BETA

Activities of Pervenche BERÈS related to 2012/0169(COD)

Plenary speeches (4)

2016/11/22
Dossiers: 2012/0169(COD)

2016/11/22
Dossiers: 2012/0169(COD)

2016/11/22
Dossiers: 2012/0169(COD)

2016/11/22
Dossiers: 2012/0169(COD)

Reports (1)

2016/11/22
Committee: ECON
Dossiers: 2012/0169(COD)
Documents: PDF(710 KB) DOC(612 KB)

Amendments (20)

Pervenche BERÈS

Proposal for a regulation
Recital 6

(6) This Regulation should apply to all products or underlying investments regardless of their form or construction that are manufactured by the financial services industry to provide investment opportunities to retail investors, where the return offered to the investor is exposed to the performance of one or more assets or reference values ~~other than an interest rate~~. This should include such investment products as investment funds, life insurance policies ~~with an~~and their underlying investment ~~element~~s, and retail structured products. For these products, investments are not of a direct kind achieved when buying or holding assets themselves. Instead these products intercede between the investor and the markets through a process of ‘packaging’, wrapping or bundling together assets so as to create different exposures, provide different product features, or achieve different cost structures as compared with a direct holding. Such ‘packaging’ can allow retail investors to engage in investment strategies that would otherwise be inaccessible or impractical, but can also require additional information to be made available, in particular to enable comparisons between different ways of packaging investmentsproducts including assets that would be held directly, such as corporate or sovereign bonds and shares that are offered to the public or admitted to trading on a regulated market.

2013/02/20
Committee: ECON

Pervenche BERÈS

Proposal for a regulation
Recital 11

(11) Retail investors should be provided with the information necessary for them to take an informed investment decision and compare different investment products, but unless the information is short and concise there is a risk they will not use it. The key information document should therefore only contain key information, notably as regards the nature and features of the product, including whether it is possible to lose capital, the costs ~~and~~, the risk ~~profile of the produc~~and the tax regime of the product and its underlying investment, as well as relevant performance information, and certain other specific information which may be necessary for understanding the features of individual types of products, including those intended to be used for retirement planning. The European Commission should consider the opportunity for the European public credit rating agency mentioned in resolution of 16 January 2013 on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EC) No 1060/2009 on credit rating agencies to provide key informations on the risk profile related to sovereign bonds issued by European member states.

2013/02/20
Committee: ECON

Pervenche BERÈS

Proposal for a regulation
Article 1 – paragraph 1

This Regulation lays down uniform rules on the format and content of the key information document to be drawn up by investment product manufacturers and of its annex to be drawn up by the persons selling investment products and uniform rules on the provision of this document to retail investors.

2013/02/20
Committee: ECON

Pervenche BERÈS

Proposal for a regulation
Article 3 – paragraph 1

1. Where investment product manufacturers subject to this Regulation are also subject to Directive 2003/71/EC, this Regulation and Directive 2003/71/EC with the exception of its article 4) paragraph 2 point v) shall both apply.

2013/02/20
Committee: ECON

Pervenche BERÈS

Proposal for a regulation
Article 4 – paragraph 1 – point b – point ii a (new)

(iia) the issuer of transferable securities offered to the public or admitted to trading on a regulated market pursuant to the provisions of directive 2003/71/EC and directly held by the investors.

2013/02/20
Committee: ECON

Pervenche BERÈS

Proposal for a regulation
Article 5 – paragraph 1

The investment product manufacturer shall draw up a key information document in accordance with the requirements laid down in this Regulation for each investment product it produces and shall publish the key information document on aits website ~~of its choice~~ before the investment product can be sold to retail investors. The key information document shall be completed by its annex drawn up by the person selling the investment product where relevant.

2013/02/20
Committee: ECON

Pervenche BERÈS

Proposal for a regulation
Article 5 a (new)

Article 5 a Product approval process 1. Before drawing up a key information document in accordance with Article 5 the product manufacturer shall assess the compatibility of the investment product with the interests of retail investors by establishing a documented product approval process. 2. The product approval process shall ensure that each investment product meets the needs of an identified target market, and shall ensure that the product manufacturer has undertaken an assessment of all likely risks relevant for the needs of the identified target market. Such assessment shall include stress testing of the investment product. 3. The product approval process shall ensure that investment products that are already sold are regularly reviewed in order to ensure that the product continues to be compatible with the interests of the identified target market. 4. The product approval process shall be reviewed annually. The investment product manufacturer shall at all times be able to provide the relevant competent authority with an up to date and detailed description of the nature and the details of the product approval process.

