26 Amendments of Jeppe KOFOD related to 2018/0043(COD)
Amendment 92 #
Proposal for a directive
Recital 22
Recital 22
(22) In a number of Member States, innovative structures for maturity profiles have been developed in order to address potential liquidity risks, including maturity mismatches. These structures include the possibility to extend the scheduled maturity of the covered bond for a certain period of time or to allow the cash flows from the assets in the cover pool to pass directly to the covered bond holders. It is important in order to harmonise extendable maturity structures across the Union that the conditions under which Member States may allow these structures be defined to ensure that they are not too complex or expose investors to increased risks. It is also important to ensure that the credit institution cannot extend the maturity at its sole discretion. Maturity should only be extended when objective and clearly defined trigger events have occurred or are expected to occur in the near future.
Amendment 105 #
Proposal for a directive
Article 3 – paragraph 1 – point 13
Article 3 – paragraph 1 – point 13
(13) 'match funding requirement' means rules requiring that the cash flows between liabilities and assets falling due be matched by contractually ensuring that payments from borrowers and counterparties of derivative contracts be received, fall due prior to making payments to covered bond investors and that the amounts received from the borrowers are at least equivalent in value to the payments to be made to the covered bond investore counterparties of derivative contracts, and that the amounts received contractually falling due from the borrowers and counterparties of derivative contracts are at least equivalent in value to the payments to be made to the covered bond investors and counterparties of derivative contracts, and that the amounts received from borrowers and derivative counterparties be placed in the cover pool in assets according to Article 16 (3) of this Directive until the payments are due to the covered bond investors and derivative counterparties;
Amendment 107 #
Proposal for a directive
Article 4 – paragraph 1 – introductory part
Article 4 – paragraph 1 – introductory part
1. Member States shall lay down rules entitling the covered bonds investors and derivative counterparties to the following claims:
Amendment 110 #
Proposal for a directive
Article 4 – paragraph 3
Article 4 – paragraph 3
3. For the purposes of point (c) of paragraph 1, in the case of insolvency of a specialised mortgage credit institution, Member States may lay down rules granting the covered bond investors and derivative counterparties a claim that ranks senior to the claim of that specialised mortgage credit institution's ordinary unsecured creditors determined in accordance with the national laws governing the ranking of creditors in normal insolvency procedures, but junior to any other preferred creditors.
Amendment 112 #
Proposal for a directive
Article 6 – title
Article 6 – title
Amendment 113 #
Proposal for a directive
Article 6 – paragraph 1 – subparagraph 1 – introductory part
Article 6 – paragraph 1 – subparagraph 1 – introductory part
Member States shall ensure investor protection by requiringe that covered bonds are at all times collateralissecured by high quality assets. Such assets shall include all assets referred to in points (a) to (g) of Article 129(1) of Regulation (EU) No 575/2013 or by other high quality assets that meet at least the following requirements:in fulfilment of the requirements for the preferential treatment of covered bonds set out in paragraphs 4 and 5 of Article 129 of that Regulation.
Amendment 117 #
Proposal for a directive
Article 6 – paragraph 1 – subparagraph 1 – point a
Article 6 – paragraph 1 – subparagraph 1 – point a
Amendment 121 #
Proposal for a directive
Article 6 – paragraph 1 – subparagraph 1 – point b
Article 6 – paragraph 1 – subparagraph 1 – point b
Amendment 125 #
Proposal for a directive
Article 6 – paragraph 1 – subparagraph 1 – point c
Article 6 – paragraph 1 – subparagraph 1 – point c
Amendment 129 #
Proposal for a directive
Article 6 – paragraph 1 – subparagraph 1 – point d
Article 6 – paragraph 1 – subparagraph 1 – point d
Amendment 136 #
Proposal for a directive
Article 6 – paragraph 1 – subparagraph 2
Article 6 – paragraph 1 – subparagraph 2
Amendment 140 #
Proposal for a directive
Article 6 – paragraph 1 – subparagraph 3
Article 6 – paragraph 1 – subparagraph 3
Amendment 144 #
Proposal for a directive
Article 6 – paragraph 1 – subparagraph 4
Article 6 – paragraph 1 – subparagraph 4
Amendment 148 #
Proposal for a directive
Article 6 – paragraph 2
Article 6 – paragraph 2
2. The Member States shall ensure investor protection by requiring that credit institutions issuing covered bonds have in place procedures to monitor that the assets used as collateral are adequately insured against the risk of damag´ rules on valuation of the collateral shall ensure that the collateral is valued by an independent valuer at the market value or at the mortgage lending value.
Amendment 151 #
Proposal for a directive
Article 6 – paragraph 3
Article 6 – paragraph 3
3. For the purposes of paragraphs 1 and 2, Member States shall require from credit institutions issuing covered bonds to document the assets used as collateral and their lending policies regarding their compliance with those paragraphsthat the collateral is adequately insured against the risk of loss or damage and that the claim out of the insurance is part of the cover pool.
