Activities of Pervenche BERÈS related to 2010/0199(COD)
Plenary speeches (1)
Investor-compensation schemes (debate)
Amendments (42)
Amendment 51 #
Proposal for a directive
Recital 8
Recital 8
Amendment 54 #
Proposal for a directive
Recital 12
Recital 12
(12) The minimum level of compensation was established in 1997 and has not been modified since then. This level should be increased to EUR 5100 000 in order to take into account developments in the financial markets and in the Union legislative framework. This amount takes into account the effects of inflation in the Union and the need to better align the level of compensation with the average value of investments held by retail clients in the Member States. In order to increase the protection provided to investors, it is necessary to remove the existing option for Member States to limit or exclude from cover funds in currencies other that those of the Member States.
Amendment 56 #
Proposal for a directive
Recital 13
Recital 13
(13) In order to ensure investors receive the compensation provided for under this Directive and a comparable level of investor protection across Member States, it is necessary to introduce common rules governing the funding of the schemes. The schemes should be financed in proportion to their liabilities. An appropriate level of pre-funding should be ensured and the schemes should have in place adequate arrangements to assess and reach their target funding level prior to the occurrence of any loss event relevantInvestment firms and UCITS should therefore be obliged to contract with an insurance company ensuring the compensation provided for under this Directive 97/9/EC. A common minimum target fundinsurance level should be reached within a tenfive-year period.
Amendment 58 #
Proposal for a directive
Recital 16
Recital 16
(16) In order to ensure that investors receive compensation in due time a last resort borrowing mechanism among national schemEuropean reserve fund among insurance companies in the Union should be established. The system should include the possibility for scheminsurance companies to borrow funds from other schemes reserve in the exceptional case they face a temporary lack of funding. For this purpose, a portion of ex-ante funding in each scheme should be available for lending to other schemes.
Amendment 59 #
Proposal for a directive
Recital 22
Recital 22
(22) Directive 97/9/EC allows Member States to exclude professional and institutional investors from cover but the relevant list is not aligned with the classification of clients of investment firms under Directive 2004/39/EC. In order to ensure consistency between Directives 97/9/EC and 2004/39/EC, to simplify the assessment for compensation schemes and to limit the possible exclusion, in the case of enterprises, only to large undertakings, Directive 97/9/EC should refer to investors who are considered as professional clients according to Directive 2004/39/EC. In order to ensure an appropriate level of protection for all relevant investors, Member States should have the right to include micro-entities, non-profit organisations and public local authorities in order to bring them within the scope of this Directive.
Amendment 60 #
Proposal for a directive – amending act
Article 1 – point 1 – point a
Article 1 – point 1 – point a
Directive 97/9/EC
Article 1 – point 2
Article 1 – point 2
2. 'investment business' shall mean investment services and activities as defined in Article 4(1)(2) of Directive 2004/39/EC and the ancillary service referred to in point 1 of Section B of the Annex I to Directive 2004/39/EC of the European Parliament and of the Council; subject to the financial instruments having been issued in the Union.
Amendment 61 #
Proposal for a directive – amending act
Article 1 – point 1 – point b
Article 1 – point 1 – point b
Directive 97/9/EC
Article 1 – point 4
Article 1 – point 4
4. 'investor' means, in relation to investment business, any person including as legal persons micro-entities, non-profit organisations and public local authorities who has entrusted money or instruments to an investment firm, and in relation to the activities of UCITS, a unit holder or share holder in a UCITS (hereinafter “unit holder”);
Amendment 62 #
Proposal for a directive – amending act
Article 1 – point 2 – point a
Article 1 – point 2 – point a
Directive 97/9/EC
Article 2 – paragraph 1 –subparagraph 1
Article 2 – paragraph 1 –subparagraph 1
1. Each Member State shall ensure that within its territory one or ma compulsorey investor- compensation schemes aresurance system is introduced and officially recognized. Except in the circumstances envisaged in the second subparagraph and in Article 5(3), no investment firm authorized in that Member State or UCITS authorized in that Member State may carry on investment business or carry on activities as a UCITS, unless it belongs to such a schemecontracts an insurance for investment compensation.
Amendment 67 #
Proposal for a directive – amending act
Article 1 – point 2 – point c
Article 1 – point 2 – point c
Directive 97/9/EC
Article 2 – paragraph 2a – subparagraph 1 – point b
Article 2 – paragraph 2a – subparagraph 1 – point b
(b) return to investors any instruments belonging to them and held, administered or managed on their behalf in connection with investment business, provided that the investment firm's or third party's inability is the result of fraud, administrative malpractice, operational error or bad advice.
