75 Amendments of John PURVIS related to 2008/2148(INI)
Amendment 2 #
Motion for a resolution
Recital A
Recital A
A. whereas the condition set out in Rule 39(2), that no proposal should be in preparation, is duly fulfilled, except in the case of the Commission's published review of Directives 2006/48/EC and 2006/49/EC,
Amendment 12 #
Motion for a resolution
Recital C
Recital C
C. whereas the current financial crisis, which was triggered by US subprime mortgages, has spread worldwide due to the increasingly integrated and contagious nature of markets, indicating that existing financial market regulation and supervision could not cope with it and a significant reform is therefore welcome,
Amendment 18 #
Motion for a resolution
Recital D
Recital D
D. whereas the crisis has led to a credit crunch entailing a higher price of credit for all market players; whereas longshort-term economic growth and employment are threatened by the resulting fragile financial markets,
Amendment 20 #
Motion for a resolution
Recital E
Recital E
Amendment 22 #
Motion for a resolution
Recital F
Recital F
F. whereas the possibility to transfer credit risk through "originate-to-distribute" model while providing a means origination and distribution model has weakened incentives to evaluate and monitor riskf additional competition among mortgage lenders and providing additional products and lower pricing to consumers, needs to be made more transparent,
Amendment 26 #
Motion for a resolution
Recital G
Recital G
G. whereas herding, inadequate risk management, irresponsible lending, excessive debt (leverage), andexcessive investment in illiquid and complex financial instruments pose significantcould pose risks to financial stabilityinstitutions,
Amendment 30 #
Motion for a resolution
Recital H
Recital H
H. whereas financial regulation and innovation,novative techniques which wasere designed to diminish risk at the micro level, hasand were regulation compliant in themselves, could lead in certain circumstances to risk concentration and has exacerbated risk at the macro level, thus amplifying systemic risk,
Amendment 34 #
Motion for a resolution
Recital I
Recital I
I. whereas regulatory arbitrage mustshould be prevented,
Amendment 36 #
Motion for a resolution
Recital J
Recital J
J. whereas transparency towardshe full confidence of the public, investors and supervisory authorities must be restored,
Amendment 41 #
Motion for a resolution
Recital K
Recital K
K. whereas current compensation schemes can reward excessive risk at the expense of-taking rather than prudence,
Amendment 46 #
Motion for a resolution
Recital L
Recital L
L. whereas conflicts of interest can arise from the business model used by some financial institutions, and credit rating agencies, and audit and law firms,
Amendment 49 #
Motion for a resolution
Recital M
Recital M
M. whereas failures bythe limitations of credit ratings agencies generated substantial negative externalities and market uncertaintre often poorly understood by recipients and inadequately defined by the agencies; and whereas credit rating agencies have offered unsatisfactory' procedures need reviewing, particularly the adequacy of selfregulatory solutions,
Amendment 51 #
Motion for a resolution
Recital M a (new)
Recital M a (new)
Ma. whereas self-regulatory solutions, proposed by the credit rating agencies are as yet untested and probably insufficient to meet the pivotal role they play in the financial system,
Amendment 54 #
Motion for a resolution
Recital N
Recital N
N. whereas market integration, desirable as it may be in many respects, does not necessarily enhance financial stability,
Amendment 57 #
Motion for a resolution
Recital O
Recital O
O. whereas the EU needs more cohernsistently and harmoniseffectively implemented regulation and supervision in order to mitigate the risk of future financial crises and to ensure a level playing field across borders and between regulated and unregulated market participants,
Amendment 60 #
Motion for a resolution
Recital P
Recital P
P. whereas a comprehensive reformview of current EU regulatory and supervisory arrangements is necessarunderway together with measurinitiatives to improve global supervisory cooperation; whereas such a reform should refer to covering the capital adequacy framework, transparency, and governance as key prerequisites for improved and effective regulatory and supervisory arrangements in a globally coordinated manner,
Amendment 64 #
Motion for a resolution
Recital P a (new)
Recital P a (new)
Pa. whereas supervisory cooperation needs to take into account the third country dimension of supervision of international groups as most, if not all, major financial groups in the EU have third country interests,
Amendment 65 #
Motion for a resolution
Recital P b (new)
Recital P b (new)
Pb. whereas following the ECOFIN Council conclusions of October 2007, December 2007 and June 2008, a major programme of work is already under way to make targeted improvements to the arrangements for EU supervisory cooperation; whereas extensive programmes of work are also in the EU and worldwide to understand the causes of market turmoil and to respond appropriately and therefore any new legislative proposals for fundamental reform of the EU supervisory configuration and associated issues may be inappropriate, and give rise to new uncertainty and risk,
Amendment 68 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Requests the Commission to submit to Parliament, by 30 November 2008, on the basis of Article 44, Article 47(2), Article 55, Article 95, Article 105(6), Article 202, Article 211 or Article 308 of the EC Treaty, a legislative proposal or proposals on an EU supervisory configuration, credit rating agencies and other relevant issues, following the detailed recommendations below.
