90 Amendments of Philippe LAMBERTS related to 2011/0203(COD)
Amendment 37 #
Proposal for a directive
Recital 2 a (new)
Recital 2 a (new)
(2a) This Directive and Regulation (EU) No .../2012 of the European Parliament and of the Council of ... [on prudential requirements for credit institutions and investment firms] should differentiate between models of banks and credit institutions and hence introduce the categories of Fundamental Banks, to which a lighter regime applies, Global Systemically Important Financial Institutions (G-SIFIs) established in the Union, to which a reinforced regime applies, and other banks and credit institutions, to which all provisions with the exception of the extra requirements for G-SIFIs apply. Whereas the G-SIFIs definition is identical to the criteria and list of the Financial Stability Board, the directive and regulation should empower the Commission to adopt draft regulatory technical standards developed by EBA to define the category of Fundamental Banks, taking into account the parameters laid down in this Directive and Regulation (EU) No .../2012 of the European Parliament and of the Council of ... [on prudential requirements for credit institutions and investment firms] . EBA should for all Systemically Important Institutions ensure consistency in the cooperation between third country competent authorities and host competent authorities.
Amendment 38 #
Proposal for a directive
Recital 2 b (new)
Recital 2 b (new)
(2b) Domestic Systemically Important Institutions (D-SIFIs) established in the Union should be subjected to the same extra requirements as G-SIFIs s after endorsement of the future criteria and the list
Amendment 40 #
Proposal for a directive
Recital 3 a (new)
Recital 3 a (new)
(3a) In addition to robust assessment of internal liquidity costs and benefits, it is essential that institutions be incentivised to reduce the external costs resulting from their distress or failure. In order to achieve this the Commission should ensure that any future legislation requiring the contribution of institutions to resolution funds and other funds aimed at limiting the amount of such external costs passed on to customers and taxpayers take full account of the liquidity risk profile of participating institutions. In particular, institutions that do not comply fully with the provisions in this Directive or in Regulation (EU) No .../2012 of the European Parliament and of the Council of ... [on prudential requirements for credit institutions and investment firms] as regards liquidity risk, should be required to contribute proportionally more than those that do.
Amendment 41 #
Proposal for a directive
Recital 7 a (new)
Recital 7 a (new)
(7a) Given the inevitable extension of powers and tasks for EBA foreseen by this Directive, Commission, Council and the EP should see to it that adequate human and financial resources are made available without delay.
Amendment 63 #
Proposal for a directive
Recital 56
Recital 56
(56) It is therefore appropriate to require credit institutions and investment firms to hold, in addition to other own fund requirements, a Capital Conservation Buffer and a Countercyclical Capital Buffer to ensure that credit institutions and investment firms accumulate during periods of economic growth a sufficient capital base to absorb losses in stressed periods. The Countercyclical Capital Buffer would be built up when aggregate credit growth isgrowth in credit and other asset classes with a significant impact on the risk profile of credit institutions and investment firms are judged to be associated with a build-up of system-wide risk, and drawn down during stressed periods.
Amendment 66 #
Proposal for a directive
Recital 57
Recital 57
(57) In order to ensure that countercyclical buffers properly reflect the risk to the banking sector of excessive credit growth and build-up of other systemic risk factors, credit institutions and investment firms should calculate their institution specific buffers as a weighted average of the counter-cyclical buffer rates that apply for the countries where their credit exposures and exposures to other systemic risk factors are located. Every Member State should therefore designate an authority responsible for quarterly setting the level of the Countercyclical Capital Buffer rate for exposures located in that Member State. That buffer rate should take into account the growth of credit levels and changes to the ratio of credit to GDP in that Member State, and any other variablesystemic risk factors relevant to the risks to financial stability.
Amendment 74 #
Proposal for a directive
Recital 62 a (new)
Recital 62 a (new)
(62a) In reference to article 345 TFEU, which states that the Treaties shall in no way prejudice the rules in Member States governing the system of property ownership, the provisions of this Directive shall neither favour nor discriminate types of ownership, which are in the scope of this Directive.
Amendment 75 #
Proposal for a directive
Recital 62 b (new)
Recital 62 b (new)
(62b) Article 2(3) lists a number of financial institutions, such as small cooperative banks, with special business models for which the CRD framework is not adequate. Thus, it is appropriate to enable access for financial institutions and thereby promoting competition and diversity. Therefore, as pointed out in article 2(3a), EBA should develop technical standards to define the criteria, which are applied to add new institutions to the list of article 2(3). Enhanced transparency on the features of these criteria is a crucial step to effectively foster market access and competition.
Amendment 79 #
Proposal for a directive
Article 2 – paragraph 1 a (new)
Article 2 – paragraph 1 a (new)
1a. This Directive and Regulation (EU) No .../2012 of the European Parliament and of the Council of ... [on prudential requirements for credit institutions and investment firms] shall differentiate between models of banks and credit institutions and hence introduce the categories of Fundamental Banks, to which a lighter regime shall apply, Global Systemically Important Financial Institutions (G-SIFIs) established in the Union, to which a reinforced regime shall apply, and other banks and credit institutions, to which all provisions with the exception of the extra requirements for G-SIFIs shall apply. Whereas the G-SIFIs' definition is identical to the criteria and list of the Financial Stability Board, the Commission shall be empowered to adopt a draft regulatory technical standard developed by EBA to define the category of Fundamental Banks. EBA shall ensure for all Systemically Important Institutions consistency in the cooperation between third country competent authorities and host competent authorities.