Amendment 69 #
Proposal for a directive – amending act
Article 1 – point 2 – point c
Article 1 – point 2 – point c
Directive 97/9/EC
Article 2 – paragraph 2a – subparagraph 1 – point b a (new)
Article 2 – paragraph 2a – subparagraph 1 – point b a (new)
(ba) meet indemnity claims concerning misselling or bad advice recognised by a court order.
Amendment 71 #
Proposal for a directive – amending act
Article 1 – point 2 – point c
Article 1 – point 2 – point c
Directive 97/9/EC
Article 2 – paragraph 2a – subparagraph 2
Article 2 – paragraph 2a – subparagraph 2
Member States shall ensure that the compulsory insurance schemes provide coverage where financial instruments or monies are held, administered or managed for or on behalf of an investor, irrespective of the type of investment business being carried on by the firm and of whether or not the firm is acting in accordance with any restriction set out in its authorisation.
Amendment 74 #
Proposal for a directive – amending act
Article 1 – point 2 – point c
Article 1 – point 2 – point c
Directive 97/9/EC
Article 2 – paragraph 2b – subparagraph 1 – introductory part
Article 2 – paragraph 2b – subparagraph 1 – introductory part
A schemecompulsory insurance system shall also provide coverage for UCITS unit holders in accordance with Article 4 where either of the following conditions is met first:
Amendment 81 #
Proposal for a directive – amending act
Article 1 – point 4 – point a
Article 1 – point 4 – point a
Directive 97/9/EC
Article 4 – paragraph 1 – subparagraph 1
Article 4 – paragraph 1 – subparagraph 1
1. Member States shall ensure that schemes provide for coverage of EUR 5100 000 for each investor in respect of the claims referred to in Article 2(2a) or (2c).
Amendment 87 #
Proposal for a directive – amending act
Article 1 – point 4 – point a
Article 1 – point 4 – point a
Directive 97/9/EC
Article 4 – paragraph 1 – subparagraph 2
Article 4 – paragraph 1 – subparagraph 2
Members States which provide for coverage of more than EUR 5100 000 at the time of adoption of this Directive, may maintain that level of coverage for no longer than 3 years from the date for the transposition of this Directive. After that date, those Member States shall ensure that the level of coverage is EUR 5100 000.
Amendment 89 #
Proposal for a directive – amending act
Article 1 – point 4 – point a
Article 1 – point 4 – point a
Directive 97/9/EC
Article 4 – paragraph 1 – subparagraph 5
Article 4 – paragraph 1 – subparagraph 5
Without prejudice to the fourth subparagraph, Member States shall adjust the coverage levels converted into another currency to the amount referred to in this paragraph every five years. Member States may make an earlier adjustment of coverage levels, after having consulted the Commission, following the occurrence of unforeseen events such as currency fluctuations.
Amendment 93 #
Proposal for a directive – amending act
Article 1 – point 5
Article 1 – point 5
Directive 97/9/EC
Article 4a – paragraph 1
Article 4a – paragraph 1
1. Member States shall ensure that schemes have in place adequate systems to determine their potential liabilities. Member States shall ensure that compensation schemes are adequately financed in proportion to their liabilities. Member States should provide ESA (ESMA) and ESA (EIOPA) on a regular basis with relevant information concerning the potential liabilities and the correlated proportional financing.
Amendment 96 #
Proposal for a directive – amending act
Article 1 – point 5
Article 1 – point 5
Directive 97/9/EC
Article 4a – paragraph 2 – subparagraph 1
Article 4a – paragraph 2 – subparagraph 1
Amendment 105 #
Proposal for a directive – amending act
Article 1 – point 5
Article 1 – point 5
Directive 97/9/EC
Article 4a – paragraph 2 – subparagraph 2
Article 4a – paragraph 2 – subparagraph 2
The Commission shall adopt, by means of delegated acts in accordance with Article 13a and subject to the conditions of Articles 13b and 13c, measures to determine the method to calculate the value of monies and financial instruments covered by the protection of the investor compensation schemesurance contracts in order to determine the target fundinsurance level to be established by the scheminsurance companies and to modify the target fundinsurance level taking account of the developments in financial markets.
Amendment 109 #
Proposal for a directive – amending act
Article 1 – – point 5
Article 1 – – point 5
Directive 97/9/EC
Article 4a – paragraph 3
Article 4a – paragraph 3
Amendment 111 #
Proposal for a directive – amending act
Article 1 – point 5
Article 1 – point 5
Directive 97/9/EC
Article 4a – paragraph 3 – subparagraph 1
Article 4a – paragraph 3 – subparagraph 1
3. The target fundinsurance level shall be financed prior to and irrespective of the occurrence of any event relevant under Article 2(2) or (2b). Member States shall ensure that the level of funding for each schemeinsurance company is reached within a ten-five year period after the entry into force of this Directive and that each schemeinsurance company adopts and complies with an appropriate planning in order to fulfil this objective.