Amendment 70 #
Motion for a resolution
Paragraph 2 a (new)
Paragraph 2 a (new)
2a. Requires the Commission to carry out a comprehensive impact assessment of such legislative proposal.
Amendment 72 #
Motion for a resolution
Paragraph 3
Paragraph 3
Amendment 86 #
Motion for a resolution
Annex – recommendation 1 – point 1.1 – point a
Annex – recommendation 1 – point 1.1 – point a
(a) imposensure appropriate capital requirements onfor all entities operating on financial markets;
Amendment 93 #
Motion for a resolution
Annex – recommendation 1 – point 1.1 – point c
Annex – recommendation 1 – point 1.1 – point c
(c) ensure that the rules are anti-cyclical as far as possible;
Amendment 97 #
Motion for a resolution
Annex – recommendation 1 – point 1.1 – point d
Annex – recommendation 1 – point 1.1 – point d
(d) reform the framework to improve risk management and not to rely excessivelyensure the adequacy of the risk management framework and in particular onf mathematical models;
Amendment 102 #
Motion for a resolution
Annex – recommendation 1 – point 1.1 – point e
Annex – recommendation 1 – point 1.1 – point e
(e) require higher capital chargeensure appropriate capital requirements for complex financial products and derivatives;
Amendment 104 #
Motion for a resolution
Annex – recommendation 1 – point 1.1 – point f
Annex – recommendation 1 – point 1.1 – point f
(f) requiensure disclosure of off-balance-sheet items, structured investment vehicles (SIVs) and any liquidity assistance facility, and require proper assessment of the risks that they pose, so that market participants are aware of the existence of these vehicles and how they operate.
Amendment 110 #
Motion for a resolution
Annex – recommendation 1 – point 1.2 – point a
Annex – recommendation 1 – point 1.2 – point a
(a) Securitisation: FRequire national regulation to monitor the implementation of industry-led initiatives to foster transparency, clarity, and data (quarterly)timely provision of data on complex financial products and the securitisation process.
Amendment 113 #
Motion for a resolution
Annex – recommendation 1 – point 1.2 – point b
Annex – recommendation 1 – point 1.2 – point b
(b) Complex Financial Products (CFS): Require investors to evaluate and monitor risk of CFS. Consistent rating terminology that clearly differentiates rating for such products should be established and ratings should reflect the vulnerability of such products to downgradesInstitute a programme to enhance the ability of investors to evaluate and monitor risk of CFS.
Amendment 117 #
Motion for a resolution
Annex – recommendation 1 – point 1.2 – point c – point i
Annex – recommendation 1 – point 1.2 – point c – point i
Amendment 121 #
Motion for a resolution
Annex – recommendation 1 – point 1.2 – point c – point ii
Annex – recommendation 1 – point 1.2 – point c – point ii
Amendment 125 #
Motion for a resolution
Annex – recommendation 1 – point 1.2 – point d
Annex – recommendation 1 – point 1.2 – point d
(d) Unregulated markets: RequireDetermine to what extent increased transparency of over-the-counter (OTC) markets and address major sources of systemic risk (i.e. counterparty concentration risk), e.g. by requiring OTC trades to be cleared in clearing housesis appropriate.
