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18 Amendments of Stéphanie YON-COURTIN related to 2021/0296(COD)

Amendment 44 #
Proposal for a directive
Recital 13
(13) It is necessary to ensure the suitability and effectiveness of the recovery and resolution framework while avoiding unnecessary administrative burdens and costs on undertakings and authorities. The implementation of such recovery and resolution framework should therefore be proportionate to the nature, scale and complexity of the undertaking concerned, and of its activities and services. In addition, the differences between pre- emptive recovery on the one hand and resolution on the other should be taken into account. Regarding the scope of the recovery and resolution planning requirements, authorities should determine, on the basis of a harmonised set of risk-based criteria, which undertakings are subject to the planning requirements. To foster trust in the insurance and reinsurance single market and to foster a level playing field, a minimum degree of preparedness should be achieved through laying down a minimum market coverage level. That minimum market coverage level should however take into account the differences between recovery on the one hand and resolution on the other, and the existence or absenceset of quantitative criteria. Regarding the scope of the resolution planning requirements, authorities should determine which undertakings are subject to the planning requirements on the basis of athe public interest for taking resolution aassessment or the existence of critical functions.
2022/07/18
Committee: ECON
Amendment 47 #
Proposal for a directive
Recital 15
(15) For an orderly resolution process, and to avoid conflicts of interest, Member States should appoint public administrative authorities or authorities entrusted with public administrative powers to perform the functions and tasks in relation to the recovery and resolution framework. Member States should ensure that adequate resources are allocated to those resolution authorities. Where a Member State designates a resolution authority that has other functions, adequate structural arrangements should be put in place to separate those functions from the functions related to resolution and to ensure operational independence. Such separation should not prevent the resolution function from having access to any information it requires for the exercise of its duties under the recovery and resolution framework, or for cooperation between different authorities involved in the application of the recovery and resolution frameworkprocess.
2022/07/18
Committee: ECON
Amendment 50 #
Proposal for a directive
Recital 20
(20) Resolution planning is an essential component of an effective resolution process. Resolution authorities should therefore have all the information necessary to identify critical functions and ensure their continuation. Insurance and reinsurance undertakings have privileged knowledge of their own functioning and any problems arising from it, and resolution authorities should therefore draw up resolution plans on the basis of, inter alia, the information provided by the undertakings concerned. In order to avoid unnecessary administrative burdens, resolution authorities should primarily retrieve the necessary information from the supervisory authorities.
2022/07/18
Committee: ECON
Amendment 58 #
Proposal for a directive
Recital 31 a (new)
(31 a) To ensure a proper funding for resolution, Member States should establish one or more financing arrangements and notify them to the European Commission. Member States should be responsible for defining the target and methods of financing that they deem more appropriate to their national financing arrangements (ex-ante contributions, ex-post contributions, or alternative funding means, etcetera) on the basis of the size, business model, risk profile, interconnectedness, substitutability and, where applicable, cross-border activity of their national insurance sector.
2022/07/18
Committee: ECON
Amendment 72 #
Proposal for a directive
Article 2 – paragraph 2 – point 7
(7) ‘resolution authority’ means an authority designated by a Member State in accordance withing to Article 3;
2022/07/18
Committee: ECON
Amendment 75 #
Proposal for a directive
Article 2 – paragraph 2 – point 19
(19) ‘critical functions’ means activities, services or operations performed by an insurance or reinsurance undertaking for third parties that cannot be substituted within a reasonable time or at a reasonable cost, and where the inability of the insurance and reinsurance undertaking to perform the activities, services or operations would be likely to have a significant impact on the financial system andor the real economy in one or more Member States, including by affecting the social welfare of a large number of policy holders, beneficiaries or injured parties or by giving rise to systemic disruption or by undermining general confidence in the provision of insurance services;
2022/07/18
Committee: ECON
Amendment 78 #
Proposal for a directive
Article 2 – paragraph 2 – point 19
(19) ‘critical functions’ means activities, services or operations performed by an insurance or reinsurance undertaking for third parties that cannot be substituted within a reasonable time or at a reasonable cost, and where the inability of the insurance and reinsurance undertaking to perform the activities, services or operations would be likely to have a significant impact on the financial system andor the real economy in one or more Member States, including by affecting the social welfare of a large number of policy holders, beneficiaries or injured parties or by giving rise to systemic disruption or by undermining general confidence in the provision of insurance services;
2022/07/18
Committee: ECON
Amendment 79 #
Proposal for a directive
Article 2 – paragraph 2 – point 27
(27) ‘group resolution authority’ means the resolution authority in the Member State in which the group supervisor is situlocated;
2022/07/18
Committee: ECON
Amendment 93 #
Proposal for a directive
Article 5 – paragraph 2 – subparagraph 1
2. The supervisory authority shall subject insurance and reinsurance undertakings to pre-emptive recovery planning requirements on the basis of their size, business model, risk profile, interconnectedness, substitutability and, in particular, the importance for the economy of the Member State in which they operate or of the significance of their cross-border activityies.
