123 Amendments of Jakob von WEIZSÄCKER related to 2014/0020(COD)
Amendment 104 #
Proposal for a regulation
Recital 4
Recital 4
(4) The on-going banking regulatory reform agenda will significantly increase the resilience of both individual banks and the banking sector as a whole. However, a limited subset of the largest and most complex Union banking groups still remain too-big- to-fail, too-big-to-save and too- complex to manage, supervise and resolve. Structural reform is therefore an important complement to other regulatory initiatives and measures, as it would offer one way of more directly addressing intra-group complexity, intra-group and government subsidies, and excessive risk-taking incentives, mispricing of capital, distorted conditions of competition within the financial sector and threats arising from institutions operating under the jurisdiction of multiple regulatory regimes and supervisors. A number of Member States have adopted or are considering adopting measures to introduce structural reform in their respective banking systems. Structural reform is a unique opportunity to strengthen the Banking Union.
Amendment 106 #
Proposal for a regulation
Recital 7
Recital 7
(7) Inconsistent national legislation that does not pursue the same policy goals in a manner that is compatible and equivalent with the mechanisms envisaged in this Regulation increases chances that capital movements decisions of market participants are negatively affected because different and inconsistent rules and practices may significantly raise operational costs for credit institutions that are operating across borders and hence lead to a less efficient allocation of resources and capital compared to a situation where capital movement is subject to similar and consistent rules. For the same reasons, different and inconsistent rules will also negatively affect decisions of market participants relating to where and how to provide cross-border financial services. Different and inconsistent rules may also unintentionally encourage geographic arbitrage. The movement of capital and the provision of cross-border services are essential elements for the proper functioning of the Union internal market. Without a Union-wide approach credit institutions will be forced to adapt their structurA harmonised approach is especially important within the Band operations along national boundaries, thereby making them eveking Union in more complex and leading to increased fragmentation of the internal marketder to avoid supervisory fragmentation.
Amendment 113 #
Proposal for a regulation
Recital 10
Recital 10
(10) Consistent with the goals of contributing to the functioning of the internal market, it should be possible to grant a derogation for a credit institution froma credit institution can be deemed compliant with the provisions on separation of trading activities or certain trading activities where a Member State has adoptedif this credit institution based on national primary legislation adopted by a Member State prior to 29 January 2014 (including secondary legislation subsequently adopted) is structured to prohibiting credit institutions, which take deposits from individuals and Small and Medium sized Enterprises (SMEs) from dealing in investments as a principal and from holding trading assets. The Member State should therefore be entitled to makeis would allow credit institutions which a lrequest to the Commission to grant a derogation from the provisions on separation of certain trading activities for a credit institution that is subject to ady comply with primary legislation in place and which are structured in a way that the effects are in line with this Regulation, to avoid incurring additional compliance costs. Limiting the exemption to credit institutions compliant withe national legislation compatible with those provisions. This would allow Member States that already have primary legislation in place, the effects of which are equivalent to and consistent with this Regulation, to avoid alignadopted by a Member State prior to 29 January 2014 ensures that only such credit institutions will be covered which could not have foreseen additional requirements of existing, effective provisions. To ensure that the impact of that national legislation, as well as of subsequent implementing measures, doesn a European level while already in the process of conforming with national legislation. In order for this exemption not to jeopardise the aim or functioning of the internal market, the aim of that national legislation and related supervisory and enforcement arrangements must be able to ensure that credit institutions that take eligible deposits from individuals and from SMEs comply with legally binding requirements that are equivalent and compatible with the provisions provided in this Regulation. T or unduly to discriminate, the credit institution's structure must be compatible with the aim of the provisions in this Regulation. To increase legal certainty and its planning ability, the credit institution may request a binding affirmation that it complies with the provisions on separation. Such request shall be accompanied by a supporting opinion of the competent authority supervising the credit institution subject, making reference to the national legislation in question should be responsible for providing an opinion that should accompany the request for the derogationalready place.
Amendment 115 #
Proposal for a regulation
Recital 10 a (new)
Recital 10 a (new)
(10 a) With respect to ensuring the effectiveness of separation this Regulation sets minimum standards. Member States, either collectively within Banking Union or individually outside Banking Union, may further empower the competent authority, including, but not limited to imposing additional capital and liquidity requirements, requiring lower thresholds for maximum extra or intra group exposures and restricting transactions between the trading entity and the core credit institution.
Amendment 116 #
Proposal for a regulation
Recital 12
Recital 12
(12) This Regulation intends to reduce excessive risk taking and rapid balance sheet growth, difficult resolution, difficult monitoring, conflicts of interest, competition distortions, and misallocation of capital. It also intends to shield institutions carrying out activities that deserve a public safety net from losses incurred as a result of other activities. Necessary rules should therefore contribute to refocusing banks on their core relationship-oriented role of serving the real economy, and avoid that bank capital be excessively allocated to trading at the expense of lending to the non-financial economy. This regulation also intends to reduce risks arising from financial conglomerates operating across the supervisory boundaries. To achieve these objectives, this Regulation does not limit the powers conferred to the relevant authorities by other legislation including, among others, Regulation (EU) No 575/2013, Regulation (EU) No 1024/2013, Directive 2014/59/EU and Directive 2013/36/EU.
Amendment 122 #
Proposal for a regulation
Recital 13
Recital 13
(13) This Regulation will apply only to credit institutions and groups with trading activities that meet thresholds set out in the Regulation. This is in line with the explicit focus on the limited subset of the largest and most complex credit institutions and groups that in spite of other legislative acts remain too-big-to-fail, too-big-to-save and too complex to manage, supervise and resolve. The provisions of this Regulation should accordingly only apply to those Union credit institutions and groups that either are deemed of global systemic importance or exceed certain relative and absolute accounting-based thresholds in terms of trading activity or absolute size. Subsidiaries of foreign institutions which, measured on an aggregated basis within the Union, meet the thresholds shall be covered accordingly. To level the playing field, this Regulation with the exception of Chapter III shall also apply to subsidiaries of foreign G-SIIs and of foreign entities which meet the thresholds referred to above. Member States or the competent authorities may decide to impose similar measures also on smaller credit institutions.
