Activities of Sharon BOWLES related to 2011/0203(COD)
Plenary speeches (1)
Credit institutions and prudential supervision - Prudential requirements for credit institutions and investment firms (debate)
Shadow reports (1)
REPORT on the proposal for a directive of the European Parliament and of the Council on the access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms and amending Directive 2002/87/EC of the European Parliament and of the Council on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate PDF (1 MB) DOC (1 MB)
Amendments (59)
Amendment 43 #
Proposal for a directive
Recital 12 a (new)
Recital 12 a (new)
(12a) The financial crisis demonstrated links between the banking sector and so called 'shadow banking'. Some shadow banking usefully keeps risk separate from the banking sector and hence away from potential taxpayer or systemic impact. Nevertheless a fuller understanding of shadow banking operations, their linkages to financial institutions and regulation to provide transparency, reduction of systemic risk and elimination of any improper practices is a necessary part of financial stability. Additional reporting from financial institutions can establish some of this but specific new regulation will also be necessary.
Amendment 46 #
Proposal for a directive
Recital 22 a (new)
Recital 22 a (new)
(22a) Crisis resolution plans are an essential part of protecting taxpayers and coordinating cross-border transfer of payments during crises. With due regard to Article 25 of Regulation (EU) No 1093/2010, which states "the Authority shall contribute to and participate actively in the development and coordination of effective and consistent recovery and resolution plans", Member States should require institutions and groups to prepare and maintain resolution plans at the individual and group level, and for these to be submitted to the resolution authorities for approval with full EBA participation and coordination.
Amendment 47 #
Proposal for a directive
Recital 22 b (new)
Recital 22 b (new)
(22b) In the composition of resolution plans due regard should be given to the principle that the more complete and legally clear resolution plans are the less necessary it may be to establish additional protective capital measures.
Amendment 62 #
Proposal for a directive
Recital 54 a (new)
Recital 54 a (new)
(54a) The Commission should be empowered to adopt, by means of delegated acts, and in response to recommendations by the ESRB, modifications to risk weightings or other prudential measures in order to respond to market developments creating macro- prudential risks. The EBA, working in conjunction with the ESRB, should also issue guidelines for macro-prudential intervention by supervisors at individual Member State level, review all such measures and when appropriate advise the Commission if the measures taken are unjustified. The Commission may demand that unjustified measures be revoked.
Amendment 69 #
Proposal for a directive
Recital 59 a (new)
Recital 59 a (new)
(59a) Sovereign debt in a currency union has differing dynamics to those of independent currencies. Maintenance of the statutory 0% risk weight of all Member States' sovereign debt should therefore be reviewed and, where there is an instance of non-compliance with the Stability and Growth Pact under Regulation (EC) No 1466/97 and Regulation (EC) No 1467/97, be restricted or withdrawn, as a disciplinary measure to address excessive macroeconomic imbalances and observance of the Stability and Growth Pact.
Amendment 92 #
Proposal for a directive
Article 5 – paragraph 6 a (new)
Article 5 – paragraph 6 a (new)
6a. Member States shall designate one or more resolution authorities for overseeing and approving resolution plans as referenced in this Directive and Regulation (EU) No .../2012 of the European Parliament and of the Council of ... [on prudential requirements for credit institutions and investment firms]. They shall inform the Commission and EBA thereof, indicating any division of duties.
Amendment 93 #
Proposal for a directive
Article 5 – paragraph 6 b (new)
Article 5 – paragraph 6 b (new)
6b. Where the resolution authority differs from the competent authorities in paragraph 1, Member States shall ensure that they cooperate closely in the preparation of resolution plans.
Amendment 102 #
Proposal for a directive
Article 7 – paragraph 1 a (new)
Article 7 – paragraph 1 a (new)
In line with the review of Article 81 of Regulation (EU) No. 1093/2010 required by 2nd January 2014 and in view of the variations that may be applied by competent authorities in supervisory procedures the EBA should, in addition to monitoring where specifically referenced in this Directive and Regulation (EU) No .../2012 of the European Parliament and of the Council of ... [on prudential requirements for credit institutions and investment firms] establish benchmarking portfolios and techniques to enable assessment of convergence of supervisory practices.
