82 Amendments of Billy KELLEHER related to 2021/0376(COD)
Amendment 118 #
Proposal for a directive
Recital 2
Recital 2
(2) A robust delegation regime, an equal treatment of custodians, coherence of supervisory reporting through the removal of duplications and redundant requirements and a harmonised approach to the use of LMTs are equally necessary for the management of undertakings for collective investment in transferable securities (‘UCITS’). Therefore, it is appropriate to also amend Directive 2009/65/EC of the European Parliament and of the Council26, which lays down rules regarding the authorisation and operation of UCITS, in the areas of delegation, asset safekeeping, supervisory reporting and liquidity risk management. __________________ 26 Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (OJ L 302, 17.11.2009, p. 32).
Amendment 129 #
Proposal for a directive
Recital 6
Recital 6
(6) To develop a reliable overview of delegation activities in the Union governed by Article 20 of Directive 2011/61/EU and to inform future policy decisions or supervisory actions, competent authorities should provide the European Securities and Markets Authority (‘ESMA’) with delegation notifications where an AIFM delegates more portfolio management, or risk management functions of the AIF, foster convergence in the supervision of delegation amongst the national competent authorities, ESMA should use information shared with it by the competent authorities to monitor the supervision of delegation and the development of the practice within the Union and to third countries. ESMA should, on a risk-based approach, use all means withain it manages itself to entities located in third countrs competence to promote supervisory convergence, including conducting peer reviews.
Amendment 133 #
Proposal for a directive
Recital 7
Recital 7
(7) In order to ensure consistent harmonisation of the notification processreporting requirement in the area of delegation, power should be delegated to the Commission to adopt regulatory technical standards by means of delegated acts pursuant to Article 290 of the Treaty on the Functioning of the European Union (TFEU) in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010 of the European Parliament and of the Council30 to specify the contents, forms and procedures to standardise the notification process of the AIFMs’ delegation arrangements. The notification form should contain data fields indicating the activities making up the risk and portfolio management functions in order to determine whether an AIFM has delegated more of such functions than it has retained. Those regulatory technical standards should be adopted on the basis of a draft developed by ESMA. __________________ 30 Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84).
Amendment 137 #
Proposal for a directive
Recital 7 a (new)
Recital 7 a (new)
(7 a) The marketing of AIFs is not always conducted by the AIFM directly but by one or several distributors either on behalf of the AIFM or on their own behalf. There could also be cases where an independent financial advisor markets a fund without the AIFM’s knowledge. Most fund distributors are subject to regulatory requirements pursuant to Directive2014/65/EU or Directive 2016/97/EU, which define the scope and extent of their responsibilities towards their own clients. Directive 2011/61/EU should therefore acknowledge the diversity of distribution arrangements and distinguish between arrangements whereby a distributor operates on behalf of the AIFM, which should be considered to be a delegation arrangement, and arrangements whereby a distributor acts on its own behalf, in which case the provisions of that Directive regarding delegation should not apply.
Amendment 140 #
Proposal for a directive
Recital 8 a (new)
Recital 8 a (new)
(8 a) White-label services, by their very nature, can entail a systematic risk of conflict of interest and moral hazard and therefore require a heightened level of supervision. AIFMs intending to provide such services should notify their intentions to the competent authority detailing the measures they intend to take to mitigate the conflict of interest and ensure a clear delineation of tasks and responsibilities.
Amendment 142 #
Proposal for a directive
Recital 9
Recital 9
(9) Common rules should also be laid down to establish an efficient internal market for loan-originating AIFs, to ensure a uniform level of investor protection in the Union, to make it possible for AIFs to develop their activities by originating loans in all Member States of the Union and to facilitate the access to finance by EU companies, a key objective of the Capital Markets Union (‘CMU’).31 However, given the fast-growing private credit market, it is necessary to address the potential micro risks and macro prudential risks that loan originating AIFs could pose and spread to the broader financial system. The rules applicable to AIFMs managing loan- originating funds should be harmonised in order to improve risk management across the financial market and increase transparency for investors. The provisions laid down in this Directive that are applicable to AIFMs that manage loan- originating AIFs should not prevent Member States from implementing national product frameworks that define certain categories of AIFs and the applicable requirements. __________________ 31 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, A Capital Markets Union for people and businesses-new action plan (COM/2020/590 final).
Amendment 146 #
Proposal for a directive
Recital 13
Recital 13
(13) Directive 2011/61/EU should recognise the right of AIFs to originate loans and trade those loans on the secondary market. To avert moral hazard and maintain the general credit quality of loans, with the exception of shareholder loans, originated by AIF’s, such loans should be subject to risk retention requirements to avoid situations in which loans are originated with the sole purpose of selling them.
Amendment 147 #
Proposal for a directive
Recital 14
Recital 14
(14) Long-term, illiquid loans held by AIF may create liquidity mismatches if the AIFs open-ended structure allows investors to redeem their fund units or shares on a frequent basis. It is therefore necessary to mitigate risks related to maturity transformation by imposing a closed-ended structure for AIFs originating loans to a significant extent because close-ended funds would not be vulnerable to redemption demands and could hold originated loans to maturity. There should be a grace period for AIFs that reach the prescribed threshold for loan origination vis-a-vis the net asset value of the fund to allow the AIFM to take measures to restore the liquidity of the fund.
Amendment 151 #
Proposal for a directive
Recital 14 a (new)
Recital 14 a (new)
(14 a) Funds with the purpose of directly investing in sustainable and social causes, in accordance with Article 2(17) and Article 9 of Regulation (EU) 2019/20881a should not be subject to a limitation on the extent of their loan origination activities. __________________ 1a Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability- related disclosures in the financial services sector (OJ L 317, 9.12.2019, p. 1– 16).
