36 Amendments of Sirpa PIETIKÄINEN related to 2023/0167(COD)
Amendment 104 #
Proposal for a directive
Recital 1
Recital 1
(1) A core objective of the Capital Markets Union is to ensure that consumers can fully benefit from the investment opportunities offered by capital markets. To be able to do so, they must be supported by a regulatory framework that enables them to take investment decisions that correspond to their needs and aims and adequately protects them from sustainability financial risks in the single market. The package of measures under the EU Retail investment strategy seeks to address the identified shortcomings.
Amendment 111 #
Proposal for a directive
Recital 3 a (new)
Recital 3 a (new)
(3a) In order to ensure that retail clients or customers are not misled; it is important that clear labels are applied that identify unambiguously whether a distributor of packaged retail or investment-based investment products (PRIIPs) receives any remuneration from product manufacturers for selling the latter’s products. Only those distributors who issue personal recommendations to the client or customer and are not essentially compensated for this service by sales-related income should be able to present themselves as ‘advisors’, ‘financial advisors’ or ‘investment advisors’ and present their recommendations as ‘advice’, ‘financial advice’ or ‘investment advice’. The current EU terminology on investor protection conflates advice with sales and/or marketing, and investment advisor with a salesperson. As on any market, a distributor whose compensation is essentially (directly or indirectly) related to the act of selling and not advising is and must be clearly identified as a ‘seller’ or ‘salesperson’ and not an ‘advisor’.
Amendment 169 #
Proposal for a directive
Recital 24
Recital 24
(24) The provision of cross-border investment services is essential for the development of the Capital Markets Union and proper enforcement of the rules is a key element of the single market. The Capital Markets Union is essential for consumers' abilities to invest securely, as it enables common supervisory. While the home Member State is responsible for the supervision of an investment firm in cases of cross-border provision of services, the single market relies on trust that stems from the adequate supervision of investment firms by the home competent authorities. The principle of mutual recognition requires efficient cooperation between home and host Member States to ensure that a sufficient level of investor protection is maintained. Directive (EU) 2014/65 already provides for a mechanism that allows, under strict conditions and where the home Member State does not take appropriate action, competent authorities of host Member States to take precautionary measures to protect investors. To facilitate cooperation between competent authorities, and to further strengthen the supervisory efforts, that mechanism should be simplified and those competent authorities that observe highly similar or identical behaviours on their territory to those already signalled by another authority should be able to refer to the findings of that initiating authority to initiate a procedure under Article 86 of Directive (EU) 2014/65.
Amendment 176 #
Proposal for a directive
Recital 32
Recital 32
(32) The rapid pace at which marketing communications and practices can be provided and changed, in particular through the use of digital tools and channels, should not prevent the adequate enforcement of applicable regulatory requirements. It is therefore necessary that Member States ensure that national competent authorities have the necessary powers to supervise and where necessary intervene in a timely manner. In addition, competent authorities should have access to the necessary information related to marketing communications and practices to perform their supervisory and enforcement duties and ensure consumer protection. For that purpose, investment firms and insurance undertakings should keep records of marketing communications provided or made accessible to retail clients or potential retail client and any related elements relevant for competent authorities. For extensive consumer protection, the Parliament asks the Commission to consider an EU wide financial consumer protection legislation. To capture marketing communications disseminated by third parties, such as for instance influencers and advertisement agencies, it is necessary that details on such third parties’ identity are also recorded. As issues with financial products and services may arise several years after the investment, investment firms, insurance undertakings and insurance intermediaries should keep records of the above information for a period of five years and, where requested by the competent authority, for a period of up to seven years.
Amendment 188 #
Proposal for a directive
Recital 38 a (new)
Recital 38 a (new)
(38a) The European Parliament asks the Commission to provide a financial framework legislation. All actors, be they existing or new-comers in the market, if they provide services, that can be interpreted as financial services, e.g. quickie loans, peer-to-peer investing or transforming derivatives, should be covered automatically by overall liabilities by banking, lending, saving, investing etc. So as not to leave regulatory gaps among financial actors. There is a deficit on the markets regarding equal regulation, and a clear framework for the proactive product regulation is therefore needed.
Amendment 189 #
Proposal for a directive
Recital 38 b (new)
Recital 38 b (new)
(38b) The parliament recommends providing guidance to product manufacturers on how to measure and disclose the actual sustainability impact instead of only green capital expenditure, as this is often how retail consumers interpret sustainability; recommends making sustainable products the default option through an opt-out rather than an opt-in;
Amendment 195 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2014/65/EU
Article 4 – paragraph 1 – point 66 b (new)
Article 4 – paragraph 1 – point 66 b (new)
(66b) ‘seller’ means a natural or legal person who offers information regarding financial instruments and receives remuneration which is essentially related to the sale of those financial instruments coming from the investment firms providing those financial instruments or has close links with the investment firms providing those financial instruments.”
