BETA

24 Amendments of Linea SØGAARD-LIDELL related to 2021/0341(COD)

Linea SØGAARD-LIDELL, Billy KELLEHER, Engin EROGLU, Nicola BEER

Proposal for a directive
Recital 46 a (new)

(46 a) In general, the EBA shall duly take into account the proportionality principle with regard to the design of guidelines. Requirements for small, non- complex institutions and other institutions with simple business models should be formulated in a principle-oriented manner only and reflect the lower risk of such institutions.

2022/08/22
Committee: ECON

Linea SØGAARD-LIDELL, Engin EROGLU, Nicola BEER

Proposal for a directive
Recital 46 b (new)

(46 b) Investments shall only be risk- weighted according to their fundamental credit, market and operational risk and not on the basis on whether these investments are aligned with environmental, social or governance criteria.

2022/08/22
Committee: ECON

Linea SØGAARD-LIDELL, Billy KELLEHER, Engin EROGLU, Nicola BEER

Proposal for a directive
Article 1 – paragraph 1 – point 2

Directive 2013/36/EU
Article 4 – paragraph 4 – subparagraph 3 – point b – point i

(i) institutions they have directly supervised, including their direct or indirect parent undertakings, subsidiaries or affiliates, over at least the two preceding years from the date when taking up any new role;deleted

2022/08/22
Committee: ECON

Linea SØGAARD-LIDELL, Billy KELLEHER, Engin EROGLU, Gilles BOYER, Nicola BEER

Proposal for a directive
Article 1 – paragraph 1 – point 6

Directive 2013/36/EU
Article 21c – paragraph 2

2. Where a ~~retail client, an eligible counterparty or a professional client within the meaning of Sections I and II of Annex II to Directive 2014/65/EU~~client or counterparty established or situated in the Union approaches an undertaking established in a third country or a third-country branch in a member state at its own exclusive initiative for the provision of any service or activity referred to in Article 47(1), the requirement laid down in paragraph 1 of this Article shall not apply to the provision to that person of the relevant service or activity, including a relationship specifically related to the provision of that service or activity. Without prejudice to intragroup relationships, where a third country undertaking, including through an entity acting on its behalf or having close links with such third-country undertaking or any other person acting on behalf of such undertaking, solicits clients or potential clients in the Union, it shall not be deemed to be a service provided at the own exclusive initiative of the client.

2022/08/22
Committee: ECON

Linea SØGAARD-LIDELL, Billy KELLEHER, Engin EROGLU, Nicola BEER

Proposal for a directive
Article 1 – paragraph 1 – point 8

Directive 2013/36/EU
Article 47 – title

Article 47 Scope and definitions

2022/08/22
Committee: ECON

Linea SØGAARD-LIDELL, Billy KELLEHER, Engin EROGLU, Gilles BOYER, Nicola BEER

Proposal for a directive
Article 1 – paragraph 1 – point 8

Directive 2013/36/EU
Article 47 – paragraph 1 – point a

(a) any of the activities listed in points 1,2,3 and 6 of Annex I to this Directive by an undertaking established in a third country that would be required to be authorised as a credit institution under this Directive as a result of carrying out those activities if it were established in that Member State.;

2022/08/22
Committee: ECON

Linea SØGAARD-LIDELL, Billy KELLEHER, Engin EROGLU, Nicola BEER

Proposal for a directive
Article 1 – paragraph 1 – point 8

Directive 2013/36/EU
Article 47 – paragraph 1 – point b

(b) the activities referred to in Article 4(1), point (b), of Regulation (EU) 575/2013, by an undertaking established in a third country that fulfils any of the criteria laid down in points (i) to (iii) of that point.deleted

2022/08/22
Committee: ECON

Linea SØGAARD-LIDELL, Billy KELLEHER, Engin EROGLU, Nicola BEER

Proposal for a directive
Article 1 – paragraph 1 – point 8

Directive 2013/36/EU
Article 47 – paragraph 2

2. By derogation from paragraph 1, where the undertaking in the third country is not a credit institution or an undertaking that meets the criteria of paragraph 1, point (b), the carrying out of any of the activities listed in Annex I, points (4), (5), and (7) to (15), to this Directive by that undertaking in a Member State shall be subject to Title II, Chapter IV, of Directive 2014/65/EU.deleted

2022/08/22
Committee: ECON

Linea SØGAARD-LIDELL, Billy KELLEHER, Engin EROGLU, Nicola BEER

Proposal for a directive
Article 1 – paragraph 1 – point 8

Directive 2013/36/EU
Article 47a (new)

Article 47a Limitation on scope and transitional provisions 1. By derogation from Article 47(1), the requirements laid down in Article 21c and Article 48c(1) shall not apply to a third- country undertaking conducting any of the following activities in the Union otherwise than through a branch in the Union: (a) any of the activities referred to in Article 47(1) where the client or counterparty is its subsidiary, its parent undertaking, or another subsidiary of its parent undertaking or another undertaking to which it is related as set out in Article 22 of Directive 2013/34/EU; (b) any of the activities referred to in Article 47(1) where the activities are connected to the provision of any investment services or the performance of investment activities within the meaning of point (2) of Article 4(1) of Directive 2014/65/EU in the Union in accordance with Title VIII of Regulation (EU) No 600/2014 (c) any of the activities referred to in Article 47(1) where the client or counterparty is an institution as defined in point (3) of Article 4(1) of Regulation (EU) 575/2013. 2. Member States may choose not to apply the requirements laid down in Article 21c and Article 48c(1) to an undertaking established in a third country that carries out activities in their Member State otherwise than through a branch in that Member State, where that undertaking carries out the activities referred to in Article 47(1) in that Member State exclusively with persons other than consumers as defined in Article 3 of Directive 2008/48/EC.