Amendment 152 #
Proposal for a directive
Recital 16
Recital 16
(16) To support market monitoring by the supervisory authorities the information gathering and sharing through supervisory reporting could be improved. Duplicative reporting requirements that exist under Union and national legislation, in particular Regulation (EU) No 600/2014 of the European Parliament and of the Council35 , Regulation (EU) 2019/834 of the European Parliament and of the Council36 , Regulation (EU) No 1011/2012 of the European Central Bank37 and Regulation (EU) No 1073/2013 of the European Central Bank38 , could be eliminated to improve efficiency and reduce administrative burdens for AIFMs. The European supervisory authorities (‘ESAs’) and the European Central Bank (ECB), with the support of national competent authorities, where necessary, should assess the data needs of the different supervisory authorities so that the changes to the supervisory reporting template for AIFMs are effective. Reporting requirements need to remain as similar as possible, so as to not overburden AIFMs when reporting to different institutions. In order to achieve that objective, the reporting requirements on the obligation to report the information on the assets and liabilities of investment funds to national central bank should be aligned. __________________ 35 Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 Text with EEA relevance (OJ L 173, 12.6.2014, p. 84). 36 Regulation (EU) 2019/834 of the European Parliament and of the Council of 20 May 2019 amending Regulation (EU) No 648/2012 as regards the clearing obligation, the suspension of the clearing obligation, the reporting requirements, the risk-mitigation techniques for OTC derivative contracts not cleared by a central counterparty, the registration and supervision of trade repositories and the requirements for trade repositories (OJ L 141, 28.5.2019, p. 42). 37 Regulation (EU) No 1011/2012 of the European Central Bank of 17 October 2012 concerning statistics on holdings of securities (OJ L 305, 1.11.2012, p. 6). 38 Regulation (EU) No 1073/2013 of the European Central Bank of 18 October 2013 concerning statistics on the assets and liabilities of investment funds (OJ L 297, 7.11.2013, p. 73).
Amendment 153 #
Proposal for a directive
Recital 17
Recital 17
(17) In preparation for the future changes to the supervisory reporting obligations the scope of the data that can be required from AIFMs should be widened by removing the limitations, which focus on major trades and exposures or counterparties. If ESMA determines that a full portfolio disclosure to supervisors on a periodic basis is warranted, the provisions of Directive 2011/61/EU should accommodate the necessary broadening of the reporting scope. Furthermore, ESMA should be mandated with drafting a report for the development of an integrated supervisory data collection that will be forwarded to the Commission.
Amendment 155 #
Proposal for a directive
Recital 21
Recital 21
(21) To enable managers of open-ended AIFs based in any Member State to deal with redemption pressures under stressed market conditions, they should be required to choose at least onetwo LMTs from the harmonised list set out in the Annex, in addition to the possibility to suspend redemptions. When aAn AIFM takes a decision toshould, without delay, notify the competent authorities of its home Member States when activateing or deactivateing the LMT, it should notify the supervisory authoritisuspension of redemptions and subscriptions or redemption gates. This would allow supervisory authorities to better handle potential spill-overs of liquidity tensions into the wider market. An AIFM should also notify the activation or deactivation of any other liquidity management tool when done so in a manner that is not in the ordinary course of business as envisaged in the fund documentation.
Amendment 160 #
Proposal for a directive
Recital 24
Recital 24
(24) To ensure investor protection and to address financial stability risks, in exceptional circumstances, the competent authorities should be able to request that a manager of an open-ended fund activate or deactivate the appropriate LMT.
Amendment 164 #
Proposal for a directive
Recital 28
Recital 28
(28) To support supervisory convergence in the area of delegation, ESMA should conduct peer review on the supervisory practices with a particular focus on preventing the creation of letter- box entities. ESMA’s analysis of the peer reviews will feed into the review of the measures adopted in this Directive and inform the European Parliament, the Council and the Commissionget a better understanding of the application of the provisions of this Directive, including in the area of appropriate oversight and control of the delegation arrangements, in all the Member States. To that end, it should draw on reporting obligations to competent authorities, and on the exercise in the area of delegation of its supervisory convergence powers, before the next review of this Directive takes place. ESMA’s analysis of the data collected and of the results of the exercise of its supervisory convergence powers will feed in a report, to be provided before the start of the review, analysing market practices regarding delegation, substance rules, prevention of letter-box entities and compliance with related requirements of the Directive and informing of any additional measures that may be needed to support the effectiveness of the delegation regimes laid down in Directive 2011/61/EU.
Amendment 179 #
Proposal for a directive
Recital 32
Recital 32
Amendment 181 #
Proposal for a directive
Recital 33
Recital 33
(33) The requirements for third-country entities with access to the internal market should be aligned to the standards laid down in the Council conclusions of 2020 on the revised EU list on non-cooperative jurisdictions for tax purposes43 and Directive (EU) 2015/849 of the European Parliament and of the Council.44 In addition, non-EU AIFs or non-EU AIFMs that are subject to national rules and that are active in individual Member States should satisfy the requirement that they are not located in a third country that is deemed un-cooperative in tax matters. Should a jurisdiction be added to the list of jurisdictions deemed uncooperative in tax matters, closed-ended funds should be afforded a two-year grace period before being deemed to be non-compliant with this Directive. __________________ 43 OJ C 64, 27.2.2020, p.8. 44 Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC (OJ L 141, 5.6.2015, p. 73).
Amendment 185 #
Proposal for a directive
Recital 38
Recital 38
Amendment 192 #
Proposal for a directive
Recital 39
Recital 39
(39) In order to ensure consistent harmonisation of the notification procesreporting requirements in the area of delegation, power should be delegated to the Commission to adopt regulatory technical standards by means of delegated acts pursuant to Article 290 of the Treaty on the Functioning of the European Union (TFEU) in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010 of the European Parliament and of the Council45 to specify the contents, forms and procedures to standardise the notification process of UCITS delegation arrangements. The notification form should contain data fields indicating the activities making up the risk and portfolio management functions in order to determine whether a UCITS management company has delegated more of such functions than it has retained. Those regulatory technical standards should be adopted based on a draft developed by ESMA. __________________ 45 Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84).
Amendment 194 #
Proposal for a directive
Recital 39 a (new)
Recital 39 a (new)
(39 a) The marketing of UCITS is not always conducted by the management company directly but by one or several distributors either on behalf of the management company or on their own behalf. There could also be cases where an independent financial advisor markets a fund without the management company’s knowledge. Most fund distributors are subject to regulatory requirements pursuant to Directive 2014/65/EU or Directive 2016/97/EU, which define the scope and extent of their responsibilities towards their own clients. Directive 2009/65/EU should therefore acknowledge the diversity of distribution arrangements and distinguish between arrangements whereby a distributor operates on behalf of the management company, which should be considered to be a delegation arrangement, and arrangements whereby a distributor acts on its own behalf, in which case the provisions of that Directive regarding delegation should not apply.