Amendment 132 #
Proposal for a regulation
Recital 16
Recital 16
(16) It is difficult to distinguish proprietary trading from market making. To overcome this difficulty, the prohibition of proprietary trading should be limited to desks, units, divisions or individual traders specifically dedicated to proprietary trading. Banks should not be able to circumvent the prohibition by running or benefiting from investments in, or lending, issuing guarantees or bonds, to non-bank entities engaging in proprietary trading.
Amendment 136 #
Proposal for a regulation
Recital 17
Recital 17
(17) To ensure that the entities subject to the prohibition of proprietary trading can continue to contribute toward the financing of the economy, they should be allowed to invest in a closed list of funds. This exhaustive list should comprise closed-ended and unleveraged alternative investment funds (AIFs), European Venture Capital Funds, European Social Entrepreneurship Funds and European Long Term Investment Funds. To ensure that these funds do not endanger the viability and financial soundness of the credit institutions that invest in them, it is essential that closed- ended and unleveraged AIFs in which credit institutions can still invest are managed by AIF managers that are authorised and supervised in accordance with the relevant provisions of Directive 2011/61/EU of the European Parliament and of the Council26, and that those AIFs are established in the Union or, if they are not established in the Union, they are marketed in the Union according to the rules of that Directive. __________________ 26Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010
Amendment 143 #
Proposal for a regulation
Recital 19
Recital 19
(19) Cash equivalent assets are instruments that are not linked to units or shares of AIFs, and that are normally dealt on the money market, such as treasury and local authority bills, certificates of deposit, commercial paper, bankers' acceptances, short-term notes or units or shares of regulated money market funds. In order to prohibit short selling, a credit institution should hold cash equivalent assets before being able to sell these assets.
Amendment 146 #
Proposal for a regulation
Recital 21
Recital 21
(21) The management body of the entities subject to the prohibition of proprietary trading and all members thereof should ensure compliance with this prohibition.
Amendment 168 #
Proposal for a regulation
Recital 25 a (new)
Recital 25 a (new)
(25 a) Notwithstanding separation decisions, the competent authority may impose additional capital and liquidity requirements that it deems necessary to counter a threat to the financial stability of the core credit institution or to the whole or part of the Union financial system.
Amendment 169 #
Proposal for a regulation
Recital 25 b (new)
Recital 25 b (new)
Amendment 170 #
Proposal for a regulation
Recital 26
Recital 26
(26) To ensure an effective separation in legal, economic, governance and operational terms, core credit institutions and trading entities should meet capital, liquidity, and large exposure rules also on a functional sub-group basis. They should have strong independent governance and separate management bodies. Trading entities within the group are to remain subject to prudential banking supervision, including but not limited to Regulation (EU) No 575/2013 and Directive 2013/36/EU.
Amendment 176 #
Proposal for a regulation
Recital 29
Recital 29
(29) Irrespective of separation, the core credit institution should still be able to manage its own risk. Certain trading activities should therefore be allowed to the extent that they are aimed at the prudent management of the core credit institution's capital, liquidity and funding and do not pose concerns to its financial stability. Similarly, the core credit institutions needs to be able to provide, as an agent, certain necessary risk management services to its clients. However, that shouldThat must be done without exposing the core credit institution to unnecessary risk and without posing concerns to its financial stability. Hedging activities eligible for the purpose of prudently managing own risk and for the provision of risk management services to clients can, but does not have to, qualify as hedge accounting under the International Financial Reporting Standards.
Amendment 179 #
Proposal for a regulation
Recital 29 a (new)
Recital 29 a (new)
(29 a) Irrespective of a decision to separate or impose other measures according to this Regulation, the competent authority shall have all the powers conferred to it by other legislation. This includes, but is not limited to the power conferred by Article 104 of Directive 2013/36/EU.
Amendment 180 #
Proposal for a regulation
Recital 30
Recital 30
(30) To enhance the effectiveness of the decision making procedure envisaged by this Regulation as well as to ensure to greatest extent possible that there is consistency between measures imposed under this Regulation, Council Regulation (EU) No 1024/2013 of the European Parliament and of the Council, Directive [BRRD] and Directive 2013/36/EU27 of the European Parliament and of the Council are consistent with this Regulation, competent authorities and relevant resolution authorities should closely cooperate in all circumstances having all powers conferred upon them in relevant Union law. The duty to cooperate should cover all stages of the procedure leading up to a competent authority's final decision to impose structural measures. __________________ 27Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p.338).
Amendment 181 #
Proposal for a regulation
Recital 31
Recital 31
(31) Separation has a significant impact on banking groups’' legal, organisational and operational structure. To insure an effective and efficient application of separation and to prevent separation of groups along geographic lines, separation decisions should be taken at group level by the consolidating supervisor, having consulted the competent authorities of a banking group’'s significant subsidiaries as appropriate.
Amendment 183 #
Proposal for a regulation
Recital 31 a (new)
Recital 31 a (new)
Amendment 186 #
Proposal for a regulation
Recital 34
Recital 34
Amendment 190 #
Proposal for a regulation
Recital 37 a (new)
Recital 37 a (new)
(37 a) For the purpose of carrying out the duties specified in this Regulation, the competent authority is to use the full set of its executive powers. This includes, but is not limited to the powers to impose penalties specified in Articles 64 to 72 of Directive 2013/36/EU and Article 18 of Regulation (EU) No 1024/2013.
Amendment 192 #
Proposal for a regulation
Recital 38
Recital 38
(38) In order to specify the requirements set out in this Regulation, the power to adopt acts in accordance with Article 290 of the TFEU should be delegated to the Commission in respect of the following non-essential elements: expanding the type of government bonds that should not prohibited under Article 6 and which competent authorities do not have to review or consider for separation; setting the relevant limits and conditions for when a competent authority shall presume that certain trading activities must be separated; expanding the list of instruments that are allowed for the management of a credit institution's own risk; expanding the list of instruments that a credit institution may transact in to manage clients' risks; calculating the limit above which derivatives may not be sold nor recorded on the balance sheet of a core credit institution; large exposures and the extent of recognition of credit risk mitigation techniques; amending the components of the concept of ‘"trading activities’" used for establishing the conditions of application of Chapter II and Chapter III of this Regulation; specifying the types of securitisations that do not pose a threat to the financial stability of a core credit institution or to the Union financial system; the criteria for assessing the equivalence of third country legal and supervisory frameworks. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level. The Commission, when preparing and drawing up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and to the Council.