Amendment 104 #
Proposal for a directive
Article 7 a (new)
Article 7 a (new)
Article 7 a For the purposes of resolving disputes between competent authorities Article 19 of Regulation (EU) No. 1093/2010 shall apply throughout this Directive.
Amendment 107 #
Proposal for a directive
Article 8 a (new)
Article 8 a (new)
Amendment 110 #
Proposal for a directive
Article 21 – paragraph -1 (new)
Article 21 – paragraph -1 (new)
-1. Member States or their competent authorities may fully or partially exempt one or more credit institutions situated in the same Member State and which are permanently affiliated to a central body which supervises them and which is established in the same Member State, from the requirements set out in the second sub-paragraph 2 if national law provides that: (a) the commitments of the central body and affiliated institutions are joint and several liabilities or the commitments of its affiliated institutions are entirely guaranteed by the central body; (b) the solvency and liquidity of the central body and of all the affiliated institutions are monitored as a whole on the basis of consolidated accounts of these institutions; and (c) the management of the central body is empowered to issue instructions to the management of the affiliated institutions.
Amendment 111 #
Proposal for a directive
Article 21 – paragraph 1
Article 21 – paragraph 1
1. Competent authoritiesA credit institution referred to in paragraph 1, may be exempt a credit institution that meets the conditions laid down in Article 9 of Regulation [inserted by OP] from Arted from the provisions in Articles 10, 12 and 13 (1) and Title VII Chapter 4 of this Directive and Parts Two to Four and Six to Eight of Regulation (EU) No .../2012 of the European Parliament and of the Council of ... [on prudential requirements for credit institutions and investment firms] provided that, without prejudicle 10, 12 and 13(1) of this Directive, under the conditions set out in Article 9 of that Regulationto the application of those provisions to the central body, the whole as constituted by the central body together with its affiliated institutions is subject to those provisions on a consolidated basis.
Amendment 113 #
Proposal for a directive
Article 21 – paragraph 2
Article 21 – paragraph 2
2. In case of exemptions exercised by the competent authorities in accordance with this Article 9 of Regulation [inserted by OP], Articles 17, 33, 34, 35, 36(1)-(3) and 39-46 of this Directive shall apply to the whole as constituted by the central body together with its affiliated institutions.
Amendment 155 #
Proposal for a directive
Article 65 – paragraph 1
Article 65 – paragraph 1
1. Member States shall provide that their respective competent authorities may takimpose appropriate administrative sanctions and measures where the provisions of Regulation [inserted by OP(EU) No .../2012 of the European Parliament and of the Council of ... [on prudential requirements for credit institutions and investment firms] or the national provisions adopted in the implementation of this Directive have not been complied with, and shall ensure that they are appliedwhere the violation of these provisions is not subject to national criminal law. The sanctions and measures shall be effective, proportionate and dissuasive.
Amendment 158 #
Proposal for a directive
Article 67 – paragraph 1 – point m a (new)
Article 67 – paragraph 1 – point m a (new)
(ma) an institution has been found liable for a serious infringement of the national provisions adopted pursuant to Directive 2005/60/EC on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing.
Amendment 168 #
Proposal for a directive
Article 68 a (new)
Article 68 a (new)
Article 68 a Information sharing for sanctions Where a competent authority of a Member State applies an administrative sanction under Article 66(2) and 67(2) to a legal person it shall notify EBA of that sanction and the circumstances under which it was applied. EBA shall monitor and maintain a list of legal persons to whom a sanction has been applied, for the duration that sanction is applicable. When a competent authority assesses the good repute of persons referred to under Articles 13(1), 87 (1) and 115, they shall check for relevant information relating to sanctions with EBA. EBA shall inform them if those persons are currently recorded on their list. EBA shall cooperate in any development of international lists.