Amendment 195 #
Proposal for a directive
Recital 39 b (new)
Recital 39 b (new)
(39 b) White-label services, by their very nature, can entail a systematic risk of conflict of interest and moral hazard and therefore require a heightened level of supervision. Management companies intending to provide such services should notify their intentions to the competent authority detailing the measures they intend to take to mitigate the conflict of interest and ensure a clear delineation of tasks and responsibilities.
Amendment 196 #
Proposal for a directive
Recital 42
Recital 42
(42) To enable UCITS management companies based in any Member State to deal with redemption pressures under stressed market conditions, they should be required to choose at least onetwo LMTs from the harmonised list set out in the Annex in addition to the possibility to suspend redemptions. When aA management company takes a decision toshould notify the competent authorities of its home Member State when activateing or deactivateing the LMT, it should notify the supervisory authoritisuspension of redemptions or redemption gates. This would allow supervisory authorities to better handle potential spill-overs of liquidity tensions into the wider market. A management company should also notify the activation or deactivation of any other liquidity management tool when such action is taken in a manner that is not in the ordinary course of business as envisaged in the fund documentation.
Amendment 198 #
Proposal for a directive
Recital 44
Recital 44
(44) To ensure investor protection and to address financial stability risks, in exceptional circumstances, the competent authorities should be able to request that a UCITS management company activates or deactivates the appropriate LMT.
Amendment 203 #
Proposal for a directive
Recital 50
Recital 50
(50) To support supervisory convergence in the area of delegation, ESMA should conduct peer reviews on the supervisory practices particularly focusing on preventing creation of letter-box entities. ESMA’s analysis of the peer reviews would feed into the review of the measures adopted in this Directive and inform the European Parliament, the Council and the Commission whatget a better understanding of the application of the provisions of this Directive, including in the area of appropriate oversight and control of the delegation arrangements, in all the Member States. To that end, it should draw on reporting obligations to competent authorities and on the exercise in the area of delegation of its supervisory convergence powers before the next review of this Directive takes place. ESMA’s analysis of the data collected and of the results of the exercise of its supervisory convergence powers will feed into a report, to be provided before the start of the review, analysing market practices regarding delegation, substance rules, prevention of letter-box entities and compliance with related requirements of the Directive and informing of any additional measures that may be needed to support the effectiveness of the delegation regimes laid down in Directive 2009/65/EC.
Amendment 206 #
Proposal for a directive
Recital 52
Recital 52
(52) Furthermore, to improve supervisory cooperation, ESMA should be able to request that a competent authority presents a case before the ESMA, where that case has cross-border implications and may affect investor protection or financial stability. Competent authorities of the host Member State should remain adequately updated on the evolution of the case. ESMA analyses of such cases will give other competent authorities a better understanding of the discussed issues and will contribute to preventing similar instances in the future and protect the integrity of the UCITS markets.
Amendment 208 #
Proposal for a directive
Article 1 – paragraph -1 (new)
Article 1 – paragraph -1 (new)
Directive 2011/61/EU
Article 2 – paragraph 3 – point f
Article 2 – paragraph 3 – point f
(-1) In Article 2(3), point f is replaced by the following: ‘(f) employee participation schemes or employee savings schemes; for which marketing dispositions of articles 31 and 43 shall not apply to AIFs constituted exclusively for the purpose of purchasing company shares and proposed to employees of these companies within the framework of employee savings schemes’; Or. en (Directive 2011/61/EU)
Amendment 214 #
Proposal for a directive
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Directive 2011/61/EU
Article 4 – paragraph 1 point ap a (new)
Article 4 – paragraph 1 point ap a (new)
(ap a) ‘loan origination’ means the granting of a loan by an AIF as the original lender;
Amendment 217 #
Proposal for a directive
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Directive 2011/61/EU
Article 4 – paragraph 1 – point ap b (new)
Article 4 – paragraph 1 – point ap b (new)
(ap b) ‘shareholder loan’ means: - a loan granted by an AIFs to an undertaking in which it holds directly or indirectly at least 5 % of the capital or voting rights and which cannot be sold to third-parties independently of the capital instruments held by the AIF in the same undertaking; or - a loan issued as interim financing to a company with a view to convert it to an equity investment in the next financing round of the company, and which is subordinated to any other debt of the company;
Amendment 220 #
Proposal for a directive
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Directive 2011/61/EU
Article 4 – paragraph 1 – point ap c (new)
Article 4 – paragraph 1 – point ap c (new)
(ap c) ‘capital’ means aggregate capital contributions and uncalled committed capital, calculated on the basis of amounts investible after deduction of all fees, charges and expenses that are directly or indirectly borne by investors;
Amendment 230 #
Proposal for a directive
Article 1 – paragraph 1 – point 3 – point a
Article 1 – paragraph 1 – point 3 – point a
Directive 2011/61/EU
Article 7 – paragraph 2 – point e
Article 7 – paragraph 2 – point e
(e) information on arrangements made for the delegation and sub-delegation to third parties of functions as referred to in Article 20 and a detailed, including: (i) information on the delegate, specifying the delegate’s domicile and whether it is a regulated entity or not; (ii) a description of the delegated portfolio management and risk management functions; (iii) a description of the retained portfolio management and risk management functions; (iv) a description of the human and technical resources to be usemployed by or committed byto the AIFM for monitoring and controlling the delegate.; and (v) an explanation of the added value of the delegation to the investor;
Amendment 233 #
Proposal for a directive
Article 1 – paragraph 1 – point 3 – point b
Article 1 – paragraph 1 – point 3 – point b
Directive 2011/61/EU
Article 7 – paragraph 5 – subparagraph 1
Article 7 – paragraph 5 – subparagraph 1
The competent authorities shall, on a quarterlyn annual basis, inform ESMA of authorisations granted or withdrawn in accordance with this Chapter, and any changes in the scope of the authorisation by the relevant competent authority, in particular material changes to the information provided in accordance with paragraphs 2 and 3 of this Article.