Amendment 153 #
Proposal for a directive
Article 6 a (new)
Article 6 a (new)
Article 6 a Cover assets for ordinary covered bonds 1. Member States may allow the issuance of covered bonds secured by high quality cover assets not referred to as eligible in points (a) to (g) of Article 129(1) of Regulation (EU) No 575/2013. In this case, Member States shall require that cover assets provide the credit institution issuing covered bonds with claims for the payment of a determined amount of money as set out in paragraph 2 and secured by collateral assets as set out in paragraph 3. Member States shall also require that the choice of cover assets mitigates cover pool risk as set out in paragraph 4. Cover assets shall also include exposures caused by transmission and management of payments of the obligors of, or liquidation proceeds in respect of, the claims for payment referred to in paragraph 2, and exposures caused by the use of derivatives in accordance with Article 11. 2. Member States shall lay down rules ensuring that the claim for payment referred to in paragraph 1 meets the following legal requirements: (a) Each claim is collateralised by assets for which a public register records ownership and collateral rights or is a loan to a public undertaking as defined in Article 2(b) of Commission Directive 2006/111/EC. (b) Each claim, which is not a loan to a public undertaking as defined in Article 2 (b) of Commission Directive 2006/111/EC, is secured by a legally established mortgage, charge, lien or other guarantee and each of these is enforceable. (c) the mortgage, charge, lien or guarantee securing the claim enable the credit institution issuing covered bonds to receive the payment of the claim in due time and at reasonable cost. 3. Member States shall lay down rules ensuring that the collateral assets referred to in paragraph 1 meet either of the following requirements: (a) for physical assets either the market or the mortgage lending value can be determined or, if this is not possible, the asset is valued by rules laid down by the Member State; (b) for assets in the form of exposures to public undertakings, their safety and soundness is inferred from their tax- raising powers or from being subject to either public supervision or a rating by a nominated ECAI. For the purposes of the asset valuation rules referred to in point (a), Member States shall require that the collateral physical asset is valued by an independent valuer. Moreover, they shall lay down a valuation methodology and process designed to yield values which are equal to or less than the unknown market or mortgage lending value of an asset at the moment of inclusion in the cover pool. 4. Member States shall ensure the risk mitigation referred to in paragraph 1 by imposing the following requirements: (a) all collateral for cover pool assets shall be adequately insured against the risk of loss or damage and the claim out of the insurance shall be part of the cover pool. (b) Member States may for physical assets referred to in paragraph 3 (a) set a value limit for serving as collateral for cover pool claims at the initial time of funding the loans with ordinary covered bonds. (c) exposures to public undertakings with no tax-raising powers and without being subject to public supervision shall not be eligible as cover pool assets if a credit assessment of an ECAI falls below its own threshold for investment grade quality.
Amendment 162 #
Proposal for a directive
Article 8 – paragraph 1 – introductory part
Article 8 – paragraph 1 – introductory part
Member States may lay down rules regarding the use, by way of an intragroup transaction, of covered bonds issued by a credit institution belonging to a group ('internally issued covered bonds') as collateralver assets for the external issue of covered bonds by another credit institution 'belonging to the same group ('externally issued covered bonds'). Member States shall ensure investor protection by including at least the following requirements in those rules:
Amendment 163 #
Proposal for a directive
Article 8 – paragraph 1 – point a
Article 8 – paragraph 1 – point a
(a) the internally issued covered bonds, which are used as collateral for the externally issued covered bonds, are recorded on the balance sheet of sold to the credit institution which issuesing the externally issued covered bonds;
Amendment 164 #
Proposal for a directive
Article 8 – paragraph 1 – point b
Article 8 – paragraph 1 – point b
(b) the credit institution issuing the exinternally issued covered bond hass are used as claim on the credit institution issuingover assets in the cover pool for the inexternally issued covered bonds, which is secured by and recorded on the balance sheet of the credit institution issuing the inexternally issued covered bonds;
Amendment 165 #
Proposal for a directive
Article 8 – paragraph 1 – point c
Article 8 – paragraph 1 – point c
(c) the externally issued covered bonds are intended to be sold to covered bond investors outside the group;
Amendment 166 #
Proposal for a directive
Article 8 – paragraph 1 – point d
Article 8 – paragraph 1 – point d
(d) both the internally and the externally issued covered bonds qualify for credit quality step 1 as referred to in Part Three, Title II, Chapter 2 of Regulation (EU) No 575/2013 and are collateralised by residential or commercial property mortgages.are collateralised by eligible cover assets as referred to in Article 6;
Amendment 171 #
Proposal for a directive
Article 10
Article 10
Amendment 270 #
Proposal for a directive
Article 16 – paragraph 5
Article 16 – paragraph 5
5. Member States may allow for the calculation of the principal for extendable maturity structures to be based on the final maturity date of the covered bond.
Amendment 271 #
Proposal for a directive
Article 17 – paragraph 1 – point b
Article 17 – paragraph 1 – point b
(b) the maturity extension is not triggered at the sole discretion of the credit institution issuing covered bonds;
Amendment 279 #
Proposal for a directive
Article 23 – paragraph 1 – introductory part
Article 23 – paragraph 1 – introductory part
1. Without prejudice to the right of Member States to lay down criminal penalties, Member States shall lay down rules establishing appropriate administrative penalties and remedial measures applicable at least in the following situations:
Amendment 280 #
Proposal for a directive
Article 23 – paragraph 1 – subparagraph 1 (new)
Article 23 – paragraph 1 – subparagraph 1 (new)
Member States may decide not to lay down rules for administrative penalties for infringements which are subject to criminal penalties under their national law. In such cases, Member States shall communicate to the Commission the relevant criminal law provisions.