Amendment 209 #
Proposal for a regulation
Article 1 – paragraph 1 – point a a (new)
Article 1 – paragraph 1 – point a a (new)
(a a) to prevent credit institutions from engaging in proprietary trading;
Amendment 211 #
Proposal for a regulation
Article 1 – paragraph 1 – point a b (new)
Article 1 – paragraph 1 – point a b (new)
(a b) to reduce credit institutions' exposure to AIFs;
Amendment 214 #
Proposal for a regulation
Article 1 – paragraph 1 – point c
Article 1 – paragraph 1 – point c
(c) to avoid misallocation of resources and to encourage lending to the remispricing of capital, economyspecially for trading activities;
Amendment 215 #
Proposal for a regulation
Article 1 – paragraph 1 – point c a (new)
Article 1 – paragraph 1 – point c a (new)
(c a) to encourage lending to the real economy and to safeguard deposits;
Amendment 218 #
Proposal for a regulation
Article 1 – paragraph 1 – point d a (new)
Article 1 – paragraph 1 – point d a (new)
(d a) to level the playing field in the financial sector;
Amendment 219 #
Proposal for a regulation
Article 1 – paragraph 1 – point d b (new)
Article 1 – paragraph 1 – point d b (new)
(d b) to reduce subsidies by explicit or implicit government guarantees for deposits or institutions;
Amendment 225 #
Proposal for a regulation
Article 1 – paragraph 1 – point g a (new)
Article 1 – paragraph 1 – point g a (new)
(g a) to reduce risks arising from financial institutions operating under multiple regulatory regimes or multiple supervisors;
Amendment 232 #
Proposal for a regulation
Article 2 – paragraph 1 – point a
Article 2 – paragraph 1 – point a
(a) the prohibition of proprietary trading and related activities;
Amendment 234 #
Proposal for a regulation
Article 2 – paragraph 1 – point b
Article 2 – paragraph 1 – point b
(b) the separation of certain trading activities and other measures.
Amendment 252 #
Proposal for a regulation
Article 3 – paragraph 1 – point b – introductory part
Article 3 – paragraph 1 – point b – introductory part
(b) any of the following entities that for a period of three consecutive yearhas or within any period of the last three years, but not retroactively covering any period before this regulation entered into force, has hasd total assets amounting at least to EUR 30 billion and has trading activities calculated on a non-risk weighted basis according to Articles 22 and 23 amounting at least to EUR 70 billion or 10 per cent of its total assets:
Amendment 257 #
Proposal for a regulation
Article 3 – paragraph 1 – point b – point iii a (new)
Article 3 – paragraph 1 – point b – point iii a (new)
(iii a) EU subsidiaries of credit institutions established in third countries or of parent undertakings of credit institutions established in third countries.
Amendment 262 #
Proposal for a regulation
Article 3 – paragraph 1 a (new)
Article 3 – paragraph 1 a (new)
1 a. Irrespective of paragraph 1, this Regulation, with the exception of Chapter III, shall also apply to: (a) any subsidiary or branch operating in the Union of a credit institution established in a third country or of a parent undertaking thereof established in a third country, when this credit institution or parent undertaking thereof is identified as a global systemically important institution (G-SIIs) by EBA according to subparagraph (c) of this paragraph; (b) any subsidiary or branch operating in the Union of a credit institution established in a third country or of a parent undertaking thereof established in a third country when this credit institution or parent undertaking thereof has total assets amounting at least to EUR 30 billion and has trading activities calculated on a non-risk weighted basis according to Articles 22 and 23 amounting at least to EUR 70 billion or 10 per cent of its total assets.
Amendment 263 #
Proposal for a regulation
Article 3 – paragraph 1 b (new)
Article 3 – paragraph 1 b (new)
1 b. EBA shall identify credit institutions or parent undertakings thereof that are Globally Systemically Important Institutions (G-SIIs) irrespective of where they are located applying the material standards of Article 131 of Directive 2013/36/EU.
Amendment 264 #
Proposal for a regulation
Article 3 – paragraph 1 c (new)
Article 3 – paragraph 1 c (new)
1 c. Any entity referred in points a) and b) of paragraph 1a will be considered as being within the scope of this Regulation unless it demonstrates to the satisfaction of the competent authority and EBA that its parent undertaking is not a G-SII or it does not meet the thresholds referred to in point b) of paragraph 1a.
Amendment 270 #
Proposal for a regulation
Article 4 – paragraph 2 – point b
Article 4 – paragraph 2 – point b
(b) the resolution strategy for the subsidiary of an EU parent established in a third country has no adverse effect on the whole or part of the Union financial system or on the financial stability of the Member State(s) where the EU parent and other group entities are established or operating.
Amendment 278 #
Proposal for a regulation
Article 5 – paragraph 1 – point 4
Article 5 – paragraph 1 – point 4
4. ‘proprietary trading’ means using own capital or borrowed money to take positions in any type of transaction to purchase, sell or otherwise acquire or dispose of any financial instrument or commodities for the soleprimary purpose of making a profit for own account, and without any connection to actual or anticipated client activity or for the purpose of hedging the entity’s risk as result of actual or anticipated client activity, through the use of desks, units, divisions or individual traders specifically dedicated to such position taking and profit making, including through dedicated web-based. This definition includes any such transaction undertaken with the aim of making profit, irrespective of whether such profit would be realised in the short term or in the longer term, or is in fact realised. Unless an institution demonstrates and proves to the satisfaction of the competent authority that an activity is not covered by this definition it shall be deemed to be proprietary trading platforms; ;
Amendment 285 #
Proposal for a regulation
Article 5 – paragraph 1 – point 12
Article 5 – paragraph 1 – point 12
12. ‘market making’ means a financial institution's commitment to provide market liquidity on a regular and on-going basis, by posting two-way quotes with regard to a certain financial instrument, or as part of its usual business, by fulfilling orders initiated by clients or in response to clients’ requests to trade, but in both cases. Both activities shall be carried out by the financial institution without being exposed to material market risk;
Amendment 300 #
Proposal for a regulation
Article 6 – title
Article 6 – title
Prohibition of certain trading and related activities
Amendment 306 #
Proposal for a regulation
Article 6 – paragraph 1 – point b – introductory part
Article 6 – paragraph 1 – point b – introductory part
(b) with its own capital or borrowed money and for the soleprimary purpose of making a profit for own account:
Amendment 323 #
Proposal for a regulation
Article 6 – paragraph 1 – point b – point iii a (new)
Article 6 – paragraph 1 – point b – point iii a (new)
(iii a) engage in lending to, grant guarantees to, or hold any financial instrument other than those listed in point (ii) of this paragraph issued by an AIF.