2022/08/22
Committee: ECON

Linea SØGAARD-LIDELL, Billy KELLEHER, Engin EROGLU, Nicola BEER

Proposal for a directive
Article 1 – paragraph 1 – point 8

Directive 2013/36/EU
Article 48c – paragraph 1

1. Member States shall require that third country undertakings establish a branch in their territory before commencing or continuing the activities referred to in Article 47(1) in their territory. The establishment of a third country branch shall be subject to prior authorisation in accordance with this Chapter. The first sentence of the first sub-paragraph of this paragraph shall not apply to the provision of any service or activity referred to in Article 47(1) at the exclusive initiative of a client or counterparty in the Union as described in Article 21c(1) and (2).

2022/08/22
Committee: ECON

Linea SØGAARD-LIDELL, Engin EROGLU, Nicola BEER

Proposal for a directive
Article 1 – paragraph 1 – point 12

Directive 2013/36/EU
Article 73 – paragraph 1 – subparagraph 1

Institutions shall have in place sound, effective and comprehensive strategies and processes to assess and maintain on an ongoing basis the amounts, types and distribution of internal capital that they consider adequate to cover the nature and level of the risks to which they are or might be exposed ~~in the short, medium and long term time horizon~~, including environmental, social and governance risks.’;”

2022/08/22
Committee: ECON

Linea SØGAARD-LIDELL, Engin EROGLU, Nicola BEER

Proposal for a directive
Article 1 – paragraph 1 – point 13

Directive 2013/36/EU
Article 74 – paragraph 1 – subparagraph 1 – point b

(b) effective processes to identify, manage, monitor and report the risks they are or might be exposed to ~~in the short, medium and long term time horizon~~, including environmental, social and governance risks;

2022/08/22
Committee: ECON

Linea SØGAARD-LIDELL, Engin EROGLU, Nicola BEER

Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a

Directive 2013/36/EU
Article 76 – paragraph 1

1. Member States shall ensure that the management body approves and at least every two years reviews the strategies and policies for taking up, managing, monitoring and mitigating the risks the institution is or might be exposed to, including those posed by the macroeconomic environment in which it operates in relation to the status of the business cycle, and those resulting from the ~~current, short, medium and long-term~~ impacts of environmental, social and governance factors.;

2022/08/22
Committee: ECON

Linea SØGAARD-LIDELL, Engin EROGLU, Nicola BEER

Proposal for a directive
Article 1 – paragraph 1 – point 14 – point b

Directive 2013/36/EU
Article 76 – paragraph 2 – subparagraph 2

Member States shall ensure that the management body develops specific plans and quantifiable targets to monitor and address the risks arising in the short, medium and long-term from the misalignment of the business model and strategy of the institutions, with the relevant Union policy objectives or broader transition trends towards a sustainable economy in relation to, in determining the business strategy, the management body takes into account the impact of environmental, social and governance factors.;

2022/08/22
Committee: ECON

Linea SØGAARD-LIDELL, Engin EROGLU, Nicola BEER

Proposal for a directive
Article 1 – paragraph 1 – point 17

Directive 2013/36/EU
Article 87 a – paragraph 2

2. The strategies, policies, processes and systems referred to in paragraph 1 shall be proportionate to the scale, nature and complexity of the environmental, social and governance risks of the business model and scope of the institution’s activities~~, and consider short, medium and a long-term horizon of at least 10 years~~.

2022/08/22
Committee: ECON

Linea SØGAARD-LIDELL, Billy KELLEHER, Engin EROGLU, Nicola BEER

Proposal for a directive
Article 1 – paragraph 1 – point 17

Directive 2013/36/EU
Article 87 a – paragraph 4

4. Competent authorities shall assess and monitor developments of institutions’ practices concerning their environmental, social and governance strategy and risk management, including the plans to be prepared in accordance with Article 76, as well as the progress made and the risks to adapt their business models to the relevant policy objectives of the Union or broader transition trends towards a sustainable economy, taking into account, for example, sustainability related product offering, transition finance policies, and related loan origination policies~~, and environmental, social and governance related targets and limits~~.