2022/07/18
Committee: ECON
Amendment 94 #
Proposal for a directive
Article 5 – paragraph 2 – subparagraph 1 a (new) and 1 b (new)
Supervisory authorities shall ensure that an undertaking shall be subject to pre- emptive recovery planning requirements if any of the following conditions is met: (i) the ratio of its gross written premiums for non-life activities or gross technical provisions for life activities vis-à-vis policyholders located in the Member State in which the undertaking is authorised over the total gross written premiums or total gross technical provisions generated by, respectively, all the non-life or life undertakings authorised in this Member State at least equals to 3%; (ii) the undertaking operates significant cross-border activities; (iii) the undertaking covers 1 million or more policyholders in all Member States where it operates. Notwithstanding the previous subparagraphs, the national supervisory authority may include an undertaking if it considers the undertaking may represent particular risk at national or regional level. The subsidiary insurance or reinsurance undertaking of a group may be exempted by national supervisory authority from drawing up an individual recovery plan if it is part of a group for which the ultimate parent undertaking is drawing up and maintaining a group pre- emptive recovery plan referred to in Article 7.
2022/07/18
Committee: ECON
Amendment 104 #
Proposal for a directive
Article 5 – paragraph 4
4. EIOPA shall issue guidelines in accordance with Article 16 of Regulation (EU) No 1094/2010 to further specify the methods to be used when determining the market shares referred to in paragraph 2, and the criteria, in particular as regards cross-border activity, referred to in paragraph 2, first subparagraph.
2022/07/18
Committee: ECON
Amendment 131 #
Proposal for a directive
Article 9 – paragraph 2 – subparagraph 1
2. Resolution authorities shall draw up resolution plans for each insurance and reinsurance undertakings to be selected on the basis of their size, business model, risk profile, interconnectedness, substitutability and the likely impac subject to pre- emptive recovery planning requirements provided they assess that the public interest would be positive in the event of thea failure on policy holders. When selecting the insurance and reinsurance undertakings subject to resolution planning, the resolution authority shall in particular take into account the cross-border activity of the insurance or reinsurance undertaking and the existence of critical functionsr for which a critical function exists. This assessment should be made on the basis of the resolution objectives and criteria such as size, business model, risk profile, interconnectedness, substitutability and cross-border activity.
2022/07/18
Committee: ECON
Amendment 132 #
Proposal for a directive
Article 9 – paragraph 2 – subparagraph 2
RNotwithstanding the previous subparagraph, resolution authorities shall ensure that at least 7the five riskiest undertakings of the Member State’s life and non-life and reinsurance markets, considered as a single market, or a number of undertakings covering at least 40% of the Member State’s life and non- life and reinsurance markets respectively, where the non-life market share is based on gross written premiums and the life market share is based on gross technical provisions, shall be subject to resolution planning. The riskiness of an insurance or reinsurance undertaking shall be assessed by the resolution authority, in particular on the basis of their size, business model, risk profile, interconnectedness, substitutability and cross-border activity. In the calculation of the market coverage level, the subsidiaries of a group may be taken into account where those subsidiaries are covered in the group resolution plan referred to in Article 10.