Amendment 332 #
Proposal for a regulation
Article 6 – paragraph 2 – point b – point ii
Article 6 – paragraph 2 – point b – point ii
(ii) it exclusively holds, purchases, sells or otherwise acquires or disposes of cash or cash equivalent assets, without engaging in short-selling. Cash equivalent assets must be highly liquid investments held in the base currency of the own capital, be readily convertible to a known amount of cash, be subject to an insignificant risk of a change in value, have maturity which does not exceed 397 days and, provide a return no greater than the rate of return of a three- month high quality government bond and not be linked to shares or units of AIFs.
Amendment 348 #
Proposal for a regulation
Article 6 – paragraph 3 a (new)
Article 6 – paragraph 3 a (new)
3 a. Each entity referred to in this Article shall include in its annual report an explanation of how it complies with the requirements in paragraph 1.
Amendment 351 #
Proposal for a regulation
Article 6 – paragraph 4
Article 6 – paragraph 4
4. The management body of each entity referred to in Article 3 shalland all members thereof individually shall permanently ensure that the requirements set out in paragraph 1 are complied with.
Amendment 358 #
Proposal for a regulation
Chapter 3 – title
Chapter 3 – title
Separation of certain trading activities and other measures
Amendment 366 #
Proposal for a regulation
Article 8 – paragraph 1 – introductory part
Article 8 – paragraph 1 – introductory part
1. For the purposes of this Chapter, trading activities shall include activitiesmarket making, investments in and acting as a sponsor for securitisation, trading in derivatives irrespective of whether it is part of the prudent management of its capital, liquidity and funding and any activity other than:
Amendment 384 #
Proposal for a regulation
Article 8 – paragraph 1 – point i a (new)
Article 8 – paragraph 1 – point i a (new)
(i a) advising clients on financial instruments referred to in Article 12 and providing such instruments originated by third parties as an agent.
Amendment 412 #
Proposal for a regulation
Article 9 – paragraph 1 – introductory part
Article 9 – paragraph 1 – introductory part
1. The competent authority shall assess trading activities including in particular: market making, investments in and acting as a sponsor for securitisation, and trading in derivatives of ther than those deriva entitives permitted under Articles 11 and 12 of the following entities:within the scope of this Regulation according to Article 3 and 4.
Amendment 416 #
Proposal for a regulation
Article 9 – paragraph 1 – point a
Article 9 – paragraph 1 – point a
Amendment 418 #
Proposal for a regulation
Article 9 – paragraph 1 – point b
Article 9 – paragraph 1 – point b
Amendment 420 #
Proposal for a regulation
Article 9 – paragraph 1 – point c
Article 9 – paragraph 1 – point c
Amendment 465 #
Proposal for a regulation
Article 9 – paragraph 2 – point h a (new)
Article 9 – paragraph 2 – point h a (new)
(h a) the exposure to derivatives as measured by notional outstanding divided by total assets;
Amendment 466 #
Proposal for a regulation
Article 9 – paragraph 2 – point h b (new)
Article 9 – paragraph 2 – point h b (new)
(h b) the exposure to derivatives as measured by the sum of derivatives assets and derivatives liabilities divided by total assets;
Amendment 471 #
Proposal for a regulation
Article 9 – paragraph 2 – point h c (new)
Article 9 – paragraph 2 – point h c (new)
(h c) the non-bank loan to total asset ratio.
Amendment 474 #
Proposal for a regulation
Article 9 – paragraph 2 – point h d (new)
Article 9 – paragraph 2 – point h d (new)
(h d) the ratio of corporate and investment banking revenues to total revenues
Amendment 475 #
Proposal for a regulation
Article 9 – paragraph 2 – point h e (new)
Article 9 – paragraph 2 – point h e (new)
(h e) the ratio of derivatives assets to total assets, where derivatives assets are derivatives with positive replacement values not identified as hedging or embedded derivatives.
Amendment 480 #
Proposal for a regulation
Article 9 – paragraph 2 a (new)
Article 9 – paragraph 2 a (new)
2 a. The competent authority may require all quantitative and qualitative information it deems relevant for the assessment of trading activities under paragraph 1.
Amendment 486 #
Proposal for a regulation
Article 9 – paragraph 4 – subparagraph 1
Article 9 – paragraph 4 – subparagraph 1
EBA shall develop draft regulatory technical standards to specify how the metrics referred to in paragraph 2 shall be measured and, where appropriate, specify the details of the metrics referred to in paragraph 2 and their measurement using supervisory data. The draft regulatory technical standards shall also provide the competent authority with a methodology for the consistent measurement and application of the metrics.
Amendment 488 #
Proposal for a regulation
Article 10 – title
Article 10 – title
Power of competent authority to require that a core credit institution does not carry out certain activities and to impose other measures
Amendment 499 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. Where the competent authority concludes that, following the assessment referred to in Article 9(1), the limits and conditions linked to the metrics referred to in points (a) to (h b) of Article 9(2) and specified in the delegated act referred to in paragraph 5 are met, and it therefore deems that there is a threat to the financial stability of the core credit institution or to the whole or part of the Union financial system as a whole, taking into account the objectives referred to in Article 1, it shall, no later than two months after the finalisation of that assessment, start the procedure leading to a decision as referred to in the second subparagraph of paragraph 3.
