BETA

15 Amendments of Gay MITCHELL related to 2009/0064(COD)

Amendment 239 #
Proposal for a directive
Recital 15
(15) Given that an AIFM may employing high levels of leverage inat their investment strategies level of the AIF and may, under certain conditions, contribute to the build up of systemic risk or disorderly markets, special requirements should be imposed on AIFM using certain techniques giving rise to particular riskemploying leverage on a systemically significant basis. The information needed to detect, monitor and respond to those risks has not been collected in a consistent way throughout the CommunityUnion, and shared across Member States so as to identify potential sources of risk to the stability of financial markets in the CommunityUnion. To remedy this situation, special requirements should apply to AIFM, which consistently use highemploy leverage at the levels of leverage in their investment strategies. Thosethe AIF on a systemically significant basis. Such AIFM should be obliged to disclose information regarding their use and sources of leverage. That information in their AIF. Information gathered by competent authorities should be aggregated and shared with other authorities in the CommunityUnion, so as to facilitate a collective analysis of the impact of the leverage of thoseAIF managed by AIFM on the financial system in the CommunityUnion, as well as a common response.
2010/02/12
Committee: ECON
Amendment 248 #
Proposal for a directive
Recital 16
(16) Activities of AIFM based on the use of high levels of leverage could be detrimental to the stability and efficient functioning of financial markets. It is considered necessary to allow the Commission to impose limits on the level of leverage that AIFM could use, in particular in those cases where AIFM employ high levels of leverage on a systematic basisIt is considered necessary to allow the competent authorities of the home Member State of the AIFM to impose limits on the level of leverage that AIFM could employ in AIF where the stability and integrity of the financial system may be threatened. Those limits to the maximum amount of leverage should take into account aspects related to the source of leverage and the strategies employed by the AIFM, as well as the market conditions in which the AIF operates. They should also take into account the essentially dynamic nature of the management of leverage by most AIFM using a high level of leverage. I in this respect the limits to leverage could for example either consist in a threshold that should not be breached at any point in time or a limit on the average leverage employed during a given period (i.e. monthly or quarterly)eir AIF and possible pro-cyclical effects.
2010/02/12
Committee: ECON
Amendment 482 #
Proposal for a directive
Article 3 – point l
(l) ‘Leverage’ means any method by which the AIFM increases the exposure of an AIF it manages to a particular investments whether through borrowing of cash or securities, or leverage embedded in derivative positions or; the level of leverage shall bye any other meanssessed in all cases on an appropriately netted and risk-adjusted basis;
2010/02/15
Committee: ECON
Amendment 492 #
Proposal for a directive
Article 3 – paragraph 1 a (new)
The Commission shall adopt delegated acts in accordance with Articles 49a, 49b and 49c with a view to clarifying the methods of leverage as defined in point (l) of the first paragraph and for the purpose of Article 21(4) specifying when leverage is considered to be employed on a systemically significant basis and how leverage shall be calculated.
2010/02/15
Committee: ECON
Amendment 869 #
Proposal for a directive
Article 17 – paragraph 3
3. The depositary shall be: (a) a credit institution having its registered office in the Community and be authorised in accordance with Directive 2006/48/EC of the European Parliament and Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions (recast).;
2010/02/15
Committee: ECON
Amendment 879 #
Proposal for a directive
Article 17 – paragraph 3 – point a d (new)
(ad) an investment firm authorised in accordance with Directive 2004/39/CE;
2010/02/15
Committee: ECON
Amendment 884 #
Proposal for a directive
Article 17 – paragraph 3 – point a e (new)
(ae) a legal person which is authorised by the competent authorities of the home Member State of the AIF to act as a depositary, which is subject to prudential regulation and ongoing supervision and which can ptovide sufficient financial an professional guarantees to be able to effectively perform the relevant depositary functions and meet the commitments inherent to those functions.
