Activities of Mady DELVAUX related to 2017/0359(COD)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council on the prudential requirements of investment firms and amending Regulations (EU) No 575/2013, (EU) No 600/2014 and (EU) No 1093/2010 PDF (868 KB) DOC (136 KB)
Amendments (32)
Amendment 38 #
Proposal for a regulation
Recital 10 a (new)
Recital 10 a (new)
(10a) This regime should not impede on the obligation of designated market makers at trade venues under Directive 2014/65/EU Articles 17(3), 48(2) and 48(3) to provide quotes and be present in the market on a continuous basis.
Amendment 41 #
Proposal for a regulation
Recital 16
Recital 16
(16) Investment firms should be considered small and non-interconnected for the purposes of the specific prudential requirements for investment firms where they do not conduct investment services which carry a high risk for clients, markets, Union taxpayers or themselves and whose size means they are less likely to cause widespread negative impacts for clients and, markets, and Union taxpayers in case risks inherent in their business materialise or in case they fail. Accordingly, small and non- interconnected investment firms should be defined as those that do not deal on own account or incur risk from trading financial instruments, have no client assets or money under their control, have assets under both discretionary portfolio management and non-discretionary (advisory) arrangements of less than EUR 1.2 billion, handle fewer than EUR 100 million per day of client orders in cash trades or EUR 1 billion per day in derivatives, and have a balance sheet smaller than EUR 100 million and total gross annual revenues from the performance of their investment services of less than EUR 30 million.
Amendment 42 #
Proposal for a regulation
Recital 19
Recital 19
(19) All investment firms should calculate their capital requirement with reference to a set of K-factors which capture Risk-To-Customer (‘RtC’), Risk- to-Market (‘RtM’) and Risk-to-Firm (‘RtF’). The K-factors under RtC capture client assets under management and nongoing advice- discretionary (advisory) arrangements (K- AUM), assets safeguarded and administered (K-ASA), client money held (K-CMH), and customer orders handled (K-COH).
Amendment 50 #
Proposal for a regulation
Recital 23
Recital 23
(23) The K-factors under RtC are proxies covering the business areas of investment firms from which harm to clients can conceivably be generated in case of problems. K-AUM captures the risk of harm to clients from an incorrect discretionary management of customer portfolios or poor execution and provides reassurance and customer benefits in terms of the continuity of service of ongoing portfolio management and advicenon- discretionary (advisory) arrangements. K- ASA captures the risk of safeguarding and administering customer assets, and ensures that investment firms hold capital in proportion to such balances, regardless of whether they are on its own balance sheet or segregated in other accounts. K-CMH captures the risk of potential for harm where an investment firm holds the money of its customers, regardless of whether they are on its own balance sheet or segregated in other accounts. K-COH captures the potential risk to clients of a firm which executes its orders (in the name of the client, and not in the name of the firm itself), for example as part of execution- only services to clients or when a firm is part of a chain for client orders.
Amendment 58 #
Proposal for a regulation
Recital 42 a (new)
Recital 42 a (new)
(42a) With the aim of guaranteeing a level playing field and promote the transparency of the European market structure, Regulation (EU) No 600/2014 should be amended in order to subject systemic internalisers' quotes and execution prices to the tick size regime when dealing in all sizes.
Amendment 97 #
Proposal for a regulation
Article 12 – paragraph 1 – subparagraph 1 – point d
Article 12 – paragraph 1 – subparagraph 1 – point d
(d) CMH (or client money held) calculated in accordance with Article 18 is zero, except when a limited amount of client money is being held exceptionally and temporarily, for no more than 5 business days;
Amendment 126 #
Proposal for a regulation
Article 15 – paragraph 5 a (new)
Article 15 – paragraph 5 a (new)
5a. EBA, in consultation with ESMA, shall develop draft regulatory technical standards to specify the definitions of the K-factors in Title II of Part Three. The EBA shall submit those draft regulatory technical standards to the Commission by [nine months from the date of entry into force of this Regulation]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Amendment 148 #
Proposal for a regulation
Article 21 – paragraph 1
Article 21 – paragraph 1
The RtM K-factor requirement for the trading book positions of an investment firm dealing on own account, whether for itself or on behalf of a client shall be the higher ofeither K-NPR calculated in accordance with Article 22 or K-CMG calculated in accordance with Article 23.
