for a resolution
Paragraph 8

~~8. Stresses the necessity of advancing further in the implementation of a genuinely Single Rule Book for financial services in the internal market;~~deleted

Amendment 161 #

Motion for a resolution
Paragraph 8

8. Stresses the necessity of advancing further in the implementation of a genuinely Single Rule Book for financial services in the internal market, particularly in the field of taxation; calls for the establishment of a Financial Transactions Tax at EU level;

Amendment 162 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Paragraph 8

8. Stresses the necessity of advancing further in the implementation of a genuinely Single Rule Book for financial services in the internal market, where priority should be given to the continuing development of common definitions and standards on sustainable finance;

Amendment 163 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Nicola BEER, Ivars IJABS, Gilles BOYER, Engin EROGLU

Motion for a resolution
Paragraph 8

8. Stresses the necessity of advancing further in the implementation and the enforcement of a genuinely Single Rule Book for financial services in the internal market; calls on the Commission and the ESAs to draw conclusions on the use of supervisory convergence tools through market movements related to the COVID- 19 crisis, and to suggest legislative and non-legislative initiatives to enhance the effectiveness of these tools as appropriate;

Amendment 164 #

Motion for a resolution
Paragraph 8 a (new)

8a. Suggests the establishment of a database containing standardised credit and financial information on SMEs that intend to finance themselves on the capital markets, with the aim of increasing their visibility;

Amendment 165 #

Motion for a resolution
Paragraph 8 a (new)

8a. Supports improving transparency for end investors through the establishment of an EU Consolidated Tape (CT);

Amendment 166 #

Motion for a resolution
Paragraph 9

Amendment 167 #

Motion for a resolution
Paragraph 9

9. Underlines th~~e need to promo~~at private pension provision~~; welcome~~, such as the Pan- European Personal Pension (PEPP) product~~; reminds Member Stat~~, is inherently risky and can leave people with no protection in times of financial distress, as has happened in the last months; stresses that PEPPs ~~need to~~should not be subject to the same tax treatment as national pension products ~~to become an option for savers~~;

Amendment 168 #

Motion for a resolution
Paragraph 9

9. ~~Underlines the need to promote pension provision; w~~Welcomes the Pan- European Personal Pension (PEPP) product; reminds Member States that PEPPs ~~need to~~should be subject to the same tax treatment as national pension products ~~to become an option for saver~~where existing national tax relief policies have proven to be efficient and restricted to low income groups or groups with insufficient access to other collective retirement systems;

Amendment 169 #

Motion for a resolution
Paragraph 9

9. Underlines the need to promote pension provision; welcomes the Pan- European Personal Pension (PEPP) ~~product~~, whose regulation foresees that capital should be invested taking into account environmental, social and governance (ESG) factors; notes that PEPP is as a complementary and voluntary pension pillar with regard to national public pension systems; regrets that the PEPP Regulation lacks a true pan-European approach because it keeps the authorisation process at a national level, and gives a secondary role to EIOPA; reminds Member States that PEPPs need to be subject to the same tax treatment as national pension products to become an option for savers;

Amendment 17 #

Alfred SANT, Jonás FERNÁNDEZ, Aurore LALUCQ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Recital A b (new)

Ab. whereas the development of a CMU goes necessarily hand in hand with the deepening of the economic and monetary union, and in particular with the completion of the banking union and the creation of a mechanism of fiscal stabilisation for the euro area as a whole; whereas the CMU must be complemented by counter-cyclical policy measures to foster aggregate demand and reduce inequalities;

Amendment 170 #

Alfred SANT, Eero HEINÄLUOMA, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Paragraph 9

9. Underlines the need to promote pension provision; welcomes the Pan- European Personal Pension (PEPP) ~~product~~, whose regulation foresees that capital should be invested taking into account environmental, social and governance (ESG) factors; notes that PEPP is as a complementary and voluntary pension pillar with regard to national public pension systems; reminds Member States that PEPPs need to be subject to the same tax treatment as national pension products to become an option for savers;

Amendment 171 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Nicola BEER, Ivars IJABS, Gilles BOYER, Engin EROGLU

Motion for a resolution
Paragraph 9

9. Underlines the need to promote pension provision, in particular third- pillar pensions; welcomes the Pan- European Personal Pension (PEPP) product; re~~minds~~calls that the tax treatment will be a key consideration for the take-up of future PEPPs; recalls the Commission recommendation of 26 June 2017, inviting Member States to ensure that PEPPs ~~need to b~~are subject to the same tax treatment as national pension products ~~to become an option for savers~~; recalls that a deep and competitive market for PEPP products, to the benefit of retail consumers, will only emerge if all providers can operate on a level playing field;

Amendment 172 #

Motion for a resolution
Paragraph 9

9. Underlines the need to promote pension provision, particularly when it comes to 2nd and 3rd pillar pensions, given the massive demographic changes that the Union faces; welcomes the Pan- European Personal Pension (PEPP) product; reminds Member States that PEPPs need to be subject to the same tax treatment as national pension products to become an option for savers;

Amendment 173 #

Motion for a resolution
Paragraph 9

9. Underlines the need to promote pension provision; welcomes the Pan- European Personal Pension (PEPP) product; reminds Member States that PEPPs need to be subject to the same tax treatment as national pension products to become an option for savers; highlights the importance of a level playing field for PEPP product providers including with regard to risk-mitigation techniques in the investment process; calls for a thorough evidence-based evaluation of the launch of the PEPP market before the next legislative review of the PEPP Regulation;

Amendment 174 #

Motion for a resolution
Paragraph 10

10. Encourages the Member States to promote multi-pillar pension systems, including occupational pension schemes, as a way to improve market dynamics and the incentives to invest; believes that private pensions should be revitalised and made more attractive;Believes that private pensions should not be encouragesd by the ~~participation of investors in long-term products with tax reduction or exemption policie~~State and should not benefit from any tax exemption or fiscal benefits;

Amendment 175 #

Motion for a resolution
Paragraph 10

10. ~~Encourages the Member States to promote multi-pillar pension systems, including occupational pension schemes, as a way to improve market dynamics and the incentives to invest; believes that~~Stresses the need to ensure that all European citizens can enjoy safe and adequate pensions, and that public and collective social security systems - play and shall continue to play a primary role in this, especially for low and middle- income segments of the population;; believes that the development of private pension products should ~~be revitalised and made more attractive~~ensure high consumer protection standards and transparency; encourages the participation of investors in long-term products ~~with tax reduction or exemption policies~~;

Amendment 176 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Linea SØGAARD-LIDELL, Nicola BEER, Monica SEMEDO, Ivars IJABS, Gilles BOYER, Engin EROGLU

Motion for a resolution
Paragraph 10

10. Encourages the Member States to promote multi-pillar pension systems, including occupational pension schemes~~, as a way to improve market dynamics and the incentives to~~ and personal pension schemes, as a way to deepen the pools of European capital available for investment in strategic sectors through incentives for long-term investments; believes that private pensions should be revitalised and made more attractive; encourages the participation of investors in long-term products with tax ~~reduction or exemption polici~~incentive policies promoting a level playing field across providers and product types;

Amendment 177 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Paragraph 10

10. Encourages the Member States to promote multi-pillar pension systems, including occupational pension schemes, as a way to improve market dynamics and the incentives to invest; believes that private pensions should be revitalised and made more attractive; recommends in particular the use of auto-enrolment schemes as a way to build up pension provision and coverage in the Union; encourages the participation of investors in long-term products with tax reduction or exemption policies;

Amendment 178 #

10. Encourages the Member States to promote multi-pillar pension systems, including occupational pension schemes, as a way to improve market dynamics and the incentives to invest; believes that ~~private~~funded pensions should be revitalised and made more attractive; calls for actions to overcome the obstacles to the coexistence of public and private pension systems; encourages the participation of investors in long-term products with tax reduction or exemption policies;

Amendment 179 #

Motion for a resolution
Paragraph 10

10. Highlights that demographic developments necessitate supplementing pay-as-you-go pensions with life-long intelligent saving and investing; Encourages the Member States to promote multi-pillar pension systems, including occupational pension schemes, as a way to improve market dynamics and the incentives to invest; believes that private pensions should be revitalised and made more attractive; encourages the participation of investors in long-term products with tax reduction or exemption policies;

Amendment 18 #

Motion for a resolution
Recital A b (new)

Ab. whereas an enabling framework for public sustainable investments, namely the introduction of a golden rule to exclude sustainable investments from the EU’s deficit calculation, is crucial to complement further initiatives within the CMU to crowd in private investment and promote sustainable and long term allocation of private capital;

Amendment 180 #

Christophe HANSEN, Danuta Maria HÜBNER, Jessica POLFJÄRD, Lefteris CHRISTOFOROU

Motion for a resolution
Paragraph 10

10. Encourages the Member States to promote multi-pillar pension systems, including occupational pension schemes, as a way to improve market dynamics and the incentives to invest; believes that private pensions ~~should be revitalised and made more attractive~~are an integral part of EU citizens' retirement planning; encourages the participation of investors in long-term, low-risk products with tax reduction or exemption policies;

Amendment 181 #

Alfred SANT, Eero HEINÄLUOMA, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Paragraph 10

10. Encourages the Member States to promote multi-pillar pension systems, including occupational pension schemes, as a way to improve market dynamics and the incentives to invest; believes that private pensions should be revitalised and made more attractive; encourages the participation of investors in long-term products with tax reduction or exemption policies designed to generate broader economic and social beneficial impact;

Amendment 182 #

Motion for a resolution
Paragraph 10 a (new)

10a. Takes note of the limited use of the ELTIF vehicle throughout the European Union. Encourages the Commission to review the ELTIF regulation in light of the experience since its entry into force in order to make use of its full potential.

Amendment 183 #

Christophe HANSEN, Jessica POLFJÄRD, Lefteris CHRISTOFOROU

Motion for a resolution
Paragraph 10 b (new)

10b. Encourages the Commission to consider the introduction of an EU “de minimis” or exemption regime for distribution to professionals and/or semi- professional investors in the UCITS framework.

Amendment 184 #

Motion for a resolution
Paragraph 11

Amendment 185 #

Motion for a resolution
Paragraph 11

Amendment 186 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Motion for a resolution
Paragraph 11

Amendment 187 #

Motion for a resolution
Paragraph 11

Amendment 188 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Ondřej KOVAŘÍK, Martin HLAVÁČEK, Nicola BEER, Monica SEMEDO, Ivars IJABS, Gilles BOYER, Engin EROGLU

Motion for a resolution
Paragraph 11

11. Recalls that the Solvency 2 Directive requires a review by the end of 2020 and that the European Insurance and Occupational Pensions Authority (EIOPA) will provide technical advice to the Commission after consultations with different stakeholders; requests the Commission and EIOPA to consider adjusting the capital requirements for investments in equity and private debt, in particular of SMEs and mid-caps, to ensure that incentives for insurers and pension funds do not penalise equity investments; strongly calls on insurers and re-insurers to draw conclusions from the COVID-19 crisis, including on the coverage of pandemic-related risks; encourages the rapid phasing out of national exemptions and to the reduction of ‘gold-plating’ in national implementation of Solvency II, to foster harmonisation and integration of the EU insurance and re-insurance market;

Amendment 189 #

Motion for a resolution
Paragraph 11 a (new)

11a. Underlines the need to create and stimulate the availability of suitable sustainable assets; encourages the Commission to put forward a legislative initiative for an EU Green Bond Standard; calls for further discussions on the creation of a European safe asset, based on an evaluation to be performed by the Commission of the sovereign bond- backed securities (SBBS) proposal and possible developments, in order to strengthen the international role of the euro, stabilise financial markets and allow banks to diversify their portfolios;

Amendment 19 #

Ab. whereas EU capital markets could serve the economy and the much needed economic recovery best when they are transparent, competitive, resilient, centrally cleared and supported by fair regulation,

Amendment 190 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Motion for a resolution
Paragraph 11 a (new)

11a. In implementing the finalised Basel III standards, calls on the Commission to pay due attention to (i) provisions affecting market making by banks and non-banks and (ii) risk weights applicable to bank’s investment in equity, especially of long-term SME equity;

Amendment 191 #

Motion for a resolution
Paragraph 11 a (new)

11a. In implementing the "finalization of Basel III" Standards, calls on the Commission to pay due attention to risk weights applicable to banks' investments in equity, especially of long-term SMEs equity;

Amendment 192 #

Motion for a resolution
Paragraph 11 a (new)

11a. Notes that oligopolistic structures have developed in the area of market data; calls on the Commission to investigate the abuse of dominant market positions by data providers,

Amendment 193 #

Motion for a resolution
Paragraph 11 b (new)