2010/02/15
Committee: ECON
Amendment 1188 #
Proposal for a directive
Article 22
Article 22 Scope This section shall apply only to AIFM which manage one or more AIF employing high levels of leverage on a systematic basis. AIFM shall assess on a quarterly basis whether the AIF employs high levels of leverage on a systematic basis and shall inform the competent authorities accordingly. For the purposes of the second subparagraph, an AIF shall be deemed to employ high levels of leverage on a systematic basis where the combined leverage from all sources exceeds the value of the equity capital of the AIF in two out of the past four quarters.deleted
2010/03/08
Committee: ECON
Amendment 1205 #
Proposal for a directive
Article 23
Article 23 Disclosure to investors AIFM managing one or more AIF employing high levels of leverage on a systematic basis shall for each such AIF: (a) disclose to investors the maximum level of leverage which the AIFM may employ on behalf of the AIF as well as any right of re-use of collateral or any guarantee granted under the leveraging arrangement; (b) quarterly disclose to investors the total amount of leverage employed by each AIF in the preceding quarter.deleted
2010/03/08
Committee: ECON
Amendment 1219 #
Proposal for a directive
Article 24
Reporting to competent authorities 1. AIFM managing one or more AIF employing high levels of leverage on a systematic basis shall regularly provide, to the competent authorities of its home Member State, information about the overall level of leverage employed by each AIF it manages, and a break-down between leverage arising from borrowing of cash or securities and leverage embedded in financial derivatives. That information shall include the identity of the five largest sources of borrowed cash or securities for each of the AIF managed by the AIFM, and the amounts of leverage received from each of those entities for each of the AIF managed by the AIFM. 2. The Commission shall adopt implementing measures further specifying the disclosure requirements with regard to leverage and the frequency of reporting to competent authorities and of disclosure to investors. Those measures, designed to amend non- essential elements of this Directive by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 49(3).deleted
2010/03/08
Committee: ECON
Amendment 1240 #
Proposal for a directive
Article 25 – paragraph 2
2. HThe competent authorities of the home Member States shall ensure that all information receivgathered under Article 241, aggregated in respect of all AIFM that ithey supervises, areis made available to other competent authorities of other Member States, to the ESMA and to the ESRB through the procedure set out in Article 46 on supervisory co-operation. ItThey shall, without delay, also provide information through this mechanism, and bilaterally to the competent authorities of other Member States directly concerned, if an AIFM under itstheir responsibility, or the AIF managed by that AIFM, could potentially constitute an important source of counterparty risk to a credit institution or other systemically relevant institution in those other Member States. Or. en Justification
2010/03/08
Committee: ECON
Amendment 1249 #
Proposal for a directive
Article 25 – paragraph 3
3. In order to ensure the stability and integrity of the financial system, the Commission shall adopt implementing measures setting limits to the level of leverage AIFM can employ. These limits should take into account, inter alia, the type of AIF, their strategy and the sources of their leverage. Those measures designed to amend non- essential elements of this Directive by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 49(3).deleted
2010/03/08
Committee: ECON
Amendment 1261 #
Proposal for a directive
Article 25 – paragraph 3 a (new)
3a. The competent authorities shall assess the systemic risks that the use of leverage by an AIFM with respect to the AIF it manages could entail, and when it is deemed necessary in order to ensure the stability and integrity of the financial system, the competent authorities of the home Member State of the AIFM shall impose limits on the level of leverage that an AIFM may employ with respect to the AIF under its management. The competent authorities of the home Member State of the AIFM shall duly inform CESR and the competent authorities of the home Member State of the AIF of actions taken in that respect.
2010/03/08
Committee: ECON
Amendment 1264 #
Proposal for a directive
Article 25 – paragraph 3 b (new)
3b. The Commission shall adopt delegated acts in accordance with Articles 49a, 49b and 49c setting out principles clarifying the circumstances in which competent authorities would exercise the provisions in paragraph 3a, taking into account different strategies of AIF, different market conditions in which AIF operate and possible pro-cyclical effects following from exercising the provisions.
2010/03/08
Committee: ECON
Amendment 1272 #
Proposal for a directive
Article 25 – paragraph 4
4. In exceptional circumstances and when this is required in order to ensure the stability and integrity of the financial system, the competent authorities of the home Member State may impose additional limits to the level of leverage that AIFM can employ. Measures taken by the competent authorities of the home Member States shall have a temporary nature and should comply with the provisions adopted by the Commission pursuant to paragraph 3.deleted
2010/03/08
Committee: ECON