Amendment 248 #
Proposal for a directive
Article 1 – paragraph 1 – point 3 – point c
Article 1 – paragraph 1 – point 3 – point c
2011/61/EU
Article 7 – paragraph 8
Article 7 – paragraph 8
8. ESMA shall develop draft regulatory technical standards to determine the content of the delegation notificationsreporting and the standard forms, templates and procedures for the transmission of the delegation notificationsreporting in a language customary to the sphere of finance. The standard forms and templates shall include information fields covering all information referred to in paragraph 5, fourth subparagraph.
Amendment 249 #
Proposal for a directive
Article 1 – paragraph 1 – point 3 – point c
Article 1 – paragraph 1 – point 3 – point c
Directive 2011/61/EU
Article 7 – paragraph 9
Article 7 – paragraph 9
Amendment 254 #
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2011/61/EU
Article 8 – paragraph 1 – point c
Article 8 – paragraph 1 – point c
(c) the persons who effectively conduct the business of the AIFM are of sufficiently good repute and are sufficiently experienced also in relation to the investment strategies pursued by the AIF managed by the AIFM, the names of those persons and of every person succeeding them in the office being communicated forthwith to the competent authorities of the home Member States of the AIFM and the conduct of the business of the AIFM being decided by at least two natural persons who are either employed full-time by that AIFM or who are committed full- time or on a full-time equivalent basis to conduct the business of that AIFM and who are resident in the Union meeting such conditions;;
Amendment 261 #
Proposal for a directive
Article 1 – paragraph 1 – point 4 a (new)
Article 1 – paragraph 1 – point 4 a (new)
Directive 2011/61/EU
Article 14
Article 14
(4 a) Article 14 is replaced by the following: "1. Member States shall require AIFMs to take all reasonable steps to identify conflicts of interest that arise in the course of managing AIFs between: (a)the AIFM, including its managers, employees or any person directly or indirectly linked to the AIFM by control, and the AIF managed by the AIFM or the investors in that AIF; (b)the AIF or the investors in that AIF, and another AIF or the investors in that AIF;(c)the AIF or the investors in that AIF, and another client of the AIFM; (d)the AIF or the investors in that AIF, and a UCITS managed by the AIFM or the investors in that UCITS; or (e)two clients of the AIFM. AIFMs shall maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps designed to identify, prevent, manage and monitor conflicts of interest in order to prevent them from adversely affecting the interests of the AIFs and their investors. AIFMs shall segregate, within their own operating environment, tasks and responsibilities which may be regarded as incompatible with each other or which may potentially generate systematic conflicts of interest. AIFMs shall assess whether their operating conditions may involve any other material conflicts of interest and disclose them to the investors of the AIFs. 2. Where organisational arrangements made by the AIFM to identify, prevent, manage and monitor conflicts of interest are not sufficient to ensure, with reasonable confidence, that risks of damage to investors’ interests will be prevented, the AIFM shall clearly disclose the general nature or sources of conflicts of interest to the investors before undertaking business on their behalf, and develop appropriate policies and procedures. 2a. AIFMs intending to provide White- Label services shall submit to the competent authorities of their home Member State detailed explanations and evidence on their compliance with paragraphs 1 and 2. In particular, they shall specify how they prevent systematic conflicts of interest or any other material conflicts of interest arising from their White-Label business activities and how any existing or potential conflicts are effectively managed in the best interest of investors and this is clearly and comprehensively disclosed to investors 3. Where the AIFM on behalf of an AIF uses the services of a prime broker, the terms shall be set out in a written contract. In particular any possibility of transfer and reuse of AIF assets shall be provided for in that contract and shall comply with the AIF rules or instruments of incorporation. The contract shall provide that the depositary be informed of the contract. AIFMs shall exercise due skill, care and diligence in the selection and appointment of prime brokers with whom a contract is to be concluded. 4. The Commission shall adopt, by means of delegated acts in accordance with Article 56 and subject to the conditions of Articles 57 and 58, measures specifying: (a) the types of conflicts of interest as referred to in paragraph 1; (b) the reasonable steps AIFMs are expected to take in terms of structures and organisational and administrative procedures in order to identify, prevent, manage, monitor and disclose conflicts of interest. 5. In order to ensure uniform conditions of application of this Article, ESMA shall develop draft regulatory technical standards to specify: (a) the types of White-Label services and conflicts of interest as referred to in paragraph 2a; (b) the steps AIFMs are expected to take in terms of structures and organisational and administrative procedures in order to identify, prevent, manage, monitor and disclose conflicts of interest arising from the provision of White-Label services; (c) criteria to be used by the relevant competent authorities to assess whether AIFMs comply with their obligations under paragraph 2a. Power is conferred on the Commission to adopt the regulatory technical standards referred to in this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010. Or. en (32011L0061)
Amendment 268 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 – point b
Article 1 – paragraph 1 – point 5 – point b
Directive 2011/61/EU
Article 15 – paragraph 4 c a (new)
Article 15 – paragraph 4 c a (new)
4c a. An AIFM shall ensure that the leverage of a loan-originating AIF it manages represents no more than 100 % of the net asset value of the AIF. The leverage shall be expressed as the ratio between the exposure of an AIF, calculated according to the commitment method as defined by means of the delegated acts referred to in Article 4(3), and its net asset value. Borrowing arrangements which are temporary in nature and are fully covered by contractual capital commitments from investors in the AIF shall not be considered to constitute leverage for the purposes of this paragraph. The requirements set out in the first subparagraph shall apply to AIFs that gain exposure to a loan through a special purpose vehicle which originates a loan for or on behalf of the AIF or AIFM in respect of the AIF.
Amendment 269 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 – point b
Article 1 – paragraph 1 – point 5 – point b
Directive 2011/61/EU
Article 15 – paragraph 4 d – point a a (new)
Article 15 – paragraph 4 d – point a a (new)
(a a) an entity within the same group as the AIFM;
Amendment 272 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 – point b
Article 1 – paragraph 1 – point 5 – point b
Directive 2011/61/EU
Article 15 – paragraph 4 d a (new)
Article 15 – paragraph 4 d a (new)
4d a. The proceeds of the loan, minus the fees for the administration of the loan, shall be attributed to the fund in full. All costs and expenses linked to the administration of the loan shall be clearly disclosed in accordance with Article 23 of this Directive.