Amendment 171 #
Proposal for a directive
Article 69 – paragraph 2
Article 69 – paragraph 2
2. EBA shall issue guidelines addressed to competent authorities in accordance with Article 16 of Regulation (EU) No 1093/2010 on types of administrative measures and minimum sanctions and level of administrative pecuniary sanctions. If a Member State has a criminal sanction regime, that can take precedence over administrative sanctions.
Amendment 213 #
Proposal for a directive
Article 75 – paragraph 5 – subparagraph 3
Article 75 – paragraph 5 – subparagraph 3
The risk management function shall be able to report directly to the management body in its supervisory function when necessary, independent from senior management. and to raise concerns and warn this body, where appropriate, in case of specific risk developments that affect or may affect the institution, without prejudice to the responsibilities of the management body in both its supervisory and/or managerial functions pursuant to this Directive and Regulation (EU) No .../2012 of the European Parliament and of the Council of ... [on prudential requirements for credit institutions and investment firms].
Amendment 257 #
Proposal for a directive
Article 86 – paragraph 2 – subparagraph 2 – point a
Article 86 – paragraph 2 – subparagraph 2 – point a
(a) identify and recommend, for the approval of the management body in its supervisory function candidates to fill management body vacancies and liaise with competent authorities with regard to Article 68a. In doing so, the nomination committee shall evaluate the balance of knowledge, skills, diversity and experience of the management body, with due regard to the policy under Article 87(3) and allowing for a broad range of experience to be acknowledged so as not to discriminate against women. They shall prepare a description of the roles and capabilities for a particular appointment, and assess the time commitment expected;
Amendment 261 #
Proposal for a directive
Article 86 – paragraph 2 – subparagraph 2 – point b
Article 86 – paragraph 2 – subparagraph 2 – point b
(b) periodically, and at least annually, assess the structure, size, composition and performance of the management body, and make recommendations to the management body in its supervisory function with regard to any changes;
Amendment 264 #
Proposal for a directive
Article 86 – paragraph 2 – subparagraph 2 – point c
Article 86 – paragraph 2 – subparagraph 2 – point c
(c) periodically, and at least annually, assess the knowledge, skills and experience of individual members of the management body and of the management body collectively, and report this to the management body in its supervisory function;
Amendment 265 #
Proposal for a directive
Article 86 – paragraph 2 – subparagraph 2 – point d
Article 86 – paragraph 2 – subparagraph 2 – point d
(d) periodically, and at least annually, review the policy of the management body for selection and appointment of senior management, ensuring there is a formal and transparent process in place, and make recommendations to the management body.
Amendment 267 #
Proposal for a directive
Article 86 – paragraph 2 – subparagraph 4
Article 86 – paragraph 2 – subparagraph 4
Competent authorities may authorise an institution not to establish a separate nomination committee taking into account the nature, scale and complexity of the institution's activities. A competent authority may only do so where it deems points (a) to (d) of the second subparagraph are fully satisfied by the management body's own selection process.
Amendment 274 #
Proposal for a directive
Article 87 – paragraph 1 – introductory part
Article 87 – paragraph 1 – introductory part
1. Competent authorities shall require that all members of the management body of any institution shall at all times be of sufficiently good repute, possess sufficient knowledge, skills and experience and commit sufficient time to perform their duties, and allowing for a broad range of experience to be acknowledged so as not to discriminate against women. Members of the management body shall, in particular, fulfil the following requirements:
Amendment 298 #
Proposal for a directive
Article 87 – paragraph 1 – point a – subparagraph 3
Article 87 – paragraph 1 – point a – subparagraph 3
Competent authorities may authorisereject a member of the management body of an institution to combine more directorships than permitted, if this does not prevent the member fromon the grounds that such a person may be combining too many directorships. Rejection may also be justified if, for any other reason, the competent authorities have grounds to believe that the member in question is not expected to be able to committing sufficient time to perform its functions in the credit institution, taking into account individual circumstances and the nature, scale and complexity of the institution's activities.