Amendment 204 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2014/65/EU
Article 4 – paragraph 1 – point 68 a (new)
Article 4 – paragraph 1 – point 68 a (new)
(68a) ‘advisor’, ‘financial advisor’ or ‘investment advisor’ means a natural or legal person who offers investment advice for which he/she receives a compensation that is not essentially related, either directly or indirectly, to selling the product or services recommended to the client. Investment firms whose employees use the labels ‘advisor’, ‘financial advisor’ or ‘investment advisor’ shall comply with the requirements of Article 24(7) of this Directive.
Amendment 205 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2014/65/EU
Article 4 – paragraph 1 – point 68 b (new)
Article 4 – paragraph 1 – point 68 b (new)
(68b) ‘promotion’ means the provision of information to a client, either upon its request of at the initiative of the investment firm, in respect to one or more insurance products, where the investment firm receives payments or any other form of compensation for this provision of information from one or more product providers.
Amendment 206 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2014/65/EU
Article 4 – paragraph 1 – point 68 c (new)
Article 4 – paragraph 1 – point 68 c (new)
(68c) ‘tied agent’ means a natural or legal person who, under the full and unconditional responsibility of only one investment firm of whose behalf it acts, promotes investment and/or ancillary services to clients or prospective clients, receives and transmits instructions or orders from the client in respect of investment services or financial instruments, or places financial instruments.’
Amendment 207 #
Proposal for a directive
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Directive 2014/65/EU
Article 4 – paragraph 1 – point 68 d (new)
Article 4 – paragraph 1 – point 68 d (new)
(68d) ‘multi-tied agent’ means a tied agent who is under the full and unconditional responsibility of multiple investment firms on whose behalf it acts.”
Amendment 223 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 1 – point b
Article 16–a – paragraph 1 – point b
(b) a clear identification of the target market’s objectives and needs, including their sustainability risks and benefits;
Amendment 225 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 1 – point c
Article 16–a – paragraph 1 – point c
(c) an assessment of whether the financial instrument is designed appropriately to meet the target market’s objectives and needs, including their sustainability risks and benefits;
Amendment 227 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 1 – point d
Article 16–a – paragraph 1 – point d
(d) an assessment of all relevant risks and sustainability performance to the identified target market and that the intended distribution strategy is consistent with the identified target market;
Amendment 236 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 1 – point e
Article 16–a – paragraph 1 – point e
(e) in relation to financial instruments falling under the definition of packaged retail investment products in accordance with Article 4(1) of Regulation (EU) No 1286/2014 of the European Parliament and of the Council*, a clear identification and quantification of all costs and charges related to the financial instrument and an assessment of whether those costs and charges are justified and proportionate, having regard to the characteristics, objectives and, if relevant, strategy of the financial instrument, and its performance, both in financial and sustainability terms (‘pricing process’).
Amendment 249 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 1 – subparagraph 3
Article 16–a – paragraph 1 – subparagraph 3
The pricing process referred to in point (e) shall include a comparison with the relevant benchmark, where available, on costs and performance, both in financial and sustainability terms, published by ESMA in accordance with paragraph 9.
Amendment 265 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 1 – subparagraph 5
Article 16–a – paragraph 1 – subparagraph 5
An investment firm which manufactures financial instruments shall make available to distributors all information on the financial instrument and the product approval process that is needed to fully understand that instrument and the elements taken into consideration during the product approval process, including complete and accurate details on any costs and charges of the financial instrument, and including potential harm done as defined by the Principal Adverse Impact indicators of Regulation (EU) 2019/2088.
Amendment 292 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 4 – subparagraph 2 – point b
Article 16–a – paragraph 4 – subparagraph 2 – point b
(b) assess whether the total costsumulative costs throughout the whole investment time and charges are justified and proportionate, having regard to the target market’s objectives and needs (pricing process), including the target market's sustainability risks and benefits.
Amendment 392 #
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 12 – subparagraph 2
Article 16–a – paragraph 12 – subparagraph 2
ESMA shall submit those draft regulatory technical standards to the Commission by [18 months] after adoption of the delegated act referred to in paragraph 11. These regulatory technical standards need to include both financial and sustainability aspects.
