BETA

Activities of Sharon BOWLES related to 2012/0150(COD)

Shadow opinions (1)

2016/11/22
Committee: JURI
Dossiers: 2012/0150(COD)
Documents: PDF(147 KB) DOC(322 KB)

Amendments (91)

Proposal for a directive
Recital 16

(16) It is essential that all institutions prepare and regularly update recovery plans that set out measures to be taken by those institutions under different circumstances or scenarios. Such plans should be detailed and based on realistic assumptions applicable in a range of robust and severe scenarios. The requirement to prepare a recovery plan should, however, be applied proportionately, reflecting the systemic importance of the institution or, interconnectedness, including through cross-guarantee schemes, insurance clusters or the group. In that vein, the required content should also take into account the nature of the institution’s sources of funding, including cross- guarantee funding or liabilities, and the degree to which group support would be credibly available. Institutions should be required to submit their plans to supervisors for a complete assessment, including whether the plans are comprehensive and could feasibly restore an institution’s viability, in a timely manner, even in periods of financial stress.

2012/12/20
Committee: ECON

Proposal for a directive
Recital 18

(18) Resolution planning is an essential component of effective resolution. Authorities should have all the information necessary in order to plan how the essential functions of an institution or of a cross- border group may be isolated from the rest of the business and transferred in order to ensure the preservation and continuance of essential functions. The requirement to prepare a resolution plan should, however, be simplified, reflecting the systemic importance of the institution or, cross- guarantee scheme or insurance cluster as a whole, or the group.

2012/12/20
Committee: ECON

Proposal for a directive
Recital 34

(34) Rapid and coordinated action is necessary to sustain market confidence and minimise contagion. Once an institution is deemed to be failing or likely to fail, resolution authorities should not delay in taking appropriate and coordinated action. The circumstances under which the failure of an institution may occur, and in particular taking account of the possible urgency of the situation, should allow resolution authorities to take resolution action without imposing an obligation to first use the early intervention powers.

2012/12/20
Committee: ECON

Proposal for a directive
Recital 83

(83) The European Parliament and the Council should have twohree months from the date of notification to object to a delegated act. It should be possible for the European Parliament and the Council to inform the other institutions of their intention not to raise objections.

2012/12/20
Committee: ECON

Proposal for a directive
Recital 96

(96) In accordance with the Joint Political Declaration of Member States and the Commission of 28 September 2011 on explanatory documents, Member States have undertaken to accompany, in ~~justified~~all cases, the notification of their transposition measures with one or more documents explaining the relationship between the components of a directive and the corresponding parts of national transposition instruments. With regard to this Directive, the legislator considers the transmission of such documents to be justified.

2012/12/20
Committee: ECON

Proposal for a directive
Article 1 – paragraph 1 a (new)

For the purposes of resolving disputes between competent authorities in cross- border situations Article 19 of Regulation (EU) No. 1093/2010 shall apply throughout this Directive.

2012/12/20
Committee: ECON

Proposal for a directive
Article 3 – paragraph 5 a (new)

5a. Where the resolution designated in accordance with paragraph 1 is not the central bank, any decision of the resolution authority pursuant to this directive shall be communicated to the central bank without delay.

2012/12/20
Committee: ECON

Proposal for a directive
Article 4 – paragraph 1 – introductory part

1. Having regard to the impact that the failure of the institution could have, due to the nature of its business, its size or its interconnectedness to other institutions or to the financial system in general, on financial markets, on other institutions, on funding conditions, ~~Member States shall ensure that competent and resolution authorities~~EBA shall draft regulatory technical standards to determine the extent to which the following apply to institutions:

2012/12/20
Committee: ECON

Proposal for a directive
Article 4 – paragraph 1 – subparagraph 1a (new)

Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with the procedure laid down in Articles 10 to 14 of Regulation (EU) No 1093/2010[c1] .

2012/12/20
Committee: ECON

Proposal for a directive
Article 4 – paragraph 2

2. ~~The Commission shall be empowered to adopt delegated acts in accordance with Article 103~~EBA shall draft regulatory technical standards in order to specify the criteria referred to in paragraph 1, for assessing, in accordance with paragraph 1, the impact of an institution failure on financial markets, on other institutions and on funding conditions. Power is delegated to the Commission to adopt the regulatory technical standards in accordance with the procedure laid down in Articles 10 to 14 of Regulation (EU) No 1093/2010.