Amendment 276 #
Proposal for a directive
Article 1 – paragraph 1 – point 5 – point b
Article 1 – paragraph 1 – point 5 – point b
Directive 2011/61/EU
Article 15 – paragraph 4 e – subparagraph 2
Article 15 – paragraph 4 e – subparagraph 2
The requirement set out in the first subparagraph doesshall not apply to: - shareholder loans, provided that these shareholder loans do not exceed 100% of the AIF’s capital; and - the loans that the AIF has purchased on the secondary market.’;
Amendment 279 #
Proposal for a directive
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Directive 2011/61/EU
Article 16 – paragraph 2a – subparagraph 1
Article 16 – paragraph 2a – subparagraph 1
An AIFM shall ensure that the AIF it manages is closed-ended if the notional value of its originated loans exceeds 60 % of its net asset value for a continuous period of 15 days.
Amendment 283 #
Proposal for a directive
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Directive 2011/61/EU
Article 16 – paragraph 2a a (new)
Article 16 – paragraph 2a a (new)
2a a. The threshold set out in paragraph 2a shall not apply to funds that: - have sustainable investment as their objective, in accordance with Article 2(17) and Article 9 of Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (SHRD); and, - do not exceed EUR 3 billion assets under management.
Amendment 284 #
Proposal for a directive
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Directive 2011/61/EU
Article 16 – paragraph 2b
Article 16 – paragraph 2b
2b. After assessing the suitability in relation to the pursued investment strategy, the liquidity profile and the redemption policy, an AIFM that manages an open- ended AIF shall select at least onetwo appropriate liquidity management tools from the list set out in Annex V, points 2 to 4, 4,5 6 and 8, for possible use in the interest of the AIF’s investors. The AIFM shall implement detailed policies and procedures for the activation and deactivation of any selected liquidity management tools and the operational and administrative arrangements for the use of such tools.
Amendment 286 #
Proposal for a directive
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Directive 2011/61/EU
Article 16 – paragraph 2c
Article 16 – paragraph 2c
2c. An AIFM that manages an open- ended AIF may, in the interest of AIF investors, temporarily suspend the repurchase or redemption of the AIF units or activate other liquidity management tools selected from the list set out in Annex V, points 2 to 4,, 4,5,6 and 8 and included in the fund rules or the instruments of incorporation of the AIFM.
Amendment 289 #
Proposal for a directive
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Directive 2011/61/EU
Article 16 – paragraph 2d
Article 16 – paragraph 2d
2d. An AIFM shall, without delay, notify the competent authorities of its home Member State when activating or deactivating a liquidity management tool mentioned in 2bthe suspension of redemptions and subscriptions or redemption gates. An AIFM shall also notify the activation or deactivation of any other liquidity management tool when done so in a manner that is not in the ordinary course of business as envisaged in the fund documentation.
Amendment 292 #
Proposal for a directive
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Directive 2011/61/EU
Article 16 – paragraph 2f
Article 16 – paragraph 2f
Amendment 296 #
Proposal for a directive
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Directive 2011/61/EU
Article 16 – paragraph 2g
Article 16 – paragraph 2g
2g. ESMA shall develop draft regulatory technical standards on criteria for the selection and use of suitable liquidity management tools by the AIFMs for liquidity risk management, including appropriatwith regards to the disclosures to the investors, taking into account the capability of such tools to reduce undue adv of information related to the use of liquidity mantages for investors that redeem their investments first,ment tools for to manage liquidity and to mitigate financial stability risks by the AIFMs.
Amendment 321 #
Proposal for a directive
Article 1 – paragraph 1 – point 8 – point a
Article 1 – paragraph 1 – point 8 – point a
(c) the third country where the depositary is established is not identified as a high-risk third country pursuant to Article 9(2) of Directive (EU) 2015/849 applicable at the time of the notification to the competent authorities of the AIFM's home Member State;’;
Amendment 332 #
Proposal for a directive
Article 1 – paragraph 1 – point 9 – point b
Article 1 – paragraph 1 – point 9 – point b
Directive 2011/61/EU
Article 23 – paragraph 4 – point d
Article 23 – paragraph 4 – point d
(d) the aggregated amount of the originated loan portfolio;
Amendment 335 #
Proposal for a directive
Article 1 – paragraph 1 – point 9 – point b
Article 1 – paragraph 1 – point 9 – point b
Directive 2011/61/EU
Article 23 – parargraph 4 – point f
Article 23 – parargraph 4 – point f
(f) on a quarterlyn annual basis, any parent company, subsidiary or special purpose entity established in relation to the AIF’s investments by the AIFM, the staff ofany parties to an employment relationship with the AIFM or the AIFM’s direct or indirect affiliates.;
Amendment 336 #
Proposal for a directive
Article 1 – paragraph 1 – point 10 – point a
Article 1 – paragraph 1 – point 10 – point a
Directive 2011/61/EU
Article 24 – paragraph 1 – subparagraph 2a (new)
Article 24 – paragraph 1 – subparagraph 2a (new)
An AIFM shall report to the competent authority any material changes that may affect the scope of the authorisation by that authority
Amendment 341 #
Proposal for a directive
Article 1 – paragraph 1 – point 10 – point b a (new)
Article 1 – paragraph 1 – point 10 – point b a (new)
Directive 2011/61/EU
Article 24 – paragraph 5 – subparagraph 1
Article 24 – paragraph 5 – subparagraph 1
(b a) the first subaragraph of paragraph 5 is replaced by the following "Where necessary for the effective monitoring of systemic risk, the competent authorities of the home Member State may requireest information in addition to that describrequired in this Article, on a periodic as well as on an ad-hoc basis. The competent authorities shall inform ESMA and the ESRB about the additional information requirements. Or. en (32011L0061)
Amendment 357 #
Proposal for a directive
Article 1 – paragraph 1 – point 11
Article 1 – paragraph 1 – point 11
Directive 2011/61/EU
Article 35 – paragraph 2 – point c
Article 35 – paragraph 2 – point c
(c) the third country where the non-EU AIF is established has signed an agreement with the home Member State of the authorised AIFM and with each other Member State in which the units or shares of the non-EU AIF are intended to be marketed, which fully complies with the standards laid down in Article 26 of the OECD Model Tax Convention on Income and on Capital and ensures an effective exchange of information in tax matters, including any multilateral tax agreements, and the third country is not mentioned in Annex I to the Council conclusions of 2020 on the revised EU list on non-cooperative jurisdictions for tax purposes54 applicable at the time of the notification to the competent authorities of the AIFM's home Member State.; If a third-country where the non-EU AIF is established is added to Annex I to the Council’s conclusions of 2020 on the revised EU liston non-cooperative jurisdictions for tax purposed after the time of the notification to the competent authorities, closed-ended funds shall continue to be considered to meet the criteria in this paragraph for a period of 2 years.; __________________ 54 OJ C 64, 27.2.2020, p. 8.