Amendment 114 #
Proposal for a directive – amending act
Article 1 – point 5
Article 1 – point 5
Directive 97/9/EC
Article 4a – paragraph 3 – subparagraph 2
Article 4a – paragraph 3 – subparagraph 2
Contributions collected to reach the target fundinsurance level shall only be invested in cash deposits and low-risk assets with a residual term to financial maturity of 24 months or less, which can be liquidated within a time limit not exceeding one month.
Amendment 121 #
Proposal for a directive – amending act
Article 1 – point 5
Article 1 – point 5
Directive 97/9/EC
Article 4a – paragraph 4
Article 4a – paragraph 4
4. Member States shall ensure that the schemes may make additional calls for contribution to the members of the scheme in case the target fund level is insufficient to meet the payment of the compensation claims referred to in Article 9(2). Those additional contributions shall not exceed 0.5% of the covered monies and financial instruments as referred to in paragraph 2 of this Article. Those additional contributions shall not jeopardise the stability of the financial system of the Member State concerned and be based on affordability criteria. Member States may call for additional contributions after having consulted ESA (ESMA), ESA (EIOPA) and the ESRB.
Amendment 124 #
Proposal for a directive – amending act
Article 1 – point 5
Article 1 – point 5
Directive 97/9/EC
Article 4a – paragraph 6
Article 4a – paragraph 6
6. Member States shall ensure that the cost of financing schemeinsurance contracts is ultimately borne in relation to investment business by the investment firms or third party custodians covered by the schemeinsurance contract and in relation to UCITS activities, by UCITS or their depositaries or third parties who are covered by the scheme. Regular contributions by members shall be raised annually.
Amendment 125 #
Proposal for a directive – amending act
Article 1 – point 5
Article 1 – point 5
Directive 97/9/EC
Article 4a – paragraph 7
Article 4a – paragraph 7
Amendment 130 #
Proposal for a directive – amending act
Article 1 – point 5
Article 1 – point 5
Directive 97/9/EC
Article 4a – paragraph 8 – subparagraph 1
Article 4a – paragraph 8 – subparagraph 1
Amendment 134 #
Proposal for a directive – amending act
Article 1 – point 5
Article 1 – point 5
Directive 97/9/EC
Article 4a – paragraph 8 – subparagraph 2
Article 4a – paragraph 8 – subparagraph 2
The Commission may amend, after having consulted the ESRB, by means of delegated acts in accordance with Article 13a and subject to the conditions of Articles 13b and 13c, the percentage of the ex-ante funding amount to be made available for lending to other schemes, taking into account the developments in financial markets.
Amendment 135 #
Proposal for a directive – amending act
Article 1 – point 5
Article 1 – point 5
Directive 97/9/EC
Article 4b – paragraph 1 – subparagraph 1 – introductory part
Article 4b – paragraph 1 – subparagraph 1 – introductory part
1. A schemen insurance company shall have the right to borrow from all other schemesthe European refserreve fund to in Article 2 within the Union provided that all of the following conditions are met:
Amendment 138 #
Proposal for a directive – amending act
Article 1 – point 5
Article 1 – point 5
Directive 97/9/EC
Article 4b – paragraph 1 – subparagraph 1 – point a
Article 4b – paragraph 1 – subparagraph 1 – point a
(a) the borrowing schemeinsurance company is not able to fulfil its obligations under Article 2 (2a) or (2c) because of previous payments made to fulfil those obligations;
Amendment 139 #
Proposal for a directive – amending act
Article 1 – point 5
Article 1 – point 5
Directive 97/9/EC
Article 4b – paragraph 1 – subparagraph 1 – point c
Article 4b – paragraph 1 – subparagraph 1 – point c
(c) the borrowing schemeinsurance company has made recourse to additional contributions referred in Article 4a(4);
Amendment 140 #
Proposal for a directive – amending act
Article 1 – point 5
Article 1 – point 5
Directive 97/9/EC
Article 4b – paragraph 1 – subparagraph 1 – point d
Article 4b – paragraph 1 – subparagraph 1 – point d
(d) the borrowing schemeinsurance company undertakes the legal commitment that the borrowed funds will be used in order to pay claims under Article 2 (2a) and (2c);
Amendment 141 #
Proposal for a directive – amending act
Article 1 – point 5
Article 1 – point 5
Amendment 142 #
Proposal for a directive – amending act
Article 1 – point 5
Article 1 – point 5
Directive 97/9/EC
Article 4b – paragraph 1 – subparagraph 1 – point f
Article 4b – paragraph 1 – subparagraph 1 – point f
(f) the borrowing schemeinsurance company shall state the amount of money requested;
Amendment 143 #
Proposal for a directive – amending act
Article 1 – point 5
Article 1 – point 5
Directive 97/9/EC
Article 4b – paragraph 1 – subparagraph 1 – point g
Article 4b – paragraph 1 – subparagraph 1 – point g
(g) the borrowing schemeinsurance company informs without delay the ESMA and EIOPA and states the reasons why the above conditions are fulfilled and the amount of money requested.