11b. Calls on the Commission to submit as soon as possible a legislative proposal for a European Single Access Point for financial and non-financial information in respect to listed and unlisted EU companies, while respecting the proportionality principle, where appropriate; believes that ESMA, in close cooperation with the European Financial Reporting Advisory Group, should be put in charge of such a project and that the information provided must, from the start, be based on integrated reporting, including urgently needed comparable, standardised and transparent information related to environmental sustainability as defined in the Taxonomy Regulation as well as information related to the social and governance aspects of sustainability, in line with the Regulation of sustainability-related disclosure for financial services and the Non-Financial Reporting Directive;

Amendment 194 #

Motion for a resolution
Paragraph 11 b (new)

11b. Calls on the Commission, in line with the High level forum report recommendation, to put forward a legislative proposal to develop the European Single Access Point (ESAP) for company data; ESAP will serve as an EU- wide, digital, one-stop-shop for both public financial and non-financial information in respect to EU companies; ESAP should be a single platform established and managed by ESMA; in that regard the legislative proposal should ensure that adequate time, funding and resources are provided to ESMA;

Amendment 195 #

Alfred SANT, Eero HEINÄLUOMA, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Paragraph 12

12. Sstresses the need for European and national supervisory authorities to overcome their differences; calls for supervisory convergence to promote a common European model of supervision and seamless enforcement, guided by the European Securities and Mmarket Aauthority (ESMA), and, where appropriate, the EIOPA, to reduce the existing obstacles to cross-border fFinancial operations; understands that convergence had best be attained within a decentralised framework that allows national supervisory authorities to fulfil their functions closer to market players; believes that such convergence had best be attempted as part of the Digital Europe programmes;

Amendment 196 #

Motion for a resolution
Paragraph 12

12. ~~Stresses the need for European and national supervisory authorities to overcome their differences; c~~Calls for supervisory convergence to promote a common European model, guided by the European Securities and Market Authority (ESMA), ~~to reduce the existing obstacles to cross-border financial operations~~provided that no existing regulations are watered down;

Amendment 197 #

Christophe HANSEN, Jessica POLFJÄRD, Lefteris CHRISTOFOROU

Motion for a resolution
Paragraph 12

12. Stresses the need for efficient and effective cooperation between European and national supervisory authorities to overcome their differences; calls for supervisory convergence to promote a common European model, guided by the European Securities and Market Authority (ESMA), to reduce the existing obstacles to cross-border financial operations;

Amendment 198 #

Motion for a resolution
Paragraph 12

12. Stresses the need for European and national supervisory authorities to overcome their differences; calls for enhanced supervisory convergence ~~to promote a common European model, guided by the European Securities and Market Authority (ESMA),~~ to reduce the existing obstacles to cross- border financial operations;

Amendment 199 #

Motion for a resolution
Paragraph 12

12. Stresses the need for European and national supervisory authorities to overcome their differences; calls ~~for~~a European model of enhanced supervisory convergence, to ~~promote a common European model, guided by the European Securities and Market Authority (ESMA), to reduce the existing obstacles to cross-border financial operations;~~reduce the existing obstacles to cross-border financial operations; in this context ESMA and national supervisory authorities should act as one and ensure consistent, effective and coordinated supervision of the EU markets.

Amendment 2 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Ondřej KOVAŘÍK, Martin HLAVÁČEK, Nicola BEER, Monica SEMEDO, Ivars IJABS, Gilles BOYER, Engin EROGLU

Motion for a resolution
Citation 3 a (new)

- having regard to the Commission Communication of 9 July 2020 entitled 'Getting ready for changes. Communication on readiness at the end of the transition period between the European Union and the United Kingdom' (COM(2020) 324),

Amendment 20 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Ivars IJABS, Gilles BOYER, Luis GARICANO

Motion for a resolution
Recital A b (new)

Ab. whereas some investors have higher risk tolerance than others, and whereas not all businesses are in a position to access and benefit from capital market finance;

Amendment 200 #

Billy KELLEHER, Martin HLAVÁČEK, Ondřej KOVAŘÍK, Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Monica SEMEDO

Motion for a resolution
Paragraph 12

12. Stresses the need for ~~European and national s~~supervisory convergence to promote a common European model, highlights the crucial role of the European Supervisory aAuthorities ~~to overcome their differences; calls for supervisory convergence to promote a common European model, guided by the European Securities and Market Authority (ESMA),~~(ESAs) in facilitating this; recalls the additional competences given and structural changes made to the ESAs by the recently adopted Regulation (EU) 2019/2175; calls on the ESAs, together with the national supervisory authorities, to implement and exercise these changes as soon as possible to allow the ESAs to act swiftly to preserve financial stability and the orderly functioning and integrity of the market, and to reduce the existing obstacles to cross-border financial operations;

Amendment 201 #

Motion for a resolution
Paragraph 12

12. Stresses the need for European and national supervisory authorities to ~~overcome their differences; calls for supervisory convergence to promote a common European model, guided by the European Securities and Market Authority (ESMA), to reduce~~work in close cooperation, particularly as regards supervisory consistency and information sharing; calls for changes to the ESMA Regulation ensuring that ESMA can directly and decisively act and step in where national supervisory authorities fail to effectively perform their duty of ensuring the prevention of preventing serious threats to the orderly functioning and integrity of financial markets or the stability of the financial system in the Union; strongly calls on the Commission to present an ambitious reform of the governance of the ESMA, including the appointment of independent Directors in the Management Board, with enhanced powers on supervisory convergence for cross-border activities, direct supervision and on the prevention against serious threats to the orderly functioning and integrity of financial markets or the stability of the financial system in the Union; notes that the limited impact of supervisory convergence in promoting a common European model should lead to empowering the European Securities and Market Authority (ESMA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Banking Authority (EBA), with a stronger role in reducing the existing obstacles to cross-border financial operations;

Amendment 202 #

Motion for a resolution
Paragraph 12

12. Stresses the need for European and national supervisory authorities to ~~overcome~~ work togetheir ~~differences; calls for~~towards genuine supervisory convergence and to promote a common European model, guided by the European Securities and Market Authority (ESMA), to reduce the existing obstacles to cross- border financial operations; notes the importance of ESMA, EIOPA and EBA in this process, while also respecting the role of National Competent Authorities as laid out in the recently agreed review of European System of Financial Supervision (ESFS);

Amendment 203 #

Motion for a resolution
Paragraph 12

12. Stresses the need for close cooperation between European and national supervisory authorities ~~to overcome their differences~~; calls for supervisory convergence to promote a common ~~European~~ model, guided by the European Securities and Market Authority (ESMA), to reduce ~~the~~ existing obstacles to cross-border financial operations;

Amendment 204 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Paragraph 12

12. Stresses the need for European and national supervisory authorities to overcome their differences; calls for regulatory and supervisory convergence to promote a ~~common European model, guided by the European Securities and Market Authority (ESMA), to reduce the existing obstacles to~~more effective a joint supervision model under the guidance of the European Securities and Market Authority (ESMA), to ensure adequate oversight of cross-border financial operations; believes that ESMA should be granted more far-reaching powers and resources, especially additional direct supervision powers of large financial market participants and further product intervention power in the area of cross- border financial ~~operations;~~ activity; believes that ESMA's Board of Supervisors should include independent members to limit the risk of conflict of interest of national supervisory authorities and increase the effectiveness of supervision at the EU level;

Amendment 205 #

Eero HEINÄLUOMA, Paul TANG, Joachim SCHUSTER, Aurore LALUCQ, Niels FUGLSANG

Motion for a resolution
Paragraph 12

12. Stresses the need for European and national supervisory authorities to overcome their differences; calls for supervisory convergence to promote a common European model, guided by the European Securities and Market Authority (ESMA), to reduce the existing obstacles to cross-border financial operations; Is very concerned about the revelations following the Wirecard scandal on shortcomings in the supervision. Underlines that credible audits are vital instruments to build trust in the financial situation of companies. Notes that such audits can only be provided if there is a full independent relationship between auditor and client, and that this independence can by no means be affected by providing non-audit services to the audited entity. Calls therefore on the Commission for a swift review of regulation 537/2014 on statutory audit of public-interest entities to strengthen the rules on rotation, to ensure a full legal separation between the providing of audit and non-audit services, and to ensure that ESMA gets direct supervisory powers over the audit sector.

Amendment 206 #

Motion for a resolution
Paragraph 12 a (new)

12a. Asks the Commission, ESMA, European Banking Authority(EBA) and the Single Supervisory Mechanism (SSM) to assess up to what extent can the Wirecard scandal be attributed to deficiencies in the European regulatory framework in the area of audit and supervision. In particular, if national and European supervisors are sufficiently equipped to effectively supervise big cross- border financial institutions with complex business models that involve different third-country jurisdictions as well as multiple corporate layers. What lessons can be drawn from this case in relation to the further development of the European regulatory and supervisory framework, in particular in relation with the Capital Markets Union action plan;

Amendment 207 #

Motion for a resolution
Paragraph 12 a (new)

12a. Highlights EU-wide competition, choice and open access among market infrastructures across the entire execution value chain as fundamental principles for the CMU; supports a diversity of trading mechanisms catering to different trading strategies, market conditions, and investment objectives, both in the EU and globally; considers that failure to uphold these principles in the upcoming discussions on the MiFID/R framework review would risk bringing back monopolistic national exchange structures, to the detriment of European economies and end investors;

Amendment 208 #

Motion for a resolution
Paragraph 12 a (new)

12a. Calls, in this regard, for forthcoming revision of EU financial services regulation to attribute greater supervision and regulatory powers to EU supervisors, namely ESMA, including direct oversight over certain market segments and greater product intervention powers; recalls furthermore the need to reform the governance structure of the European Supervisory Authorities to make them truly independent of national supervisors;

Amendment 209 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Paragraph 12 a (new)

12a. Calls on the Commission to ensure the proper funding of civil society operators and consumers representatives in the field of financial services, who offer invaluable insight and independent assessment to policy-makers and regulators;

Amendment 21 #

Motion for a resolution
Recital A c (new)

Ac. whereas the creation of a euro area safe asset is crucial for the financial integration and the development of a CMU; whereas a safe asset in the EU is necessary for the creation of an integrated, deep and liquid European bond market as a central piece of CMU, which could serve as a euro area pricing benchmark for the valuation of bonds, equities and other assets, and also as collateral across the euro area;

Amendment 210 #

Motion for a resolution
Paragraph 12 a (new)

12a. In order to reduce the fragmentation risk stemming from the application of national options and discretion, underlines the need to progress on common European standards;

Amendment 211 #

Motion for a resolution
Paragraph 12 b (new)

12b. Underlines the efficiency that can be achieved by gradually granting to ESMA direct supervisory powers over EU CCPs and EU CSDs, in line with their cross border activity and market concentration;

Amendment 212 #

Motion for a resolution
Paragraph 13

Amendment 213 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Caroline NAGTEGAAL, Linea SØGAARD-LIDELL, Ondřej KOVAŘÍK, Martin HLAVÁČEK, Ivars IJABS, Gilles BOYER

Motion for a resolution
Paragraph 13

Amendment 214 #

Motion for a resolution
Paragraph 13

13. Observes that financial services regulation is a very complex undertaking, with regulation at international, European and national level; encourages all relevant actors to address this complexity to ensure the proportionality of financial regulation and to remove unnecessary administrative burdens; also notes that proportionality of financial regulation can sometimes lead to increased complexity, and calls on the Commission and Member States to commit to significant efforts to streamline and harmonise existing and future rules, by phasing out national exemptions as appropriate, and by preventing ‘gold- plating’ of EU law at national level; highlights that Regulations with clear timelines for transition and phasing out of existing regimes can build a smooth and steady path to regulatory convergence;

Amendment 215 #

Motion for a resolution
Paragraph 13 a (new)

13a. Is concerned about the recent scandal involving the German FinTech company Wirecard, as well as the role and potential short comings of Germany's financial supervisory authority and that of one of the auditors, Ernst and Young; stresses the importance of consistent supervision in scope and application whomever the provider is, in as far as the key service provided is a financial service; calls on the EU and national competent authorities to proceed with a thorough inquiry including on the adequacy of the supervisory response, the independence of the auditor, the corporate governance of the company, and on the missing funds; calls on the Commission to look into ways of improving the functioning of the accounting sector, including through joint audits and the separation between consulting and audit services;

Amendment 216 #

Sven SIMON

Motion for a resolution
Paragraph 13 a (new)

13a. Notes that in light of recent scandals, such as the case of Wirecard in Germany, the independence and accountability of auditors as well as regulators must be strengthened and all existing fraud-prevention regulations must be reviewed thoroughly;

Amendment 217 #

Motion for a resolution
Paragraph 13 a (new)