2013/02/20
Committee: ECON

Pervenche BERÈS

Proposal for a regulation
Article 8 – paragraph 2 – point a

(a) under a section at the beginning of the document, the name of the investment product and identity of the investment product manufacturer (name and address of its headquarters); in the same way, the identity of the person selling investment products shall be disclosed in the annex attached to the KID;

2013/02/20
Committee: ECON

Pervenche BERÈS

Proposal for a regulation
Article 8 – paragraph 2 – point h a (new)

(h a) under a section titled "What type of investors is this investment targeting ?", a description of the types of investors for whom the investment product is intended, in terms of risk appetite, investment horizon and financial knowledge. This section shall be filled up based on the product approval process which the product manufacturer has carried out when structuring the investment product.

2013/02/15
Committee: ECON

Pervenche BERÈS

Proposal for a regulation
Article 8 – paragraph 2 a (new)

2 a. Retail investors shall receive a specific insurance document, presenting the main features of the insurance contract, as required by Article 185 of Directive 2009/138/EC. Such a document shall respect all provisions of this Regulation except Article 8.2. Where the contract gives a choice between several units of account, it shall also include a summary table classifying these units in three categories, according to their riskiness. Having regard to Directive 2009/138/EC and consistent with Article 8 of this Regulation, EIOPA shall be empowered to determine : - the main features of the insurance contract - the exact form of the specific insurance document - the content of the specific insurance document, including the asset allocation options offered to the retail investor; - the rules to classify the units in 3 categories The investment product manufacturer shall distribute a KID for each underlying investment of insurance contracts eligible to this Regulation. The underlying investments include the units of account and/or the currency-denominated funds if relevant and the category of riskiness attached to each of them.

2013/02/15
Committee: ECON

Pervenche BERÈS

Proposal for a regulation
Article 8 – paragraph 3 a (new)

3 a. Where applicable, the person selling investment product shall mention: (i) the tax regime of the investment product in the Member State where he actively advices or distributes the investment product; (ii) the costs related to the investment product when he is the intermediary; (iii) the commissions, retrocessions or other benefits related to the transaction paid by the manufacturer or a third party, as provided by Directive 2004/39/EC and Directive 2002/92/EC and directive 2011/61/EU. This information shall be presented in a stand-alone, pre-contractual document not exceeding one page which should be joined as an annex to the key information document at the point of sale.

2013/02/15
Committee: ECON

Pervenche BERÈS

Proposal for a regulation
Article 8 – paragraph 5

5. The Commission shall be empowered to adopt delegated acts in accordance with Article 23 specifying the details of the presentation and the content of each of the elements of information referred to in paragraph 2 and 3(a), the presentation and details of the other information the product manufacturer and the person selling investment products may include within the key information document or its annex as referred to in paragraph 3, and the details of the common format and the common symbol referred to in paragraph 4. The Commission shall take into account the differences between investment products and the capabilities of retail investors as well as the features of investment products that allow the retail investor to select between different underlying investments or other options provided for by the product, including where this selection can be undertaken at different points in time, or changed in the future. Before adopting delegated acts, the Commission shall conduct due retail investor testing in order to select the most appropriate measures for retail investors.

2013/02/15
Committee: ECON

Pervenche BERÈS

Proposal for a regulation
Article 10 – paragraph 2 – point d a (new)

(d a) all measures taken by the person responsible for the breach to ensure his compliance with the Regulation in the future.

2013/02/15
Committee: ECON

Pervenche BERÈS

Proposal for a regulation
Article 11 – paragraph 1

1. Where an investment product manufacturer or a person selling investment products has produced a key information document or its annex which does not comply with the requirements of Articles 6, 7 and 8 on which a retail investor has relied when making an investment decision, such a retail investor may claim from the investment product manufacturer or the person selling investment products damages for any loss caused to that retail investor through the use of the key information document or its annex.