Amendment 361 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2011/61/EU
Article 36 – paragraph 1 – point d
Article 36 – paragraph 1 – point d
(d) the third country where the non-EU AIF is established has signed an agreement with the home Member State of the authorised AIFM and with each other Member State in which the units or shares of the non-EU AIF are intended to be marketed, which fully complies with the standards laid down in Article 26 of the OECD Model Tax Convention on Income and on Capital and ensures an effective exchange of information in tax matters, including any multilateral tax agreements, and that third country is not mentioned in Annex I to the Council conclusions of 2020 on the revised EU list on non-cooperative jurisdictions for tax purposes.; applicable at the time of the notification to the competent authorities of the AIFM home Member State. If a third-country where the non-EU AIF is established is added to Annex I to the Council’s conclusions of 2020 on the revised EU list on non-cooperative jurisdictions for tax purposed after the time of the notification to the competent authorities, closed-ended funds shall continue to be considered to meet the criteria in this paragraph for a period of 2 years.
Amendment 365 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2011/61/EU
Article 37 – paragraph 7 – point f
Article 37 – paragraph 7 – point f
(f) the third country where the non-EU AIFM is established has signed an agreement with the Member State of reference, which fully complies with the standards laid down in Article 26 of the OECD Model Tax Convention on Income and on Capital and ensures an effective exchange of information in tax matters, including any multilateral tax agreements and the third country is not mentioned in Annex I to the Council conclusions of 2020 on the revised EU list on non-cooperative jurisdictions for tax purposes applicable at the time of the notification to the competent authorities of the AIFM home Member State. If a third-country where the non-EU AIF is established is added to Annex I to the Council’s conclusions of 2020 on the revised EU list on non-cooperative jurisdictions for tax purposes after the time of the notification to the competent authorities, closed-ended funds shall continue to be considered to meet the criteria in this paragraph for a period of 2 years.;
Amendment 369 #
Proposal for a directive
Article 1 – paragraph 1 – point 14
Article 1 – paragraph 1 – point 14
Directive 2011/61/EU
Article 38a
Article 38a
Amendment 375 #
Proposal for a directive
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Directive 2011/61/EU
Article 40 – paragraph 2 – point c
Article 40 – paragraph 2 – point c
(c) the third country where the non-EU AIF is established has signed an agreement with the Member State of reference and with each other Member State in which the units or shares of the non-EU AIF are intended to be marketed which fully complies with the standards laid down in Article 26 of the OECD Model Tax Convention on Income and on Capital and ensures an effective exchange of information in tax matters including any multilateral tax agreements, and the third country is not mentioned in Annex I to the Council conclusions of 2020 on the revised EU list on non-cooperative jurisdictions for tax purposes applicable at the time of the notification to the competent authorities of the AIFM home Member State. If a third-country where the non-EU AIF is established is added to Annex I to the Council's conclusions of 2020 on the revised EU list on non-cooperative jurisdictions for tax purposed after the time of the notification to the competent authorities, closed-ended funds shall continue to be considered to meet the criteria in this paragraph for a period of 2 years.;
Amendment 379 #
Proposal for a directive
Article 1 – paragraph 1 – point 16 – point b
Article 1 – paragraph 1 – point 16 – point b
Directive 2011/61/EU
Article 42 – paragraph 1 – point d
Article 42 – paragraph 1 – point d
(d) the third country where the non-EU AIF or non-EU AIFM is established has signed an agreement with the Member State in which the units or shares of the non-EU AIF are intended to be marketed, which fully complies with the standards laid down in Article 26 of the OECD Model Tax Convention on Income and on Capital and ensures an effective exchange of information in tax matters, including any multilateral tax agreements, and that third country is not mentioned in Annex I to the Council conclusions of 2020 on the revised EU list on non-cooperative jurisdictions for tax purposes applicable at the time of the notification to the competent authorities of the AIFM home Member State. If a third-country where the non-EU AIF is established is added to Annex I to the Council's conclusions of 2020 on the revised EU list on non-cooperative jurisdictions for tax purposes after the time of the notification to the competent authorities, closed-ended funds shall continue to be considered to meet the criteria in this paragraph for a period of 2 years.;
Amendment 386 #
Proposal for a directive
Article 1 – paragraph 1 – point 17
Article 1 – paragraph 1 – point 17
Directive 2011/61/EU
Article 46 – paragraph 2 – point j
Article 46 – paragraph 2 – point j
(j) in the interest of investors or of the public, in exceptional circumstances and after consulting the AIFM, require AIFMs to activate or deactivate a liquidity management tool referred to in point 1 or 2 of Annex V or selected by the AIFM in accordance with Article 16(2b), whichever is more suitable considering the type of open-ended AIF or group of open-ended AIFs concerned and investor protection or financial stability risks that necessitate this requirement.;
Amendment 388 #
Proposal for a directive
Article 1 – paragraph 1 – point 18 – point a
Article 1 – paragraph 1 – point 18 – point a
Directive 2011/61/EU
Article 47 – paragraph 3 – point a
Article 47 – paragraph 3 – point a
Amendment 393 #
Proposal for a directive
Article 1 – paragraph 1 – point 19 – point a
Article 1 – paragraph 1 – point 19 – point a
Directive 2011/61/EU
Article 50 – paragraph 5
Article 50 – paragraph 5
5. Where the competent authorities of one Member State have reasonclear and demonstrable grounds to suspect that acts contrary to this Directive are being or have been carried out by an AIFM not subject to supervision of those competent authorities, they shall notify ESMA and the competent authorities of the home and host Member States of the AIFM concerned thereof in as specific a manner as possible. The recipient authorities shall take appropriate action, shall inform ESMA and the notifying competent authorities of the outcome of that action and, to the extent possible, of significant interim developments. This paragraph shall be without prejudice to the competences of the notifying competent authority.;
Amendment 394 #
Proposal for a directive
Article 1 – paragraph 1 – point 19 – point b
Article 1 – paragraph 1 – point 19 – point b
Directive 2011/61/EU
Article 50 – paragraph 5d
Article 50 – paragraph 5d
5d. Based on the information received in accordance with paragraphs 5b and 5c, ESMA shall issue an opinion to the competent authorities of the home Member State of the AIFM on exercising powers laid down in Article 46(2), point (j) or Article 47(4), point (d). The opinion shall be communicated to the authority of the host Member State.
