6 Amendments of Marco ZANNI related to 2016/0363(COD)
Amendment 48 #
Proposal for a directive
Recital 9
Recital 9
(9) In order to reduce to a minimum credit institutions and investment firms' costs of compliance with the subordination requirement and any negative impact on their funding costs, this Directive should allow Member States to keep the existing class of unsecured senior debt, which has the highest insolvency ranking among debt instruments and is less costly for credit institutions and investment firms to issue than any other subordinated liabilities. It should, nevertheless, require Member States to create a new asset class of 'non- preferred' seniorubordinated' debt that should only be bailed-in during resolution after other capital instruments, but before other senior liabilities. Credit institutions and investment firms should remain free to issue debt in both classes while only the 'non-preferred' seniorubordinated' class should be eligible to meet the subordination requirement of Regulation (EU) No 575/2013 and of Directive 2014/59/EU. This should allow credit institutions and investment firms to use for their funding or any other operational reasons the less costly senior debt while issuing the new 'non-preferred' seniorubordinated' class for compliance with the subordination requirement.
Amendment 54 #
Proposal for a directive
Recital 10
Recital 10
(10) To ensure that the new 'non- preferred' seniorubordinated' class of debt instruments meet the eligibility criteria of Regulation (EU) No 575/2013 and of Directive 2014/59/EU, Member States should ensure that their initial contractual maturity spans one year, that they have no derivative features, and that the relevant contractual documentation related to their issuance explicitly refers to their ranking under normal insolvency proceedings. that - due to their higher level of risk - they are suitable for the client as defined in Directive 2014/65/EU of the European Parliament and of the Council1a, and that the relevant contractual documentation related to their issuance explicitly refers to their ranking under normal insolvency proceedings. ______________ 1aDirective 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349)
Amendment 59 #
Proposal for a directive
Recital 11
Recital 11
(11) To enhance legal certainty for investors, Member States should ensure that standard senior debt instruments have a higher priority ranking in their national insolvency laws than the new 'non- preferred' seniorubordinated' class of debt instruments under normal insolvency proceedings. Member States should also ensure that the new 'non-preferred' seniorubordinated' class of debt instruments have a higher priority ranking than the priority ranking of own funds instruments or any other subordinated liabilities and that, contrary to such instruments or liabilities, the 'non- new 'preferred' seniorubordinated' class of debt instruments could only be bailed-in when the issuing institution is placed under resolution.
Amendment 73 #
Proposal for a directive
Article 1 – paragraph 2
Article 1 – paragraph 2
Directive 2014/59/EU
Article 108 – paragraph 2 – point b
Article 108 – paragraph 2 – point b
(b) they have no embedded derivative featurs and are not derivatives themselves;
Amendment 74 #
Proposal for a directive
Article 1 – paragraph 2
Article 1 – paragraph 2
Directive 2014/59/EU
Article 108 – paragraph 2 – point b a (new)
Article 108 – paragraph 2 – point b a (new)
(ba) they are suitable for the client;
Amendment 75 #
Proposal for a directive
Article 1 – paragraph 2
Article 1 – paragraph 2
Directive 2014/59/EU
Article 108 – paragraph 2 – point c
Article 108 – paragraph 2 – point c
(c) the relevant contractual documentation and, where applicable, the prospectus related to the issuance explicitly refers to the ranking under this subparagraph, mentioning the higher risk of this investment.