Amendment 130 #
Motion for a resolution
Annex – recommendation 1 – point 1.3 – point a
Annex – recommendation 1 – point 1.3 – point a
(a) Securitisation: Require originators to assess and monitor risk and retain a significant portion of the debt or mortgage backed securities originated by them onEnsure that originators improve transparency to initial investors by clearly disclosing whether they intend to retain risk in a pool, or whether they intend to sell all risks to third parties, either immediately or in the future, so that investors in securitisation could make the decision at the outset as to whether the interests of the originator are aligned with their booksown.
Amendment 136 #
Motion for a resolution
Annex – recommendation 1 – point 1.3 – point b
Annex – recommendation 1 – point 1.3 – point b
(b) Remuneration schemes: RequiEnsure financial institutions to disclose their remuneration policy, remuneration of individual directors, and remuneration packages for individuals other than directors and that all elements in compensation packages are expensed and remuneration of individual directors. Ensure that all transactions involving management can be clearly identified in the financial statements. RequiEnsure prudential supervisors to include in their assessment of risk management the influence of remuneration and bonus schemes to ensure that they contain balanced incentives and do not encourage extreme risk taking.
Amendment 139 #
Motion for a resolution
Annex – recommendation 1 – point 1.3 – point c
Annex – recommendation 1 – point 1.3 – point c
(c) Corporate liability regime: Require aAmend the approach to liability regimes addressing fines and other penalties for failure to comply with financial services legislation. Ensure that executives in financial institutions in case of omission of duties or wrongful trading can be disqualified from working in the financial sector.
Amendment 144 #
Motion for a resolution
Annex – recommendation 1 – point 1.3 – point d
Annex – recommendation 1 – point 1.3 – point d
(d) Credit rating agencies: MEnsure appropriate measures addressing e.g. conflicts of interests, quality assurance systems and oversight in a manner similar to those applicable to auditors. Ensure that credit rating agencies apply differentiated symbols for, and encourage further credit rating agency transparency on ratings methodologies, including information on how the ratings of complex debt products, mortgage related products and traditional debt. Ensure that full transparency is practised in ratings and that credit rating agencies do not turn sub-investments into investment grade securitiea particular structured product may be different from that for other products in terms of volatility or complexity, taking account of the need for investors to develop procedures to assess the credit of structured products without relying solely on ratings.
Amendment 147 #
Motion for a resolution
Annex – recommendation 2 – point a
Annex – recommendation 2 – point a
Amendment 151 #
Motion for a resolution
Annex – recommendation 2 – point b
Annex – recommendation 2 – point b
Amendment 153 #
Motion for a resolution
Annex – recommendation 2 – point c – point i – introductory part
Annex – recommendation 2 – point c – point i – introductory part
(i) enhancing as necessary crisis prevention and management arrangements at EU level including:
Amendment 154 #
Motion for a resolution
Annex – recommendation 2 – point (c) – point (i) – indent 1
Annex – recommendation 2 – point (c) – point (i) – indent 1
- facilitate monitoring and assessment of systemic financial risks at EU level;
Amendment 156 #
Motion for a resolution
Annex – recommendation 2 – point c – point i – indent 2
Annex – recommendation 2 – point c – point i – indent 2
- set up an EU early-interventiona mechanism for dealing with weak and failing banks if the EU financial stability is threatened. Such a mechanism should be well-defined, clear, able to prompt action, and financed by the financial institutions;
Amendment 160 #
Motion for a resolution
Annex – recommendation 2 – point c – point i – indent 3
Annex – recommendation 2 – point c – point i – indent 3
- facilitate the cross-border transfer of funds within a group in extreme situations;
Amendment 166 #
Motion for a resolution
Annex – recommendation 2 – point c – point i – indent 4
Annex – recommendation 2 – point c – point i – indent 4
- discourage major financial groups from engaging in overly risky origination and distribution activities;
Amendment 167 #
Motion for a resolution
Annex – recommendation 2 – point c – point i – indent 5
Annex – recommendation 2 – point c – point i – indent 5
- set clear and binding rules on cross- border crisis management and clarify state aid rules in cases of cross-border crisis;
Amendment 176 #
Motion for a resolution
Annex – recommendation 2 – point d
Annex – recommendation 2 – point d
(d) Amend EU rules on deposit guarantees to introduce obligatory ex-ante schemes financed by contributions from financial institutions and administered independently of these institutions. The level of refund should be significantly increased andContinue to monitor the effectiveness of current EU rules on deposit guarantees. The level of refund will be made available to retail clients within a clearly defined and short timeframe.