Amendment 408 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2014/65/EU
Article 24 – paragraph 1 a – introductory part
Article 24 – paragraph 1 a – introductory part
1a. Member States shall ensure that, in order to act in the best interest of the client, when providing investment advice or promoting financial instruments to retail clients, investment firms are under the obligation of the following:
Amendment 413 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2014/65/EU
Article 24 – paragraph 1 a – point a
Article 24 – paragraph 1 a – point a
(a) to provide advice or promote financial instruments on the basis of an assessment of an appropriate range of financial instruments;
Amendment 440 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point e – point i
Article 1 – paragraph 1 – point 12 – point e – point i
Directive 2014/65/EU
Article 24 – paragraph 4 – point a – subpoints i, ii, iii
Article 24 – paragraph 4 – point a – subpoints i, ii, iii
(i) whether or not the advice is provided on an independent basithe investment firm provides advice on financial instruments or promotes them on behalf of one or more product manufacturers; (ii) whether the advice or promotion is based on a broad or on a more restricted analysis of different types of financial instruments and, in particular(iii) where the investment firm promotes financial instruments, whether the range of the assessment is limited to financial instruments issued or provided by entities having close links with the investment firm or any other legal or economic relationships, such as contractual relationships, so close as to pose a risk of impairing the independent basis of the advice provided; (iii) whether the investment firm will provide the client with a periodic assessment of the suitability of the financial instruments recommended to that client;
Amendment 441 #
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point e – point i – indent 2
Article 1 – paragraph 1 – point 12 – point e – point i – indent 2
Directive 2014/65/EU
Article 24 – paragraph 4 – point a – subpoint iv
Article 24 – paragraph 4 – point a – subpoint iv
(iv) whethere the investment firm will provides independent advice to a retail client, whether the range of the client with a periodic assessment of the suitability of the financial instruments that is recommended is restricted or not to well-diversified, non-complex as referred to in article 25(4)(a) and cost-efficient financial instruments onlyto that client;
Amendment 474 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24a – paragraph 1
Article 24a – paragraph 1
1. Member States shall ensure that investment firms, when providing portfolio management, do not pay or receive any fee or commission, or provide or are provided with any non-monetary benefit, in connection with the provision of such service, to or by any party except the client or a person on behalf of the client and paying inducements, clearly indicate the nature of the service and the inducements to the customer.
Amendment 490 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24a – paragraph 2
Article 24a – paragraph 2
2. Member States shall ensure that investment firms, when providing reception and transmission of orders or execution of orders to or on behalf of retail clients, do notindicate the payed or receive any fee or commission, or provide or ared fees and commissions, provided with any non- monetary benefits in connection with the provision of such services, to or from any third-party responsible for the creation, development, issuance or design of any financial instrument on which the firm provides such execution or reception and transmission services, or any person acting on behalf of that third-party.
Amendment 632 #
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24d – paragraph 2 – subparagraph 1
Article 24d – paragraph 2 – subparagraph 1
For the purpose of paragraph 1, Member States shall require investment firms to ensure and demonstrate to competent authorities on request that natural persons giving investment advice to clients on behalf of the investment firm possess and maintain at least the knowledge and competence set out in Annex V and undertake at least 1530 hours of professional training and development per year. Compliance with the criteria set out in Annex V as well as the yearly successful completion of the continuous professional training and development shall be proven by a certificate. (Article 1(13) inserting Article 24d)
Amendment 641 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a
Article 1 – paragraph 1 – point 14 – point a
IDD
Article 25 – paragraph 2 – subparagraph 1
Article 25 – paragraph 2 – subparagraph 1
Subject to the second subparagraph, when providing investment advice or portfolio management services, the investment firm shall obtain the necessary information regarding the client or potential client’s knowledge and experience in the investment field relevant to the specific type of product or service, that client’s financial situation, including the composition of any existing portfolios, its ability to bear full or partial losses, investment needs and objectives including sustainability preferences, if any, and risk tolerance, so as to enable the investment firm to recommend to the client or potential client the investment services or financial instruments that are suitable for that person, and, in particular, are in accordance with its risk tolerance, ability to bear losses, its sustainability benefits and drawbacks, and need for portfolio diversification.
Amendment 659 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point a
Article 1 – paragraph 1 – point 14 – point a
Directive 2014/65/EU
Article 25 – paragraph 3 a (new)
Article 25 – paragraph 3 a (new)
3a. When providing investment advice, the products proposed by the investment firm shall include at least one product that has sustainable investment as its objective as defined in Article 9 of Regulation (EU) 2019/2088, unless the client has explicitly indicated that they do not have any sustainability risks and benefits as defined in Article 2(7) of Delegated Regulation (EU) 2017/565.
Amendment 664 #
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point d
Article 1 – paragraph 1 – point 14 – point d
Directive 2014/65/EU
Article 25 – paragraph 8 – point c a (new)
Article 25 – paragraph 8 – point c a (new)
(ca) criteria for assessing the alignment of financial products with a client's sustainability risks and benefits, and the process for adjusting a portfolio or investment product offer to align with a client's sustainability risks and benefits.
