55 Amendments of Erik POULSEN related to 2023/0167(COD)
Amendment 133 #
Proposal for a directive
Recital 10
Recital 10
(10) The level of costs and charges, as well as other more qualitative elements, such as environmental, social and governance (ESG) factors, participating in the real economy, and financial guarantees, that are associated with investment and insurance- based investment products can have a significant impact on investment returns, something that may not always be evident for retail investors. To ensure that products offer Value for Money for retail investors, Member States should ensure that firms authorised under Directive (EU) 2014/65 or Directive (EU) 2016/97 to manufacture or distribute investment products have clear pricing processes that enable a clear identification and quantification of all costs charged to retail investors and are designed to ensure that the costs and charges that are included in investment products or that are linked to their distribution are justified and proportionate in respect of the characteristics, objectives, strategy and expected performance of the product.
Amendment 140 #
Proposal for a directive
Recital 13
Recital 13
Amendment 143 #
Proposal for a directive
Recital 13 a (new)
Recital 13 a (new)
(13a) Embedded in the product governance process, the Value for Money concept could be a consideration of reasonable benefit(s) expected to be provided by the investment, when considering the risk/reward profile and the total costs to the customers as defined in MIFID Delegated Regulation 565/2017, article 50 and annex 2. The benefit(s) should be reasonable, relevant and of a qualitative and/or quantitative nature, meaning that a benefit is not necessarily a return expectation after costs but could also be services.
Amendment 148 #
Proposal for a directive
Recital 15
Recital 15
Amendment 153 #
Proposal for a directive
Recital 17
Recital 17
Amendment 182 #
Proposal for a directive
Recital 34
Recital 34
(34) To ensure that, in the context of advised services, due consideration is given to portfolio diversification, financial advisors should be systematically required to consider the needs of such diversification for their clients or customers, as part of the suitability assessments, including on the basis of information provided by those clients or customers on their existing portfolio of financial and non-financial assets.
Amendment 194 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2014/65/EU
Article 4 – paragraph 1 – point 66 a (new)
Article 4 – paragraph 1 – point 66 a (new)
(66a) ‘Offers’ means actively marketing and providing services and financial instruments without giving a personal recommendation to an investor. However, it is a financial instrument is always offered, if the financial instrument (i) is produced by the investment firm, or (ii) is produced by any enterprise having a close relationship with the investment firm, and (iii) entails that the investment firm receives and retains any benefit, monetary or non-monetary, in relation to the financial instrument. It is a prerequisite for an investment firm willing to provide execution services in financial instruments, which it does not “offer” or “recommend” that the investment firm as part of its product governance arrangements for its investment services has defined which types of financial instruments it is willing to provide execution services in without having defined a target market. However, the investment firm must still ensure that the financial instrument is not sold to the negative target market.
Amendment 213 #
Proposal for a directive
Article 1 – paragraph 1 – point 7 a (new)
Article 1 – paragraph 1 – point 7 a (new)
Directive 2014/65/EU
Article 9 – paragraph 3 – subparagraph 1 and 2
Article 9 – paragraph 3 – subparagraph 1 and 2
"3. Member States shall ensure that the management body of an investment firm defines, oversees and is accountable for the implementation of the governance arrangements that ensure effective and prudent management of the investment firm including the segregation of duties in the investment firm and the prevention of conflicts of interest, and in a manner that promotes the integrity of the market and the interest of clients. Without prejudice to the requirements established in Article 88(1) of Directive 2013/36/EU, those arrangements shall also ensure that the management body define, approve and oversee: (a) the organisation of the firm for the provision of investment services and activities and ancillary services, including the skills, knowledge and expertise required by personnel, the resources, the procedures and the arrangements for the provision of services and activities, taking into account the nature, scale and complexity of its business and all the requirements the firm has to comply with; (b) a policy as to services, activities, products and operations offered or provided, in accordance with the risk tolerance of the firm and the characteristics and needs of the clients of the firm to whom they will be offered or provided, including carrying out appropriate stress testing, where appropriate. The policy must ensure that the intended benefits to the clients are taken into consideration; (c) a remuneration policy of persons involved in the provision of services to clients aiming to encourage responsible business conduct, fair treatment of clients as well as avoiding conflict of interest in the relationships with clients. "
Amendment 228 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 1 – point e
Article 16–a – paragraph 1 – point e
Amendment 238 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 1 – point e a (new)
Article 16–a – paragraph 1 – point e a (new)
(ea) a clear description and assessment of any benefits related to the financial instruments ensuring that they are reasonable and relevant for the intended target market under due consideration to the identified target market’s needs, characteristics and objectives.