2013/02/15
Committee: ECON

Pervenche BERÈS

Proposal for a regulation
Chapter II a, Articles 13 a, 13 b, 13 c (new)

CHAPTER II a PRODUCT INTERVENTION Article 13a Intervention powers of the ESAs 1. In accordance with Article 9(2) of Regulation (EU) No 1093/2010, of Regulation (EU) No 1094/2010 or of Regulation (EU) No 1095/2010, the ESAs shall monitor investment products or financial instruments which are marketed, distributed or sold in the Union. The ESAs may investigate new investment products or financial instruments before they are marketed, distributed or sold in the Union in cooperation with the competent authorities. 2. In accordance with Article 9(5) of Regulation (EU) No 1093/2010, of Regulation (EU) No 1094/2010 or of Regulation (EU) No 1095/2010, an ESA may, where it is satisfied on reasonable grounds that the conditions in paragraphs 3 and 4 of this Article are fulfilled, temporarily prohibit or restrict in the Union the marketing, distribution or sale of investment products or financial instruments. A prohibition or restriction may apply in circumstances, or be subject to exceptions, specified by ESAs. 3. An ESA shall only take a decision under paragraph 2 if all of the following conditions are fulfilled: (a) the proposed action addresses a significant threat to investor protection or to the orderly functioning and integrity of financial markets or to the stability of the whole or part of the financial system in the Union; (b) regulatory requirements under Union legislation that are applicable to the relevant investment product, financial instrument or activity do not address the threat; (c) a competent authority or competent authorities have not taken action to address the threat or actions that have been taken do not adequately address the threat. Where the conditions set out in the first subparagraph are fulfilled, an ESA may impose the prohibition or restriction referred to in paragraph 2. 4. When taking action under this Article an ESA shall take into account the extent to which the action: (a) does not have a detrimental effect on the efficiency of financial markets or on investors that is disproportionate to the benefits of the action; and (b) does not create a risk of regulatory arbitrage. Where a competent authority or competent authorities have taken a measure under Article 13b, an ESA may take any of the measures referred to in paragraph 2 without issuing the opinion provided for in Article 13c. 5. Before deciding to take any action under this Article, an ESA shall notify the competent authorities of the action it proposes. 6. Before taking a decision under paragraph 2, an ESA shall give notice of its intention to prohibit or restrict an investment product or financial instrument unless certain changes are made to features of the investment product or financial instrument within a specified timescale. 7. Each ESA shall publish on its website notice of any decision to take any action under this Article. The notice shall specify details of the prohibition or restriction and specify a time after the publication of the notice from which the measures will take effect. A prohibition or restriction shall only apply to action taken after the measures take effect. 8. The relevant ESAs shall review a prohibition or restriction imposed under paragraph 2 at appropriate intervals and at least every three months. If the prohibition or restriction is not renewed after that three-month period it shall expire. 9. Action adopted by the ESAs under this Article shall prevail over any previous action taken by a competent authority. 10. The Commission shall adopt delegated acts in accordance with Article 23 specifying criteria and factors to be taken into account by ESAs in determining when the threats to investor protection or to the orderly functioning and integrity of financial markets and to the stability of the whole or part of the financial system of the Union referred to in paragraph 2(a) arise. Those delegated acts shall ensure that the ESAs are able to act, where appropriate, on a precautionary basis and that they are not be required to wait until the investment product or financial instrument has been marketed, distributed or sold, or the type of activity or practice has been undertaken before taking action. Article 13b Product intervention by competent authorities 1. Competent authorities shall monitor the investment products or financial products which are marketed, distributed or sold in or from their Member State and may investigate new investment products or financial instruments before they are marketed, distributed or sold in or from the Member State. 2. A competent authority may prohibit or restrict in or from that Member State: (a) the marketing, distribution or sale of investment products or financial instruments; (b) a type of financial activity or practice. 3. A competent authority may take the action referred to in paragraph 2 if it is satisfied on reasonable grounds that: (a) an investment product, a financial instrument or activity or practice gives rise to significant investor protection concerns or poses a serious threat to the orderly functioning and integrity of financial markets or the stability of whole or part of the financial system within one or more Member States, including through the marketing, distribution, remuneration or provision of inducements related to the investment product or financial instrument; (b) a derivative product has a detrimental effect on the price formation mechanism in the underlying market; (c) existing regulatory requirements under Union law applicable to the investment product, financial instrument or activity or practice do not sufficiently address the risks referred to in point (a) and the issue would not be better addressed by improved supervision or enforcement of existing requirements; (d) the action is proportionate taking into account the nature of the risks identified, the level of sophistication of investors or market participants concerned and the likely effect of the action on investors and market participants who may hold, use or benefit from the financial instrument or activity; (e) the competent authority has properly consulted competent authorities in other Member States that may be significantly affected by the action; and (f) the action does not have a discriminatory effect on services or activities provided from another Member State. Where the conditions set out in the first subparagraph are fulfilled, the competent authority may impose a prohibition or restriction on an investment product or financial instrument marketed, distributed or sold to clients in or from the Member State. A prohibition or restriction may apply in circumstances, or be subject to exceptions, specified by the competent authority. 4. Before imposing a prohibition or restriction under paragraph 2, the competent authority shall give notice of its intention to prohibit or restrict an investment product or financial instrument unless certain changes are made to features of the investment product or financial instrument within a specified timescale. 5. The competent authority shall not impose a prohibition or restriction under this Article unless, not less than one month before it takes the action, it has notified all other competent authorities involved and the ESAs in writing or through another medium agreed between the authorities of details of: (a) the financial instrument or activity or practice to which the proposed action relates; (b) the precise nature of the proposed prohibition or restriction and when it is intended to take effect; and (c) the evidence upon which it has based its decision and upon which is satisfied that each of the conditions in paragraph 3 are met. 6. Where the time needed to consult in accordance with paragraph 3(e) and the one-month delay provided for in paragraph 5 could cause irreversible damage to consumers, the competent authority may take action under this Article on a provisional basis for a period not exceeding three months. In that case the competent authority shall immediately inform all other authorities and the ESAs of the action taken. 7. The competent authority shall publish on its website notice of any decision to impose any prohibition or restriction referred to in paragraph 2. The notice shall specify details of the prohibition or restriction, a time after the publication of the notice from which the measures will take effect and the evidence upon which it is satisfied each of the conditions in paragraph 1 are met. The prohibition or restriction shall only apply in relation to actions taken after the publication of the notice. 8. The competent authority shall revoke a prohibition or restriction if the conditions in paragraph 3 no longer apply. 9. The Commission shall adopt delegated acts in accordance with Article 23 specifying criteria and factors to be taken into account by competent authorities in determining when the threats to investor protection or to the orderly functioning and integrity of financial markets and to the stability of the whole or part of the financial system of the Union referred to in paragraph 3(a) arise. Article 13c Coordination role of the ESAs 1. Each ESA shall perform a facilitation and coordination role in relation to action taken by competent authorities under Article 13b. In particular each ESA shall ensure that action taken by a competent authority is justified and proportionate and that, where appropriate, a consistent approach is taken by competent authorities. 2. After receiving notification under Article 13b of any action that is to be imposed under that Article, an ESA shall adopt an opinion on whether it considers the prohibition or restriction is justified and proportionate. If the ESA considers that the taking of a measure by other competent authorities is necessary to address the risk, it shall also state this in its opinion. The opinion shall be published on the ESA's website. 3. Where a competent authority proposes to take, or takes, action contrary to an opinion adopted by an ESA under paragraph 2 or declines to take action contrary to such an opinion, it shall immediately publish on its website a notice fully explaining its reasons for so doing.