Amendment 684 #
Proposal for a directive
Article 1 – paragraph 1 – point 22
Article 1 – paragraph 1 – point 22
2016/97
Article 88 b
Article 88 b
Financial and ecological education material that aims to support individuals’ financial and ecological literacy by enabling them to acquire financial and ecological competences, and that does not directly promote or entice investment in one or several financial instruments, or categories thereof, or specific investment services, shall not be deemed to constitute a marketing communication for the purposes of this Directive.;
Amendment 705 #
Proposal for a directive
Article 2 – paragraph 1 – point 5 – point b – point i
Article 2 – paragraph 1 – point 5 – point b – point i
(EU) 2016/97
Article 10 – paragraph 2 – subparagraph 2
Article 10 – paragraph 2 – subparagraph 2
For the purpose of the first subparagraph, home Member States shall have in place and publish mechanisms to control effectively and assess the knowledge and competence of insurance and reinsurance intermediaries, employees of insurance and reinsurance undertakings and employees of insurance and reinsurance intermediaries, as set out in Annex I, based on at least 1530 hours of professional training or development per year, taking into account the nature of the products sold, the type of distributor, the role they perform, and the activity carried out within the insurance or reinsurance distributor. The mechanisms should in particular define the minimum number of hours of professional training and development to be dedicated to sustainable investing per year and define in which cases additional hours of professional training and development must be required from an employee or intermediary beyond the minimum of 15 hours per year, based on the assessment of knowledge and competence. (Article 2(29)(b)(i) amending Article 10 of Directive (EU) 2016/97 (IDD))
Amendment 715 #
Proposal for a directive
Article 2 – paragraph 1 – point 7
Article 2 – paragraph 1 – point 7
2016/97
Article 12 b – paragraph 3 a (new)
Article 12 b – paragraph 3 a (new)
3a. The supervisory shall be given an extensive mandate also for intrusive actions.
Amendment 980 #
Proposal for a directive
Article 2 – paragraph 1 – point 21
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 b – paragraph 1 – subparagraph 1 – introductory part
Article 29 b – paragraph 1 – subparagraph 1 – introductory part
1. Member States shall ensure that in order to act in the best interest of the customer in accordance with Article 17(1), when providing advice or promotion to customers on insurance-based investment products, insurance undertakings and insurance intermediaries are under the obligation:
Amendment 988 #
Proposal for a directive
Article 2 – paragraph 1 – point 21
Article 2 – paragraph 1 – point 21
2016/97
Article 29 b – paragraph 1 – point b
Article 29 b – paragraph 1 – point b
(b) to recommend, the most caking into consideration its sustainability, taxonomy rating, performance, level of risk, costs and charges, biometric risk cover and additional features pursuant to Article 25 (1c), the most- efficient insurance-based investment product andor, where applicable, underlying investment assetoptions among the insurance- based investment products identified as suitable for the customer pursuant to Article 30 (1) and offering similar features;
Amendment 1015 #
Proposal for a directive
Article 2 – paragraph 1 – point 22 – point b
Article 2 – paragraph 1 – point 22 – point b
Directive (EU) 2016/97
Article 30 – paragraph 1 – subparagraph 1
Article 30 – paragraph 1 – subparagraph 1
Without prejudice to Article 20(1), when providing advice on insurance-based investment products, the insurance intermediary or insurance undertaking shall obtain the information regarding the customer’s knowledge and experience in the investment field relevant to the specific type of insurance-based investment product or, where applicable, underlying investment assets, offered or demanded, that customer’s financial situation, including the composition of any existing portfolios, its ability to bear full or partial losses, investment needs and objectives, including any sustainability preferencerisks and benefits, and risk tolerance, so as to enable the insurance intermediary or the insurance undertaking to recommend to the customer the insurance-based investment products that are suitable for that person and that, in particular, are in accordance with its risk tolerance, ability to bear losses and need for portfolio diversification, its sustainability risks and benefits, and need for portfolio diversification. The products proposed by the insurance intermediary or insurance undertaking shall include at least one product that has sustainable investment as its objective as defined in Article 9 of Regulation (EU) 2019/2088, unless the client that has explicitly indicated that they do not have any sustainability risks and benefits as defined in Article 9 of Delegated Regulation (EU) 2021/1257.
Amendment 1061 #
Proposal for a directive
Article 2 – paragraph 1 – point 22 – point e
Article 2 – paragraph 1 – point 22 – point e
(ca) criteria for assessing the alignment of financial products with a client's sustainability preferences, and the process for adjusting a portfolio or investment product offer to align with a client's sustainability preferences.