Amendment 299 #
Proposal for a directive
Article 87 – paragraph 1 – point a – subparagraph 3
Article 87 – paragraph 1 – point a – subparagraph 3
Competent authorities may authorise a member of the management body of an institution to combine more directorships than permitted, if this does not prevent the member from committing sufficient time to perform its functions in the institution, taking into account individual circumstances and the nature, scale and complexity of the institution's activities. Where an individual holds a greater combination of directorships, institutions shall positively explain on their website why that person is suitable despite the number of board positions occupied.
Amendment 301 #
Proposal for a directive
Article 87 – paragraph 1 – point b
Article 87 – paragraph 1 – point b
(b) The management body shall possess adequate individual and collective knowledge, skills and experience to be able to understand the institution's activities, including the main risks.
Amendment 304 #
Proposal for a directive
Article 87 – paragraph 1 – point c
Article 87 – paragraph 1 – point c
(c) Each member of the management body shall act with honesty, integrity and independence of mind to effectively assess and challenge the decisions of the senior management where necessary.
Amendment 306 #
Proposal for a directive
Article 87 – paragraph 1 – point c a (new)
Article 87 – paragraph 1 – point c a (new)
(ca) Members of the management body in its supervisory function shall have adequate access to information and documents which are needed to oversee and monitor management decision- making.
Amendment 308 #
Proposal for a directive
Article 87 – paragraph 2 a (new)
Article 87 – paragraph 2 a (new)
2a. Competent authorities shall require that institutions do not allow one individual or small group of individuals to dominate the management body's decision making, this shall be assessed where relevant by the nomination committee referred to in Article 86.
Amendment 314 #
Proposal for a directive
Article 87 – paragraph 3
Article 87 – paragraph 3
3. Competent authorities shall require institutions and their respective nomination committees to take into account diversity as one of the criteria for selection of members of the management body. In particular, institutions shall put in place a policy promoting gender, age, geographical, educational and professional diversity on the management body; as well as take concrete steps towards a more balanced representation on boards. Such concrete measures may for example include training of nomination committees, the creation of rosters of competent candidates, and the introduction of a nomination process where at least one candidate of each sex is presented.
Amendment 320 #
Proposal for a directive
Article 87 – paragraph 5 – subparagraph 1 – introductory part
Article 87 – paragraph 5 – subparagraph 1 – introductory part
EBA shall develop draft regulatory technical standards to specifyguidelines to specify how the company should take into account the following:
Amendment 321 #
Proposal for a directive
Article 87 – paragraph 5 – subparagraph 1 – point b
Article 87 – paragraph 5 – subparagraph 1 – point b
(b) the notion of adequate individual and collective knowledge, skills and experience of the management body as referred to in paragraph 1(b);
Amendment 324 #
Proposal for a directive
Article 87 – paragraph 5 – subparagraph 3
Article 87 – paragraph 5 – subparagraph 3
EBA shall submiadopt those draft regulatory technical standards to the Commissionguidelines by 31 December 2015.
Amendment 341 #
Proposal for a directive
Article 88 – paragraph 2 – point f a (new)
Article 88 – paragraph 2 – point f a (new)
(fa) no member of the management body shall be involved in deciding his or her own remuneration package.
Amendment 348 #
Proposal for a directive
Article 89 a (new)
Article 89 a (new)
Article 89a Institutions that benefit from ECB long- term refinancing operations In the case of institutions that benefit from any long- term financing operations from the ECB, the following principles shall apply in addition to those set out in Article 88(2): (a) Disclosure of profit made from the ECB LTRO through carry trades; (b) Any profit from carry trades should not count towards computation of remuneration and bonus pools.