Amendment 182 #
Motion for a resolution
Annex – recommendation 2 – point f
Annex – recommendation 2 – point f
Amendment 188 #
Motion for a resolution
Annex – recommendation 2 – point g
Annex – recommendation 2 – point g
Amendment 204 #
Motion for a resolution
Annex – recommendation 3 – point 3.1 – point d
Annex – recommendation 3 – point 3.1 – point d
(d) RequiEnsure collection, exchange and access to relevant information amongst the members of the college and amongst all supervisors involved.
Amendment 205 #
Motion for a resolution
Annex – recommendation 3 – point 3.1 – point e– introductory part
Annex – recommendation 3 – point 3.1 – point e– introductory part
Amendment 210 #
Motion for a resolution
Annex – recommendation 3 – point 3.1 – point e – points i to iii
Annex – recommendation 3 – point 3.1 – point e – points i to iii
Amendment 217 #
Motion for a resolution
Annex – recommendation 3 - point 3.2
Annex – recommendation 3 - point 3.2
Amendment 228 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 – title
Annex – recommendation 3 – point 3.3 – title
Amendment 231 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 – point a
Annex – recommendation 3 – point 3.3 – point a
Amendment 239 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 – point b
Annex – recommendation 3 – point 3.3 – point b
Amendment 245 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 – point c
Annex – recommendation 3 – point 3.3 – point c
Amendment 248 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 – point d
Annex – recommendation 3 – point 3.3 – point d
Amendment 254 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 – point e
Annex – recommendation 3 – point 3.3 – point e
Amendment 258 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 – point f – introductory part
Annex – recommendation 3 – point 3.3 – point f – introductory part
Amendment 261 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 – point f – point i
Annex – recommendation 3 – point 3.3 – point f – point i
Amendment 262 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 – point f – point ii
Annex – recommendation 3 – point 3.3 – point f – point ii
Amendment 264 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 – point f – point iii
Annex – recommendation 3 – point 3.3 – point f – point iii
Amendment 267 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 – point f – point iv
Annex – recommendation 3 – point 3.3 – point f – point iv
Amendment 269 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 – point f – point v
Annex – recommendation 3 – point 3.3 – point f – point v
Amendment 271 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 – point g
Annex – recommendation 3 – point 3.3 – point g
Amendment 278 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 – point h – introductory part
Annex – recommendation 3 – point 3.3 – point h – introductory part
Amendment 282 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 – point h – point i
Annex – recommendation 3 – point 3.3 – point h – point i
Amendment 287 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 – point h – point ii
Annex – recommendation 3 – point 3.3 – point h – point ii
Amendment 290 #
Motion for a resolution
Annex – recommendation 3 – point 3.3 – point h – point iii
Annex – recommendation 3 – point 3.3 – point h – point iii
Amendment 294 #
Motion for a resolution
Annex – recommendation 3 – point 3.4 – title
Annex – recommendation 3 – point 3.4 – title
Amendment 298 #
Motion for a resolution
Annex – recommendation 3 – point 3.4 – point a
Annex – recommendation 3 – point 3.4 – point a
Amendment 303 #
Motion for a resolution
Annex – recommendation 3 – point 3.4 – point b
Annex – recommendation 3 – point 3.4 – point b
Amendment 309 #
Motion for a resolution
Annex – recommendation 3 – point 3.4 – point c – introductory part
Annex – recommendation 3 – point 3.4 – point c – introductory part
Amendment 313 #
Motion for a resolution
Annex – recommendation 3 – point 3.4 – point c – points i to iv
Annex – recommendation 3 – point 3.4 – point c – points i to iv
Amendment 317 #
Motion for a resolution
Annex – recommendation 3 – point 3.4 – point c – point v
Annex – recommendation 3 – point 3.4 – point c – point v
Amendment 322 #
Motion for a resolution
Annex – recommendation 3 – point 3.4 – point c – point vi
Annex – recommendation 3 – point 3.4 – point c – point vi
Amendment 326 #
Motion for a resolution
Annex – recommendation 3 – point 3.4 – point d
Annex – recommendation 3 – point 3.4 – point d