13a. Reiterates its call in the Parliament resolution on "Stocktaking and challenges of the EU Financial Services Regulation" of 19 January 2016, for the Commission to conduct, in cooperation with the ESAs, SSM and ESRB, a comprehensive quantitative and qualitative assessment every five years of the cumulative impact of EU financial services regulation on financial markets and its participants at EU and Member State level in order to identify shortcomings and loopholes, to assess the performance, effectiveness and efficiency of the financial services regulation and to ensure that it is not impeding fair competition and the development of the economy, and to report back to Parliament; regrets that no such assessment has been conducted thus far;

Amendment 218 #

Motion for a resolution
Paragraph 13 a (new)

13a. Highlights the benefits for the further integration of EU capital markets to evolve over time towards a Twin Peaks model of supervision, with separate mandates for prudential supervision and consumer protection across sectors in order to improve the effectiveness of supervision of large financial conglomerates reduce the complexity of the European supervisory framework and ensure stronger consumer and investor protection across the EU;

Amendment 219 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Ondřej KOVAŘÍK, Martin HLAVÁČEK, Nicola BEER, Monica SEMEDO, Ivars IJABS, Gilles BOYER, Engin EROGLU

Motion for a resolution
Paragraph 13 a (new)

13a. Calls on the Commission to present a detailed road map to strengthen the robustness of the financial ecosystem, drawing lessons from the benefits and the shortcomings of the existing EU rulebook on financial stability and financial supervision, identified during the COVID- 19 crisis; takes note of the recent recommendations from the ESRB, notably on liquidity risks arising from margin calls and liquidity risks in investment funds;

Amendment 22 #

Alfred SANT, Jonás FERNÁNDEZ, Eero HEINÄLUOMA, Aurore LALUCQ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Recital A c (new)

Ac. whereas legislative harmonisation remains insufficient to create a truly European capital market if diverging national implementation, supervision, and enforcement practices remain in place;

Amendment 220 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Paragraph 13 a (new)

13a. Notes with concern that over the past years a higher share of trading flows has gone to trading venues with limited transparency requirements and points out that such trades do not contribute meaningfully to price discovery; calls on the Commission and supervisory authorities to ensure that there is a level playing field between different trading venues;

Amendment 221 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Paragraph 13 a (new)

13a. Notes the lack of information about the non-debt financing market for SMEs; calls in this regard for better data collection about the non-debt financing tools previously used by the SME population; insists that it could significantly help in assessing and implementing policies in this area;

Amendment 222 #

Motion for a resolution
Paragraph 13 a (new)

13a. Emphasises the need for the architecture of the European market to be able to compete globally and attract foreign capital. Highlights the need for the EU to become a place where international companies and investors want to operate;

Amendment 223 #

Motion for a resolution
Paragraph 14

14. ~~Is concerned~~Notes that retail investors’ engagement with financial markets remains low; calls for measures to promote retail investments in view of the demographic challenges faced by the EU by increasing the participation of retail investors in capital markets through more attractive and appropriate personal pension products;

Amendment 224 #

Motion for a resolution
Paragraph 14

Amendment 225 #

Motion for a resolution
Paragraph 14

14. ~~Is concerned~~Believes that retail investors’ engagement with financial markets remains low; calls for measures to promote retail investments in view of the demographic challenges faced by the EU by increasing the participation of retail investors in capital markets through more attractive and appropriate personal pension products can play a major role in the shift towards long-term stable and sustainable capital markets inconsideration of their long- term investment horizon and sustainability preferences; Is concerned that retail investors’ engagement with sustainable financial markets remains low due to lack of information and lack of financial advice on suitable sustainable investment products; calls for measures to stimulate the supply of simple and transparent sustainable investment and personal pension products, and for measures to ensure that financial advice is reliable and unbiased;

Amendment 226 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Pascal CANFIN, Ondřej KOVAŘÍK, Martin HLAVÁČEK, Nicola BEER, Monica SEMEDO, Ivars IJABS, Gilles BOYER

Motion for a resolution
Paragraph 14

14. Is concerned that retail investors’ engagement with financial markets remains low; calls for measures to promote retail investments in view of the demographic challenges faced by the EU by increasing the participation of retail investors in capital markets through more attractive and appropriate personal pension products; calls on the Commission to put forward initiatives specifically targeting retail investors, including facilitating the development of independent web-based EU comparison tools, to help retail investors determine the most appropriate products in terms of risk, return on investment and value for their particular needs, and promoting incentives for ESG products and products typically associated with better value for money;

Amendment 227 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Paragraph 14

14. Is concerned that retail investors’ engagement with financial markets remains low; calls for measures to promote retail investments in view of the demographic challenges faced by the EU by increasing the participation of retail investors in capital markets through more attractive and appropriate personal pension products; in particular, welcomes the new uniform set of criteria for EU-wide rules to help crowdfunding services function smoothly and foster cross-border business funding, notably for medium-sized and micro- enterprises;

Amendment 228 #

Clara PONSATÍ OBIOLS, Fabio Massimo CASTALDO

Motion for a resolution
Paragraph 14

14. IEmphasizes the fact that there is no sound market without a wide investor base; is concerned that retail investors’ engagement with financial markets remains low; calls for measures to promote retail investments in view of the demographic challenges faced by the EU by increasing the participation of retail investors in capital markets through more attractive and appropriate personal pension products;

Amendment 229 #

Motion for a resolution
Paragraph 14 a (new)

14a. Recalls that the low retail investors’ engagement with financial markets might be a consequence of the regrettable financial fraud cases that took place during the last decade in some Member States through the sale of risky products in bad faith, as the European Parliament deplored in 2015; highlights that the strengthening of retail investors’ confidence is a key factor for a fair and efficient functioning of financial markets; in this respect, aims the EU authorities and institutions to further strengthen and harmonise the legislation on retail investors’ protection from fraud and misleading information.

Amendment 23 #

Motion for a resolution
Recital A d (new)

Ad. whereas legislative harmonisation remains insufficient to create a truly European capital market if diverging national implementation, supervision, and enforcement practices remain in place;

Amendment 230 #

Motion for a resolution
Paragraph 14 a (new)

14a. Deplores that the investor protection provisions in several sectorial pieces of EU financial services legislation are poorly aligned resulting in undue complexity for financial intermediaries and retail clients alike; calls on the European Commission to adopt a more horizontal approach to investor protection in EU financial services legislation;

Amendment 231 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Pascal CANFIN, Linea SØGAARD-LIDELL, Nicola BEER, Monica SEMEDO, Ivars IJABS, Gilles BOYER, Engin EROGLU

Motion for a resolution
Paragraph 14 a (new)

14a. Notes that various studies consistently show that a significant majority of retail investors mention sustainability preferences when asked about their investment preferences, and considers that this is an opportunity to further incentivise retail investors to be more active in financial markets;

Amendment 232 #

Motion for a resolution
Paragraph 14 a (new)

14a. Underlines the importance to enhance investor confidence in the capital markets, fostered by sound investor protection and supported by financially literate market participants;

Amendment 233 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Paragraph 15

15. Emphasises that ~~access to financial markets should be possible for all enterprises under the ‘same business, same rules’ principle~~the legislation on financial markets, including in the field of digital finance, should be based on the ‘same business, same rules’ principle, in order to minimise the potential for regulatory arbitrage and ensure a level playing field across financial services;

Amendment 234 #

Motion for a resolution
Paragraph 15

15. Emphasises that access to financial markets should be possible for all enterprises, including SMEs and start-ups, under the ‘same business, same rules’ principle; states the need to increase the portfolio of investment options for retail investors;

Amendment 235 #

Motion for a resolution
Paragraph 15

15. EStresses the need for a level playing field between financial services firms and technology firms; emphasises that access to financial markets should be possible for all enterprises under the ‘same business, same rules’ principle;

Amendment 236 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Ondřej KOVAŘÍK, Martin HLAVÁČEK, Monica SEMEDO, Ivars IJABS, Gilles BOYER, Engin EROGLU

Motion for a resolution
Paragraph 15

15. Emphasises that access to financial markets should be possible for all enterprises under the ‘same business, same rules’ principle; notes that this principle is particularly relevant in the FinTech and financial innovation spaces, and that reciprocal access to financial data should be balanced with the need to have a level playing field across all providers and product types;

Amendment 237 #

Motion for a resolution
Paragraph 15

15. Emphasises that access to financial markets should be possible for all enterprises under the ‘same business, same rules’ principle; nonetheless, to achieve this objective, takes the view that it is important to simplify the criteria to consider professional investors upon request, which is also linked to quantitative requirements related to the size of the enterprises;

Amendment 238 #

Motion for a resolution
Paragraph 15 a (new)

15a. Emphasises that the single market for retail financial services is very underdeveloped; notes that purchasing retail financial services products such as mortgage loans or insurance products on a cross-border basis is very uncommon and embedded with obstacles; considers that retail market participants should be easily able to take full advantage of the single market to access retail financial services products on a cross-border basis in order to get more choice and better products; calls on the Commission to put in place a new Action Plan for retail financial services that sets out an ambitious strategy to remove obstacles for cross-border retail financial services along with the elimination of unnecessary and excessive fees for such services;

Amendment 239 #

Motion for a resolution
Paragraph 15 a (new)

15a. Underlines that the existence of inconsistencies under different consumer and investor protection rules hinders the possibility to achieve a truly integrated and well-functioning CMU; stresses the need for more horizontal and harmonised consumer protection and business conduct rules, in order to ensure effective and consistent levels of protection across all financial products;

Amendment 24 #

Christophe HANSEN, Danuta Maria HÜBNER, Jessica POLFJÄRD, Lefteris CHRISTOFOROU

Motion for a resolution
Recital B

Amendment 240 #

Motion for a resolution
Paragraph 16

Amendment 241 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Caroline NAGTEGAAL, Pascal CANFIN, Ondřej KOVAŘÍK, Martin HLAVÁČEK, Nicola BEER, Ivars IJABS, Gilles BOYER, Engin EROGLU

Motion for a resolution
Paragraph 16

16. Recalls the existence of different shortcomings in the legislation on packaged retail investment and insurance products (PRIIPs) that should be addressed ~~in the next review~~as soon as possible, ahead of the application of the PRIIPs rules to UCITS products; expects that Level 2 PRIIPs legislation on the Key Investor Document ~~to respect l~~will be aligned with the Level 1 text, in particular in relation to ~~the performance scenar~~providing accurate, fair, clear and non-misleading pre- contractual informatiosn; regrets the delays in the adoption of Level 2 PRIIPs legislation that will overlap with the first review of PRIIPs, and which increases legal uncertainty and costs for ~~stakeholder~~market participants, and could reduce understanding and confidence from retail investors; calls for a more fundamental review of rules applicable to the distribution of financial products across the entirety of the retail investment space, in particular under MiFID, IDD and PRIIPs, aiming to harmonise and streamline the EU rulebook as appropriate; notes that EU rules on consumer protection should be adapted to the green and the digital transformations and put the interest of the retail investor at the forefront, regardless of the different types of providers and products;

Amendment 242 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Motion for a resolution
Paragraph 16

16. Recalls the existence of different shortcomings in the legislation on packaged retail investment and insurance products (PRIIPs) that should be addressed in ~~the next review~~a comprehensive review covering Level 1 as well as Level 2 ; expects that Level 2 PRIIPs legislation on the Key Investor Document to respect lLevel 1, in particular in relation to the performance scenarios; regrets the delays in the adoption of Level 2 PRIIPs legislation that will overlap with the first review of PRIIPs, and which increases legal uncertainty and costs for stakeholders;

Amendment 243 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Paragraph 16

16. ~~Rec~~Calls ~~the existence of different shortcomings~~for the improvement of the disclosure and comparability of key information in the legislation on packaged retail investment and insurance products (PRIIPs) that should be addressed in the next review; expects that Level 2 PRIIPs legislation on the Key Investor Document to respect level 1, in particular in relation to the performance scenarios; regrets the delays in the adoption of Level 2 PRIIPs legislation that will overlap with the first review of PRIIPs, and which increases legal uncertainty and costs for stakeholders; insists that the forthcoming review should provide for disclosure documents which are standardised and machine readable, thereby providing for comparability in a digital-friendly way;

Amendment 244 #

Motion for a resolution
Paragraph 16

16. Recalls the existence of different shortcomings in the legislation on packaged retail investment and insurance products (PRIIPs) that should be addressed in the next review; expects that Level 2 PRIIPs legislation on the Key Investor Document to respect level 1, in particular in order to improve the methodologies relat~~ion~~ed to the performance scenarios; and to ensure comparability among different investment products, regrets the delays in the adoption of Level 2 PRIIPs legislation that will overlap with the first review of PRIIPs, and which increases legal uncertainty and costs for stakeholders;

Amendment 245 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Paragraph 16

16. Recalls the existence of different shortcomings in the legislation on packaged retail investment and insurance products (PRIIPs) that should be addressed in the next review; expects that Level 2 PRIIPs legislation on the Key Investor Document to respect level 1, in particular in ~~relation to the performance scenario~~order to improve the methodologies related to the performance scenarios and to ensure comparability among different investment products; regrets the delays in the adoption of Level 2 PRIIPs legislation that will overlap with the first review of PRIIPs, and which increases legal uncertainty and costs for stakeholders;