2012/12/20
Committee: ECON

Proposal for a directive
Article 4 – paragraph 3

3. Competent and resolution authorities shall inform EBA of the way they have applied the requirement referred to in paragraph 1 to institutions in their jurisdiction. EBA shall report to the Commission by 1st January 2018 at the latest on the implementation of the requirement referred to in paragraph 1. In particular EBA shall report to the Commission whether there are divergences regarding the implementation at national level of that requirement.deleted

2012/12/20
Committee: ECON

Proposal for a directive
Article 4 a (new)

Article 4 a Recovery and Resolution Committee 1. Competent authorities shall ensure that the management body approves and periodically reviews the strategies and policies for recovery and resolution of an institution, including those posed by a systemic or idiosyncratic event. Competent authorities shall ensure that institutions establish a recovery and resolution committee, or, where appropriate, a recovery and resolution function which is affiliated to the risk committee, taking into account the nature, scale and complexity of the credit institution’s activities. Members of the recovery and resolution committee or function shall have appropriate knowledge, skills and expertise to fully understand and monitor the material changes in the institution, which may affect recovery and resolution planning. 2. Competent authorities shall ensure that the management body devotes sufficient time to consideration of recovery and resolution planning of the institution. It shall be actively involved in and ensure that adequate resources are allocated to the management of all material impediments to the sound recovery or resolution of the institution. 3. The institution must establish reporting lines to the management body that cover all material impediments to the sound recovery and resolution of the institution and changes to the policies and changes thereof. The recovery and resolution committee shall advise the management body in its supervisory function on the institution’s overall current and future recovery and resolution profile and strategy and assist the management body in its supervisory function in overseeing the implementation of that strategy. 4. The recovery and resolution committee shall ensure that recovery and resolution fully takes into account the resolvability of financial instruments and operational risks which may impact upon the recovery and resolution of the institution. Where the business model or financial instruments are deemed too materially complex to be resolved, the resolution and recovery committee shall present a remedy plan to the management board. 5. The recovery and resolution committee shall cooperate closely with the resolution authority and competent authority on the institution’s recovery and resolution plans. The committee shall oversee the drawing up and maintenance of the recovery plan, taking into account the committee’s task in the third and fourth subparagraphs of this article and provide the resolution authority with up-to-date and accurate information and analysis to support their resolution planning. 6. Competent authorities shall ensure that where the recovery and resolution committee is separate it regularly communicates with the institution’s risk committee and shall, where appropriate, have access to external expert advice. 7. The recovery and resolution committee 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 developments that affect or may affect the recovery or resolution of the institution, without prejudice to the responsibilities of the management body in both its supervisory and/or managerial functions.

2012/12/20
Committee: ECON

Proposal for a directive
Article 5 – paragraph 3

3. Recovery plans shall not assume any access to or receipt of extraordinary public financial support but shall include, where applicable, an analysis of how and when an institution may apply for the use of central bank facilities ~~in stressed conditions~~ and available collateral.

2013/01/11
Committee: ECON

Proposal for a directive
Article 5 – paragraph 5

5. The competent authorities shall ensure that institutions include in recovery plans appropriate conditions and procedures to ensure the timely implementation of recovery actions as well as a wide range of recovery options. Competent authorities shall ensure that firms test their recovery plans against a range of scenarios of financial distress, varying in their severity including system wide events, legal-entity specific stress and group-wide stress as well as scenarios for both slow moving and fast moving financial crises. They shall also cover as a minimum the following stress scenarios: (a) significant capital and liquidity impacts; (b) severe losses through a rogue trader or fraud and consequent regulatory fines; (c) rating downgrades; (d) currency rates; (e) GDP growth rates; (f) loss of goodwill or reputational damage; (g) significant deposit withdrawal or runoff; (h) collapse of global financial markets; (i) exodus of talent and institutional understanding of all positions.

2013/01/11
Committee: ECON

Proposal for a directive
Article 5 – paragraph 6 – subparagraph 1

EBA, in consultation with the European Systemic Risk Board (ESRB), shall develop draft technical standards specifying the minimum range of scenarios towhich shall be used for the purposes of paragraph 5 of this Article and to cover both idiosyncratic and market wide stress, capital shortfalls and liquidity pressures and processes to ensure timely implementation options in a range of stress situations in accordance with Article 25(3) of Regulation (EU) No 1093/2010.