Amendment 395 #
Proposal for a directive
Article 1 – paragraph 1 – point 19 – point b
Article 1 – paragraph 1 – point 19 – point b
Directive 2011/61/EU
Article 50 – paragraph 5e
Article 50 – paragraph 5e
5e. Where the competent authority does not act in accordance or does not intend to comply with ESMA’s opinion referred to in paragraph 5d, it shall inform ESMA and the competent authority of the host Member State, stating its reasons for the non- compliance or intention. ESMA may publish the fact that a competent authority does not comply or intend to comply with its advice. ESMA may also decide, on a case-by-case basis, to publish the reasons provided by the competent authority in this regard together with the reasons stated by the competent authority for the non-compliance or intention, unless such publication is in conflict with the legitimate interest of the share or unit- holders or of the public, or could seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system of the Union. ESMA shall give the competent authorities advance notice about such publication.
Amendment 404 #
Proposal for a directive
Article 1 – paragraph 1 – point 19 – point b
Article 1 – paragraph 1 – point 19 – point b
Directive 2011/61/EU
Article 50 – paragraph 5g
Article 50 – paragraph 5g
5g. ESMA may request the competent authority to submit explanations to ESMA in relation to specific cases, which have cross-border implications, concern investor protection issues or pose risks to the financial stability. within a reasonable timeframe.
Amendment 412 #
Proposal for a directive
Article 1 – paragraph 1 – point 21
Article 1 – paragraph 1 – point 21
Directive 2011/61/EU
Article 69b – paragraph 1 – introductory part
Article 69b – paragraph 1 – introductory part
1. By [Please insert date = 60 months after the entry into force of this Directive] and following the peer reviews by ESMA referred to in Article 38a and reports produced by ESMA in accordance with Article 7(9), the Commission shall initiate a review of the functioning of the rules laid down in this Directive and the experience acquired in applying them. That review shall include an assessment of the following aspects:
Amendment 433 #
Proposal for a directive
Article 2 – paragraph 1 – point 2 – point a
Article 2 – paragraph 1 – point 2 – point a
Directive 2009/65/EC
Article 7 – paragraph 1 – point b
Article 7 – paragraph 1 – point b
(b) the persons who effectively conduct the business of a management company are of sufficiently good repute and are sufficiently experienced also in relation to the type of UCITS managed by the management company, the names of those persons and of every person succeeding them in office being communicated forthwith to the competent authorities and the conduct of the business of a management company being decided by at least two natural persons who are either employed full-time or on a full-time equivalent basis by that management company or who are committed full-time to conduct the business of that management company and who are resident in the Union meeting such conditions;
Amendment 434 #
Proposal for a directive
Article 2 – paragraph 1 – point 2 – point b
Article 2 – paragraph 1 – point 2 – point b
Directive 2009/65/EC
Article 7 – paragraph 1 – point e
Article 7 – paragraph 1 – point e
(e) information is provided by the management company on arrangements made for the delegation to third parties of functions in accordance with Article 13 and a detailed presenta, including: (i) information on the delegate, specifying the delegate’s domicile and whether it is a regulated entity or not; (ii) a description of the delegated portfolio management and risk management functions; (iii) a description of the retained portfolio management and risk management functions; (iv) a description of the human and technical resources to be used by the management companyemployed by or committed to the AIFM for monitoring and controlling the delegate.; and (v) an explanation of the added value of the delegation to the investor.
Amendment 440 #
Proposal for a directive
Article 2 – paragraph 1 – point 3 – point b a (new)
Article 2 – paragraph 1 – point 3 – point b a (new)
Directive 2009/65/EC
Article 13 – paragraph 2a (new)
Article 13 – paragraph 2a (new)
(b a) the following paragraph 2a is added: Management companies intending to provide White-Label services shall submit to the competent authorities of their home Member State detailed explanations and evidence on their compliance with paragraphs 1 and 2. In particular, they shall specify how they prevent systematic conflicts of interest or any other material conflicts of interest arising from their White-Label business activities and how any existing or potential conflicts are effectively managed in the best interest of investors and this is clearly and comprehensively disclosed to investors.
Amendment 444 #
Proposal for a directive
Article 2 – paragraph 1 – point 3 – point c
Article 2 – paragraph 1 – point 3 – point c
Directive 2009/65/EC
Article 13 – paragraph 3
Article 13 – paragraph 3
Amendment 457 #
Proposal for a directive
Article 2 – paragraph 1 – point 3 – point c
Article 2 – paragraph 1 – point 3 – point c
Directive 2009/65/EC
Article 13 – paragraph 4 – subparagraph 1
Article 13 – paragraph 4 – subparagraph 1
ESMA shall develop draft regulatory technical standards to determine: (a) the content of the delegation notificationsreporting and the standard forms, templates and procedures for the transmission of the delegation notificationsreporting in a language customary to the sphere of finance. The standard forms and templates shall include information fields covering all information referred to in paragraph 3; and (b) the types of white-label services and conflicts of interest as referred to in paragraph 2a and the steps Management Companies are expected to take in terms of structures and organisational and administrative procedures in order to identify, prevent, manage, monitor and disclose conflicts of interest arising from the provision of White-Label service.
Amendment 460 #
Proposal for a directive
Article 2 – paragraph 1 – point 3 – point c
Article 2 – paragraph 1 – point 3 – point c
Directive 2009/65/EC
Article 13 – paragraph 5
Article 13 – paragraph 5
Amendment 472 #
Proposal for a directive
Article 2 – paragraph 1 – point 4
Article 2 – paragraph 1 – point 4
Directive 2009/65/EC
Article 18a – paragraph 2
Article 18a – paragraph 2
2. After assessing the suitability in relation to the pursued investment strategy, the liquidity profile and the redemption policy, a management company shall select at least onetwo appropriate liquidity management tools from the list set out in Annex IIA, points 2 to 4,, 4, 5, 6 and 8 and include in the fund rules or the instruments of incorporation of the investment company for possible use in the interest of the UCITS’ investors. The management company shall implement detailed policies and procedures for the activation and deactivation of any selected liquidity management tools and the operational and administrative arrangements for the use of such tools.
