BETA

20 Amendments of Brian HAYES related to 2017/0230(COD)

Proposal for a regulation
Recital 18

(18) The current supervisory practices of outsourcing, delegation and risks transfer (back-to-back business or fronting) from one licensed entity to another entity vary from one Member State to another. Those divergent regulatory approaches carry a risk of regulatory arbitrage across Member States ("race to the bottom"). Inefficient supervision of outsourced, delegated or transferred activities exposes the Union to financial stability risks. Those risks are particularly acute in relation to supervised entities outsourcing, delegating or transferring risk to third countries where supervisory authorities may lack the necessary tool to adequately and effectively supervise material activities and key functions. ESAs should have an active role in promoting supervisory convergence by ensuring a common understanding and supervisory practices of outsourcing, risk transfer and delegation of material activities and key functions in third countries, in accordance with Union law and in view of guidelines, recommendations and opinions that the ESAs may adopt. The ESAs should therefore have the necessary powers to effectively coordinate supervisory actions carried out by national supervisory authorities both when authorising or registering an undertaking and as part of an ongoing review of supervisory practices. In performing this coordination role, ESAs should particularly focus on situations that may lead to a circumvention of the rules and monitor financial institutions or financial market participants that intend to make an extensive use of outsourcing, delegation and risk transfer in third countries with the intention of benefitting from the EU passport while essentially performing substantial activities or functions outside the Uniondeleted

2018/09/11
Committee: ECON

Proposal for a regulation
Recital 22

(22) Moreover, the Union dimension in the decision-making process within the Board of Supervisors should be enhanced by including independent full time members as members of the Board, who are not subject to possible conflicts of interest. Decision-making powers on issues of a regulatory nature and on direct supervision should remain fully with the competence of the Board of Supervisors. The Management Board should be transformed into an Executive Board composed of full time members and should decide on certain non-regulatory issues, including independent reviews of competent authorities, dispute settlements, breach of Union law, the Strategic Supervisory Plan, monitoring of outsourcing, delegation and risk transfers to third countries, stress tests and requests for information. The Executive Board should also examine and prepare all decisions to be taken by the Board of Supervisors. Moreover, the position and role of the Chairperson should be enhanced by empowering the Chairperson with formal tasks and with a casting vote in the Executive Board. Finally, the Union dimension in the ESAs governance should also be strengthened by amending the selection procedure of the Chairperson and the members of the Executive Board to one which will include the role of the Council and the European Parliament. The Executive Board should have a balanced composition.deleted

2018/09/11
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 7 – point b

Regulation (EU) No 1093/2010
Article 16 – paragraph 2

2. The Authority shall~~, save in exceptional circumstances,~~ conduct open public consultations regarding the guidelines ~~and~~, recommendations, and where applicable, questions and answers which it issues and shall analyse the related potential costs and benefits of issuing such guidelines and recommendations. Those consultations and analyses shall be proportionate in relation to the scope, nature and impact of the guidelines or recommendations. The Authority shall~~, save in exceptional circumstances,~~ also request opinions or advice from the Banking Stakeholder Group referred to in Article 37.; (This amendment also applies throughout Article 2 and Article 3.)

2018/09/14
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 7 a (new)

Regulation (EU) No 1093/2010
Article 16 a (new)

(7a) The following Article 16a is inserted: “Article 16a Questions and answers 1. For the interpretation, practical application or implementation of the provisions of the legislative acts referred to in Article 1(2), or associated delegated and implementing acts, guidelines and recommendations adopted under those legislative acts, any natural or legal person, including competent authorities and Union institutions, may submit a question to the Authority in any official language of the Union. Before submitting a question to the Authority, financial institutions shall assess whether to first address the question to their competent authority. 2. The Authority shall publish on its website non-binding answers to all admissible questions pursuant to paragraph 1, for each legislative act, unless such publication is in conflict with the legitimate interest of the natural or legal person that submitted the question or would involve risks to the stability of the financial system. 3. Before publishing answers to admissible questions, the Authority may consult with stakeholders in accordance with Article 16(2). 4. Answers by the Authority shall be considered suitable for compliance with the requirements of the legislative acts referred to in Article 1(2), and with associated delegated and implementing acts and guidelines and recommendations adopted pursuant to those legislative acts. Competent authorities and financial institutions may establish other practices for compliance with all applicable legal requirements.” (This amendment also applies throughout Article 2 and Article 3.)

2018/09/14
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 15

Regulation (EU) No 1093/2010
Article 31a

~~(15) the following Article 31a is inserted: [...]~~deleted

2018/09/14
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 43 – point a

Regulation (EU) No 1093/2010
Article 62 – paragraph 1 – point a

(a) a balancing contribution from the Union, entered in the General Budget of the Union (Commission section) which shall ~~not exceed~~comprise at least 40% of the estimated revenues of the Authority; (This amendment also applies throughout Article 2 and Article 3.)