2013/01/11
Committee: ECON

Proposal for a directive
Article 5 – paragraph 6 a (new)

6a. EBA shall develop draft regulatory technical standards to specify what changes to the legal or organisational structure of the institution, its business or its financial situation could have a material effect on, or necessitates a change to the recovery plan as referred to in paragraph 2. EBA shall submit those draft regulatory technical standards to the Commission within twelve months from the date of entry into force of this Directive. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with the procedure laid down in Articles 10 to 14 of Regulation (EU) No 1093/2010.

2013/01/11
Committee: ECON

Proposal for a directive
Article 6 – paragraph 2 – point b

(b) the plan or specific options could be implemented quickly and effectively in situations of financial stress and without causing any significant adverse effect on the financial system, including in the event that other institutions implemented recovery plans within the same time period.

2013/01/11
Committee: ECON

Proposal for a directive
Article 6 – paragraph 4 – subparagraph 1 (new)

Failure to take action to make appropriate remedy shall require the institution to hold additional CET1 capital of 5%.

2013/01/11
Committee: ECON

Proposal for a directive
Article 6 – paragraph 5 – subparagraph 1

EBA shall develop draft regulatory technical standards specifying the ~~matter~~criteria and procedures that the competent authority must assess for the purposes of the assessment of paragraph 2 of this Article and paragraph 1 of article 7.

2013/01/11
Committee: ECON

Proposal for a directive
Article 7 – paragraph 6

6. The management body of the parent undertaking or institution subject to consolidated supervision referred to in paragraph 1 and the management body of institutions that are part of the group shall assess and approve the group recovery plan before submitting it to the consolidating supervisor.

2013/01/11
Committee: ECON

Proposal for a directive
Article 8 a (new)

Article 8a Recovery plans for Institutional Protection Schemes 1. For institutions that are part of an institutional protection scheme, referred to in Article 80(8) of Directive 2006/48/EC, they may draw up a simplified recovery plan where they have cooperated closely to draw up a recovery plan for the institutional protection scheme as a group of interconnected and interdependent institutions as a whole. 2. The recovery plan for the institutional protection scheme as a group of interconnected and interdependent institutions shall follow the same requirements as those set out in article 7 and be subject to the same assessment procedure as that in article 8. The recovery plan shall also cover the situation arising where more than one member of the institutional protection scheme were to suffer severe financial difficulties, or are unable to access capital markets, or face a liquidity shortage. 3. For the purposes of paragraph 1 and 2 EBA shall draft regulatory technical standards to determine the simplified requirements of a recovery plan for individual institutions which are members of an institutional protection scheme and to further specify the appropriate requirements of the recovery plan for the institutional protection scheme as a group of interconnected and interdependent institutions.

2013/01/11
Committee: ECON

Proposal for a directive
Article 9 – paragraph 2

2. The resolution plan shall take into consideration a range of scenarios including that the event of failure may be idiosyncratic or may occur at a time of broader financial instability or system wide events. The resolution plan shall not assume any extraordinary public financial support besides the use of the financing arrangements established in accordance with Article 91. The recovery and resolution committee shall provide the resolution authorities with all the necessary information to enable them to identify, assess and regularly update the scenarios most likely to cause their business model to become non-viable or to fail.

2013/01/11
Committee: ECON

Proposal for a directive
Article 9 – paragraph 3

3. Resolution plans shall be reviewed, and where appropriate updated, at least annually and after any material changes to the legal or organisational structure of the institution or to its business or its financial situation that could have a material effect on the effectiveness of the plan. All material changes shall be notified to the competent authority.

2013/01/11
Committee: ECON

Proposal for a directive
Article 9 – paragraph 4 – point j

(j) a detailed description of the different resolution strategies that could be applied according to the different possible scenarios and the applicable timescales;

2013/01/11
Committee: ECON

Proposal for a directive
Article 9 – paragraph 4 – point k

(k) a description of critical interdependencies and operational functions;

2013/01/11
Committee: ECON

Proposal for a directive
Article 9 – paragraph 4 – point m

(m) a description on options for preserving access to payments and clearing services and other infrastructures and, where it is possible, indicate portability of clients positions;

2013/01/11
Committee: ECON

Proposal for a directive
Article 9 – paragraph 5 – subparagraph 1

EBA, in consultation with the ESRB, shall develop draft regulatory technical standards specifying a minimum range of scenarios for the event of failure for the purposes of paragraph 2.