Amendment 246 #

Motion for a resolution
Paragraph 16

16. Recalls the existence of different shortcomings in the legislation on packaged retail investment and insurance products (PRIIPs) that should be addressed in the next review; expects that Level 2 PRIIPs legislation on the Key Investor Document to respect level 1, in particular in ~~relation to the performance scenario~~order to improve the methodologies related to the performance scenarios and to ensure comparability among different investment products; regrets the delays in the adoption of Level 2 PRIIPs legislation that will overlap with the first review of PRIIPs, and which increases legal uncertainty and costs for stakeholders;

Amendment 247 #

Motion for a resolution
Paragraph 16

16. Recalls the existence of different shortcomings in the legislation on packaged retail investment and insurance products (PRIIPs) that should be addressed in the next review; expects that Level 2 PRIIPs legislation on the Key Investor Document to respect level 1, in particular in relation to the performance scenarios; regrets the delays in the adoption of Level 2 PRIIPs legislation that will overlap with the first review of PRIIPs, and which increases legal uncertainty and costs for stakeholders; calls on the European Commission and the ESAs to coordinate their proposals for their respective level 1 and level 2 changes in a way that guarantees a high degree of predictability for intermediaries and retail clients alike;

Amendment 248 #

Motion for a resolution
Paragraph 16

16. Recalls the existence of different shortcomings in the legislation on packaged retail investment and insurance products (PRIIPs) that should be addressed in the next review; expects that Level 2 PRIIPs legislation on the Key Investor Document to respect level 1, in particular in relation to the performance scenarios; notes the importance of ensuring that past performance information is available to investors while also ensuring that past performance cannot be used as an indicator to predict future returns; regrets the delays in the adoption of Level 2 PRIIPs legislation that will overlap with the first review of PRIIPs, and which increases legal uncertainty and costs for stakeholders;

Amendment 249 #

Motion for a resolution
Paragraph 16

16. Recalls the existence of different shortcomings and inconsistencies in the legislation on packaged retail investment and insurance products (PRIIPs) that should be addressed in the next review in order to improve transparency, comparability and eliminate misleading information; expects that Level 2 PRIIPs legislation on the Key Investor Document to respect level 1 legislation, in particular in relation to the performance scenarios and the PRIIPs with specific environmental or social objectives; regrets the delays in the adoption of Level 2 PRIIPs legislation that will overlap with the first review of PRIIPs, and which increases legal uncertainty and costs for stakeholders;

Amendment 25 #

Motion for a resolution
Recital B

B. ~~whereas the actions taken so far to achieve the CMU are moving in the right direction;~~ whereas much work nevertheless remains to be done in terms of the precision, effectiveness and simplification of the measures adopted;

Amendment 250 #

Christophe HANSEN, Jessica POLFJÄRD, Lefteris CHRISTOFOROU

Motion for a resolution
Paragraph 17

Amendment 251 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Nicola BEER, Monica SEMEDO, Ivars IJABS, Gilles BOYER

Motion for a resolution
Paragraph 17

17. Urges the Commission to ~~make clear the differentiation between~~introduce more proportionality on the rules for professional and retail investors on all levels of MIFID, making it possible to tailor the treatment of clients according to their knowledge and experience on the markets~~; requests that the Commission consider the introduction of a category of semi-professional investors to better respond to~~, while avoiding a fundamental change in MiFID categorisation; suggests that the Commission consider the introduction of an opt-in regime, allowing retail investors to choose to be treated as professional investors, notably in the area~~lity of participation on the financial marke~~ of information requirements;

Amendment 252 #

Motion for a resolution
Paragraph 17

17. Urges the Commission to make clear the differentiation between professional and retail investors on all levels of MIFID, making it possible to tailor the treatment of clients according to their knowledge and experience on the markets; requests ~~that~~ the Commission to consider the ~~introduction of a category of semi-professional investors to better respond to the reality of participation on the financial markets~~reality of participation on the financial markets by allowing more flexibility in the client categorisation, namely through opt-out options for certain obligations and opt-in options for certain clients or to lower the existing criteria for professional investors ;

Amendment 253 #

Motion for a resolution
Paragraph 17

17. Urges the Commission to make clear the differentiation between professional and retail investors on all levels of MIFID, making it possible to tailor the treatment of clients according to their knowledge and experience on the markets; requests ~~that~~ the Commission to consider if the introduction of a category of semi-professional investors towould better respond to the reality of participation on the financial markets and based on its findings, assess if the introduction of such category would be needed or not;

Amendment 254 #

Motion for a resolution
Paragraph 17

17. Urges the Commission to keep an eye on the regulatory costs arising in practice and to make clear the differentiation between professional and retail investors on all levels of MIFID, making it possible to tailor the treatment of clients according to their knowledge and experience on the markets; points out that high regulatory costs in practice make advising retail investors unattractive for banks and thus de facto excludes retail investors from securities as an investment category; requests that the Commission consider the introduction of a category of semi-professional investors to better respond to the reality of participation on the financial markets, or create an opt-in opportunity for retail investors so that they can dispense with the comprehensive notification obligation;

Amendment 255 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Motion for a resolution
Paragraph 17

17. Urges the Commission to make clear the differentiation between professional and retail investors on all levels of MIFID, making it possible to tailor the treatment of clients according to their knowledge and experience on the markets; requests that the Commission consider the introduction of a category of semi-professional investors to better respond to the reality of participation on the financial markets; considers, however, that the application of this new category of clients should be left to the discretion of the investment firms, which should be free to include (or not) semi-professional clients in their own service model, and could involve taking certain appropriate measures;

Amendment 256 #

Motion for a resolution
Paragraph 17

17. Urges the Commission to make clear the differentiation between professional and retail investors on all levels of MIFID, making it possible to tailor the treatment of clients according to their knowledge and experience on the markets; requests that the Commission consider the introduction of a category of semi-professional investors to better respond to the reality of participation on the financial markets; however, the application of this new "category" of clients should be left to the discretion of the investment firms that should be free to include (or not) semi-professional clients in their own service model;

Amendment 257 #

Motion for a resolution
Paragraph 18

Amendment 258 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Paragraph 18

18. ~~Is of the opinion~~Takes note of the belief expressed by financial market intermediaries that the current reporting framework within MIFID II and the European Mmarket Iinfrastructure Rregulation (EMIR) is very costly and complex, hindering the effectiveness of the system; believes that a simplification thereof ~~is necessar~~should be considered while taking full account of current experience and ensuring that this in no way serves to undermine the aims set for MIFID II and EMIR and without hindering rules on market integrity, transparency, consumer protection and financial stability;

Amendment 259 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Nicola BEER, Monica SEMEDO, Ivars IJABS, Gilles BOYER

Motion for a resolution
Paragraph 18

18. ~~Is of the opinion~~Recognises claims that the current reporting framework within MIFID II and the European Market Infrastructure Regulation (EMIR) ismay be very costly and complex, which could hinder~~ing~~ the effectiveness of the system; ~~believes that a simplification thereof is necessary~~calls on the Commission to explore whether a simplification thereof and streamlining across legislation is necessary, while ensuring that financial stability and market transparency is preserved at all times; highlights that any assessment of reporting and transparency in financial markets would not be complete without a proper review on the cost and availability of market data for all market participants;

Amendment 26 #

Motion for a resolution
Recital B

B. whereas the actions taken so far to achieve the CMU ~~are moving in the right direction~~have failed to channel more capital towards sustainable businesses and to provide investors with better investment opportunities in accordance with their risk tolerance; whereas much work ~~nevertheless~~ remains to be done in terms of the precision, and effectiveness ~~and simplification~~ of the measures adopted;

Amendment 260 #

Motion for a resolution
Paragraph 18

18. Is of the opinion that the current reporting framework within MIFID II and the European Market Infrastructure Regulation (EMIR) is very costly and complex, hindering the effectiveness of the system; believes that a simplification thereof is necessarycertain disclosure regimes within MIFID II and PRIIPs may be too complex and misleading and lack comparability, hindering the effectiveness of the disclosure and increasing the risk of mis- selling; believes that a simplification and further standardisation thereof is necessary in order to improve transparency and comparability of investment products; stresses, however, that this should not compromise the scope and quality of information;

Amendment 261 #

Motion for a resolution
Paragraph 18

18. Is of the opinion that the current reporting framework within MIFID II and the European Market Infrastructure Regulation (EMIR) is very costly and complex~~, hindering~~ and, the ref~~fectiveness of the system;~~ore, believes that a simplification thereof is necessary; stresses however that the adequate level of information that is made available to regulators and supervisors should not be compromised;

Amendment 262 #

Motion for a resolution
Paragraph 18

Amendment 263 #

Antonio TAJANI, Herbert DORFMANN, Fulvio MARTUSCIELLO

Motion for a resolution
Paragraph 19

Amendment 264 #

Motion for a resolution
Paragraph 19

Amendment 265 #

Motion for a resolution
Paragraph 19

19. CRecalls ~~for amendments to legislation~~that the duality of fee- based and commission-based advisory models helps to ensure broad access to ~~independent advice by financial intermediaries while avoiding promotion of the institution’s own financial products and ensuring a fair marketing~~financial markets for retail clients; points out that legislation can help to mitigate potential conflicts of fin~~ancial produc~~terests;

Amendment 266 #

Motion for a resolution
Paragraph 19

19. Calls for amendments to legislation to ensure access to reliable independent advice ~~by financial intermediarie~~for all investment products by retail clients while avoiding promotion of the institution’s own financial products and ensuring a fair marketing of ~~financial products;~~ suitable and affordable financial products from third party product providers in the clients’ best interests; believes that comparable investment products, such as insurance products, should be subject to the same inducement rules as under MiFID II; points out that there is little evidence that the current MIFID II disclosure regime on inducements has had a positive impact on client’s behaviour2a; calls for a EU- wide ban on inducements to avoid potential conflict of interests; _________________ 2a https://www.esma.europa.eu/sites/default/f iles/library/call_for_evidence_impact_of_t he_inducements_and_costs_and_charges _disclosure_requirements_under_mifid_ii __0.pdf

Amendment 267 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Monica SEMEDO, Ivars IJABS, Gilles BOYER

Motion for a resolution
Paragraph 19

19. Calls for amendments to legislation to ensure access to independent advice by financial intermediaries ~~while avoiding promotion of the institution’s own financial products and~~, to ensure that distributors do not promote financial products manufactured 'in-house' without a thorough assessment of products from other manufacturers, and to ensur~~ing~~e a fair marketing of financial products; notes that ESMA adopted a nuanced view on a potential ban on inducements, and calls on the Commission to explore alternative approaches, with similar effects on aligning interests across the entire distribution chain;

Amendment 268 #

Christophe HANSEN, Danuta Maria HÜBNER, Jessica POLFJÄRD, Lefteris CHRISTOFOROU

Motion for a resolution
Paragraph 19

Amendment 269 #

Motion for a resolution
Paragraph 19

19. 1. Calls for amendments to legislation to ensure access to independent advice by financial intermediaries w~~hile avoiding~~ithout undue promotion of the institution’s own financial products and while ensuring a ~~fair marketing of~~n appropriate marketing of all relevant financial products;

Amendment 27 #

Motion for a resolution
Recital B

B. whereas ~~the~~most actions taken so far to achieve the CMU are moving in the right direction; whereas much work nevertheless remains to be done in terms of the precision, effectiveness and simplification of the measures adopted;

Amendment 270 #

Motion for a resolution
Paragraph 19

19. Calls for the consideration of amendments to the legislationve framework to ensure access to independent advice by financial intermediaries while avoiding promotion of the institution’s own financial products and ensuring a fair and transparent marketing of financial products; further requires the Commission and ESMA to investigate the impact of inducements on the quality of the advice;

Amendment 271 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Paragraph 19

19. Calls for amendments to legislation to ensure access to independent advice by financial intermediaries while avoiding promotion of the institution’s own financial products and ensuring a fair marketing of financial products; agrees that the role of inducements in intermediation and distribution should be further examined to ensure that no conflicts of interest arise and that financial advice is fairly, transparently and adequately supplied to investors;

Amendment 272 #

Motion for a resolution
Paragraph 19 a (new)

19a. Supports a renewed sustainable finance strategy in full consistency with the CMU project; calls on the Commission to propose the definition of an eco-label for financial products; underlines the need for an EU Green Bond Standard (EU GBS) for more reliable, comparable and accessible sustainability data obtained by harmonising sustainability indicators with sector-specific Key Performance Indicators; for an EU public sustainability data register and mainstreaming sustainability within all financial legislation through legislative reviews, enabling investors to better act upon their sustainability preferences;

