19 Amendments of Sharon BOWLES related to 2012/2115(INI)
Amendment 5 #
Motion for a resolution
Recital A a (new)
Recital A a (new)
Aa. whereas a considerable proportion of shadow banking activity has one leg in the regulated banking sector and that leg should be fully captured in the existing regulatory framework;
Amendment 7 #
Motion for a resolution
Recital A b (new)
Recital A b (new)
Ab. whereas, some shadow banking usefully keeps risk separate from the banking sector and hence away from potential taxpayers 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;
Amendment 8 #
Motion for a resolution
Recital A c (new)
Recital A c (new)
Ac. whereas, in order to shine light on SB it is necessary for any regulation to fully address the resolvability, complexity and opacity of financial activities pertaining to it, in particular in a crisis situation;
Amendment 41 #
Motion for a resolution
Paragraph 4 a (new)
Paragraph 4 a (new)
4a. Notes it is necessary for supervisors to have knowledge of the level, at least in aggregate terms, of institutions' repurchase agreements, securities lending and all forms of encumbrance or claw back arrangements. Further notes, that in order to address this the Report of the Committee on Economic and Monetary affairs on CRD IV, currently being negotiated with the council, calls for such information to be reported to a trade repository or a Central Securities Depository to enable access, inter alia, by EBA, ESMA, relevant competent authorities, the ESRB and relevant central banks and the ESCB. Further the committee report calls for unregistered claw back arrangements not to have legal effect in liquidation proceedings;
Amendment 46 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Supports, therefore, as a first step, the creation by the ECB of a central EU database on euro repo transactions, and ibut notes that such a database should cover transactions in all currency denominations in order for supervisors to have a full picture and understanding of the global repo market. Invites the Commission to submit a legislative proposal for the creation of such a database by the end of 2013, after undertaking a feasibility study;
Amendment 51 #
Motion for a resolution
Paragraph 5 a (new)
Paragraph 5 a (new)
5a. Welcomes the development of a Legal Entity Identifier (LEI), and building on its usefulness similar common standards should be developed with relation to repo and securities reporting to cover principle, interest rate, collateral, haircuts, tenor, counterparties and other aspects, which help the formation of aggregates;
Amendment 52 #
Motion for a resolution
Paragraph 5 b (new)
Paragraph 5 b (new)
5b. Underlines that in order to have a joined up global approach for regulators to analyse data and for them to be able to share this with one another to take action where necessary to prevent build up of systemic risk and protect financial stability it is essential to have common reporting formats based on open industry standards;
Amendment 58 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Stresses, further, the need to obtain a fuller overview of risk transfers by financial institutions, in order to determine who has purchased what from whom and how the transferred risks are supported; emphasises that it should be an objective to achieve real time transaction mapping in all financial services and that this is aided and can be automated via standardised messaging and data identifiers; invites the Commission, therefore, to undertake a study (in early 2013) and submit a report (by mid-2013) regarding the current work on standardised messaging and data formats and the feasibility of setting up a public non- profit utility as a central registry for risk transfers, which should be able to capture and monitor risk transfer data in real time;
Amendment 71 #
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
8a. Notes that accurate regulation, evaluation and audit is currently being made almost impossible where there is distortion of credit risk or disturbance of cash flows;
Amendment 73 #
Motion for a resolution
Paragraph 8 b (new)
Paragraph 8 b (new)
8b. Funds and managers should demonstrate they are fail safe and positions can be properly understood and taken over by another;
Amendment 74 #
Motion for a resolution
Paragraph 8 c (new)
Paragraph 8 c (new)
8c. Believes that accounting rules should reflect reality, and that allowing assets to be valued at purchase cost when this is way below market value has contributed to instability in bank and other entities and should not be allowed; calls on the Commission to encourage changes in IFRS and more attention to be given to aggregates without netting and risk weights;
Amendment 75 #
Motion for a resolution
Paragraph 8 d (new)
Paragraph 8 d (new)
8d. Believes financial regulation should aim to tackle the complexity and opacity in financial services and products, and regulatory measures such as increased capital charges and removing risk weight reductions have a role to play in discouraging complex derivative hedging. New financial products should not be marketed or approved where they are not accompanied with a demonstration of their resolvability to regulators;
Amendment 76 #
Motion for a resolution
Paragraph 8 e (new)
Paragraph 8 e (new)
8e. Proposes asymmetry of information should be penalised, especially with regard to documentation and disclaimers attributed to financial services and products. Where necessary such disclaimers should be subject to a 'small print' charge based on per page per disclaimer.
Amendment 78 #
Motion for a resolution
Paragraph 9
Paragraph 9
9. Stresses that the reports of the Committee on Economic and Monetary Affairs on CRD IV2 , currently being discussed with the Council, represent an important step in tackling shadow banking in a positive way by imposing capital treatment of liquidity lines to structured investment vehicles and conduits, and by setting the large exposure limit of 25% of own funds for all unregulated entities, which will help in nudging banks towards the NSFR;
Amendment 83 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Believes further that the proposed extension of CRD IV to non-deposit-taking finance companies not covered by the definition in the Capital Requirements Regulation (CRR) is onecessary possibility for some entities, but notes that CRD IV is a complex regulation and there are significant downsides to addressing complexity with complexity when mandating simplicity and transparency may offer a better long term route;
Amendment 102 #
Motion for a resolution
Paragraph 13
Paragraph 13
13. Takes note of the importance of the repo and security lending market; invites the Commission to adopt measures, by the beginning of 2013, to increase transparency which could include a collateral identifier and collateral re-use to be reported to regulators on an aggregated basis, as well as to allow regulators to impose recommended minimum haircuts or margin levels for the collateralised financing markets, noting the danger that such minimum haircuts must not lead to standardisation;
Amendment 112 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. Believes that incentives associated with securitisation need to be adequately addressed; invites the Commission to examine the securitisation market and to submit a legislative proposal at the latest by the beginning of 2013 for limiting the number of times a financial product can be securitised; calls on it to impose particular requirements on suppliers of securitisation (e.g. originators or sponsors) to retain part of the risks associated with securitisation, ensuring that retention of the risks really is being retained by the supplier rather than passed on to asset managers, and of measures to achieve transparency, by the introduction of an external valuer of the underlying assets and standardisation of securitisation products as well as resolution processes; observes that products that distort cash flows are impossible to regulate, value and audit accurately as the financial crisis has shown;
Amendment 116 #
Motion for a resolution
Paragraph 14 a (new)
Paragraph 14 a (new)
14a. Notes that baskets of assets have been repo'd in an 'originate to repo' manner in some instances acquiring enhanced ratings. Such transactions should not be used as a regulatory measure for liquidity, as included in the ECON report on CRD IV;
Amendment 128 #
Motion for a resolution
Paragraph 16
Paragraph 16
16. Recognises the benefits Exchange Traded Funds (ETFs) provide by giving retail investors access to a wider range of assets (such as commodities, in particular), but stresses the risks ETF carry in terms of complexity, asymmetric information, counterparty risk, liquidity of products and possible regulatory arbitrage; invites the Commission, therefore, to investigate claims that marketing has over- emphasised safety to attract risk averse investors and caused asset bubbles and to submit a legislative proposal at the beginning of 2013 to tackle these potential structural vulnerabilities;