2013/01/11
Committee: ECON

Proposal for a directive
Article 9 – paragraph 5 a (new)

5a. For the purposes of paragraph 3 EBA shall develop draft regulatory technical standards to specify what changes to the legal or organisational structure of the institution, its business or its financial situation could have a material effect on the plan. EBA shall submit those draft regulatory technical standards to the Commission within twelve months from the date of entry into force of this Directive. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with the procedure laid down in Articles 10 to 14 of Regulation (EU) No 1093.

2013/01/11
Committee: ECON

Proposal for a directive
Article 9 a (new)

Article 9a Resolution plans for Institutional Protection Schemes 1. For the purposes of Article 9, Resolution Authorities may draw up simplified resolution plans for individual institutions which are part of an institutional protection scheme referred to in Article 80(8) of Directive 2006/48/EC, where they have drawn up resolution plans for the institutional protection scheme as a group of interconnected and interdependent institutions as a whole. 2. Where resolution authorities draw up resolution plans for the institutional protection scheme as a group of interconnected and interdependent institutions as a whole they shall follow the same principle as those for group resolution plans as provided for in Article 11 and 12, and, where appropriate, take account of the specificities of the scheme and system of cross guarantees. In particular they shall assess the impact on the other members of the institutional protection scheme should one or more members face resolution by a resolution authority. 3. EBA shall develop draft regulatory technical standards to further specify the requirements for the resolution plan in paragraph 2. EBA shall submit those draft regulatory technical standards to the Commission within twelve months from the date of entry into force of this Directive. 5. Power is conferred on the Commission to adopt the draft regulatory technical standards referred to in the first subparagraph in accordance with the procedure laid down in Articles 10 to 14 of Regulation (EU) No 1093/2010.

2013/01/11
Committee: ECON

Proposal for a directive
Article 10 – paragraph 3 – subparagraph 1

EBA shall develop draft implementing technical standards on standard forms, templates and procedures for such provision of information under paragraphs 1 and 2.

2013/01/11
Committee: ECON

Proposal for a directive
Article 11 – paragraph 3 – point a

(a) set out the resolution actions to be taken with regards to the group as a whole or part of the group, including individual subsidiaries, both through resolution actions in respect to the companies referred to in Article 1(d), the parent undertaking and subsidiary institutions and through coordinated resolution actions in respect of subsidiary institutions, intaking into account those scenarios provided for in Article 9(2);

2013/01/11
Committee: ECON

Proposal for a directive
Article 11 – paragraph 3 – point c

(c) where a group includes entities incorporated in third countries, identify arrangements for cooperation and coordination with the relevant authorities of those third countries and the implications for resolution within the EU. In general there should be reciprocity in arrangements;

2013/01/11
Committee: ECON

Proposal for a directive
Article 11 – paragraph 3 – point d a (new)

(da) set out any additional national measures, not outlined in this directive, which the group resolution authority intends to apply to the resolution of the group.

2013/01/11
Committee: ECON

Proposal for a directive
Article 12 – paragraph 4 – subparagraph 3

EBA may on its own initiative assist the competent authorities in reaching an agreement in accordance with Article 19 of Regulation (EU) No 1093/2010, in particular where the use of a national resolution tool not set out in this directive may present an obstacle to effective group resolution.

2013/01/11
Committee: ECON

Proposal for a directive
Article 13 – paragraph 3

3. EBA, in consultation with ESRB, shall develop draft regulatory technical standards to specify the ~~matter~~criteria and processes to be examined for the assessment of the resolvability of institutions or groups provided for in paragraph 2. EBA shall submit those draft regulatory technical standards to the Commission within twelve months from the date of entry into force of this Directive.

2012/12/20
Committee: ECON

Proposal for a directive
Article 14 – paragraph 4 – point b

(b) requiring the institution to limit its maximum individual and aggregate exposures on both a risk weighted or unweighted basis;

2012/12/20
Committee: ECON

Proposal for a directive
Article 14 – paragraph 4 – point c

(c) imposing specific or regular additional information requirements relevant for resolution purposes;

2012/12/20
Committee: ECON

Proposal for a directive
Article 14 – paragraph 4 – point d

(d) requiring the institution to divest specific assets or simplify its hedging strategies;

2012/12/20
Committee: ECON

Proposal for a directive
Article 14 – paragraph 4 – point h

(h) requiring a parent undertaking to set up a parent financial holding company or operational company in a Member State or a Union parent financial holding company or operational company;

2012/12/20
Committee: ECON

Proposal for a directive
Article 14 – paragraph 7

7. Before indentifying any measure referred to in paragraph 3, resolution authorities shall duly consider the potential effect of those measures on the stability of the financial system in other Member States. EBA, in consultation with the ESRB, may issue guidelines concerning financial stability interactions with other Member States.