Amendment 150 #
Proposal for a regulation
Article 21 – paragraph 1 a (new)
Article 21 – paragraph 1 a (new)
Investment firms shall have the option to simultaneously apply K-NPR to some of their positions and K-CMG to other positions.
Amendment 160 #
Proposal for a regulation
Article 23 – paragraph 1 – subparagraph 1 – introductory part
Article 23 – paragraph 1 – subparagraph 1 – introductory part
Amendment 161 #
Proposal for a regulation
Article 23 – paragraph 1 – subparagraph 1 – point b
Article 23 – paragraph 1 – subparagraph 1 – point b
(b) the execution and settlement of the transactions of the investment firm that are centrally clearemargined and take place under the responsibility of a clearing member and are either guaranteed by that clearing member or otherwise settled on a delivery- versus-payment basis;
Amendment 163 #
Proposal for a regulation
Article 23 – paragraph 1 – subparagraph 1 – point d
Article 23 – paragraph 1 – subparagraph 1 – point d
Amendment 195 #
Proposal for a regulation
Article 32 – paragraph 1 – subparagraph 1
Article 32 – paragraph 1 – subparagraph 1
For the purposes of calculating K-DTF, DTF shall be the rolling average of the value of the total daily trading flow, measured at the end of each business day over the previous 615 calendar months, excluding the 3 most recent calendar months.
Amendment 196 #
Proposal for a regulation
Article 32 – paragraph 1 – subparagraph 2
Article 32 – paragraph 1 – subparagraph 2
DTF shall be the average or simple arithmetic mean of the daily measurements for the remaining 312 calendar months
Amendment 198 #
Proposal for a regulation
Article 32 – paragraph 1 – subparagraph 3
Article 32 – paragraph 1 – subparagraph 3
K-DTF shall be calculated within the first 14 days of each quarteyear.
Amendment 207 #
Proposal for a regulation
Article 32 – paragraph 3 – subparagraph 1
Article 32 – paragraph 3 – subparagraph 1
DTF shall exclude transactions executed by an investment firm providing portfolio management services on behalf of collective investment fundertakings.
Amendment 212 #
Proposal for a regulation
Article 36 – paragraph 1 a (new)
Article 36 – paragraph 1 a (new)
Amendment 234 #
Proposal for a regulation
Article 51 – paragraph 1 – introductory part
Article 51 – paragraph 1 – introductory part
Investment firms shall ensure that their remuneration policies and practices are gender neutral by ensuring that the same or similar type of jobs will be equally remunerated regardless of gender. They will disclose the following information regarding their remuneration policy and practices for those categories of staff whose professional activities have a material impact on investment firm's risk profile, in accordance with Article 45;
Amendment 237 #
Proposal for a regulation
Article 51 – paragraph 1 – point b a (new)
Article 51 – paragraph 1 – point b a (new)
(ba) the ratios between remuneration of employees and board members in accordance with Article 28(2a) of Directive ----/-- [IFD];
Amendment 263 #
Proposal for a regulation
Article 59 – paragraph 1 – point f a (new)
Article 59 – paragraph 1 – point f a (new)
(fa) the impacts of the modification of the definition of "credit institution" in Regulation (EU) No 575/2013 through Article 60 (2) (a) of this Regulation and potential unintended negative consequences;
Amendment 266 #
Proposal for a regulation
Article 59 – paragraph 1 – point f b (new)
Article 59 – paragraph 1 – point f b (new)
(fb) the application of the K-AUM factor and especially the aspect if advice is appropriately considered or if it should be excluded from the K-AUM factor and be treated through a different K-factor;
Amendment 268 #
Proposal for a regulation
Article 59 – paragraph 1 – point f c (new)
Article 59 – paragraph 1 – point f c (new)
(fc) the method of measuring the value of a derivative in Article 32 (2) (b) and Article 20 (2) (b), and the appropriateness of introducing an alternative metric and/or calibration;
Amendment 269 #
Proposal for a regulation
Article 59 – paragraph 1 – point f d (new)
Article 59 – paragraph 1 – point f d (new)
(fd) the non-distinction between segregated and non-segregated accounts and the requirements in terms of harmonisation of insolvency law in the Union to guarantee an appropriate degree of harmonisation of provisions for segregated accounts;
Amendment 272 #
Proposal for a regulation
Article 59 – paragraph 2 a (new)
Article 59 – paragraph 2 a (new)
2a. By [5 years from the date of entry into force of this Regulation] and subsequently every 3 years, the Commission shall submit to the European Parliament and the Council a report on the application of this Regulation, especially taking into consideration the impacts on particular business models and market entry opportunities in the European markets.