Amendment 508 #
Proposal for a regulation
Article 10 – paragraph 2
Article 10 – paragraph 2
2. Where the limits and conditions referred to in paragraph 1 are not met, the competent authority may still start the procedure leading to a decision as referred to in the third subparagraph of paragraph 3 where it concludes, following the assessment referred to in Article 9(1), that any trading activity, with the exception of trading in derivatives other than those permitted under Article 11 and 12, carried out by the core credit institution, poses a threat to the financial stability of the core credit institution or to the whole or part of the Union financial system as a whole taking into account the objectives referred to in Article 1.
Amendment 521 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 2
Article 10 – paragraph 3 – subparagraph 2
Unless the core credit institution demonstrates, within the time limit referred to in the first subparagraph, to the satisfaction of the competent authority, that the reasons leading to the conclusions are not justifiedactivities referred to in paragraphs 1 and 2 of this Article do not pose a threat to financial stability of the core credit institution or to the whole or part of the Union financial system, the competent authority shall adopt a decision addressing the core credit institution and requiring it not to carry out the trading activities specified in those conclusions. The competent authority shall state the reasons for its decision and publicly disclose it.
Amendment 530 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 3
Article 10 – paragraph 3 – subparagraph 3
For purpose of paragraph 1, where the competent authority decides exceptionally to allow the core credit institution to carry out those trading activities it shall also state the reasons for that decision and publicly disclose it.
Amendment 542 #
Proposal for a regulation
Article 10 – paragraph 3 – subparagraph 6
Article 10 – paragraph 3 – subparagraph 6
The competent authority shall adopt its final decision within two months from having received the written comments referred to in the first subparagraph. or four months after the notification referred to in the first subparagraph, whichever is earlier.
Amendment 547 #
Proposal for a regulation
Article 10 – paragraph 4 a (new)
Article 10 – paragraph 4 a (new)
4 a. Notwithstanding separation decisions, the competent authority may impose additional capital and liquidity requirements that it deems necessary to counter a threat to the financial stability of the core credit institution or to the whole or part of the Union financial system.
Amendment 548 #
Proposal for a regulation
Article 10 – paragraph 4 b (new)
Article 10 – paragraph 4 b (new)
4 b. Where the competent authority concludes that, following the assessment referred to in Article 9(1), the metric referred to in point h c) of Article 9(2) falls below 40 percent or the metric referred to in point h d) of Article 9(2) exceeds 30 percent or the metric referred to in point h e) of Article 9(2) exceeds 15 percent, it shall no later than two months after the finalisation of that assessment adopt a final decision addressing the core credit institution and requiring it not to carry out certain trading activities and publicly disclose it.
Amendment 554 #
Proposal for a regulation
Article 10 – paragraph 5 – point a – point ii
Article 10 – paragraph 5 – point a – point ii
(ii) the conditions, including how many of the metrics provided in points (a) to (hb) of Article 9(1) need to exceed the relevant limit, and in what combination, in order for the competent authority to start the procedure referred to in Article 10(1).
Amendment 555 #
Proposal for a regulation
Article 10 – paragraph 5 – point a – point iii
Article 10 – paragraph 5 – point a – point iii
(iii) Tthe specification of the conditions in point (ii) shall include an indication of the level of the aggregate significant risk of the trading activity concerned that results from several metrics provided in points (a) to (h b) of Article 9(1) having exceeded the relevant limits referred to in point (i);
Amendment 557 #
Proposal for a regulation
Article 10 – paragraph 5 – point b – introductory part
Article 10 – paragraph 5 – point b – introductory part
(b) specify which type of securitisation is not considered to pose a threat to the financial stability of the core credit institution or to the whole or part of the Union financial system as a whole with regard to each of the following aspects:
Amendment 564 #
Proposal for a regulation
Article 11 – paragraph 1 – subparagraph 1
Article 11 – paragraph 1 – subparagraph 1
A core credit institution that has been subject to a decision referred to in Article 10(3) may carry out trading activities to the extent that the purpose is limited to only prudently managing its capital, liquidity and funding and that the trading is carried out on a trading venue as defined in Directive 2014/65/EU.
Amendment 576 #
Proposal for a regulation
Article 11 – paragraph 2 – subparagraph 2
Article 11 – paragraph 2 – subparagraph 2
The management body shall ensureand all members thereof individually shall continually ensure and include in the annual report that the remuneration policy of the core credit institution is in line with the provisions set out in the first subparagraph, acting on the advice of the risk committee, where such a committee is established in accordance with Article 76(3) of Directive 2013/36/EU.
Amendment 578 #
Proposal for a regulation
Article 11 – paragraph 3
Article 11 – paragraph 3
Amendment 586 #
Proposal for a regulation
Article 12 – paragraph 1 – subparagraph 1 – introductory part
Article 12 – paragraph 1 – subparagraph 1 – introductory part
A core credit institution that has been subject to a decision referred to in Article 10(3) may sell, as an agent, offer interest rate derivatives, foreign exchange derivatives, credit derivatives, emission allowances derivatives and commodity derivatives eligible for central counterparty clearing and emission allowances to its non- financial clients, to financial entities referred to in the second and third indents of point (19) of Article 5, to insurance undertakings and to institutions providing for occupational retirement benefits, all of the above as third party products, when the following conditions haves been satisfied:
Amendment 598 #
Proposal for a regulation
Article 12 – paragraph 1 – subparagraph 1 – point b
Article 12 – paragraph 1 – subparagraph 1 – point b
Amendment 602 #
Proposal for a regulation
Article 12 – paragraph 1 – subparagraph 2
Article 12 – paragraph 1 – subparagraph 2
Amendment 605 #
Proposal for a regulation
Article 12 – paragraph 2
Article 12 – paragraph 2
Amendment 614 #
Proposal for a regulation
Article 13 – paragraph 4
Article 13 – paragraph 4
4. The EU parent of the core credit institution shall ensure to the extent necessary that the core credit institution can carry on its activities in the event of the insolvency of the trading entity. This includes, but is not limited to, ensuring that shared service, including IT services, offices and any other facilities used by the core credit institution are not to be owned or operated by the trading entity or any parent undertaking thereof.