Amendment 273 #

Motion for a resolution
Paragraph 19 a (new)

19a. Underlines that mystery shopping is an important supervisory tool which can considerably improve the consistency and effectiveness of consumer protection across the EU; invites ESMA to make full use of its new coordination power by promoting EU-wide mystery shopping exercises to identify mis-selling practices and to ensure that any findings of non- compliance with consumer protection and business conduct rules is followed by appropriate enforcement actions;

Amendment 274 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Marc ANGEL, Costas MAVRIDES

19a. Proposes to the Commission to look into the possibility for an EU Individual Savings Accounts, as a complement to national regimes, that could overcome national fragmented markets by operating in a uniform manner and across heterogeneous markets, ensuring portability and security of savings;

Amendment 275 #

Alfred SANT, Eero HEINÄLUOMA, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Paragraph 19 b (new)

19b. Insists that retail investors will be an integral part of the sustainable finance agenda and the EU’s sustainable development agenda; calls on the Commission to ensure that the taxonomy label methodology is clear and understood by retail investors;

Amendment 276 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Paragraph 19 c (new)

19c. Shares the view of the High-Level Forum that cases of mis-selling and lack of redress for financial services users deter retail investors from engaging with capital markets, and that a key pillar for restoring trust in the financial services industry and empowering consumers is the adoption of an effective system of collective redress in all European countries that covers both direct and indirect individual investors; calls for individual direct investments by retail investors in equity and fixed income instruments to be included in the scope of the Directive on representative actions for the protection of the collective interests of consumers (COM/2018/0184) or (COD/2018/0089) through the inclusion of the relevant legislation, such as the Market Abuse Regulation and the Shareholders Rights Directive in Annex 1;

Amendment 277 #

Motion for a resolution
Paragraph 20

20. Underlines that financial education ~~is needed to overcome low retail investor engagement with financial markets, based on lack of knowledge, mistrust and risk aversion;~~ can help empower individuals to make more conscious financial choices in line with their preferences, especially in light of the increasingly easy access to risky investment products provided by digitalisation;, considers that financial education should increase awareness of opportunities as well as risks and increase the ability to choose between and compare affordable and individually suitable long- term investment products, while also taking sustainability aspects into account; underlines that it should address the social and gender dimension and that there is no one-size-fits-all approach to handlings one's financial affairs because people of different incomes and wealth levels have different tolerance for risk;

Amendment 278 #

Motion for a resolution
Paragraph 20

20. Underlines that financial education is needed to overcome ~~low retail investor engagement with financial markets, based on lack of knowledge, mistrust and risk aver~~bad investment decisions;

Amendment 279 #

Alfred SANT, Eero HEINÄLUOMA, Costas MAVRIDES

Motion for a resolution
Paragraph 20

20. Underlines that financial education is needed to ~~overcome low retail investor engagement with financial markets, based on lack of knowledge, mistrust and risk avers~~guarantee that consumers know their rights and the risks associated with financial market participation;

Amendment 28 #

Motion for a resolution
Recital B

B. whereas the actions taken so far to achieve the CMU are moving in the right direction; whereas ~~much work nevertheless remains to be done in terms of the precision, effectiveness and simplification of the measures adopted~~however, progress towards achieving CMU has been limited, multiple targets have not been reached and the importance of bank lending as compared to equities has actually increased in recent years as a source of investment funds in the EU;

Amendment 280 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL

Motion for a resolution
Paragraph 20

20. Underlines that financial education is needed to ~~overcome low~~accelerate retail investor engagement with financial markets, based on ~~lack of~~increased knowledge, ~~mis~~trust and risk a~~version~~wareness;

Amendment 281 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Paragraph 20

20. ~~Underlines that financial education is needed to overcome low retail investor engagement with financial markets, based on lack of knowledge, mistrust and risk aversion~~Notes that lack of financial literacy and access to widespread public information about financial markets is one of the reasons that explain lack of equity culture in the EU; underlines that financial education is needed to overcome low retail investor engagement with financial markets, based on lack of knowledge, mistrust and risk aversion; insists that an information campaign directed to SMEs on the alternative financing instruments at their disposal could significantly help in deepening the CMU; urges the Commission to launch and support public programmes in Member States to foster financial and digital literacy using a range of instruments, including digital and social media, to engage with citizens and businesses, namely through public agencies created for that effect;

Amendment 282 #

Motion for a resolution
Paragraph 20

20. Underlines that financial education is needed to overcome low retail investor engagement with financial markets, based on lack of knowledge, mistrust and risk aversion; notes that the Capital Market Union should aim at fostering an “equity culture” for investors in Europe and turning savers into investors, including with the development of mobile apps allowing for voting or proxy voting by individuals;

Amendment 283 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Paragraph 20

20. Underlines that financial education is needed to overcome low retail investor engagement with financial markets, based on lack of knowledge, mistrust and risk aversion; call for the establishment of a stronger capital market orientation among market participants, especially for retail investors, to overcome risk aversion;

Amendment 284 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ

21. Emphasises, however, that financial education is a medium-term tool, wh~~ich enrich~~ose effects are limited due to inevitable cognitive biases, the speed of change in financial markets and their sheer complexity; stresses theat financial ~~system and which is a good step for engaging retail investors with financial marke~~education cannot replace access to reliable and impartial professional financial advice, and that it can therefore only play a supplementary role to strong financial regulation and supervision, enforceable codes of conduct for financial intermediaries, and rules that require the provision of relevant and understandable information about investment products;

Amendment 285 #

Motion for a resolution
Paragraph 21

21. Emphasises that financial education is a medium-term tool, which enriches the financial system and which is a good step for engaging retail investors with financial markets; however, notes that up to now, financial education has had extremely limited traction in promoting and enhancing equity dealings, both nationally and on a cross-border basis;

Amendment 286 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Nicola BEER, Monica SEMEDO, Ivars IJABS, Gilles BOYER, Engin EROGLU

Motion for a resolution
Paragraph 21

21. Emphasises that financial education is a medium-term tool, which enriches the financial system and which is a good step for engaging retail investors with financial markets; notes that employee share ownership programmes are amongst the most effective means to increase financial awareness and literacy for EU adult citizens;

Amendment 287 #

Motion for a resolution
Paragraph 21 a (new)

21a. Calls on the Commission to promote the development of employee share ownership and profit sharing, as a tool to improve corporate governance and companies’ sustainability, while reducing inequality as well as the risk of job losses during downturns; stresses that such measures should come on top of fixed salaries and benefits and should not distract from the need to ensure that workers' salaries guarantee them a decent living wage;

Amendment 288 #

Motion for a resolution
Paragraph 22

22. ~~Urge~~Suggests the Member States to include financial literacy programs in school curricula aimed at developing autonomy in financial matters; suggests the inclusion of this topic in the Programme for International Student Assessment (PISA) study; calls on Member States not to outsource the drafting of such literary programs to the financial industry, as is sadly common practice in the legislative sphere.

Amendment 289 #

Motion for a resolution
Paragraph 22

22. Urges ~~the~~ Member States, as well as, where appropriate, competent regional, local or other public authorities, to ~~include~~consider including or expanding financial literacy programs in school curricula aimed at developing autonomy in financial matters; suggests th~~e inclusion of this topic~~at such programs should at least include basic financial concepts such as compounding interest, returns and annuities and the distinction between bonds and shares; suggests the inclusion of financial literacy in the Programme for International Student Assessment (PISA) study;

Amendment 29 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Ondřej KOVAŘÍK, Martin HLAVÁČEK, Monica SEMEDO, Ivars IJABS, Gilles BOYER, Engin EROGLU

Motion for a resolution
Recital B

B. whereas the actions taken so far to achieve the CMU are moving in the right direction; whereas much work nevertheless remains to be done in terms of the precision, effectiveness and simplification of the measures adopted; whereas an ambitious vision for the CMU project is essential to overcome national sensitivities and build the momentum to complete the CMU;

Amendment 290 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Caroline NAGTEGAAL, Nicola BEER, Monica SEMEDO, Ivars IJABS, Gilles BOYER, Engin EROGLU

Motion for a resolution
Paragraph 22

22. Urges the Member States to include financial literacy ~~programs in school curricula~~in all curricula from school to university, with evolutive programs adapted to the needs of pupils and students and aimed at developing autonomy in financial matters; suggests the inclusion of this topic in the Programme for International Student Assessment (PISA) study;

Amendment 291 #

Motion for a resolution
Paragraph 22

22. Urges the Member States to include financial literacy programs in school curricula aimed at developing autonomy in financial matters; ~~suggests the inclusion of this topic in the Programme for International Student Assessment (PISA) study;~~

Amendment 292 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Paragraph 22

Amendment 293 #

Motion for a resolution
Paragraph 22 a (new)

22a. Believes that a more informed and better-educated citizenship on financial issues is beneficial to democratic systems, contributes to the stability of financial systems, and promotes the transparency and duties of information of financial institutions. Calls for programs to train citizens, which would increase their ability to exercise democratic control over their governments;

Amendment 294 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Paragraph 22 a (new)

22a. Calls for the promotion of Employee Share Ownership as a way to encourage citizens’ participation in capital markets and help develop an equity culture; proposes that this could be done through for instance a multilingual EU portal to raise awareness about the scheme and inform about its benefits;

Amendment 295 #

Motion for a resolution
Paragraph 22 a (new)

22a. Encourages financial institutions to develop and implement programmes that aim to that expand financial literacy and capability and build opportunities for financial inclusion for all citizens;

Amendment 296 #

Othmar KARAS

Motion for a resolution
Paragraph 22 a (new)

22a. Calls on the Commission to propose a review of the Council Recommendation “Key Competences on Lifelong Learning”, with a view to introduce financial literacy as a stand- alone key competence.

Amendment 297 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Paragraph 22 a (new)

22a. Calls on the Commission to review the Council recommendation on key competences for lifelong learning and to supplement the key competences with financial knowledge;

Amendment 298 #

Motion for a resolution
Subheading 6

Digitalisation and data

Amendment 299 #

Motion for a resolution
Paragraph 23

23. ~~Takes the view that the digitalisation of financial services can be a catalyst for the mobilisation of capital in the EU while reducing barriers and increasing supervisory efficiency; e~~Emphasises that an EU framework with high standards of cybersecurity would be ~~conducive to the CMU~~an important step;

Amendment 3 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Costas MAVRIDES

Motion for a resolution
Citation 5 a (new)

- having regard to its resolution of 4 July 2017 on Towards a pan-European covered bonds framework, which called on the European Commission to include in the new directive on covered bonds specific references to a legal framework for ESNs, such as dual recourse, special public supervision, bankruptcy remoteness and transparency requirements,

Amendment 30 #

Motion for a resolution
Recital B a (new)

Ba. whereas most measures that have been considered and implemented aim to improve and unify capital markets relate to the professional tools and financial vehicles available to practitioners in intermediation and their clients (basically institutions, funds and high net worth individuals), the CMU needs to mobilise retail demand, which in Europe lags at well below the levels prevailing in the USA or Japan; whereas to achieve such an objective, retail investors have to experience a change in investment culture; whereas such a change will only happen when retail investors become convinced that investment in capital markets is desirable because it can be of profit to them more than say, bank deposits, while being subject to risks that are acceptable and clearly defined;

Amendment 300 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Ivars IJABS, Gilles BOYER, Engin EROGLU

Motion for a resolution
Paragraph 23

23. Takes the view that the digitalisation of financial services can be a catalyst for the mobilisation of capital ~~in the EU while reducing barriers and~~and could help overcome the fragmentation of the financial markets in the EU while increasing supervisory efficiency; emphasises that an EU framework with high standards of cybersecurity would be conducive to the CMU; notes that ensuring robust protection against cybersecurity threats and other threats related to digitalisation, as well as rebalancing the over-reliance on non-EU ICT services providers, or products developed by market participants based outside of the EU, by facilitating the development and scaling up of EU ICT services providers and products, are key to enhancing the EU’s financial independence and strategic autonomy;

Amendment 301 #

Motion for a resolution
Paragraph 23

23. Takes the view that the digitalisation of financial services can be a catalyst for the mobilisation of capital in the EU while reducing barriers and costs and increasing competition and supervisory efficiency; emphasises that an EU framework with high standards of cybersecurity ~~would be conducive to the~~, market integrity and investor protection is essential for the further development of a sustainable and well-functioning CMU;

Amendment 302 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Paragraph 23

Amendment 303 #

Motion for a resolution
Paragraph 23

23. Takes the view that the digitalisation of financial services can be a catalyst for the mobilisation of capital in the EU while reducing barriers and increasing supervisory efficiency; rem~~phasises that an EU framework with high standards of cybersecurity would be conducive to the CMU~~arks that digital finance has a strong capital flows element which attract cross-border investments;