Amendment 144 #
Proposal for a directive – amending act
Article 1 – point 5
Article 1 – point 5
Directive 97/9/EC
Article 4b – paragraph 1 – subparagraph 1 – point g a (new)
Article 4b – paragraph 1 – subparagraph 1 – point g a (new)
(ga) insurance companies covering investment firms, UCITS, depositary and third party should contribute to a European insurance fund. That contribution should amount to 5% of the value of the insurance contracts premiums. The Commission shall adopt, by means of delegated acts measures to determine the conditions and the respective borrowing capacity by which an insurance company can benefit from the European reserve fund.
Amendment 145 #
Proposal for a directive – amending act
Article 1 – point 5
Article 1 – point 5
Directive 97/9/EC
Article 4b– paragraph 1 – subparagraph 3
Article 4b– paragraph 1 – subparagraph 3
Amendment 147 #
Proposal for a directive – amending act
Article 1 – point 5
Article 1 – point 5
Directive 97/9/EC
Article 4b– paragraph 2
Article 4b– paragraph 2
Amendment 148 #
Proposal for a directive – amending act
Article 1 – point 5
Article 1 – point 5
Directive 97/9/EC
Article 4b– paragraph 3 – subparagraph 1
Article 4b– paragraph 3 – subparagraph 1
ESA (ESMA) shall confirm that the requirembe tasked to allocate an independents referred to in paragraph 1 have been met, state the amounts to be lent by each scheme as calculated pursuant to paragraph 2(a) and the initial interest rate pursuant to paragraph 2-(c) as well as the duration of the loan. ating to any investment firm and UCITS providing investment services in order to evaluate the respective risk linked to its activity. This rating should namely take into account track-record, internal organisation, risk management policy of the investment firm and UCITS.
Amendment 149 #
Proposal for a directive – amending act
Article 1 – point 5
Article 1 – point 5
Directive 97/9/EC
Article 4b– paragraph 5 – subparagraph 1
Article 4b– paragraph 5 – subparagraph 1
Amendment 150 #
Proposal for a directive – amending act
Article 1 – point 6
Article 1 – point 6
Directive 97/9/EC
Article 5 – paragraph 3 – introductory part
Article 5 – paragraph 3 – introductory part
3. An investment firm, UCITS, depositary or third party, excluded from an investor- compensation schemesurance contract, may continue to carry on investment business, its UCITS activities or be entrusted with investors' and UCITS financial instruments under the following conditions:
Amendment 151 #
Proposal for a directive – amending act
Article 1 – point 7
Article 1 – point 7
Directive 97/9/EC
Article 9 – paragraph 1 – subparagraph2
Article 9 – paragraph 1 – subparagraph2
The fact that that period has expired may not be invoked by the scheme to deny full coverage to an investor who has been unable to assert his right to compensation in time.
Amendment 157 #
Proposal for a directive – amending act
Article 1 – point 8
Article 1 – point 8
Directive 97/9/EC
Article 10 – paragraph 1 – subparagraph 1
Article 10 – paragraph 1 – subparagraph 1
1. Member States shall ensure that each investment firm or UCITS takes appropriate measures to make available to actual and intending investors the information necessary for the identification of the investor-compensation schemesurance company of which the investment firm or UCITS and its branches within the Union are members or any alternative arrangement provided for under the second subparagraph of Article 2 (1) or Article 5 (3). Investors shall be informed of the provisions of the investor- compensation schemesurance contract or any alternative arrangement applicable, including the amount and scope of the cover offered by the compensation schemeinsurance contract and any rules laid down by the Member States pursuant to Article 2(3). That information shall be made available in a readily comprehensible manner.
Amendment 159 #
Proposal for a directive
Article 2 a (new)
Article 2 a (new)
Article 2a Reporting By 31 December 2012, ESA (ESMA) and ESA (EIOPA) shall assess the staffing and resources needs arising from the assumption of its powers and duties in accordance with this Directive and submit a report to the European Parliament, the Council and the Commission.