Amendment 480 #
Proposal for a directive
Article 2 – paragraph 1 – point 5
Article 2 – paragraph 1 – point 5
Directive 2009/65/EC
Article 20a – paragraph 1
Article 20a – paragraph 1
1. A management company shall regularlyalso report to the competent authorities of its home Member State the information on the markassets and instruments in which it trades on behalf of the UCITS it managesliabilities of investment funds which the company reports to their national central banks under Regulation ECB/2013/38. Management companies may also report any additional reporting requirements introduced under paragraph 1a..
Amendment 488 #
Proposal for a directive
Article 2 – paragraph 1 – point 5
Article 2 – paragraph 1 – point 5
1 a. ESMA is empowered to draft regulatory technical standards obliging management companies to provide national competent authorities with additional information regarding delegation arrangements concerning portfolio management or risk management functions. The draft regulatory technical standards shall specify the details to be reported. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.
Amendment 492 #
Proposal for a directive
Article 2 – paragraph 1 – point 5
Article 2 – paragraph 1 – point 5
Directive 2009/65/EC
Article 20a – paragraph 2
Article 20a – paragraph 2
Amendment 501 #
Proposal for a directive
Article 2 – paragraph 1 – point 5
Article 2 – paragraph 1 – point 5
Directive 2009/65/EC
Article 20a – paragraph 3 – subparagraph 1 – point a
Article 20a – paragraph 3 – subparagraph 1 – point a
(a) the format and data standards for the reports referred to in paragraph 1 and 1a, where applicable;
Amendment 516 #
Proposal for a directive
Article 2 – paragraph 1 – point 8
Article 2 – paragraph 1 – point 8
Directive 2009/65/EC
Article 84 – paragraph 2 – point b
Article 84 – paragraph 2 – point b
(b) in the interest of the unit-holders or of the public, in exceptional circumstances and after consulting the management company, competent authorities of a UCITS home Member State may require a UCITS to activate a liquidity management tool referred to in points 1 or 2 of Annex IIA or selected and notified by the UCITS in accordance with Article 18a(2), whichever is more suitable considering the type of UCITS and the risks that necessitate taking this measure.
Amendment 528 #
Proposal for a directive
Article 2 – paragraph 1 – point 8
Article 2 – paragraph 1 – point 8
Directive 2009/65/EC
Article 84 – paragraph 3d
Article 84 – paragraph 3d
3d. On the basis of the information received in accordance with paragraphs 3b and 3c, ESMA shall issue an opinion to the competent authorities of the UCITS home Member State on exercising powers laid down in paragraph 2, point (b). The opinion shall be communicated to the competent authority of the host Member State.
Amendment 530 #
Proposal for a directive
Article 2 – paragraph 1 – point 8
Article 2 – paragraph 1 – point 8
Directive 2009/65/EC
Article 84 – paragraph 3e
Article 84 – paragraph 3e
3e. Where the competent authority does not act in accordance or does not intend to comply with ESMA’s opinion referred to in paragraph 3d, it shall inform ESMA, stating the reasons for the non- compliance or intention. ESMA may publish the fact that a competent authority does not comply or intend to comply with its advice. ESMA may also decide, on a case-by-case basis, to publish the reasons provided by the competent authority in this regards together with the reasons stated by the competent authority for the non- compliance or intention, unless such publication is in conflict with the legitimate interest of the share or unit- holders or of the public, or could seriously jeopardise the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system of the Union. ESMA shall give the competent authorities advance notice about such publication.’
Amendment 541 #
Proposal for a directive
Article 2 – paragraph 1 – point 9
Article 2 – paragraph 1 – point 9
Directive 2009/65/EC
Article 98 – paragraph 4
Article 98 – paragraph 4
4. ESMA may request the competent authority to submit explanations to ESMA in relation to specific cases, which have cross-border implications, concern investor protection issues or pose risks to the financial stability within a reasonable timeframe.’;
Amendment 543 #
Proposal for a directive
Article 2 – paragraph 1 – point 10
Article 2 – paragraph 1 – point 10
Directive 2009/65/EC
Article 101a
Article 101a
Amendment 550 #
Proposal for a directive
Article 2 – paragraph 1 – point 11
Article 2 – paragraph 1 – point 11
Directive 2009/65/EC
Article 110a – paragraph 1
Article 110a – paragraph 1
By [Please insert date = 30 months after the entry into force of this Directive] and following the peer reviews and analysis referred to in Article 101a and the report produced by ESMA in accordance with Article 13(4), the Commission shall initiate a review of the delegation regime laid down in Article 13 with regard to preventing the creation of letter-box entities in the Union.;
Amendment 559 #
Proposal for a directive
Annex II
Annex II
Directive 2011/61/EU
Annex V – point 7
Annex V – point 7
(7) Redemptions in kind: redemptions- in-kind allow the fund manager to meet a redemption request by transferring securities held by the fund, instead of cash, to the redeeming shareholders. The redemption in-kind is permitted not to correspond to a pro rata share of the assets held by the AIF if that AIF is solely marketed to professional investors or where the aim of that AIF’s investment policy is to replicate the composition of a certain stock or debt securities index, and additionally if that AIF is an Exchange Traded Fundas defined in Article 2(26) of Regulation (EU) No 600/2014 on markets in financial instruments.
Amendment 560 #
Proposal for a directive
Annex IV
Annex IV
Directive 2009/65/EC
Annex IV – point 7
Annex IV – point 7
(7) Redemptions in kind: redemptions- in-kind allow the fund manager to meet a redemption request by transferring securities held by the fund, instead of cash, to the redeeming shareholders. The redemption in-kind is permitted not to correspond to a pro rata share of the assets held by the fund if that fund is solely marketed to professional investors or where the aim of that fund's investment policy is to replicate the composition of a certain stock or debt securities index, and additionally if that fund is an Exchange Traded Fund as defined in Article 2(26) of Regulation (EU) No 600/2014 on markets in financial instruments.