Amendment 244 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 1 – subparagraph 3
Article 16–a – paragraph 1 – subparagraph 3
Amendment 250 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 1 – subparagraph 3 a (new)
Article 16–a – paragraph 1 – subparagraph 3 a (new)
Further, the product approval process shall ensure that the investment firm takes the clients best interest into consideration in the manufacturing of the financial instruments and takes into account the benefits to the customer – both monetary and non-monetary – that the financial instruments intent to create.
Amendment 252 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 1 – subparagraph 4
Article 16–a – paragraph 1 – subparagraph 4
Amendment 260 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 1 – subparagraph 4 (new)
Article 16–a – paragraph 1 – subparagraph 4 (new)
Member States shall require investment firms to ensure that the management body has effective control over the firm's product approval process. Investment firms shall ensure that the compliance reports to the management body systematically include information about the financial instruments manufactured by the firm, including information on the distribution strategy and the intended benefits to the clients related to the financial instruments. Investment firms shall make the reports available to their competent authority on request.
Amendment 262 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 1 – subparagraph 5
Article 16–a – paragraph 1 – subparagraph 5
Amendment 266 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 1 – subparagraph 5 (new)
Article 16–a – paragraph 1 – subparagraph 5 (new)
Member States shall require investment firms, when deciding the range of financial instrument and services that they offer or recommend and the respective target markets, to maintain procedures and measures to ensure compliance with all applicable requirements under this directive including those relating to disclosure, assessment of suitability or appropriateness, inducements and proper management of conflicts of interest. The management of conflicts of interest includes assessing whether the intended benefit(s) are reasonable, relevant and of a sufficient qualitative and/or quantitative nature taking into account both monetary and non-monetary benefits when compared to the costs and charges incurred by the client.
Amendment 267 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Amendment 275 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 2a (new)
Article 16–a – paragraph 2a (new)
2a. Member States shall require investment firms as part of the product approval process to undertake a scenario analysis of their financial instruments falling under the definition of packaged retail investment products in accordance with Article 4(1) of Regulation (EU) No 1286/2014 of the European Parliament and of the Council, which shall assess the risks of poor outcomes for end clients posed by the product and in which circumstances these outcomes may occur. The scenario analysis shall take all costs and charges into consideration including estimated reasonable cost linked to distribution of the financial instruments.
Amendment 276 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65
Article 16–a – paragraph 3
Article 16–a – paragraph 3
Amendment 279 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 3 a (new)
Article 16–a – paragraph 3 a (new)
3a. Member States shall require investment firms to determine whether the financial instrument's risk/reward profile is consistent with the target market and whether the financial instrument design is driven by features that benefit the client
Amendment 280 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 4 – subparagraph 1
Article 16–a – paragraph 4 – subparagraph 1
An investment firm shall regularly review financial instruments it offers or recommends, taking into account any event or risk that could materially affect the identified target market, to assess whether the financial instrument remains consistent with the objectives and needs of the identified target market and whether the benefits are still relevant for the identified target market and reasonable compared to the costs and charges. The firm must also consider whether the intended distribution strategy remains appropriate.
Amendment 282 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 4 (new)
Article 16–a – paragraph 4 (new)
Member States shall ensure that investment firms consider the charging structure proposed for the financial instrument, including by examining the following: (a) financial instrument's costs and charges are compatible with the needs, objectives and characteristics of the target market; (b) charges do not undermine the financial instrument's return expectations, such as where the costs or charges equal, exceed or remove almost all the expected tax advantages linked to a financial instrument; (c) the charging structure of the financial instrument is appropriately transparent for the target market, such as that it does not disguise charges or is too complex to understand, and (d) an assessment of the expected return of the financial instruments after all costs and charges including estimated reasonable cost linked to distribution.