Amendment 617 #
Proposal for a regulation
Article 13 – paragraph 5 – subparagraph 1
Article 13 – paragraph 5 – subparagraph 1
The core credit institution and any parent undertaking thereof within the same sub- group shall not hold capital instruments or voting rights in a trading entity. or any parent undertaking thereof within the same sub-group or, by any means, exert influence on the activities of the core credit institution. The trading entity and any parent undertaking thereof within the same sub-group shall not hold capital instruments or voting rights in the core credit institution or, by any means, exert influence on the activities of the core credit institution.
Amendment 627 #
Proposal for a regulation
Article 13 – paragraph 6
Article 13 – paragraph 6
6. The core credit institution and the trading entity shall issue their own debt on an individual or sub-consolidated basis provided that this is not inconsistent with th. The following entities shall not engage in any activity other than acquiring holdings: a) a parent undertaking that holds capital instruments or voting rights in a trading entity and a core cresolution plan agreed by the relevant resolution authorities in accordance with Directive [BRRD]dit institution; b) a parent undertaking that holds, directly or indirectly, capital instruments or voting rights in any two entities that are part of two different distinct sub- groups referred to in paragraph 3 of this Article.
Amendment 631 #
Proposal for a regulation
Article 13 – paragraph 7
Article 13 – paragraph 7
7. All contracts and other transactions entered into between the core credit institution and the trading entity or, with the exception of the payment of dividends and other distributions, any of its parents shall be as favourable to the core credit institution as are comparable contracts and transactions with or involving entities not belonging to the same sub-group.
Amendment 632 #
Proposal for a regulation
Article 13 – paragraph 7 a (new)
Article 13 – paragraph 7 a (new)
7 a. The trading entity shall operate as a credit institution or an investment firm as defined in Article 4(1) and 4(2) of Regulation (EU) No 575/2013.
Amendment 633 #
Proposal for a regulation
Article 13 – paragraph 8
Article 13 – paragraph 8
8. A majority of tThe members of the management body of the core credit institution and of the trading entityor any entity within the same sub-group and of the trading entity or any entity within the same sub-group respectively shall consist of persons who are not members of the management body of the other entity or other sub-group. No member of the management body of eitherany entity shall perform an executive function in both entities with the exception for the risk management officer of the parent undertakingor both sub-groups.
Amendment 637 #
Proposal for a regulation
Article 13 – paragraph 9
Article 13 – paragraph 9
9. The management body of the core credit institution, of the trading entity and of their parents as well as the individual members thereof shall have a duty to uphold the objectives of the separation and ensure continuously and affirm annually that the requirements set out in this Chapter are complied with.
Amendment 638 #
Proposal for a regulation
Article 13 – paragraph 12
Article 13 – paragraph 12
12. By way of derogation from Article 6(1) andIf the competent authority excercises the options provided for in Article 7 of Regulation (EU) No 575/2013, the obligations laid down in Parts Two to Four and Eight of that Regulation shall apply on sub-consolidated basis in conformity with paragraph 3 of this Article.
Amendment 639 #
Proposal for a regulation
Article 13 – paragraph 13
Article 13 – paragraph 13
13. By way of derogation from Article 6(4) andIf the competent authority excercises the options provided for in Article 8 of Regulation (EU) No 575/2013, the requirements of Part Six of that Regulation shall apply on sub- consolidated basis in conformity with paragraph 3 of this Article.
Amendment 644 #
Proposal for a regulation
Article 14 – paragraph 2
Article 14 – paragraph 2
2. When measures have been imposed in accordance with this Chapter the core credit institution shall not incur an intra- group exposure that exceeds 250 per cent of the core credit institution's eligible capital to an entity that does not belong to the same sub-group as the core credit institution. The intra-group exposure limit shall apply on a sub-consolidated basis, and after taking into account the effect of the credit risk mitigation and exemptions in accordance with Articles 399 to 403 of Regulation (EU) No 575/2013 and Article 16 of this Regulation.
Amendment 647 #
Proposal for a regulation
Article 15 – paragraph 1 – point a
Article 15 – paragraph 1 – point a
(a) a large exposure that exceeds 250 per cent of the core credit institution's eligible capital to a financial entity. That exposure limit shall apply on an individual and on a sub-consolidated basis, and after taking into account the effect of the credit risk mitigation and exemptions in accordance with Articles 399 to 403 of Regulation (EU) No 575/2013 and Article 16 of this Regulation;
Amendment 649 #
Proposal for a regulation
Article 15 – paragraph 1 – point b
Article 15 – paragraph 1 – point b
(b) large exposures that in total exceed 20150 per cent of the core credit institution's eligible capital to financial entities. That exposure limit shall apply on an individual and on a sub-consolidated basis, and after taking into account the effect of the credit risk mitigation and exemptions in accordance with Articles 399 to 403 of Regulation (EU) No 575/2013 and Article 16 of this Regulation.
Amendment 668 #
Proposal for a regulation
Article 18 – paragraph 9
Article 18 – paragraph 9
9. The management body of a credit institution or an EU parent and all members thereof shall ensure that the separation plan has been implemented in accordance with the approval of the competent authority.
Amendment 679 #
Proposal for a regulation
Article 19 – paragraph 3
Article 19 – paragraph 3
3. The competent authority shall cooperate with the relevant resolution authority and exchange relevant information that is deemed necessary in carrying out its duties including the list of institutions that fall within the scope of this regulation.
Amendment 681 #
Proposal for a regulation
Article 19 – paragraph 3 a (new)
Article 19 – paragraph 3 a (new)
3 a. If the competent authority takes the decision referred to in article 10(3) or 10(4b), the resolution plan should be reviewed and where appropriate updated in accordance with Article 10 and 13 of Directive 2014/59/EU.