2012/12/20
Committee: ECON

Proposal for a directive
Article 19 – paragraph 2 – subparagraph 1

EBA shall develop draft ~~implementing~~regulatory technical standards to specify the conditions set out in paragraph 1.

2012/12/20
Committee: ECON

Proposal for a directive
Article 19 – paragraph 2 – subparagraph 2

EBA shall submit those draft ~~implementing~~regulatory technical standards to the Commission within twelve months from the date of entry into force of this Directive.

2012/12/20
Committee: ECON

Proposal for a directive
Article 19 – paragraph 2 – subparagraph 3

Power is conferred on the Commission to adopt the ~~implementing~~regulatory technical standards submitted by EBA in accordance with the procedure laid down in Articles 150 to 14 of Regulation (EU) No 1093/2010.

2012/12/20
Committee: ECON

Proposal for a directive
Article 20 – paragraph 1 – point c a (new)

(ca) that the financial support will not distort the single market.

2012/12/20
Committee: ECON

Proposal for a directive
Article 23 – paragraph 1 – introductory part

1. Where an institution does not meet or is likely to breach the requirements of Directive 2006/48/EC, and in particular CET1 including any systemic or SIFI buffers and liquidity requirements, Member States shall ensure that competent authorities, , have at their disposal, in addition to the measures referred to in Article 136 of Directive 2006/48/EC where applicable, in particular, the following measures:

2012/12/20
Committee: ECON

Proposal for a directive
Article 23 – paragraph 2 – subparagraph 1

EBA shall develop draft ~~implementing~~regulatory technical standards in order to ensure consistent application of the measures provided for in paragraph 1 of this Article and Article 64 of CRR [insert regulation XX].

2012/12/20
Committee: ECON

Proposal for a directive
Article 23 – paragraph 2 – subparagraph 2

EBA shall submit those draft ~~implementing~~regulatory technical standards to the Commission within twelve months from the date of entry into force of this Directive.

2012/12/20
Committee: ECON

Proposal for a directive
Article 23 – paragraph 2 – subparagraph 3

Power is conferred on the Commission to adopt the ~~implementing~~regulatory technical standards referred to in the first subparagraph in accordance with Article 15the procedure laid down in Articles 10 to 14 of Regulation (EU) No 1093/2010.

2012/12/20
Committee: ECON

Proposal for a directive
Article 26 – paragraph 2 – point a

(a) to ensure the continuity of critical functions and, as far as possible, continuity of counterparty positions;

2012/12/20
Committee: ECON

Proposal for a directive
Article 27 – paragraph 1 – point a

(a) the competent authority ~~or resolution authority~~ determines that the institution is failing or likely to fail, in particular due to lack of own funds or liquidity;

2012/12/20
Committee: ECON

Proposal for a directive
Article 27 – paragraph 1 – point c a (new)

(ca) Resolution authorities shall provide guidance on the way in which they will judge trigger conditions, which they shall make public and communicate to EBA.

2012/12/20
Committee: ECON

Proposal for a directive
Article 27 – paragraph 2 – subparagraph 1 – point c

(c) the institution is or there are objective elements to support a determination that the institution will be, in the near future, unable to pay its obligations on an ongoing basis as they fall due;

2012/12/20
Committee: ECON

Proposal for a directive
Article 27 – paragraph 4

4. EBA shall issue guidelines, in accordance with Article 16 of Regulation (EU) No 1093/2010 to promote the convergence of supervisory and resolution practices regarding the interpretation of the different circumstances when an institution shall be considered as failing or likely to fail. EBA shall develop these guidelines at the latest by the date provided for in the first subparagraph of Article 115(1) of this Directive. These guidelines shall be made public and shall cover criteria for judging trigger points and use of resolution tools. EBA shall monitor compliance with these guidelines for the purposes of the review in Article 114a.