Amendment 357 #
Proposal for a directive
Article 90 – paragraph 1 – subparagraph 1 – point g a (new)
Article 90 – paragraph 1 – subparagraph 1 – point g a (new)
(ga) Remuneration packages related to compensation or buy out from contracts in previous employment shall not be disproportionate, shall not provide an earlier or greater payout than would have been the case in the previous employment, and must also align with the long term interests of the institution including retention, deferment, performance and claw back arrangements.
Amendment 359 #
Proposal for a directive
Article 90 – paragraph 1 – subparagraph 1 – point j – introductory part
Article 90 – paragraph 1 – subparagraph 1 – point j – introductory part
(j) a substantial portion, and in any event at least 50 %, of any variable remuneration shall consist of an appropriate balance of the following:
Amendment 361 #
Proposal for a directive
Article 90 – paragraph 1 – subparagraph 1 – point j – point ii
Article 90 – paragraph 1 – subparagraph 1 – point j – point ii
(ii) where appropriate, other instruments within the meaning of Article 49 of Regulation [inserted by OP(EU) No .../2012 of the European Parliament and of the Council of ... [on prudential requirements for credit institutions and investment firms] that adequately reflect the credit quality of the institution as a going concern.
Amendment 368 #
Proposal for a directive
Article 91 – paragraph 2
Article 91 – paragraph 2
2. Competent authorities shall ensure that the remuneration committee is responsible for the preparation of decisions regarding remuneration, including those which have implications for the risk and risk management of the credit institution concerned and which are to be taken by the management body in its supervisory function. The Chair and the members of the remuneration committee shall be members of the management body who do not perform any executive functions in the credit institution concerned. When preparing such decisions, the remuneration committee shall take into account the long- term interests of shareholders, investors and other stakeholders in the institution, and the public interest.
Amendment 372 #
Proposal for a directive
Article 91 a (new)
Article 91 a (new)
Article 91a Maintenance of a website on corporate governance and remuneration Institutions shall maintain a web page explaining how they comply with the requirements of Articles 86 to 91.
Amendment 386 #
Proposal for a directive
Article 98 b (new) (in SECTION III a new)
Article 98 b (new) (in SECTION III a new)
Amendment 387 #
Proposal for a directive
Article 98 c (new) (in SECTION III a new)
Article 98 c (new) (in SECTION III a new)
Article 98c SIFI ad-on - Identification of systemic institutions 1. Competent authorities shall, based on quantitative and qualitative analysis, identify systemic institutions within their jurisdiction taking into account, in particular, their: (a) Size; (b) Substitutability of the services provided by the institution; (c) Interconnectedness with the financial system of the institution; (d) complexity; (e) cross-border activity. 2. The competent authorities shall notify the identified systemic institutions, the ESRB, EBA and the Commission.
Amendment 388 #
Proposal for a directive
Article 98 d (new) (in SECTION III a new)
Article 98 d (new) (in SECTION III a new)
Amendment 398 #
Proposal for a directive
Article 102 – paragraph 3 – introductory part
Article 102 – paragraph 3 – introductory part
3. EBA shall develop draft regulatory technical standards taking account of the size, structure, internal organisation of the institutions and the nature and scope of the activities to further specify the following:
Amendment 399 #
Proposal for a directive
Article 102 – paragraph 3 – point a
Article 102 – paragraph 3 – point a
(a) the common procedure and methodology for the supervisory review and evaluation systemprocess referred to in paragraph 1 and in Aarticle 92;
Amendment 402 #
Proposal for a directive
Article 102 – paragraph 3 – point b
Article 102 – paragraph 3 – point b
(b) the criteria concerningcommon procedures and methodologies for assessment of the organisation and treatment of the risks referred to in Aarticles 75 to 85 and the criteria onfor the review and evaluation by the competent authorities as referred to in Aarticle 92.
