[ParlTrack]

Motion for a resolution
Recital A

A. whereas there is at present ~~insufficient~~national and EU regulation of hedge funds and private equity,

2008/05/19
Committee: ECON

Motion for a resolution
Recital E

E. whereas several global, EU and national institutions have, long before the current financial crisis, voiced their concerns in relation to hedge funds and private equity about financial stability, inadequate risk management, excessive debt (leverage) and the valuation of illiquid and complex financial instruments,deleted

2008/05/19
Committee: ECON

Eoin RYAN

Motion for a resolution
Recital K

K. whereas ~~enhanced~~ appropriate levels of transparency towards the public, investors and supervisory authorities, including, in future, any new EU supervisory body, are crucial to ensure such well-functioning and stable financial markets as well as for promoting competition between market actors and products,

2008/05/19
Committee: ECON

Eoin RYAN

Motion for a resolution
Recital L

L. whereas excessive debt required by much of the activities of hedge funds and private equity threatens financial stability, prejudices the realisation of the long-term investment, growth and jobs agenda and is, moreover, unfairly favoured in national tax regimes,deleted

2008/05/19
Committee: ECON

Eoin RYAN

Motion for a resolution
Recital P

P. whereas ~~whilst~~ there is no evidence that those vehicles caused the current financial crisis, they have been involved in the business of non-regulated and highly complex structured products; whereas not being adequately capitalised and thus volatile to turbulences, those vehicles enhanced the crisis,

2008/05/19
Committee: ECON

Eoin RYAN

Motion for a resolution
Paragraph 1

1. Requests the Commission to submit to Parliament by 30 November 2008, on the basis of Article 44, Article 47(2), or Article 95 of the EC Treaty, a legislative proposal or proposals on hedge funds, private equity and other relevant actors, following the detailed recommendations below;deleted

2008/05/19
Committee: ECON

Eoin RYAN

Motion for a resolution
Annex – recommendation 1 – point a

(a) Capital requirements Investment firms, insurance companies, credit institutions, conventional funds (such as UCITS and pension funds/IORPs) have to comply with capital requirements. ~~Whatever the legal structure of hedge fund and private equity vehicles, including limited partnerships, the Commission should ensure that~~The Commission could examine the need for an appropriate capital requirement ~~is introduced~~ at the level of the entity that controls the investment of the fund or funds concerned (i.e. management firm)~~, covering all funds regardless of their place of registration~~.

2008/05/19
Committee: ECON

Eoin RYAN

Motion for a resolution
Annex – recommendation 1 – point c

~~(c) Liquidity The Commission should introduce risk-weighted capital adequacy requirements in respect of liquidity risk in its revision of the Directive 2006/48/EC.~~deleted

2008/05/19
Committee: ECON

Eoin RYAN

Motion for a resolution
Annex – recommendation 1 – point e

(e) Prime brokers The capital requirement of any institution providing prime brokerage services should be increased in line with the complexity and opacity of the structure or nature of the exposures, to which their dealings with hedge funds and private equity expose them. In particular, the provisions of Directives 2006/48/EC and 2006/49/EC should be amended to achieve that result.deleted

2008/05/19
Committee: ECON

Eoin RYAN

Motion for a resolution
Annex – recommendation 1 – point g

(g) EU supervisory authority The Commission should establish a European supervisor covering all financial services sectors: capital markets, securities, insurance and banking sectors. It should further be established whether there should be two such European supervisors: one for prudential regulation and another for conduct of business regulation.deleted

2008/05/19
Committee: ECON

Eoin RYAN

Motion for a resolution
Annex – recommendation 2 – point a

(a) Registration and authorisation of management companies and funds' managers The Commission should establish an EU framework for the registration and authorisation of entities that control the investment of hedge funds or private equity (i.e. management firms), which should function on a single entry point basis: once authorised, the entities concerned should have access to undertake business throughout the EU. In order to promote a well-functioning single European financial market, the Commission should ensure that management firms disclose the following: - the name and domicile of funds they control, - the identity of managers, - corporate earnings and bonuses, - remuneration of directors, senior executives and other staff with investment responsibilities, and - relationships with prime brokers. That information should be set out in a uniform format (also to facilitate the proposal for a database below).deleted

2008/05/19
Committee: ECON

Eoin RYAN

Motion for a resolution
Annex – recommendation 2 – point b

(b) Notification (i.e. approval) of wholesale investment vehicles In order to encourage funds to be located onshore in the EU, the Commission should propose a separate directive along the lines of the EU-wide private placement regime, currently under discussion, to apply to the marketing and distribution in the EU of hedge funds and private equity funds. Such a regime should function on a single entry point basis: once authorised, it should be possible to offer those wholesale investment vehicles to professional, institutional investors throughout the EU. In order to promote a well-functioning single European financial market, the Commission should ensure the investment vehicle discloses the following: - general investment strategy and immediate information on any changes thereto, - leverage/debt exposure, - overall fees as well as breakdown of fees (including any stock options awarded to employees), - source and amount of funds raised, - past performance, - risk-management system and portfolio valuation methods, - information on the administrator of the fund, and - share of the fund contributed by the management company and its staff. That information should be set out in a uniform format (also to facilitate the database proposal below).deleted

2008/05/19
Committee: ECON

Eoin RYAN

Motion for a resolution
Annex – recommendation 3 – point c

~~(c) Limits on leverage for hedge funds The Commission should devise the upper limit in the debt of hedge funds in relation to preserving the stability of the EU financial system.~~deleted

2008/05/19
Committee: ECON

Eoin RYAN

Motion for a resolution
Annex – recommendation 4 – point a

(a) Investment banks (prime brokers) - hedge funds and private equity The Commission should assess whether the strengthening of capital requirements for prime brokers (Recommendation 1) deals appropriately with ~~the inherent~~ conflicts of interest concerns between: - the prime brokers and hedge funds, where the former's credit (lending) decisions are often contaminated by the prospect of earning fees from latter (via trading services), and - investment banks and private equity, where the former's credit (lending) decisions are often contaminated by the prospect of earning fees from latter (via deal related services)and - investment banks and private equity.

2008/05/19
Committee: ECON

14 Amendments of Eoin RYAN related to 2007/2238(INI)

ParlTrack - 2011-2024