2012/12/20
Committee: ECON

Proposal for a directive
Article 28 – paragraph 4

4. Subject to paragraph 3 and by way of derogation from the provisions of paragraph 1, notwithstanding the fact that a company referred to in point(c) or (d) of Article 1 may not meet the conditions established in Article 27 (1) resolution authorities may take resolution action with regards to a company referred to in point (c) or (d) of Article 1 when one or more of the subsidiaries which are institutions comply with the conditions established in Article 27 (1), (2) and (3) and action with regard to the company referred to in points (c) or (d) of Article 1 is necessary for the resolution of one or more subsidiaries which are institutions or for the resolution of the group as a whole. This should only be done in preference to specific action with regard to the subsidiary where the failure threatens the group as a whole or the insolvency law of the Member State requires that groups be treated as a whole.

2012/12/20
Committee: ECON

Proposal for a directive
Article 29 – paragraph 1 – point f a (new)

(fa) claims of depositors with deposits that are guaranteed in accordance with Directive 94/19/EC are adequately protected on insolvency of the credit institution. In the case of third country claims of depositors due account shall be taken of reciprocal treatment of EU depositors.

2012/12/20
Committee: ECON

Proposal for a directive
Article 29 – paragraph 1 a (new)

1a. In order to give effect to paragraph (1)(fa)new, Member States shall ensure that: (i) claims of depositors with deposits that are guaranteed in accordance with Directive 94/19/EC are granted a preferential claim so as to have a higher priority ranking over the claims of ordinary unsecured, non-preferred creditors in the event of insolvency of the credit institution; (ii) the depositor guarantee scheme subrogating to the rights of depositors with deposits that are guaranteed in accordance with Directive 94/19/EC is granted a preferential claim corresponding to the higher priority ranking than depositors pursuant to point (i), but only so far as concerns payments made to depositors up to the amount of their guaranteed deposits under the scheme.

2012/12/20
Committee: ECON

Proposal for a directive
Article 30 – paragraph 2

2. Without prejudice to the Union State aid framework, where applicable, the valuation required by paragraph 1 shall be based on prudent and realistic assumptions, including as to rates of default and severity of losses, and its objective shall be to assess the market value of the assets and liabilities of the institution that is failing or is likely to fail so that any losses that could be derived are recognised at the moment the resolution tools are exercised. However, where the market for a specific asset or liability is not functioning properly the valuation may reflect the long term economic value of those assets or liabilities. Valuation shall not assume the provision of ~~extraordinary public support~~public financial support or central bank emergency liquidity assistance to the institution, regardless of whether it is actually provided.

2012/12/20
Committee: ECON

Proposal for a directive
Article 30 – paragraph 5

5. Where due to the urgency in the circumstances of the case, it is not possible to comply with the requirements laid down in paragraphs 3 and 4, the valuation either by an independent person or by a resolution authority shall be carried out in compliance with the requirements laid down in paragraph 2. That valuation shall be considered as provisional until the resolution authority has carried out a valuation that complies with all the requirements under this article. That definitive valuation ~~may~~shall be carried out separately ~~or together with~~from the valuation referred to in Article 66.

2012/12/20
Committee: ECON

Proposal for a directive
Article 30 – paragraph 7 – subparagraph 1 – point e a (new)

(e a) the separation of the valuations under articles 30 and 66.

2012/12/20
Committee: ECON

Proposal for a directive
Article 31 – paragraph 7 a (new)

Using State resources for mandatory recapitalisation of an institution that meets the conditions for resolution shall be limited to exceptional circumstances and only if it fully satisfies the resolution objectives in Article 26(2)(b) and the abovementioned conditions.

2012/12/20
Committee: ECON

Proposal for a directive
Article 31 – paragraph 7 a (new)

7 a. Member States shall ensure that resolution tools shall only be used to recapitalise, restructure, transfer or wind down an institution with the aim of maintaining systemic stability and protecting critical functions without exposing taxpayers to losses.

2012/12/20
Committee: ECON

Proposal for a directive
Article 32 – paragraph 10

10. For the purposes of exercising the rights to provide services or to establish itself in another Member State in accordance with Directive 2006/48/EC or Directive 2004/39/EC, the purchaser shall be considered to be a continuation of the institution under resolution, and may continue to exercise any such right that was exercised by the institution under resolution in respect of the assets, rights or liabilities transferred~~, including the rights of membership and access to payment, clearing and settlement systems~~.

2012/12/20
Committee: ECON

Proposal for a directive
Article 32 – paragraph 10 a (new)

10 a. Member States shall ensure that the purchaser referred to in paragraph 1 may continue to exercise the rights of membership and access to payment, clearing and settlement systems of the institution under resolution, provided that it meets the regulatory criteria for participation in such systems.