Amendment 304 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Paragraph 23

23. Takes the view that the digitalisation of financial services can be a catalyst for the mobilisation of capital in the EU while reducing barriers and increasing supervisory efficiency; emphasises that an EU framework with high standards of cybersecurity would be conducive to the CMU; notes that such EU framework should be primarily fit for the digital age and technology neutral;

Amendment 305 #

Motion for a resolution
Paragraph 23

23. Takes the view that the digitalisation of financial services can be a catalyst for the mobilisation of capital in the EU while reducing barriers and increasing supervisory efficiency; underlines that digitalisation should neither lead to regulatory arbitrage nor to lower customer protection, reduced safety or financial stability risks; emphasises that an EU framework with high standards of cybersecurity would be conducive to the CMU;

Amendment 306 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Paragraph 23 a (new)

23a. Notes that large technology firms and global digital platforms are increasingly offering financial services and benefit from competitive advantages such as economies of scale, vast cross- border user networks, easy access to financing and the ability to harvest large swaths of data provided by users through data processing technologies such as “big data analytics”, which generate tremendous added value in a variety of ways;

Amendment 307 #

Motion for a resolution
Paragraph 23 a (new)

23a. Calls on the Commission to work towards the implementation of the Digital Finance Action Plan for a better access to financial services, offering wider choice and increasing efficiency of operations;

Amendment 308 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Paragraph 23 a (new)

23a. Calls on the Commission to use the forthcoming reviews of financial services regulations to foster investor and shareholder engagement through digital tools;

Amendment 309 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Paragraph 23 b (new)

23b. Stresses that many peer-to-peer lenders are already lending funds to small businesses, making crypto-assets a non- traditional financing channel for SMEs; insists in this regard that clear guidance is needed on the applicability of existing regulatory and prudential processes to crypto-assets which qualify as financial instruments as far as EU legislation is concerned, in order to provide regulatory certainty regarding crypto-assets; stresses that this guidance must be provided consistently at the EU level, to avoid different practices of qualification and supervision by national authorities, which creates an un-level playing field, forum shopping and regulatory arbitrage in the internal market;

Amendment 31 #

Motion for a resolution
Recital B a (new)

Ba. whereas capital market finance is an effective solution for diversifying funding sources for SMEs; whereas it is more difficult for small companies to diversify their funding sources because of greater difficulties in bearing the direct and indirect costs stemming from their lower visibility compared to larger companies;

Amendment 310 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Paragraph 23 b (new)

23b. Calls on the Commission to monitor the offering of financial services by “BigTech” firms, and also how the competitive advantages inherent to these operators may distort competition in the market, harm the interests of consumers and innovation; stresses that these companies must be regulated and supervised as financial services firms to the extent they offer financial services;

Amendment 311 #

Motion for a resolution
Paragraph 23 b (new)

23b. Calls on the Commission to act in order to create a favourable environment for European FinTech hubs, European private-funded champions and firms to scale up for attracting foreign capital and investments and also, promoting the EU competes in global markets;

Amendment 312 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ

Motion for a resolution
Paragraph 23 c (new)

23c. Stresses that initial coin offerings, being the equivalent of IPOs for cryptocurrencies, have potential in funding SMEs, innovative start-ups and scale-ups; highlights that ICOs can facilitate the exchange of value without the need for a central authority or intermediary which allows for more efficiency and also for the democratisation of financing; notes in this regards that ICOs can accelerate technology transfer, and can be an essential part of the capital markets union; calls on the Commission to assess the advantages of proposing legislative framework for initial coin offerings and initial exchange offerings to foster a coherent EU approach, increase legal certainty, investor and consumer protection, raise warnings, and reduce risks stemming from asymmetric information, fraudulent behaviour and illegal activities;

Amendment 313 #

Motion for a resolution
Paragraph 24

24. Highlights that ‘sandboxes’ may be an adequate tool to enhance the innovation and competitiveness of the financial services sector; ~~requests that the Commission create a pan-European ‘sandbox’ for financial services;~~

Amendment 314 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Paragraph 24

24. Highlights that the Wirecard’s scandal is a warning that ‘sandboxes’ ~~may be~~used ans a~~dequate~~ tool to enhance the innovation and competitiveness of the financial services sector~~; requests that the Commission cre~~ may pose significant risks to consumer and investor protection and enable financial fraud; requests thate a pan-European ‘sandbox’ for ~~financial service~~start-ups in the area of Fintech should seek to strike a balance between the objective of fostering innovation and financial stability and the protection of investors and consumers, while taking into account the size, systemic significance and cross-border activity of the firms;

Amendment 315 #

Paul TANG

Motion for a resolution
Paragraph 24

24. Highlights that ‘sandboxes’ may be an adequate tool to enhance the innovation and competitiveness of the financial services sector; fears, however, that sandboxes relax prudential oversight over rapidly growing financial institutions; requests that the Commission ~~create a pan-~~ensures that any European ‘sandbox’ for financial services imposes strict limits as to size of business concerned and does not go to the detriment of consumer safety and financial market stability;

Amendment 316 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Ondřej KOVAŘÍK, Martin HLAVÁČEK, Nicola BEER, Ivars IJABS, Gilles BOYER, Engin EROGLU

Motion for a resolution
Paragraph 24

24. Highlights that ‘sandboxes’ may be an adequate tool to enhance the innovation and competitiveness of the financial services sector~~; requests that the Commission create a pan-European ‘sandbox’ for financial servic~~ provided that sufficient safeguards are in place to prevent potential threats to the integrity, transparency, efficiency and orderly functioning of financial markets, and to the stability of the financial system; requests that the Commission draws upon the experience gained from the European Forum for Innovation Facilitators (EFIF) to assess whether a pan-European ‘sandbox’ for financial services would provide additional benefits for financial innovation; asserts that such a pan- European ‘sandbox’ should be established within the direct supervisory remit of the joint ESAs committee, in cooperation with relevant national supervisory authorities;

Amendment 317 #

Alfred SANT, Eero HEINÄLUOMA, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Paragraph 24

24. Highlights that ‘sandboxes’ may be an adequate tool to enhance the innovation and competitiveness of the financial services sector; requests that the Commission c~~reate~~onsiders the creation of a pan-European ‘sandbox’ for fFinancial services; having due regard for both benefits and risks of these tools and the absence of a common EU framework, as analysed by the European Supervisory Authorities;

Amendment 318 #

Motion for a resolution
Paragraph 24 a (new)

24a. Calls for efforts focused on preserving a level playing field based on cross-borders data access, and a high level of consumers’ data protection and privacy, making the EU a framework with high standards of cybersecurity which would be conducive to the CMU;

Amendment 319 #

Motion for a resolution
Paragraph 24 a (new)

24a. Stresses the need to appoint a single European supervisor for oversight of crypto-assets related activities in the European Union, based on a common rulebook and product intervention powers;

Amendment 32 #

Motion for a resolution
Recital B a (new)

Ba. whereas ambitious next steps are needed to make the EU capital market architecture truly pan-European, competitive and attractive to both EU and international end investors,

Amendment 320 #

Motion for a resolution
Paragraph 25

Amendment 321 #

Motion for a resolution
Paragraph 25

25. Points out that ~~Europe competes for capital in a global market, and that, as a~~integrated, well- resgul~~t, deeper, more integrated~~ated, stable and efficient European capital markets are critical to protecting Europe’s economic sovereignty, in a number of areas, including the use of the euro in third countries~~, and to attracting foreign investors~~;

Amendment 322 #

Christophe HANSEN, Danuta Maria HÜBNER, Jessica POLFJÄRD

Motion for a resolution
Paragraph 25

25. Points out that Europe competes for capital in a global market, and that, as a result, deeper, more integrated ~~and effic~~, efficient and resilient European capital markets are critical to protecting Europe’s economic sovereignty, to encouraging the use of the euro in third countries, and to attracting foreign investors;

Amendment 323 #

Motion for a resolution
Paragraph 25

25. 1. Points out that Europe competes for capital in a global market, and that, as a result, deeper, more integrated and efficient European capital markets along with increased risk sharing among stakeholders are critical to protecting Europe’s economic sovereignty, the use of the euro in third countries, and to attracting foreign investors;

Amendment 324 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ

Motion for a resolution
Paragraph 25

25. Points out that Europe competes for capital in a global market, and that, as a result, deeper, more integrated and efficient European capital markets are critical to protecting Europe’s economic sovereignty, the use of the euro in third countries, and to attracting foreign investors; believes that the exit of the UK from the EU makes this objective even more important and that it should be pursued according to transparent rules-based criteria and not case-by-case;

Amendment 325 #

Christophe HANSEN, Jessica POLFJÄRD, Lefteris CHRISTOFOROU

Motion for a resolution
Paragraph 26

26. Reiterates that EU legislation provides for the possibility of considering third-country rules as equivalent based on a proportional and risk-based analysis~~, and that such decisions should be taken through a delegated act~~; recalls that the EU can unilaterally withdraw any equivalence decision;

Amendment 326 #

Motion for a resolution
Paragraph 26

26. 1. Reiterates that EU legislation provides for the possibility of considering third-country rules as equivalent based on a proportional and risk and fact-based analysis, and that such decisions should be taken through a delegated act on a rational basis; recalls that the EU can unilaterally withdraw any equivalence decision;

Amendment 327 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Ondřej KOVAŘÍK, Martin HLAVÁČEK, Ivars IJABS, Luis GARICANO, Gilles BOYER, Engin EROGLU

Motion for a resolution
Paragraph 26

26. Reiterates that EU legislation provides for the possibility of considering third-country rules as equivalent based on a technical, proportional and risk-based analysis, and that such decisions should be taken through a delegated act; recalls that the EU can unilaterally withdraw any equivalence decision; calls on the Commission, in cooperation with the ESAs, and where relevant with National Competent Authorities, to establish a dynamic monitoring system on equivalence regimes, in the case of third country regulatory and supervisory divergences which could entail potential risks for the EU in terms of financial stability, market transparency, market integrity, investor and consumer protection and level-playing field; highlights that the Commission should have emergency procedures in place to withdraw equivalence decisions in case of the need to swiftly act, bearing in mind the potential consequences of an emergency withdrawal of an equivalence decision;

Amendment 328 #

Motion for a resolution
Paragraph 26

26. Reiterates that EU legislation provides for the possibility of considering third-country rules as equivalent based on a proportional and risk-based analysis, and that such decisions should be taken through a delegated act; ~~recalls that the EU can unilaterally withdraw any equivalence decision~~stresses that, in order to preserve financial stability, the level playing field and the protection of investors and consumers in the EU in the post-Brexit context, the equivalence decisions with the EU regulatory framework should be comprehensive and coherent and be accompanied by enhanced supervisory powers over third countries financial entities; recalls that the EU can unilaterally withdraw any equivalence decision and that any divergence from the EU regulatory standards should be closely monitored;

Amendment 329 #

Motion for a resolution
Paragraph 26

Amendment 33 #

Motion for a resolution
Recital B a (new)

Ba. whereas a well-capitalised banking sector will continue to play an important role in financing businesses, especially SMEs;

Amendment 330 #

Motion for a resolution
Paragraph 26 a (new)

26a. Highlights that taxation remains a key driver of global capital flows; stresses therefore the importance of carefully assessing the impact of any Financial Transaction Tax (FTT) on the EU's ambitions to develop strong, globally attractive, resilient, deep and liquid capital markets;

Amendment 331 #

Motion for a resolution
Paragraph 26 b (new)

26b. Recalls the need to ensure interoperability of the EU’s regulatory framework with internationally agreed principles from the Basel Committee on Banking Supervision and the Financial Stability Board;

Amendment 332 #

Motion for a resolution
Paragraph 27

Amendment 333 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Paragraph 27

27. Calls for action towards strengthening the international role and the use of the euro, by completing Economic and Monetary Union, the CMU and the Banking Union, supporting the development of euro-benchmarks for commodity markets, and reinforcing the role of the euro as a reference currencyPoints out that completing and strengthening Economic and Monetary Union, the CMU and the Banking Union could increase international use of the euro;

Amendment 334 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Ondřej KOVAŘÍK, Martin HLAVÁČEK, Nicola BEER, Monica SEMEDO, Ivars IJABS, Gilles BOYER, Engin EROGLU

Motion for a resolution
Paragraph 27 a (new)

27a. Reiterates the need for a more streamlined and codified representation of the EU in multilateral organisations/bodies, following the European Parliament resolution of 12 April 2016 on the EU role in the framework of international financial, monetary and regulatory institutions and bodies; notes that promoting EU values and global competitiveness of the EU’s financial sector when making policy at European and international level is ever more crucial as the multilateral world order further polarises;

Amendment 335 #

Motion for a resolution
Paragraph 27 a (new)

27a. Considers that a level playing field should be guaranteed in future relations with the United Kingdom after the transition period promoting the stability of European Union´s financial markets;