Amendment 682 #
Proposal for a regulation
Article 19 – paragraph 4
Article 19 – paragraph 4
Amendment 701 #
Proposal for a regulation
Article 21 – title
Article 21 – title
Amendment 706 #
Proposal for a regulation
Article 21 – paragraph 1 – introductory part
Article 21 – paragraph 1 – introductory part
1. At the request of a Member State, the Commission may grant a derogation from the requirements of this Chapter to a credit institution taking deposits from individuals and SMEs that areis subject to national primary legislation adopted before 29 January 2014 when the national legislation complies withrequiring structural separation of deposits and adopted before 29 January 2014 shall be deemed compliant with the requirements in this Chapter as regards to the requirement not to carry out trading activities or certain trading activities when the institution meets the following requirements:
Amendment 710 #
Proposal for a regulation
Article 21 – paragraph 1 – point a
Article 21 – paragraph 1 – point a
(a) its structure aims at preventing financial stress or failure and systemic risk referred to in Article 1;
Amendment 714 #
Proposal for a regulation
Article 21 – paragraph 1 – point b
Article 21 – paragraph 1 – point b
(b) its structure prevents credit institutions taking eligible deposits from individuals and SMEs from engaging in the regulated activity of dealing in investments as principal and holding trading assets; however, the national legislation may provide forits structure may foresee limited exceptions to allow the credit institution taking deposits from individuals and SMEs to undertake risk- mitigating activities for the purpose of prudently managing its capital, liquidity and funding and to provide limited risk management services to customers;
Amendment 717 #
Proposal for a regulation
Article 21 – paragraph 1 – point c – introductory part
Article 21 – paragraph 1 – point c – introductory part
(c) if the credit institution taking eligible deposits from individuals and SMEs belongs to a group, ithe group's structure ensures that the credit institution is legally separated from group entities that engage in the regulated activity of dealing in investments as a principal or hold trading assets, and the national legislation specifiguarantees the following:
Amendment 720 #
Proposal for a regulation
Article 21 – paragraph 2 – subparagraph 1
Article 21 – paragraph 2 – subparagraph 1
Amendment 725 #
Proposal for a regulation
Article 21 – paragraph 2 – subparagraph 2
Article 21 – paragraph 2 – subparagraph 2
Once the Commission has all the information it considers necessary for appraisal of the request for derogat decision, it shall within one month notify the requesting Member Statecredit institution that it is satisfied with the information.
Amendment 729 #
Proposal for a regulation
Article 21 – paragraph 2 – subparagraph 3
Article 21 – paragraph 2 – subparagraph 3
Within five months of issuing the notification referred to in the second subparagraph, the Commission shall, after having consulted the EBA on the reasons underlying its envisaged decision and on the potential impact of such a decision on the financial stability of the Union and the functioning of the internal market, adopt an implementingthe decision declaring the national legislation not incompatible with this Chapter and granting the derogation to the credit institutions specified in the request referred to in paragraph 1. Where the Commission intends to declare the national legislacompliance of the credit institution with this Chapter. Where the Commission intends not to affirm the credit institution in's compatible and to not grant the derogationliance referred to in paragraph 1, it shall set out its objections in detail and provide the requesting Member Statecredit institution with the opportunity to submit written comments within one month from the date of notification of the Commission objections. The Commission shall within three months from the end of the time limit for submission adopt an implementing further decision granting or rejecting the derogationrequest for an affirmation of compliance referred to in subparagraph 1.
Amendment 734 #
Proposal for a regulation
Article 21 – paragraph 2 – subparagraph 4
Article 21 – paragraph 2 – subparagraph 4
Where the national legislation is amended, the Member Staterelevant structure of the credit institution is changed or is foreseen to be changed, the credit institution shall notify the amendmentchanges to the Commission. TAs a consequence, the Commission may review the implementingany decision referred to in the third subparagraphis paragraph and withdraw it.
Amendment 738 #
Proposal for a regulation
Article 21 – paragraph 2 – subparagraph 5
Article 21 – paragraph 2 – subparagraph 5
Where the national legislation not declared incompatiblecredit institution that was declared to be compliant with this Chapter is no longer applies to a credit institution that has been granted derogation from the requirements of this Chaptersubject to the national legislation referred to in paragraph 1, thate derogation shall be withdrawn with regard to that credit institutiocision of compliance shall be withdrawn.
Amendment 742 #
Proposal for a regulation
Article 21 – paragraph 2 – subparagraph 6
Article 21 – paragraph 2 – subparagraph 6
The Commission shall notify the EBA of its decisions to the EBA. The EBA shall publish a list of the credit institutions that have been granted a derogationreceived a decision concerning their compliance in accordance with this Articleparagraph. The list shall be continuously kept up-to-date.
Amendment 744 #
Proposal for a regulation
Chapter 3 a (new)
Chapter 3 a (new)
Amendment 748 #
Proposal for a regulation
Article 22 – paragraph 2 a (new)
Article 22 – paragraph 2 a (new)
2 a. For the purpose of Article 3(b)(iii a), the calculation shall be based on the accumulated activities of all subsidiaries within the Union.
Amendment 750 #
Proposal for a regulation
Article 22 – paragraph 4 – subparagraph 1
Article 22 – paragraph 4 – subparagraph 1
By [OP insert the correct date by 12 months of publication of this Regulation], and thereafter annually, the competent authority shall identify credit institutions and groups that are subject to this Regulation in accordance with Article 3 and notify them immediately to the EBA.
Amendment 755 #
Proposal for a regulation
Article 23 – paragraph 1 – subparagraph 1
Article 23 – paragraph 1 – subparagraph 1
For the purposes of Article 3, trading activities shall be calculated on a non-risk weighted basis as follows in accordance with the applicable accounting regime.
Amendment 765 #
Proposal for a regulation
Article 23 – paragraph 2
Article 23 – paragraph 2
2. Assets and liabilities of insurance and reinsurance undertakings and other non- financial undertakings shall not be included in the calculation of trading activities.
Amendment 773 #
Proposal for a regulation
Article 26 – paragraph 4 – subparagraph 1
Article 26 – paragraph 4 – subparagraph 1
For the purposes of this Regulation, with the exception of Article 21a, the consolidating supervisor shall be deemed to be the competent authority with regard to all group entities that belong to the same group as the EU parent and that are subject to this Regulation.