2012/12/20
Committee: ECON

Proposal for a directive
Article 33 – paragraph 2 – subparagraph 1 – point a

(a) it shall be as transparent as possible and not result in a misrepresentation, having regard to the circumstances and in particular the need to maintain financial stability;

2012/12/20
Committee: ECON

Proposal for a directive
Article 33 – paragraph 2 – subparagraph 1 – point f

(f) it shall aim at maximising, as far as possible, the sale price for the assets and liabilities involved but it shall not misrepresent them.

2012/12/20
Committee: ECON

Proposal for a directive
Article 33 – paragraph 3 – point b a (new)

(b a) There is full consideration given to single market requirements and steps are taken to redress any detrimental effects on competition in the longer term.

2012/12/20
Committee: ECON

Proposal for a directive
Article 34 – paragraph 8

8. For the purposes of exercising the rights to provide services or to establish itself in another Member State in accordance with Directive 2006/48/EC or Directive 2004/39/EC, a bridge institution shall be considered to be a continuation of the institution under resolution, and may continue to exercise any such right that was exercised by the institution under resolution in respect of the assets, rights or liabilities transferred~~, including the rights of membership and access to payment, clearing and settlement systems~~.

2012/12/20
Committee: ECON

Proposal for a directive
Article 34 – paragraph 8 a (new)

8 a. Member States shall ensure that the bridge institution may continue to exercise the rights of membership and access to payment, clearing and settlement systems of the institution under resolution, provided that it meets the regulatory criteria for participation in such systems.

2012/12/20
Committee: ECON

Proposal for a directive
Article 35 – paragraph 4 – subparagraph 1

When seeking to sell the bridge institution or its assets or liabilities, Member States shall ensure that the institution or the relevant assets or liabilities are marketed openly and transparently, and that the sale does not result in a material misrepresentation or favour or discriminate between particular potential purchasers.

2012/12/20
Committee: ECON

Proposal for a directive
Article 38 – paragraph 2 – subparagraph 1 – point d

~~(d) liabilities with an original maturity of less than one month;~~deleted

2012/12/20
Committee: ECON

Proposal for a directive
Article 39 – paragraph 1

1. Member States shall ensure that the institutions maintain, at all times, a sufficient aggregate amount of own funds and eligible liabilities expressed as a percentages of ~~the~~both the weighted and unweighted total liabilities of the institution that do not qualify as own funds under Section 1 of Chapter 2 of Title V of Directive 2006/48/EC or under Chapter IV of Directive 2006/49/EC.

2012/12/20
Committee: ECON

Proposal for a directive
Article 39 – paragraph 2 – point e

(e) the instruments have a~~n origin~~ 12 month residual maturity ~~of at least one year~~.

2012/12/20
Committee: ECON

Proposal for a directive
Article 39 – paragraph 6

6. Resolution authorities shall inform EBA of the minimum amount they have determined for each institution under their jurisdiction. EBA shall assess the impact on institutions and report to the Commission by 1 January 2018 at the latest on the implementation of the requirement under paragraph 1. In particular EBA shall report to the Commission whether there are divergences regarding the implementation at national level of that requirement.

2012/12/20
Committee: ECON

Proposal for a directive
Article 43 – paragraph 4 a (new)

4 a. For the purposes of this article EBA shall provide guidelines for any interpretation relating to cross-over and with interactions with CRD and CRR [Insert Regulation and Directive XX]. EBA shall also provide guidelines for a clear hierarchy of claims and for ensuring these are not excessively layered or complex.

2012/12/20
Committee: ECON

Proposal for a directive
Article 44 – paragraph 4 – subparagraph 1

EBA, in consultation with ESMA, shall develop draft regulatory technical standards specifying methodologies and the principles referred to in points (a) and (b) of paragraph 3 on the valuation of liabilities arising from derivatives.:

2012/12/20
Committee: ECON

Proposal for a directive
Article 47 – paragraph 2 – subparagraph 2

The business reorganisation plan shall take account, inter alia, of the current state and future prospects of the financial markets, reflecting realistic best-case and worst- case assumptions. Stress-testing shall consider a ranged of scenarios, including a combination of events of stress and a protracted global recession. Assumptions shall be compared with appropriate sector- wide benchmarks.

