Activities of Enrique CALVET CHAMBON related to 2018/0171(COD)
Plenary speeches (1)
Sovereign bond-backed securities (debate) ES
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council on sovereign bond-backed securities PDF (248 KB) DOC (86 KB)
Amendments (24)
Amendment 62 #
Proposal for a regulation
Recital 1
Recital 1
(1) Sovereign Bond-Backed Securities (‘SBBSs’) can address some vulnerabilities that have been exposed by or have resulted from the 2007-2008 financial crisis. More specifically, SBBSs can help banks and other financial institutions better diversify their sovereign exposures, further weaken the bank-sovereign nexus and enhance the supply of low-risk euro denominated assets facilitating the implementation of monetary policy and working as another step for a future fiscal union. SBBSs could in addition render bonds issued in small and less liquid national markets more attractive for international investors, which can foster private sector risk sharing and risk reduction and promote a more efficient allocation of risks among financial operators.
Amendment 66 #
Proposal for a regulation
Recital 2
Recital 2
(2) Under the existing legal framework, SBBSs would be treated as securitisations and thus be subject to additional charges and discounts relative to the charges and discounts faced by the euro area sovereign bonds in the underlying portfolio. Those additional charges and discounts would hinder the production and use of SBBSs by the private and public sector, despite the fact that SBBSs do not carry the risks associated with securitisations that justify such charges and discounts. SBBS should therefore be subject to a regulatory framework that better takes into account the unique features and properties of SBBSs to enable that product to emerge on the market. To that end, the removal of regulatory obstacles is necessary.
Amendment 70 #
(3) Enabling a market-led development of SBBSs is part of the Commission's efforts to reduce risks to financial stability and advance towards completion of the Banking Union. SBBSs could support further portfolio diversification in the banking sector, while creating a new source of high-quality collateral, which is particularly suited for use in cross-border financial transactions. Furthermore, enabling SBBSs could also increase the number of instruments available for cross- border investment and risk sharing, which feeds into the Commission's efforts to complete Banking Union and deepen and integrate further Europe's capital markets in the context of the Capital Markets Union.
Amendment 75 #
Proposal for a regulation
Recital 6
Recital 6
(6) To provide for a high quality low- risk asset and at the same time cater for investors' different levels of risk appetite, an SBBS issue should be composed of both a senior tranche and one or more subordinated, one mezzanine and one junior tranches. The senior tranche, corresponding to seventy percent of the nominal value of an SBBS issue, should keep the SBBS issue expected loss rate in line with that of the safest euro area sovereign bonds, taking into account the risk and correlation of the sovereign bonds in the SBBSs underlying portfolio of sovereign bonds. The subordinatedmezzanine and junior tranches should provide for protection to the senior tranche. The seniority of the tranches should determine the order in which losses on the underlying portfolio of sovereign bonds should be borne by investors. To limit the risk of the junior tranche (the tranche bearing losses before any other tranche), the nominal value of the junior tranche should however be at least 2ten percent of the outstanding nominal value of the entire SBBSs issue. Considering the particular complexity of the product, the acquisition by consumers should only be considered for senior tranches, but not for junior tranches.
Amendment 83 #
Proposal for a regulation
Recital 14
Recital 14
(14) A system of self-attestcertification by SPEsESMA should ensure that an SBBS issue complies with the requirements of this Regulation. ESMA should therefore keep a list of SBBSs issucertified, enabling investors to verify whether a product that is offered for sale as an SBBS is indeed an SBBS. For the same reason, ESMA should indicate in that list whether any sanction in relation to a SBBS has been imposed and remove from that list those products that are found to be in violation of this Regulation.
Amendment 86 #
Proposal for a regulation
Recital 15
Recital 15
(15) Investors should be able to rely on the nocertification of SBBSs by SPEs to ESMA and on the information provided by ESMA and SPEs. Information on SBBSs and the sovereign bonds in the SBBSs underlying portfolio should empower investors to understand, assess and compare SBBSs transactions and not to rely solely on third parties, including credit rating agencies. That possibility should enable investors to act prudently and to carry out their due diligence efficiently. Information on SBBSs should therefore be freely available to investors, via standardised templates, on a website that ensures continuous accessibility.
Amendment 89 #
Proposal for a regulation
Recital 16
Recital 16
(16) To prevent abusive behaviour and to ensure that trust in SBBSs is maintained, appropriate administrative sanctions and remedial measures should be provided for by Member StatESMA in cooperation with Member States competent authorities for cases of negligent or intentional infringements of notification or product requirements for SBBSs.
Amendment 94 #
Proposal for a regulation
Recital 18
Recital 18
(18) To safeguard financial stability, ensure investors' confidence and promote liquidity, a proper and effective supervision of SBBSs markets is important. To that end, ESMA and competent authorities should be informed about the issuance of SBBSs and should receive from SPEs all the relevant information needed to perform their supervisory tasks. Supervision of compliance with this Regulation should primarily be performed to ensure investors’ protection and, where applicable, on aspects that may be linked to the issuance and holding of SBBSs by regulated financial entities.
Amendment 107 #
Proposal for a regulation
Article 4 – paragraph 3 a (new)
Article 4 – paragraph 3 a (new)
3a. Sovereign bonds of a Member State, which is subject to an ongoing procedure pursuant to Article 7(1) or (2) of the Treaty on the European Union, shall be excluded from the SBBS’s underlying portfolio.