2013/02/15
Committee: ECON

Pervenche BERÈS

Proposal for a regulation
Article 14 – paragraph 1

The investment product manufacturer and the person selling the investment product shall establish appropriate procedures and arrangements which ensure that retail investors who have submitted a complaint in relation to the key information document or the annex to the key information document receive a substantive reply in a timely and proper manner.

2013/02/15
Committee: ECON

Pervenche BERÈS

Proposal for a regulation
Article 19 – paragraph 2 – point d a (new)

(d a) pecuniary sanctions.

2013/02/15
Committee: ECON

Pervenche BERÈS

Proposal for a regulation
Article 21 – paragraph 2

2. The Member States shall once a year provide the competent ESA (EBA, EIOPA ~~and~~or ESMA) with aggregate information regarding ~~all~~the administrative ~~measures and sanction~~penalties and other measures imposed in accordance with Articles 18 and 19(2).

2013/02/15
Committee: ECON

Pervenche BERÈS

Proposal for a regulation
Article 23 – paragraph 2

2. The power to adopt delegated acts referred to in Articles 8(5), 10(2), 12(4), 13a(10) and 1~~2(4~~3b(9) shall be conferred on the Commission for a period of [42 years] from the entry into force of this Regulation. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.

2013/02/15
Committee: ECON

Pervenche BERÈS

Proposal for a regulation
Article 25 – paragraph 1 a (new)

1 a. As from the entry into force of this regulation, investment manufacturers will produce the key information document in accordance with the provisions of the current regulation and will if applicable therefore cease to produce the summary of the prospectus for the financial products as foreseen by article 5 of the Directive 2003/71/EC.

2013/02/15
Committee: ECON