2012/12/20
Committee: ECON

Proposal for a directive
Article 47 – paragraph 4 – point d a (new)

(d a) changes to the operational systems and infrastructure within the institution

2012/12/20
Committee: ECON

Proposal for a directive
Article 47 – paragraph 10 – subparagraph 1 – point a a (new)

(a a) the minimum objectives the resolution authority should consider fulfilled pursuant to paragraph 5; and

2012/12/20
Committee: ECON

Proposal for a directive
Article 57 – paragraph 1 – point a

(a) provide for the relevant transfer to take effect free from any liability or encumbrance affecting the financial instruments, rights, assets or liabilities transferred, without prejudice to any appropriate right of compensation taking into conservation all of the provisions in this Directive;

2012/12/20
Committee: ECON

Proposal for a directive
Article 66 – paragraph 1

For the purposes of Article 65, Member States shall ensure that a valuation is carried out by an independent person after the partial transfers or write down or conversion has been effected. That valuation shall be distinct from the valuation carried out under Article 30 ~~unless it replaces a provisional valuation carried out under Article 30(5)~~. The valuation may be carried out by the authority responsible for the normal insolvency proceedings under which the institution is wound up, within those proceedings or through separate proceedings in accordance with national law.

2012/12/20
Committee: ECON

Proposal for a directive
Article 74 – paragraph 3 – point e a (new)

(e a) where the institution is an institution as defined in Article 2(b) of Directive 98/26/EC, the Commission, the ECB, ESMA, EIOPA, EBA and the operators of the systems to which it participates.

2012/12/20
Committee: ECON

Proposal for a directive
Article 74 – paragraph 3 – point e b (new)

(e b) where the institution is considered systemically important, the ESRB and macro-prudential authorities.

2012/12/20
Committee: ECON

Proposal for a directive
Article 86 – paragraph 1 – point b

(b) that independent resolution action under Article 87 in relation to a domestic branch is necessary to achieve one or more of the resolution objectives. EBA may refuse, after consulting the national resolution authorities concerned, to recognise pursuant to Article 85(2) third country resolution proceedings if it considers that creditors, including in particular depositors located or payable in a Member State, would not receive equal treatment with third country creditors under the third country resolution proceedings;

2012/12/20
Committee: ECON

Proposal for a directive
Article 89 – paragraph 1 – point a

(a) those third country authorities are subject to requirements and standards of professional secrecy at least ~~equivalent~~similar to those imposed by Article 76;

2012/12/20
Committee: ECON

Proposal for a directive
Article 99 – paragraph 2

~~2. Member States shall ensure that, under the national law governing normal insolvency proceedings, the deposit guarantee schemes rank pari passu with unsecured non- preferred claims.~~deleted

2012/12/20
Committee: ECON

Proposal for a directive
Article 103 – paragraph 5

5. A delegated act adopted pursuant to Articles 2, 4, 28, 37, 39, 43, 86, 94, 97 and 98 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of twohree months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by twohree months at the initiative of the European Parliament or the Council.

2012/12/20
Committee: ECON

Proposal for a directive
Article 103 – paragraph 5 a (new)

5 a. The commission shall not adopt delegated acts where the scrutiny time of the parliament is reduced through recess to less than five months including the extension.

2012/12/20
Committee: ECON

Proposal for a directive
Article 103 a (new)

Article 103 a Further provisions for draft regulatory technical standards 1. Notwithstanding any time limit provided for the submission of draft regulatory technical standards to the Commission, phasing of submissions shall be agreed covering buckets due at 12, 18 and 24 months. 2. The Commission shall not adopt regulatory technical standards in a manner that through recess reduces the scrutiny time of the Parliament to less than 2 months including the extension.

2012/12/20
Committee: ECON

Proposal for a directive
Article 114 a (new)

Article 114 a EBA review 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 shall in addition to monitoring where specifically referenced in this Directive establish benchmarking portfolios and techniques to enable assessment of convergence of supervisory practices.

2012/12/20
Committee: ECON

Proposal for a directive
Article 115 – paragraph 1 a (new)

1 a. Member States shall ensure that all institutions implement the appropriate recovery and resolution plans at least two years after entry into force of this directive. Institutions which have not done so shall be required to hold additional CET1 capital of 5%.

2012/12/20
Committee: ECON

Proposal for a directive
Annex 1 – section 1 – paragraph 1 – point 15

(15) arrangements and measures necessary to maintain continuous access to financial markets infrastructures, and where it is possible, portability of clients positions;

2012/12/20
Committee: ECON