2018/09/14
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 43 – point a

Regulation (EU) No 1093/2010
Article 62 – paragraph 1 – point a a (new)

(a a) obligatory contributions of up to 60% of the estimated revenues of the Authority from the national public authorities competent for the supervision of financial institutions. (This amendment also applies throughout Article 2 and Article 3.)

2018/09/14
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 43 – point a

Regulation 1093/2010
Article 62 – paragraph 1 – point b

(b) annual contributions from financial institutions, based on the annual estimated expenditure relating to the activities required by this Regulation and by the Union Acts referred to in Article 1(2) for each category of participants within the remit of the Authority;deleted (This amendment also applies throughout Article 2 and Article 3.)

2018/09/14
Committee: ECON

Proposal for a regulation
Article 2 – paragraph 1 – point 17

Regulation (EU) No 1094/2010
Article 31 a

~~(17) a new Article 31a is inserted: [...]~~deleted

2018/09/19
Committee: ECON

Proposal for a regulation
Article 3 – paragraph 1 – point 15

Regulation (EU) No 1095/2010
Article 31 a

~~(15) new Article 31a is inserted: [...]~~deleted

2018/09/19
Committee: ECON

Proposal for a regulation
Article 3 – paragraph 1 – point 17

Regulation (EU) No 1095/2010
Article 32 – paragraph 2 a – subparagraph 1

2a. At least annually, the Authority shall consider whether it is appropriate to carry out Union-wide assessments referred to in paragraph 2 and shall inform the European Parliament, the Council and the Commission of its reasoning. Where such Union-wide assessments are carried out and the Authority considers it appropriate to do so, it shall disclose the results ~~for each participating financial institution~~if it considers it appropriate with regard to the financial stability of the Union or of one or more of its Member States, market integrity or investor protection or the functioning of the internal market. It shall publish the results of the base scenario only. Upon the request, the results of any other scenario shall be made available to the European Parliament or the Council.

2018/09/19
Committee: ECON

Proposal for a regulation
Article 4

~~Article 4 […]~~deleted

2018/09/19
Committee: ECON

Proposal for a regulation
Article 5

~~Article 5 […]~~deleted

2018/09/19
Committee: ECON

Proposal for a regulation
Article 7

~~[...]~~deleted

2018/09/19
Committee: ECON

Proposal for a regulation
Article 8 – paragraph 1 – point 4

~~(4) Article 20 is replaced by the following: [...]~~deleted

2018/09/19
Committee: ECON

Proposal for a regulation
Article 8 – paragraph 1 – point 5

Regulation (EU) No 2016/1011
Article 21

~~(5) Article 21 is amended as follows: (a) following: ‘2. the administrator referred to in paragraph 1, the competent authority shall: (a) (b)~~deleted paragraph 2 is replaced by the Upon receipt of thate assessment, make its own assessment of how the benchmark is to be transitioned to a new administrator or be ceased to be provided, taking into account the procedure established in accordance with Article 28(1). During the period of time referred to in point (b) of the first subparagraph, the administrator shall not cease the provision of the benchmark without the written consent of ESMA. ’ (b) ‘5. empowered to adopt delegated acts in accordance with Article 49 to specify the criteria on which the assessment referred to in point (b) of paragraph 2 is to be based.; ’ by inform ESMA thereof; within four weeks following the a new paragraph 5 is added: The Commission shall be

2018/09/19
Committee: ECON

Proposal for a regulation
Article 8 – paragraph 1 – point 6

Regulation (EU) No 2016/1011
Article 23

(6) in Article 23, paragraphs 3 and 4 are replaced by the following : ‘3. critical benchmark that intends to cease contributing input data shall promptly notify the administrator thereof in writing. The administrator shall thereupon inform ESMA thereof without delay. ESMA shall inform the competent authority of that supervised contributor thereof without delay. The administrator shall submit to ESMA an assessment of the implications on the capability of the critical benchmark to measure the underlying market or economic reality, as soon as possible but no later than 14 days after the notification made by the supervised contributor. 4. referred to in paragraphs 2 and 3, ESMA shall on the basis of that assessment make its own assessment on the capability of the benchmark to measure the underlying market and economic reality, taking into account the administrator's procedure for cessation of the benchmark established in accordance with Article 28(1).; ’deleted A supervised contributor to a Upon receipt of the assessment

2018/09/19
Committee: ECON

Proposal for a regulation
Article 8 – paragraph 1 – point 10

Regulation (EU) No 2016/1011
Article 33

~~(10) Article 33 is replaced by the following: [...]~~deleted

2018/09/19
Committee: ECON

Proposal for a regulation
Article 8 – paragraph 1 – point 12

Regulation (EU) No 2016/1011
Article 40 – paragraph 1 – point c

~~(c) administrators or other supervised entities that apply for the endorsement or have endorsed a benchmark provided in a third country in accordance with Article 33;~~deleted

2018/09/19
Committee: ECON

Proposal for a regulation
Article 9

~~[...]~~deleted

2018/09/19
Committee: ECON