2022/07/18
Committee: ECON
Amendment 141 #
Proposal for a directive
Article 9 – paragraph 9
9. EIOPA shall, by [PO – add 18 months after entry into force], issue guidelines in accordance with Article 16 of Regulation (EU) No 1094/2010 to specify further criteria for the identification of critical functions and the determination of the public interest assessment by resolution authorities.
2022/07/18
Committee: ECON
Amendment 168 #
Proposal for a directive
Article 26 – paragraph 2 – subparagraph 2
The conversion of eligible liabilities into capital instruments shall not apply to insurancemay be applied to insurance claims where the resolution authority is able to demonstrate that such measure ensures a better protection of policy holders compared to a write down of their claims.
2022/07/18
Committee: ECON
Amendment 187 #
Proposal for a directive
Article 70 – paragraph 8 a (new)
8 a. A resolution authority shall only take independent resolution actions or measures other than those proposed in the group resolution scheme in relation to an insurance or reinsurance undertaking or an entity referred to in of Article 1(1), points (b) to (e) when such independent resolution actions or measures would have no detrimental impact on other Member States as regards fiscal resources, insurance guarantee schemes or any other financing arrangements.
2022/07/18
Committee: ECON
Amendment 188 #
Proposal for a directive
Article 71 – paragraph 4 a (new)
4 a. A resolution authority shall only take independent resolution actions or measures other than those proposed in the group resolution scheme in relation to an insurance or reinsurance undertaking or an entity referred to in of Article 1(1), points (b) to (e) when such independent resolution actions or measures would have no detrimental impact on other Member States as regards fiscal resources, insurance guarantee schemes or any other financing arrangements.
2022/07/18
Committee: ECON
Amendment 189 #
Proposal for a directive
Title IV a (new)
TITLE IV a FINANCING ARRANGEMENTS Article 71a Requirement to establish financing arrangements 1. Member States shall establish one or more financing arrangements for the purpose of ensuring the effective application by the resolution authority of the resolution tools and powers. Member States shall ensure that the financing arrangements have adequate financial resources. Member States shall ensure that the use of financing arrangements may be triggered by a designated public authority or authority entrusted with public administrative powers. The financing arrangements shall be used only in accordance with the resolution objectives and the resolution principles set out in Articles 18, 22and with Article 73. The Member State shall notify the Commission of the established financial arrangements. 2. Member States may use the same administrative structure as their financing arrangements for the purposes of their insurance guarantee schemes. Article 71b Use of the financing arrangements 1. The financing arrangements established under Article 71a may be used by the resolution authority to the extent necessary to pay compensation to shareholders and creditors, including policyholders, in accordance with Article55. 2. Members States may use financing arrangements to make a contribution to the insurance undertaking under resolution in lieu of the write down or conversion of liabilities with respect to policy holders the resolution authority has decided to exclude from the scope of bail- in in accordance with Article 34 (6). Member States may use the action referred to in the first subparagraph also with respect to the purchaser in the context of the use of the resolution tools. 3. Financing arrangements shall not be used directly to absorb the losses of an insurance undertaking or any entity referred to in points (b) to (e) of Article 1(1), or to recapitalise such an undertaking or entity. 4. Financing arrangements shall make a contribution for the uses referred to paragraphs 1 and 2 only where a full contribution to loss absorption has been made by the shareholders and the holders of other ownership instruments and the holders of subordinated debt instruments. 5. To the extent that the resolution action as proposed by the Member State involves the use of the financing arrangements, the Member State shall notify the Commission of the proposed use of the financing arrangements. Article 71c Cooperation within the Union Where the undertaking under resolution operates within the Union under the right of establishment or the freedom to provide services, the financing arrangements of the Member State in which the undertaking is authorised shall be used for the purposes referred to in paragraphs 1 and 2 of Article 73.
2022/07/18
Committee: ECON