Amendment 283 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 4 – subparagraph 2
Article 16–a – paragraph 4 – subparagraph 2
Amendment 297 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 4 – subparagraph 3
Article 16–a – paragraph 4 – subparagraph 3
Amendment 303 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65
Article 16–a – paragraph 4 – subparagraph 4
Article 16–a – paragraph 4 – subparagraph 4
Amendment 312 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65
Article 16–a – paragraph 5 – subparagraph 1
Article 16–a – paragraph 5 – subparagraph 1
Amendment 320 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 6
Article 16–a – paragraph 6
Amendment 330 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 6 a (new)
Article 16–a – paragraph 6 a (new)
6a. An investment firm that offers or recommends financial instruments which it does not manufacture, shall have in place adequate arrangements to obtain the information referred to in paragraph 1 and to understand the characteristics and identified target market of each financial instrument including the benefits assessed to be reasonable and relevant for the identified target market.
Amendment 334 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 7 – introductory part
Article 16–a – paragraph 7 – introductory part
7. An investment firm shall document all assessments made and shall, upon request, provide such assessments to a relevant competent authority, including the following:which offers or recommends financial instruments it does not manufacture shall have in place adequate product governance arrangements that ensures that the investment firm take into account the best interest of the target market and assesses the benefits to the identified target market of the financial instruments as well as the investment services the investment firm offers to clients. When assessing whether the products offered or recommended are compatible with the needs, characteristics and objectives of the identified target market, the investment firm should, when taking into account the product costs as well as service costs, and the benefit(s) provided to the client, make an assessment of whether the products and services cumulatively provide benefits to the client, also taking into consideration the expected investment horizon of the client.
Amendment 339 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65
Article 16–a – paragraph 7 – point a
Article 16–a – paragraph 7 – point a
Amendment 342 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65
Article 16–a – paragraph 7 – point b
Article 16–a – paragraph 7 – point b
Amendment 348 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 8
Article 16–a – paragraph 8
8. An investment firm which manufactures and offers or recommends the financial instrument may establish one pricing process relating to both manufacturing and distribution stagthat provides investment advice shall define a range of financial instruments for which it provides investment advice. The range of financial instruments shall be defined taking into consideration the best interests of the target market. When deciding the range of financial instruments to include when providing investment advice, the investment firm should include complexity, risk and the need for diversification, and the investment firm may decide a range for different groups of clients within the same client category based on client-relationship and interaction and client needs and preferences.
Amendment 352 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 9
Article 16–a – paragraph 9
Amendment 368 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 11
Article 16–a – paragraph 11
Amendment 376 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65
Article 16–a – paragraph 12 – subparagraph 1
Article 16–a – paragraph 12 – subparagraph 1
Amendment 391 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 12 – subparagraph 2
Article 16–a – paragraph 12 – subparagraph 2
Amendment 404 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point a
Article 1 – paragraph 1 – point 12 – point a
Directive 2014/65/EU
Article 24 – paragraph 1
Article 24 – paragraph 1
1. Member States shall require that, when providing investment services or, where appropriate, ancillary services to clients, an investment firm act honestly, fairly and professionally in accordance with the best interests of its clients and comply, in particular, with the principles set out in this Article and Articles 24a to Article 25.;
Amendment 407 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2014/65/EU
Article 24 – paragraph 1 a – introductory part
Article 24 – paragraph 1 a – introductory part
1a. Member States shall ensure that, in order to act in the best interest of the client, when providing investment advice to retail clients for which inducements are received and retained, investment firms are under the obligation of the following:
Amendment 410 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2014/65/EU
Article 24 – paragraph 1 a – point a
Article 24 – paragraph 1 a – point a
(a) to provide advice on the basis of an assessment of an appropriate range of financial instruments; clearly inform the client before the suitability assessment is initiated and before any investment advice is provided: (1) whether the investment advice is provided taking into account a broad range of investment products, including from manufactures not having any close ties with the investment firm, or (2) whether the investment advice is based on a narrow range of financial instruments, including: (i) whether investment advice is only or predominately provided in connection with investment products manufactured by the investment firm, (ii) whether it only includes products manufactured by manufactures with a close relationship to the investment firm, and (iii) whether the investment advice is only or predominately done for investment products providing the investment firm with inducements unless these are of a minor non-monetary character.