Amendment 429 #
Proposal for a directive
Chapter 4 – title
Chapter 4 – title
Capital Buffers and Macroprudential Controls
Amendment 436 #
Proposal for a directive
Article 122 – paragraph 1 – point 4
Article 122 – paragraph 1 – point 4
(4) ‘Domestically authorised institution’ means an institution that has been authorised in the Member State for which a particular designatedmacro-prudential authority is responsible;
Amendment 440 #
Proposal for a directive
Article 122 – paragraph 1 – point 5 a (new)
Article 122 – paragraph 1 – point 5 a (new)
(5a) 'Macroprudential controls' mean adjustments to relevant parameters for the purpose of financial stability depending on changes or developments in economic circumstances.
Amendment 443 #
Proposal for a directive
Article 122 – paragraph 1 – point 5 b (new)
Article 122 – paragraph 1 – point 5 b (new)
(5b) 'Macro-prudential authority' means an authority that is designated by a Member State as responsible for macro- prudential supervision, to address systemic risk at national level.
Amendment 449 #
Proposal for a directive
Article 122 a (new)
Article 122 a (new)
Amendment 451 #
Proposal for a directive
Article 122 b (new)
Article 122 b (new)
Article 122b Measures to address macroeconomic imbalances As a measure to address excessive macroeconomic imbalances and for observance of the Stability and Growth Pact, on an instance of non-compliance with the Stability and Growth Pact under Regulation (EC) No 1466/97 and Regulation (EC) No 1467/97, the Commission, in consultation with the ESRB and EBA, may: - propose a delegated act to vary the 0% risk weight assigned under Art 109 (4) of Regulation (EU) No. .../2012 of ... [on prudential requirements for credit institutions and investment firms]; - issue guidelines for macro-prudential intervention by supervisors at individual Member State level.
Amendment 452 #
Proposal for a directive
Article 122 c (new)
Article 122 c (new)
Article 122c As a tool to prevent excessive deleveraging and encourage lending to the real economy during periods of economic downturn for macro-prudential benefit, Member States may impose ring- fencing to establish minimum capital requirements applicable to portfolios of SME loans, trade finance or other specific lending activities of critical significance to economic growth. Any such minimum capital requirement shall not normally be less than that which would be required for the current level of economic activity.
Amendment 466 #
Proposal for a directive
Article 125 – paragraph 1 – point c
Article 125 – paragraph 1 – point c
(c) guidance on variables that indicate or might indicate the build-up of system-wide risk, especially those associated with periods of excessive credit growth, in a financial system, and on other relevant factors that should inform the decisions of designated authorities on the appropriate countercyclical buffer rate under Article 126;
Amendment 467 #
Proposal for a directive
Article 125 – paragraph 1 – point d
Article 125 – paragraph 1 – point d
(d) guidance on the variables, including qualitative criteria, that indicate that the buffer should be maintained, reduced or fully released.
Amendment 482 #
Proposal for a directive
Article 126 – paragraph 4 – subparagraph 1
Article 126 – paragraph 4 – subparagraph 1
4. The variables referred to in point (c) of paragraph 3 may include structural variables, including the banking sector exposure of a Member state, and the exposure of the banking sector to particular risk factors, or to any other factors related to risks to financial stability.
Amendment 536 #
Proposal for a directive
Article 149 – paragraph 6
Article 149 – paragraph 6
6. Member States may only impose a shorter transitional period than that specified in paragraph 1 where that is justified by excessive credit growth at any time during that period and they have informed EBA. Where a Member States does so, the shorter period shall apply only for the purposes of the calculation of the institution specific Countercyclical Capital Buffer by institutions that are authorised in the Member State for which the designated authority is responsible. In order to coordinate and avoid possible unintended consequences and spill over effects on other Member States or the Single Market that could result from the imposition of shorter transitional periods, Member States must keep EBA informed at all times of any revisions to the transitional period specified in paragraph 1.
Amendment 551 #
Proposal for a directive
Article 151 – paragraph 2
Article 151 – paragraph 2
2. By way of derogation from paragraph 1, Title VII, Chapter 4: (a) Article 122(6) shall be transposed, implemented and applied by Member States by 1 July 2013; (b) Title VII, Chapter 4, Sections II and III shall apply from 1 January 2016.