Amendment 277 #
Proposal for a regulation
Article 60 – paragraph 1 – point 2 – point a
Article 60 – paragraph 1 – point 2 – point a
Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point b – point i
Article 4 – paragraph 1 – point b – point i
(i) the total value of the assets in the Union of the undertaking exceeds EUR 30 billion, or
Amendment 282 #
Proposal for a regulation
Article 60 – paragraph 1 – point 2 – point a
Article 60 – paragraph 1 – point 2 – point a
Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point b – point ii
Article 4 – paragraph 1 – point b – point ii
(ii) the total value of the assets in the Union of the undertaking is below EUR 30 billion, and the undertaking is part of a group in which the combined total value of the assets of all undertakings in the group that carry out any of the activities referred to in points (3) and (6) of Section A of Annex I of Directive 2014/65/EU and have total assets below EUR 30 billion exceeds EUR 30 billion, or
Amendment 286 #
Proposal for a regulation
Article 60 – paragraph 1 – point 2 – point a
Article 60 – paragraph 1 – point 2 – point a
Regulation (EU) No 575/2013
Article 4 – paragraph 1 – point b – point iii
Article 4 – paragraph 1 – point b – point iii
(iii) the total value of the assets in the Union of the undertaking is below EUR 30 billion, and the undertaking is part of a group in which the combined total value of the assets of all undertakings in the group that carry out any of the activities referred to in points (3) and (6) of Section A of Annex I of Directive 2014/65/EU exceed EUR 30 billion, where the consolidating supervisor in consultation with the supervisory college so decides in order to address potential risks of circumvention and potential risks for the financial stability of the Union.
Amendment 289 #
Proposal for a regulation
Article 60 – paragraph 1 – point 12 a (new)
Article 60 – paragraph 1 – point 12 a (new)
Regulation (EU) No 575/2013
Article 119 – paragraph 5
Article 119 – paragraph 5
12a. In Article 119, paragraph 5 is replaced by the following: "5. Exposures to financial institutions authorised and supervised by the competent authorities and subject to prudential requirements comparable to those applied to institutions in terms of robustness shall be treated as exposures to institutions. For the purpose of this paragraph, the prudential requirements defined in Regulation (EU) ---/--- [IFR] shall be considered comparable to those applied to institutions in terms of robustness."
Amendment 293 #
Proposal for a regulation
Article 61 – paragraph 1 – point -1 a (new)
Article 61 – paragraph 1 – point -1 a (new)
Regulation (EU) No 600/2014
Article 17 a (new)
Article 17 a (new)
(-1a) The following Article is inserted: "Article 17a Systemic internalisers' quotes, price improvements on those quotes and execution prices shall comply with tick sizes set in accordance with Article 49 of Directive 2014/65/EU."
Amendment 323 #
Proposal for a regulation
Article 61 – paragraph 1 – point 2 – point c
Article 61 – paragraph 1 – point 2 – point c
Regulation (EU) No 600/2014
Article 47 – paragraph 5
Article 47 – paragraph 5
5. ESMA shall be empowered to advise the Commission on equivalence decisions and monitor the regulatory and supervisory developments, the enforcement practices and other relevant market developments in third countries for which equivalence decisions have been adopted by the Commission pursuant to paragraph 1 in order to verify whether the conditions on the basis of which those decisions have been taken are still fulfilled. The Authority shall submit a confidential report on its findings to the Commission on an annual basisreport on its findings to the Commission, the European Parliament and the Council on an annual basis. In case this report gives grounds to suggest an equivalence decision could be withdrawn, the Commission shall within a month give a reasoned statement on how it will proceed to the European Parliament and the Council.’’.
Amendment 326 #
Proposal for a regulation
Article 61 – paragraph 1 – point 2 – point c a (new)
Article 61 – paragraph 1 – point 2 – point c a (new)
Regulation (EU) No 600/2014
Article 47 – paragraph 5 a (new)
Article 47 – paragraph 5 a (new)
Amendment 337 #
Proposal for a regulation
Article 63 – paragraph 2 a (new)
Article 63 – paragraph 2 a (new)
2a. Article 61(-1) shall apply from ... [the date of entry into force of this Regulation].