Amendment 116 #
Proposal for a regulation
Article 6 – paragraph 1
Article 6 – paragraph 1
1. An SBBSs issue shall be composed of one senior tranche and one or more subordinated, one mezzanine and one junior tranches. The outstanding nominal value of the senior tranche shall be seventy percent of the outstanding nominal value of the entire SBBSs issue. The number and the outstanding nominal values of the subordinatedmezzanine tranches shall be determined by the SPE, subject to the limitation thatof twenty percent and the nominal value of the junior tranche shall be at least twoten percent of the outstanding nominal value of the entire SBBSs issue.
Amendment 120 #
Proposal for a regulation
Article 9 – paragraph 1 – point b
Article 9 – paragraph 1 – point b
(b) ESMA has been nocertified of that financial product in accordance with Article 10(1) and the financial product has been included in the list referred to in Article 10(2).
Amendment 125 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. An SPE shall notifask for certification by ESMA at least one week before issuance of an SBBSs issue by means of the template referred to in paragraph 5 of this Article that an SBBSs issue meets the requirements of Articles 4, 5 and 6. ESMA shall inform the SPE's competent authority thereof without undue delay.
Amendment 133 #
Proposal for a regulation
Article 11 – paragraph 1 – subparagraph 1 – introductory part
Article 11 – paragraph 1 – subparagraph 1 – introductory part
1. An SPE shall, without undue delay, provide ESMA, investors and competent authorities with the following information:
Amendment 136 #
Proposal for a regulation
Article 11 – paragraph 1 – subparagraph 1 – point d
Article 11 – paragraph 1 – subparagraph 1 – point d
(d) the nocertification referred to in Article 10(1).
Amendment 139 #
Proposal for a regulation
Article 13 – paragraph 1 – subparagraph 1
Article 13 – paragraph 1 – subparagraph 1
1. In addition to ESMA, Member States shall designate one or more competent authorities to supervise the compliance of SPEs with this Regulation. Member States shall inform the Commission and ESMA about those competent authorities and, where relevant, about how their functions and duties are divided.
Amendment 141 #
Amendment 144 #
Proposal for a regulation
Article 13 – paragraph 2 – subparagraph 2 – introductory part
Article 13 – paragraph 2 – subparagraph 2 – introductory part
Amendment 150 #
Proposal for a regulation
Article 14 – paragraph 2
Article 14 – paragraph 2
2. A competent authority that has clear and demonstrable grounds that an SPE is in breach of this Regulation shall promptly inform in a detailed manner ESMA and the competent authority of the Member State where the SPE is established. TESMA and the competent authority of the Member State where the SPE is established shall take appropriate measures, including the decision referred to in Article 15.
Amendment 153 #
Proposal for a regulation
Article 14 – paragraph 3
Article 14 – paragraph 3
3. Where the SPE persists in acting in a manner that is clearly in breach of this Regulation despite measures taken by ESMA and the competent authority of the Member State where it is established, or because that competent authority has failed to take measures within a reasonable time, ESMA and the competent authority that has detected a breach of this Regulation may, after informing the competent authority of the Member State where the SPE is established and ESMA, take all appropriate measures to protect investors, including prohibiting the SPE from carrying out any further marketing of SBBSs within its territory and taking the decision referred to in Article 15.
Amendment 154 #
Proposal for a regulation
Article 15 – paragraph 1
Article 15 – paragraph 1
1. Where there are reasons to believe that an SPE in infringement of Article 9 has used the designation ‘SBBS’ to market a product that fails to comply with the requirements set out in that Article, ESMA, in cooperation with the competent authority of the Member State where the SPE is established, shall follow the procedure provided for in paragraph 2.
Amendment 159 #
Proposal for a regulation
Article 15 – paragraph 2 – subparagraph 1
Article 15 – paragraph 2 – subparagraph 1
2. Within 15 days after becoming aware of the possible infringement referred to in paragraph 1 ESMA, in close cooperation with the competent authority of the Member State where the SPE suspected of the infringement is established, shall decide whether Article 9 has been infringed and shall notify ESMA and the other relevant competent authorities thereof, including the competent authorities of the investors, when known. A competent authority that disagrees with the decision taken shall notify all other relevant competent authorities about its disagreement without undue delay. Where that disagreement is not resolved within three months of the date on which all relevant competent authorities have been notified, the matter shall be referred to ESMA in accordance with Article 19 and, where applicable, Article 20 of Regulation (EU) No 1095/2010. The conciliation period referred to in Article 19(2) of Regulation (EU) No 1095/2010 shall be one month.
Amendment 166 #
Proposal for a regulation
Article 16 – paragraph 3 – introductory part
Article 16 – paragraph 3 – introductory part
3. CESMA, in close cooperation with the competent authorities, when determining the type and level of administrative sanctions, shall take into account the extent to which the infringement was intentional or results from negligence and all other relevant circumstances, including, where appropriate:
Amendment 169 #
Proposal for a regulation
Article 16 – paragraph 4
Article 16 – paragraph 4
4. Member StatESMA in close cooperation with Member States' competent authorities shall ensure that any decision imposing the remedial measures or administrative sanctions is properly reasoned and is subject to a right of appeal.
Amendment 197 #
Proposal for a regulation
Article 25 – paragraph 1
Article 25 – paragraph 1
No sooner than five years after the date of entry into force of this Regulation and once sufficient data have become available, the Commission shall carry out an evaluation of this Regulation assessing whether it has achieved its objectives to eliminate undue regulatory hindrances to the emergence of SBBSs. It shall in particular evaluate whether ESMA should assume the role of the sole competent authority with regard to the provisions of this Regulation.