Amendment 336 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Paragraph 28

28. Instructs its President to forward this resolution to the Council ~~and~~, the Commission, the ESAs and the ECB.

Amendment 34 #

Motion for a resolution
Recital B b (new)

Bb. whereas a consensus has emerged from the experience with the Great Recession that the euro area’s institutional architecture is in need of reform to enhance its capacity to deal with large economic shocks; whereas in this respect economic literature typically finds that higher shock absorption in the United States results mainly from more effective private risk sharing via credit and capital markets;

Amendment 35 #

Motion for a resolution
Recital B b (new)

Bb. whereas many European countries are still not very attractive to venture capital and private equity investors and this is partly due to persistent rigidities in the labour market and to underdeveloped local financial markets, in addition to a legal environment that does not provide for sufficient investor safeguards;

Amendment 36 #

Motion for a resolution
Recital B b (new)

Bb. whereas, according to recent reports and consumer-focused surveys1a, most European retail investors have sustainability preferences and want to take into account environmental, social or governance factors and risks in their investment decisions, but are rarely offered compatible products; _________________ 1aSee for example: https://2degrees- investing.org/wp- content/uploads/2020/03/A-Large- Majority-of-Retail-Clients-Want-to- Invest-Sustainably.pdf

Amendment 37 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Recital B b (new)

Bb. whereas SMEs accounted for 99.8% of all enterprises in the EU-28 non-financial business sector (NFBS), generating 56.4% of value added and 66.6% of employment in the NFBS; whereas micro SMEs accounted for 93% of the sector, small SMEs 5,9% and Medium-sized SMEs only 0,9%1a; _________________ 1aEuropean Commission ANNUAL REPORT ON EUROPEAN SMEs 2018/2019

Amendment 38 #

Motion for a resolution
Recital C

C. whereas the social and economic crisis resulting from the lockdown measures in response to COVID-19 will have a particularly negative impact on SMEs and retail savers; whereas the ~~EU’s response to COVID-19 through the European Recovery Plan should provide a large injection of capital in order to increase European enterprises’ access to~~CMU should increase European enterprises’ access to stable, low-risk equity finance, and should reduce overreliance on debt- financeing;

Amendment 39 #

Motion for a resolution
Recital C

C. whereas the social and economic crisis resulting from COVID-19 will have a particularly negative impact on SMEs and retail savers; whereas the EU’s response to COVID-19 through the European Recovery Plan should ~~provide a large injection of capital~~guarantee European enterprises’ access to finance in order to ~~inc~~prease ~~European enterp~~rve jobs and countrises’ ~~access to finance~~productive capacity;

Amendment 4 #

Alfred SANT, Eero HEINÄLUOMA, Marc ANGEL

Motion for a resolution
Citation 5 a (new)

- having regard to the results of the regular ECB Survey on the Access to Finance of Enterprises;

Amendment 40 #

Motion for a resolution
Recital C

C. whereas the social and economic crisis resulting from COVID-19 will have a particularly negative impact on SMEs and ~~retail savers~~could similarly affect retail savers (though in the course of the pandemic, individual savings mostly held in banks have risen sharply); whereas the EU’s response to COVID-19 through the European Rrecovery Pplan should provide a large injection of capital in order to increase European enterprises’ access to finance;

Amendment 41 #

Motion for a resolution
Recital C

C. whereas the social and economic crisis resulting from COVID-19 will have a particularly negative impact on SMEs and retail savers; whereas the EU’s response to COVID-19 through the European Recovery Plan should provide a large injection of capital and provide incentives to promote market based financing in order to increase European enterprises’ access to finance;

Amendment 42 #

Motion for a resolution
Recital C

C. whereas the social and economic crisis resulting from COVID-19 will have a particularly negative impact on SMEs and retail savers; whereas the EU’s response to COVID-19 through the European Recovery Plan should provide a large injection of capital in order to increase European enterprises’ access to finance; whereas capital market financing is needed to increase the overall financing capacity and to reduce the reliance on bank lending in the EU;

Amendment 43 #

Motion for a resolution
Recital C a (new)

Ca. whereas a single price comparison tool consolidating trading data across the EU - referred to as the Consolidated Tape (CT) - would help brokers to locate liquidity at the best price available in European markets, increase investors’ capacity to evaluate their broker’s performance in executing orders, and be a major step towards democratising access to market data as all investors could easily see the best price to buy or sell a financial product; whereas practical experience with a CT is already available in the United States, where a CT has been mandated for shares (consolidating pre- and post-trade data) and bonds (consolidating post-trade data);

Amendment 44 #

Motion for a resolution
Recital C a (new)

Ca. whereas the limited use of securitisation since the 2008 global financial crisis is mainly due to the strengthened post-crisis regulatory framework which made securitisation more expensive for banks; whereas the high risks for macro-financial stability associated with securitisation products warrant higher not lower capital requirements; whereas securitisation of SMEs loans is marginal due its additional costs and inherent complexity, which makes it difficult to work without public guarantees;

Amendment 45 #

Motion for a resolution
Recital C a (new)

Ca. whereas the EU and its Member States have made a clear commitment to the Sustainable Development Goals and to the necessary transition to a climate- neutral society by 2050 at the latest; whereas a framework to facilitate sustainable investment is currently being developed; whereas this framework forms an integral part of the EU’s efforts, under the CMU, to connect finance with needs of the economy and the EU’s sustainable development agenda;

Amendment 46 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Recital C a (new)

Ca. whereas the European banking system has a vital role financing the EU economy; it is not sufficient by itself to provide the amount of credit the EU economy will need to harness the growth required in order to recover from the crisis; a Capital Markets Union together with fully-fledged Banking Union will allow for sound risk sharing, in order to build a resilient EU economy;

Amendment 47 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Ondřej KOVAŘÍK, Martin HLAVÁČEK, Ivars IJABS, Gilles BOYER, Engin EROGLU

Motion for a resolution
Recital C a (new)

Ca. whereas the market movements resulting from COVID-19 have acted as a real-life “stress test” on the robustness of the whole financial ecosystem, and should be followed up with a detailed assessment of the benefits and shortcomings of the existing EU rulebook on financial stability and financial supervision;

Amendment 48 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Recital C a (new)

Ca. whereas one of the challenges of a CMU is to ensure equal access to financing and to investment opportunities across the European Union, which should be geographically balanced, reaching citizens and businesses in core and peripheral regions of the European Union;

Amendment 49 #

Motion for a resolution
Recital C a (new)

Ca. whereas the objectives pursued through CMU cannot be achieved without genuine completion of the Banking Union, which needs the European Deposit Insurance Scheme (EDIS) and a credible backstop for the Single Resolution Fund;

Amendment 5 #

Motion for a resolution
Citation 5 b (new)

- having regard to the Commission’s Summer 2020 Economic Forecast,

Amendment 50 #

Motion for a resolution
Recital C a (new)

Ca. whereas European companies continue to over rely on bank lending, with 88% of their new funding in 2018 coming from banks and only 12% from capital markets – a decline from 14% on average in 2013-20171a ; _________________ 1aCapital Markets Union Key Performance Indicators, The Association for Financial Markets in Europe (AFME). 16 October 2019

Amendment 51 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Recital C a (new)

Ca. whereas the ECB's zero interest rate policy confronts savers with a negative real interest rate, drives investors into taking higher risks, including investing in the capital markets, and can lead to speculative bubbles in the long term;

Amendment 52 #

Motion for a resolution
Recital C b (new)

Cb. whereas CMU should address the significant financial differences among Member States such as the existing regulatory fragmentation, over-regulation and withholding taxes, which continue to be a major impediment to the mobilisation of capital, and presents barriers to the cross-border savings and investments, and risk sharing among Member States. Considers that the aim must also be to make the EU an attractive market for foreign capital investment and to increase its competitiveness in global markets;

Amendment 53 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Pascal CANFIN, Linea SØGAARD-LIDELL, Ondřej KOVAŘÍK, Martin HLAVÁČEK, Ivars IJABS, Gilles BOYER

Motion for a resolution
Recital C b (new)

Cb. whereas the Capital Markets Union should be a key contributor to the transition towards a sustainable and resilient economy to complement public investment, in line with the EU Green Deal; whereas the EU should aim to consolidate its position as a global leader in sustainable finance with an ambitious model and rulebook for sustainable investments which should be promoted as part of the EU values and as the gold- standard on the international level;

Amendment 54 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Recital C b (new)

Cb. whereas the departure of the UK from the European Union in view of Brexit brings structural changes to the EU financial system; whereas the EU capital markets post Brexit will have a polycentric character, facing greater risk for fragmentation in the EU; underlines the importance to promote policies and measures that ensure the resilience, connectivity and competitiveness of the EU financial markets;

Amendment 55 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Recital C b (new)

Cb. whereas investment activities tend to remain confined by national borders, and retail investors face numerous obstacles to access opportunities outside their Member State, due to legal uncertainty, language and cultural barriers, market fragmentation and costly inefficiencies in the EU;

Amendment 56 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Ondřej KOVAŘÍK, Martin HLAVÁČEK, Nicola BEER, Ivars IJABS, Gilles BOYER, Engin EROGLU

Motion for a resolution
Recital C c (new)

Cc. whereas recent announcements from the UK authorities on future regulatory divergence confirm the need for a careful assessment, in each area on a forward-looking and on-going basis, of the risks for the EU in terms of financial stability, market transparency, market integrity, investor protection and level- playing field when granting and maintaining equivalence, due to the current interconnectedness between the EU and the United Kingdom markets;

Amendment 57 #

Motion for a resolution
Recital C c (new)

Cc. welcomes the swift action taken, as a response to COVID19, to facilitate bank lending to the real economy, the delay in the implementation of the Basel III rules, the agreement to use the flexibility included in CRR to comply with capital and liquidity buffers, the delays in the introduction of IFRS9, the advancement on the introduction of the SME supporting factor, and the moratoria on new rules;

Amendment 58 #

Motion for a resolution
Recital C c (new)

Cc. whereas the level of the financing required for the recovery of the EU economy creates an imperative need to invest wisely and sustainably for the future generations; the European Green deal remains at the forefront of the European Union priorities;

Amendment 59 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Recital C c (new)

Cc. whereas the lack of a centralised mechanism with easily accessible, reliable, understandable and comparable public information is one of the reasons why companies struggle to find investors;

Amendment 6 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Citation 7 a (new)

- having regard to the MiFID II/MiFIR Review Report No.1 of the European Securities and Market Authority (ESMA) on the development in prices for pre- and post-trade data and on the consolidated tape for equity instruments,

Amendment 60 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Ondřej KOVAŘÍK, Martin HLAVÁČEK, Nicola BEER, Ivars IJABS, Gilles BOYER

Motion for a resolution
Recital C d (new)

Cd. whereas financial stability and the integrity of the single market can only be preserved with a robust approach to third- countries access to the EU’s market and a dynamic monitoring system on equivalence regimes; whereas it is recalled that equivalence can only be granted if the regulatory and supervisory regime and standards of the relevant third-country are deemed fully equivalent by the Commission to those of the EU in order to ensure a level playing field;

Amendment 61 #

Motion for a resolution
Recital C d (new)

Cd. whereas the complexity of the scandal involving German payment service provider Wirecard, a DAX30 company that filed for insolvency on 24 June 2020 revealing deficiencies in the European regulatory framework, requires a careful assessment to determine what went wrong to allow that a fraudulent behaviour of huge scale went unnoticed for so long;

Amendment 62 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Recital C d (new)

Cd. whereas the funding ecosystem for SME IPOs in the EU is underdeveloped due to information asymmetries, high costs, administrative burdens, and lack of equity culture; whereas investors find it difficult to evaluate young and small firms with a short business record thus hindering innovative openings especially by young entrepreneurs;

Amendment 63 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Recital C d (new)

Cd. whereas the completion of the Capital Markets Union is a precondition for a stronger international role of the euro; and a stronger and more competitive EU globally.