2022/08/22
Committee: ECON

Linea SØGAARD-LIDELL, Billy KELLEHER, Engin EROGLU, Nicola BEER

Proposal for a directive
Article 1 – paragraph 1 – point 17

Directive 2013/36/EU
Article 87 a – paragraph 5 – subparagraph 1 – point b

(b) the content of plans to be prepared in accordance with Article 76, which shall include specific timelines and intermediate quantifiable targets and milestones, in order to address the risks from misalignment of the business model and strategy of institutions with the relevant policy objectives of the Union, or broader transition trends towards a sustainable economy in relation to environmental, social and governance factors;deleted

2022/08/22
Committee: ECON

Linea SØGAARD-LIDELL, Billy KELLEHER, Engin EROGLU, Nicola BEER

Proposal for a directive
Article 1 – paragraph 1 – point 17

Directive 2013/36/EU
Article 87 a – paragraph 5 – subparagraph 1 – point c

(c) qualitative and quantitative criteria for the assessment of the impact of environmental, social and governance risks on the financial stability of institutions ~~in the short, medium and long term~~;

2022/08/22
Committee: ECON

Linea SØGAARD-LIDELL, Engin EROGLU, Nicola BEER, Andrus ANSIP

Proposal for a directive
Article 1 – paragraph 1 – point 18 – point b

Directive 2013/36/EU
Article 88 – paragraph 3

(b) in Article 88, the following paragraph 3 is added: ‘3. institutions draw up, maintain and update individual statements setting out the roles and duties of each member of the management body, senior management and key function holders and a mapping of duties, including details of the reporting lines and the lines of responsibility, and the persons who are part of the governance arrangements as referred to in Article 74 (1) and their duties approved by the management body. Member States shall ensure that the statements of duties and the mapping of the duties are made available and communicated in due time, upon request, to the competent authorities. EBA shall issue guidelines, in accordance with Article 16 of Regulation (EU) No 1093/2010, ensuring the implementation of this paragraph and its consistent application. EBA shall issue those guidelines by [OP please insert the date = 12 months from date of entry into force of this amending Directive].’deleted Member States shall ensure that

2022/08/22
Committee: ECON

Linea SØGAARD-LIDELL, Engin EROGLU, Nicola BEER, Andrus ANSIP

Proposal for a directive
Article 1 – paragraph 1 – point 20

2. The entities shall assess the suitability of members of the management body before those members take up their positions. Where the entities conclude, based on the suitability assessment, that the member concerned does not fulfil the criteria and requirements set out in paragraph 1, the entities shall ensure that the member concerned does not take up the position considered. However, where it is strictly necessary to replace a member of the management body immediately, the entities may assess the suitability of such replacement members after they have taken up their positions. The entities shall be able to duly justify such immediate replacement.deleted

2022/08/22
Committee: ECON

Linea SØGAARD-LIDELL, Engin EROGLU, Nicola BEER, Andrus ANSIP

Proposal for a directive
Article 1 – paragraph 1 – point 20

Directive 2013/36/EU
Article 91 b – paragraph 3 – subparagraph 2

Competent authorities shall complete the assessment referred to in paragraph 1 within 820 working days (‘assessment period’) as from the date of the written acknowledgement referred to in the first subparagraph of this paragraph.

2022/08/22
Committee: ECON

Linea SØGAARD-LIDELL, Engin EROGLU, Nicola BEER, Andrus ANSIP

Proposal for a directive
Article 1 – paragraph 1 – point 20

Directive 2013/36/EU
Article 91 b – paragraph 4

4. Competent authorities that request from the entities additional information or documentation, including interviews or hearings, may extend the assessment period for a maximum of 40 working days. However, the assessment period shall not exceed 1260 working days. Request for additional information or documentation shall be made in writing and shall be specific. The entities shall acknowledge receipt of request for additional information or documentation within two working days and provide the requested additional information or documentation within 10 working days as of the date of the written acknowledgement of the request from competent authorities.

2022/08/22
Committee: ECON

Linea SØGAARD-LIDELL, Billy KELLEHER, Engin EROGLU, Gilles BOYER, Nicola BEER

Proposal for a directive
Article 1 – paragraph 1 – point 26 – point b

Directive 2013/36/EU
Article 104 a – paragraph 6 – subparagraph 1 – point b

(b) the institution’s competent authority shall, without undue delay, and no later than by the end date of the next review and evaluation process, review the additional own funds it required from the institution in accordance with Article 104(1), point (a), and remove any parts thereof that would (i) double-count the risks that are already fully covered by the fact that the institution is bound by the output floor. , (ii) be considered covered due to the overcapitalisation stemming from the Output Floor, even if not explicitly related to the Output Floor objectives. The institution's competent authority shall also provide a quantified breakdown of the above assessment to the institution.

2022/08/22
Committee: ECON

Linea SØGAARD-LIDELL, Billy KELLEHER, Engin EROGLU, Gilles BOYER, Nicola BEER

Proposal for a directive
Article 1 – paragraph 1 – point 30 – point a

Directive 2013/36/EU
Article 131 – paragraph 5 – subparagraph 2

Where an O-SII becomes bound by the output floor, the following shall apply: (a) the nominal amount of the institution’s O-SII buffer shall not increase as a result of the institution becoming bound by the output floor; (b) its competent or designated authority, as applicable, shall review the institutions O-SII buffer requirement to make sure that its calibration remains appropriate.;

2022/08/22
Committee: ECON