3 Amendments of Eero HEINÄLUOMA related to 2023/0113(COD)
Amendment 27 #
Proposal for a directive
Recital 8
Recital 8
(8) Where then preparing resolution authority considers that an entity that iplans and assessing the resolvability of resolution groups, resolution authorities part of a resolution group qualifies as a liquidation entity, intermediate entities should not be required to deduct from their internal MREL capacity their holdings of own funds or other liabilities that would meet the conditions for compliance with the internal MREL and that are issued by liquidation entities. In such a case, the liquidation entity is no longer required to comply with the MREL, and therefore there is no indirect subscription of internal MREL eligible resources through the chain formed by the resolution entity, the intermediate entity and the liquidation entitye able to consider that a group entity qualifies as a liquidation entity as the exercise of the write-down and conversion powers is not envisaged in respect of that entity directly or indirectly, latter being the case where the entity could be, for example, first merged with other entities before applying the write-down and conversion powers to that merged entity. Where that is the case, the group entity might not need to hold own funds and eligible liabilities in excess of its own funds requirements. In those circumstances, intermediate entities should be required to deduct from their internal MREL capacity their holdings of own funds that are issued by liquidation entities which are not subject to a MREL decision. However, they should not be required to deduct liabilities that would meet the conditions for compliance with the internal MREL. In case of failure, the resolution strategy does not envisage that the liquidation entity would be supportrecapitalised by the resolution entity. That means that the upstreaming of losses above the existing own funds requirements from the liquidation entity to the resolution entity, via the intermediate entity, would not be expected, and neither would the downstreaming of capital in the opposite direction. That adjustment to the scope of the holdings to be deducted in the context of the indirect subscription of internal MREL eligible resources would thus not affect the prudential soundness of the framework.
Amendment 41 #
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point b
Article 1 – paragraph 1 – point 2 – point b
Directive 2014/59/EU
Article – 45c – paragraph 2a – subparagraph 2 – introductory part
Article – 45c – paragraph 2a – subparagraph 2 – introductory part
By way of derogation from the first subparagraph, and where necessary for the objecthe resolution authority shall assess whether it is justified to determine the requirement referred to in Article 45(1) for liquidation entitives of protecting financial stability or limiting potentialn an individual basis in an amount exceeding the amount sufficient to absorb losses in accordance with paragraph 2, point (a), of this Article. The assessment by the resolution authority shall consider the possible consequences of the failure of the liquidation entity concerned and shall, in particular, take into account any possible impacts on financial stability and on the risk of contagion to the financial system,. The resolution authorities may exceptionallyy shall also determine the requirement referred to in Article 45(1) for liquidation entities on an individual basis into an amount exceeding the amount sufficient to absorb losses in accordance with paragraph 2, point (a), of this Article, increased to the amount that is necessary for the achie to such liquidation entities which resolution strategy envisages the use of alternative ment of those objectivesasures according to Article 11(6) of Directive 2014/49/EU. In those cases, liquidation entities shall meet the requirement referred to in Article 45(1) by using one or more of the following:
Amendment 57 #
Proposal for a directive
Article 1 – paragraph 1 – point 3 – point a
Article 1 – paragraph 1 – point 3 – point a
Directive 2014/59/EU
Article 45f – paragraph 1 – subparagraph 3a – point b
Article 45f – paragraph 1 – subparagraph 3a – point b
(b) compliancethere is no current or foreseen material practical or legal impediment to the prompt transfer of own funds or repayment of liabilities to the subsidiary and the exemption from the obligation to comply with the requirement laid down in Article 45c on a consolidatedn individual basis does not negatively affect in a significant way the resolvability of the resolution group, or the write down or conversion, in accordance with Article 59, of relevant capital instruments and eligible liabilities of the subsidiary concerned or of other entities in the resolution group.;