Amendment 415 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2014/65/EU
Article 24 – paragraph 1 a – point b
Article 24 – paragraph 1 a – point b
Amendment 421 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2014/65
Article 24 – paragraph 1 a – point b a (new)
Article 24 – paragraph 1 a – point b a (new)
Amendment 425 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2014/65/EU
Article 24 – paragraph 1 a – point c
Article 24 – paragraph 1 a – point c
Amendment 429 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2014/65/EU
Article 24 – paragraph 1 a – point c a (new)
Article 24 – paragraph 1 a – point c a (new)
(ca) if the client asks to have assessed whether a specific financial instrument is suitable, the investment firm shall still inform the client of one or more other relevant financial instruments in accordance with subparagraph b.
Amendment 434 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b – point i (new)
Article 1 – paragraph 1 – point 12 – point b – point i (new)
Directive 2014/65/EU
Article 24 – paragraph 1 a a (new)
Article 24 – paragraph 1 a a (new)
1aa. The cost efficiency referred to in the first subparagraph, point (b), shall be determined on the basis of the investment firm’s assessment of the instrument’s net return expectations after all costs and charges performed under Article 16-a(4), point d with due consideration to the assessment performed according to Article 16-a(7) of the benefits provided to the client.
Amendment 435 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point c
Article 1 – paragraph 1 – point 12 – point c
Directive 2014/65/EU
Article 24 – paragraph 2 – introductory part
Article 24 – paragraph 2 – introductory part
Amendment 436 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point c
Article 1 – paragraph 1 – point 12 – point c
Directive 2014/65/EU
Article 24 – paragraph 2 – subparagraph 1 – point a
Article 24 – paragraph 2 – subparagraph 1 – point a
Amendment 437 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point c
Article 1 – paragraph 1 – point 12 – point c
Directive 2014/65/EU
Article 24 – paragraph 2 – subparagraph 1 – point b
Article 24 – paragraph 2 – subparagraph 1 – point b
Amendment 438 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point c
Article 1 – paragraph 1 – point 12 – point c
Directive 2014/65/EU
Article 24 – paragraph 2 – subparagraph 1 – point c
Article 24 – paragraph 2 – subparagraph 1 – point c
Amendment 486 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24 – paragraph 2
Article 24 – paragraph 2
Amendment 494 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24 – paragraph 3
Article 24 – paragraph 3
Amendment 507 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24a – paragraph 4 – subparagraph 1
Article 24a – paragraph 4 – subparagraph 1
Amendment 511 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24a – paragraph 4 – subparagraph 2
Article 24a – paragraph 4 – subparagraph 2
Amendment 645 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a
Article 1 – paragraph 1 – point 14 – point a
Directive 2014/65
Article 25 – paragraph 2 – subparagraph 1
Article 25 – paragraph 2 – subparagraph 1
Subject to the second subparagraph, when providing investment advice or portfolio management services, the investment firm shall obtain the necessary information regarding the client or potential client’s knowledge and experience in the investment field relevant to the specific type of product or service, that client’s financial situation, including the composition of any existing portfolios, its ability to bear full or partial losses, investment needs and objectives including sustainability preferences, if any, and risk tolerance, so as to enable the investment firm to recommend to the client or potential client the investment services or financial instruments that are suitable for that person, and, in particular, are in accordance with its risk tolerance, ability to bear losses and need for portfolio diversification.
Amendment 649 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a
Article 1 – paragraph 1 – point 14 – point a
Directive 2014/65
Article 25 – paragraph 2 – subparagraph 2
Article 25 – paragraph 2 – subparagraph 2
When providing independent investment advice to retail clients restricted to well- diversified, non- complex, and cost- efficient financial instruments, the independvestment firm shall be under no obligation to obtain information on the retail client or potential retail client’s knowledge and experience about the considered financial instruments or investment services or on the retail client’s existing portfolio composition.
Amendment 652 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a
Article 1 – paragraph 1 – point 14 – point a
Member States shall ensure that investment firms, when providing investment services other than those referred to in paragraph 2, ask the client or potential client to provide information regarding their knowledge and experience in the investment field relevant to the specific type of product or service offered or demanded, and for the retail client or potential retail client, the capacity to bear full or partial losses and risks tolerance so as to enable the investment firm to assess whether the investment service(s) or financial instrument(s) envisaged is appropriate for the client.