Amendment 64 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Ondřej KOVAŘÍK, Martin HLAVÁČEK, Luis GARICANO, Gilles BOYER, Engin EROGLU

Motion for a resolution
Recital C e (new)

Ce. whereas the Wirecard AG scandal reveals the shortcomings of a supervisory model primarily based on national supervisory authorities; whereas the on- going ESMA investigation on the Wirecard AG scandal should identify areas where direct supervision at EU level would have been more appropriate to prevent failure and to identify shortcomings at an earlier stage; whereas adaptations to the European supervisory architecture for financial reporting, financial innovation, payments, and related areas including audit and Anti- Money Laundering/Countering Terrorism Financing, have once again been highlighted as an urgent necessity in light of this latest scandal;

Amendment 65 #

Motion for a resolution
Recital C e (new)

Ce. whereas the stability of the European Union's financial markets should be promoted in future relations with the United Kingdom after the transition period, where a level playing field should be also guaranteed;

Amendment 66 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Recital C e (new)

Ce. whereas Fintech has the potential to suit certain needs of SMEs and retail investors by allowing decentralised ways of operating and delivering efficiency improvements;

Amendment 67 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Nicola BEER, Monica SEMEDO, Ivars IJABS, Gilles BOYER, Engin EROGLU

Motion for a resolution
Recital C f (new)

Cf. whereas bringing the Capital Markets Union project closer to EU citizens is crucial to increase their confidence in capital market and equity financing; whereas the Commission should explore further opportunities to communicate on the benefits of the CMU project, for example with a change of name highlighting the direct link between EU citizens' savings and investments in the economic growth and post-COVID recovery;

Amendment 68 #

Motion for a resolution
Subheading 1

FEquity-financing for business

Amendment 69 #

Motion for a resolution
Paragraph 1

1. Calls for the removal of barriers, including the simplification of legislation where relevant and conducive to financial stability, to diversify funding sources for ~~SME~~start-ups, SMEs and mid-caps, in order to promote ~~SMEs’~~their ability to access equity markets, and to reduce the existing debt bias; ~~points out that the current situation makes SMEs more fragile and vulnerabl~~notes that necessary measures include facilitating investment research, streamlining the definition of SMEs across relevant EU legislation, and easing issuance requirements to ensure that start-ups, SMEs and mid-caps find their way to public markets; calls on the Member States to rebalance debt-equity bias in taxation; points out that the current situation makes SMEs more fragile and vulnerable; calls on the introduction of an ‘SME test’ for impact assessments on each CMU initiative;

Amendment 7 #

Clara PONSATÍ OBIOLS

Motion for a resolution
Citation 7 a (new)

- having regard to the European Parliament resolution of 8 October 2015 on mortgage legislation and risky financial instruments in Spain (2015/2740(RSP)),

Amendment 70 #

Motion for a resolution
Paragraph 1

Amendment 71 #

Clara PONSATÍ OBIOLS, Fabio Massimo CASTALDO

Motion for a resolution
Paragraph 1

1. Calls for the removal of barriers, including the simplification of legislation , in order to diversify funding sources for SMEs, ~~in order to~~the introduction of greater safeguards for investors, the promoteion of SMEs’ ability to access equity markets, and tohe reducetion of the existing debt bias; stresses that such barriers include the lack of information on SMEs for non- bank investors; points out that the current situation makes SMEs more fragile and vulnerable;

Amendment 72 #

Motion for a resolution
Paragraph 1

1. Calls for the removal of barriers, including the simplification of legislation when possible without undermining companies’ obligations with respect to transparency, accountability and data protection, to diversify funding sources for SMEs, in order to promote SMEs’ ability to access equity markets, and to reduce the existing debt bias; points out that the current situation makes SMEs more fragile and vulnerable;

Amendment 73 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Paragraph 1

1. Calls for the removal of barriers, including the simplification of legislation , to diversify funding sources for SMEs, in order to promote SMEs’ ability to access equity markets, and to more diverse, long- term and competitive investment opportunities for retail and large investors; highlights the need to reduce the existing debt bias; points out that the current situation makes SMEs more fragile and vulnerable;

Amendment 74 #

Christophe HANSEN, Danuta Maria HÜBNER, Jessica POLFJÄRD, Lefteris CHRISTOFOROU

Motion for a resolution
Paragraph 1

1. Calls for the removal of barriers, including the simplification of legislation , to diversify funding sources ~~for SMEs, in order to promote SMEs’ ability to~~European companies, with a particular focus on SMEs, in order to ensure access to equity markets, and to reduce the existing debt bias; points out that the current situation makes European companies and especially SMEs more fragile and vulnerable;

Amendment 75 #

Motion for a resolution
Paragraph 1

1. Calls for the removal of barriers, including the simplification ~~of legislation~~ and more proportional application of legislation and the removal of red tape, to diversify funding sources for SMEs, in order to promote SMEs’ ability to access equity markets, and to reduce the existing debt bias; points out that the current situation makes SMEs more fragile and vulnerable;

Amendment 76 #

Motion for a resolution
Paragraph 1

1. Calls for the removal of barriers, including the simplification of legislation , to diversify funding sources for SMEs, in order to promote SMEs’ ability to access equity markets, and to reduce the existing debt bias; points out that the current situation makes SMEs more fragile and vulnerableEmphasises that, due to their size, the overwhelming majority of SMEs will continue to rely on bank lending as their sole source of finance; supports, however, measures to diversify funding sources for start-ups and those SMEs that can access equity financing due to their relatively large size or high growth prospects;

Amendment 77 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Paragraph 1

1. Calls for the removal of barriers, including the simplification of legislation , where appropriate, to diversify funding sources for SMEs, in order to promote SMEs’ ability to access equity markets, and to reduce the existing debt bias; points out that the current situation makes SMEs more fragile and vulnerable;

Amendment 78 #

Antonio TAJANI, Fulvio MARTUSCIELLO, Herbert DORFMANN

Motion for a resolution
Paragraph 1

1. Calls for the removal of barriers, including the simplification of legislation , to diversify funding sources for SMEs, in order to promote SMEs’ ability to access equity markets, and to reduce the existing debt bias; points out that the current situation makes SMEs more fragile and vulnerableTakes note of the existing debt bias in corporate financing; points out that the empirical evidence and the academic literature are not conclusive as to whether the current situation makes SMEs more fragile; points out that market-based finance is associated with significant risks;

Amendment 79 #

Motion for a resolution
Paragraph 1 a (new)

1a. Calls on the Commission to follow the European Banking Authority (EBA)'s report presenting the outcome of the assessment on the European Secured Notes (ESNs) in order to design a legislative proposal on the ESNs. This new instrument should be structured as a new dual recourse-funding instrument for banks and should be used by the banks only subject to a real improvement of the conditions of access to financing for families and SMEs (excluding those working in the financial industry) across the EU;

Amendment 8 #

Alfred SANT, Eero HEINÄLUOMA, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Citation 7 a (new)

- having regard to the March 2018 action plan from the European Commission on Fintech,

Amendment 80 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Pascal CANFIN, Linea SØGAARD-LIDELL, Monica SEMEDO, Ivars IJABS, Gilles BOYER

Motion for a resolution
Paragraph 1 a (new)

1a. Calls on the Commission and Member States to take due consideration of the transition towards a sustainable and resilient economy, in line with the EU Green Deal and with the EU taxonomy for sustainable activities, when designing, adopting, implementing and enforcing policies related to financial market integration, protection and promotion; notes the importance of the contribution of the private sector in financing this transition;

Amendment 81 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Paragraph 1 a (new)

1a. Calls on the Commission to draft a legislative proposal on 'European Secured Notes' (ESNs), as a new dual-recourse funding instrument for banks which could help improve access to financing for SMEs across the EU; recalls that ESNs could be targeted to specific objectives, such as supporting SMEs in the transition to a more sustainable economy and in channelling funding to the real economy;

Amendment 82 #

Motion for a resolution
Paragraph 1 a (new)

1a. States that research investments on SMEs are essential to develop SME equity markets. Regrets that due to MIFID II, these investments have become less attractive for investors undermining a number of participants. Supports the revision on the MIFID II regime for inducements to SME research focusing on the flexibility on current regulation;

Amendment 83 #

Alfred SANT, Eero HEINÄLUOMA, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Paragraph 1 a (new)

1a. Calls on the Commission to strengthen the mandatory feedback given by banks when declining SME credit applications, as a more comprehensive feedback could give the opportunity to SMEs with declined requests to adapt their business approach and to learn;

Amendment 84 #

Motion for a resolution
Paragraph 1 a (new)

1a. Calls for further integration and improvement of European capital markets to make them as attractive, competitive, and resilient as possible, especially also in the context of the withdrawal of the United Kingdom from the EU;

Amendment 85 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Billy KELLEHER, Caroline NAGTEGAAL, Pascal CANFIN, Linea SØGAARD-LIDELL, Monica SEMEDO, Ivars IJABS, Gilles BOYER

Motion for a resolution
Paragraph 1 b (new)

1b. Stresses the fundamental and urgent need to ensure access to more reliable and comparable data on sustainable investments and activities, thanks to a review of the Non-Financial Reporting Directive (NFRD); calls on the Commission to streamline transparency requirements under the NFRD with those under the Taxonomy Regulation and the Sustainable Finance Disclosure Regulation; supports the creation of a public sustainability data register to ensure access to reliable and comparable sustainability data for all investors, notably with the inclusion of SRD and NFRD data in a EU Single Access Point;

Amendment 86 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Paragraph 1 b (new)

1b. Calls on the Commission and Member States to actively inform SMEs of the alternative financing instruments available to them;

Amendment 87 #

Motion for a resolution
Paragraph 1 b (new)

1b. Emphasises the fundamental importance of enhancing the euro area’s risk absorption capacity;

Amendment 88 #

Alfred SANT, Eero HEINÄLUOMA, Jonás FERNÁNDEZ, Marc ANGEL, Costas MAVRIDES

Motion for a resolution
Paragraph 1 c (new)

1c. Welcomes the idea of establishing a European Single Access Point (ESAP) to aggregate information about companies in the EU through the interconnection of existing national and EU registers and databases of company data, as a way to support companies, in particular in smaller Member States, to attract investors; stresses that companies should be able to control the availability of their data in the ESAP;

Amendment 89 #

Motion for a resolution
Paragraph 1 c (new)

1c. Highlights that euro area countries can enhance their internal capacity to deal with macroeconomic shocks in particular by effectively reducing vulnerabilities in their economies, banking sectors, and public finances; considers further that economic resilience needs to be improved via structural reforms that support potential growth and increase flexibility;

Amendment 9 #

Motion for a resolution
Recital A

A. whereas all actions taken to create a Capital Markets Union (CMU) should ~~have~~aim to improv~~ing the range of financing options offered to companies and citizens, as well as a greater range of more attractive investment offers, as their objectiv~~e access to financing for those real economy businesses that have difficulties obtaining it, especially sustainable ones, or to offer better, i.e. simple and transparent, investment options to citizens in accordance with their risk tolerance;

Amendment 90 #

Motion for a resolution
Paragraph 1 d (new)

1d. Stresses that efficient and integrated financial markets are a core prerequisite for efficient private risk sharing in the euro area; considers that a genuine CMU could significantly help to diversify and reduce risk;

Amendment 91 #

Motion for a resolution
Paragraph 2

Amendment 92 #

Motion for a resolution
Paragraph 2

2. ~~Takes the view that the efficiency of financial markets should be improved and that the listing of companies should be facilitated; encourages the creation and prioritis~~2. Calls on the Commission to conduct a study and impact assessment of new ways of providing equity financing to those SMEs that are capable to benefit from it by virtue of their size or growth prospects; such a study should examine options like, among others, the creation of a ~~large~~ public-private pan- European ~~fund, an~~ Initial Public Offering (IPO) Fund~~, to support SMEs~~ or the expansion of mezzanine financing;

Amendment 93 #

Inese VAIDERE

Motion for a resolution
Paragraph 2

Amendment 94 #

Linea SØGAARD-LIDELL

Motion for a resolution
Paragraph 2

2. Takes the view that the efficiency of financial markets should be improved and that the listing of companies should be facilitated, hereunder that SME's more easily can access capital from investors from other Member States; encourages the creation and prioritisation of a large private pan- European fund, an Initial Public Offering (IPO) Fund, to support SMEs;

Amendment 95 #

Motion for a resolution
Paragraph 2

2. Takes the view that the efficiency and stability of financial markets should be improved and that the listing of companies should be facilitated; encourages the creation and prioritisation of a large private pan- European fund, an Initial Public Offering (IPO) Fund, to support SMEs;

Amendment 96 #

Christophe HANSEN, Danuta Maria HÜBNER, Jessica POLFJÄRD, Lefteris CHRISTOFOROU

Motion for a resolution
Paragraph 2

2. Takes the view that the efficiency of financial markets should be improved and that the listing of companies should be facilitated; encourages the creation and prioritisation of a large private pan- European fund, an Initial Public Offering (IPO) Fund, to support SMEs, with features that help to reduce direct and indirect costs for SMEs that decide to go public, insofar as smaller companies can overcome any competitive disadvantages resulting from lower visibility and shorter track records;

Amendment 97 #

Motion for a resolution
Paragraph 2

Amendment 98 #

Isabel BENJUMEA BENJUMEA, José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Paragraph 2

2. Takes the view that the efficiency of financial markets should be improved and that the listing of companies should be facilitated; encourages the creation and prioritisation of a large private pan- European fund, an Initial Public Offering (IPO) Fund, to support SMEs; states the need to ensure an attractive pre-IPO and post-IPO environment for SMEs;

Amendment 99 #