Amendment 789 #
Proposal for a regulation
Article 28 – paragraph 1 – subparagraph 1 – point b
Article 28 – paragraph 1 – subparagraph 1 – point b
(b) any holding back or manipulation of information to be submitted in accordance with Article 24(1).
Amendment 791 #
Proposal for a regulation
Article 28 – paragraph 1 – subparagraph 1 – point b a (new)
Article 28 – paragraph 1 – subparagraph 1 – point b a (new)
(b a) breach of the duty to uphold the objectives of separation referred to in Article 13(9).
Amendment 793 #
Proposal for a regulation
Article 28 – paragraph 3 – subparagraph 1
Article 28 – paragraph 3 – subparagraph 1
Where Member States have chosen to lay down criminal sanctions for the breaches of the provisions referred to in paragraph 1, they shall ensure that appropriate measures are in place so that a competent authority has all the necessary powers to liaise with judicial authorities within their jurisdiction to receive specific information related to criminal investigations or proceedings commenced for possible violations of Article 6 and f, for holding back or manipulating information to be submitted in accordance with 24(1) and breaching the duty to uphold the objectives of separation referred to in Article 13(9), and to provide the same to other competent authorities and EBA to fulfil their obligation to cooperate with each other and, where relevant with EBA for the purposes of paragraph 1.
Amendment 795 #
Proposal for a regulation
Article 28 – paragraph 4 – subparagraph 1 – point b
Article 28 – paragraph 4 – subparagraph 1 – point b
(b) the disgorgement of the profits gained or losses avoided due to the breach in so far asas estimated by they can be determinedompetent authority;
Amendment 803 #
Proposal for a regulation
Article 28 – paragraph 4 – subparagraph 1 – point h
Article 28 – paragraph 4 – subparagraph 1 – point h
(h) in respect of a natural person, a maximum administrative pecuniary sanction of at least EUR 510 000 000 or in the Member States whose currency is not the euro, the corresponding value in the national currency on the date of entry to force of this Regulation;
Amendment 806 #
Proposal for a regulation
Article 28 – paragraph 5 a (new)
Article 28 – paragraph 5 a (new)
Amendment 817 #
Proposal for a regulation
Article 30 – paragraph 2 – point b
Article 30 – paragraph 2 – point b
(b) appropriate protection for persons working under a contract of employment, who report breaches or who are accused of breaches, against retaliation, discrimination or other types of unfair treatment. This includes prohibiting an institution from trying to investigate the source of the information;
Amendment 819 #
Proposal for a regulation
Article 30 – paragraph 4
Article 30 – paragraph 4
4. Member States mayshall provide for financial incentives to persons who offer relevant information about potential breaches of this Regulation to be granted in accordance with national law where such persons do not have other pre-existing legal or contractual duties to report such information, and provided that the information is new, and it results in the imposition of an administrative sanction or other measure taken for a breach of this Regulation or a criminal sanction. Should the information reported result in a pecuniary penalty, the financial incentive shall be calculated as a proportion of this pecuniary penalty of no less than 15 % of the penalty imposed. Should the information reported result in a non- pecuniary penalty, the financial incentive shall reflect the gravity and duration of the breach, and it will be paid by the natural or legal person that committed the breach.
Amendment 821 #
Proposal for a regulation
Article 32 – paragraph 1 – subparagraph 4 a (new)
Article 32 – paragraph 1 – subparagraph 4 a (new)
Where the competent authority did not publish a decision immediately according to subparagraph 4, it shall in any case publish it two years after the person subject to the decision has been informed.
Amendment 825 #
Proposal for a regulation
Article 33 – paragraph 1 – point c
Article 33 – paragraph 1 – point c
(c) a report on whether other financial instruments for hedging purposes other than those listed in Article 12(1) could be permitted to be sold to clients and the proportion of own funds requirements above which derivatives may not be sold as referred to in point (b) of Article 12(2).
Amendment 827 #
Proposal for a regulation
Article 34 – paragraph 1
Article 34 – paragraph 1
The Commission shall, on a regular basis, monitor the effect of rules laid down in this Regulation in respect of the achievement of the objectives referred to in Article 1 and on the stability of the whole or part of the Union financial system as a whole, taking into account market structure developments as well as the development and activities of the entities regulated by this Regulation, and make any appropriate proposals. The review shall in particular focus on the application of the thresholds referred to in Article 3, the application and effectiveness of the prohibition foreseen in Article 6, including the exemptions to the prohibition provided in the same Article, the scope of activities referred to in Article 8 and the suitability of the metrics set out in Article 9. By 1 January 2020 and on a regular basis thereafter, the Commission shall, after taking into account the views of the competent authorities and of the European Parliament, submit to the European Parliament and to the Council a report, including the issues mentioned above, if appropriate accompanied by a legislative proposal. EBA shall, on a regular basis, but no less than every five years, review the metrics set out in Article 9 and, if needed, suggest modifications of the metrics set out in Article 9 to the European Commission and to the European Parliament.
Amendment 832 #
Proposal for a regulation
Article 35 – paragraph 2
Article 35 – paragraph 2
2. The delegation of power referred to in Articles 6(6), 8(3), 10(5), 11(3), 12(2), 15(2), second sub-paragraph of Article 16, Articles 23(4) and 27(3) shall be conferred on the Commission for an indeterminate period of time from the date referred to in Article 38.
Amendment 833 #
Proposal for a regulation
Article 35 – paragraph 3
Article 35 – paragraph 3
3. The delegation of power referred to in Articles 6(6), 8(3), 10(5), 11(3), 12(2), 15(2), second sub-paragraph of Article 16, Article 23(4) and 27(3) may be revoked at any time by the European Parliament or by the Council. A decision of revocation shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.
Amendment 834 #
Proposal for a regulation
Article 35 – paragraph 5
Article 35 – paragraph 5
5. A delegated act adopted pursuant to Articles 6(6), 8(3), 10(5), 11(3), 12(2), 15(2), second sub-paragraph of Article 16, Article 23(4) and 27(3) shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of 2 months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by 2 months at the initiative of the European Parliament or the Council.