Amendment 80 #
Proposal for a directive
Article 2 – paragraph 1 b (new)
Article 2 – paragraph 1 b (new)
1b. For the purposes of this Directive and of Regulation (EU) No .../2012 of the European Parliament and of the Council of ... [on prudential requirements for credit institutions and investment firms], Fundamental Banks shall be defined by a draft technical standard developed by EBA and adopted by the Commission taking into account at least the granularity and nature of the funding for investments (degree of stable deposits) and the nature of those investments (low trading activities, and limited use of derivatives), making full use of the work of the FSB on differentiation. Institutions subject to this Directive and/or to Regulation (EU) No .../2012 of the European Parliament and of the Council of ... [on prudential requirements for credit institutions and investment firms] may apply to EBA for the Fundamental Bank designation. Banks benefiting from this designation shall report quarterly to EBA. EBA shall specify the format and content of this report. In case of deviation from the indicators, EBA shall issue a warning, require corrective steps and set a date for compliance. In case of non compliance, EBA shall withdraw the designation and the bank shall cease to benefit from the lighter regime. Fundamental Banks is a designation that can only apply to the consolidating entity.
Amendment 82 #
Proposal for a directive
Article 2 – paragraph 3 b (new)
Article 2 – paragraph 3 b (new)
3b. EBA shall develop draft regulatory technical standards to further define the criteria for including an institution on the list in paragraph 3 and for the types of cases that can be covered by national legislation as referred to in Article 3(2). Power is delegated to the Commission to adopt the draft regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Amendment 85 #
Proposal for a directive
Article 4 – paragraph 2 – point c a (new)
Article 4 – paragraph 2 – point c a (new)
(ca) 'model risk' is the potential loss an institution may incur, as a consequence of decisions based on the outputs of internal models, due to errors in the specification or calibration of such models that result in the failure to include relevant variables or in the under- or over-estimation of quantities assigned to the relevant variables. Model risk may be expressed using qualitative or quantitative expressions of the reliability of models, the sensitivity of outputs to the input variables and the potential losses that could ensue if assumptions underlying the model were to prove incorrect.
Amendment 94 #
Proposal for a directive
Article 7 – title
Article 7 – title
Cooperation with EBA and mediation powers of EBA and cooperation within the European System of Financial Supervision (ESFS)
Amendment 95 #
Proposal for a directive
Article 7 – introductory part
Article 7 – introductory part
In the exercise of their duties, the competent authorities shall take into account the convergence in respect of supervisory tools and supervisory practices in the application of the laws, regulations and administrative requirements adopted pursuant to this Directive and Regulation (EU) No .../2012 of the European Parliament and of the Council of ... [on prudential requirements for credit institutions and investment firms]. For that purpose, Member States shall ensure that:
Amendment 96 #
Proposal for a directive
Article 7 – point -a (new)
Article 7 – point -a (new)
(-a) competent authorities, as parties to the ESFS, cooperate with trust and full mutual respect, in particular when ensuring the flow of appropriate and reliable information between them and other parties to the ESFS in accordance with the principle of sincere cooperation pursuant to Article 4(3) of the Treaty on European Union;
Amendment 97 #
Proposal for a directive
Article 7 – point a
Article 7 – point a
(a) the competent authorities participate in the activities of EBA and, as appropriate, in the colleges of supervisors;
Amendment 98 #
Proposal for a directive
Article 7 – point b
Article 7 – point b
(b) competent authorities make every effort to comply with those guidelines and recommendations issued by EBA in accordance with Article 16 of Regulation (EU) No. 1093/2010, and with the warnings and recommendations issued by the ESRB pursuant to Article 16 of Regulation (EU) No 1092/2010;
Amendment 99 #
Proposal for a directive
Article 7 – point c
Article 7 – point c
(c) national mandates conferred on the competent authorities do not inhibit the performance of their duties as members of EBA, of the ESRB where appropriate or under this Directive and Regulation [inserted by OP(EU) No .../2012 of the European Parliament and of the Council of ... [on prudential requirements for credit institutions and investment firms].'
Amendment 100 #
Proposal for a directive
Article 7 – point c a (new)
Article 7 – point c a (new)
(ca) competent authorities cooperate closely with the ESRB;
Amendment 101 #
Proposal for a directive
Article 7 – paragraph 1 a (new)
Article 7 – paragraph 1 a (new)
Article 19 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council establishing a European Supervisory Authority (European Banking Authority) relating to the settlement of disagreements between competent authorities in cross-border situations, setting out the powers of binding mediation, shall apply to all relevant articles of this Directive
Amendment 103 #
Proposal for a directive
Article 7 – paragraph 1 b (new)
Article 7 – paragraph 1 b (new)
Given the inevitable extension of powers and tasks for EBA foreseen by this directive, EBA shall without delay submit a revised request concerning its annual and multiannual budgets.
Amendment 106 #
Proposal for a directive
Article 8
Article 8
The competent authorities in one Member State shall, in the exercise of their general duties, duly consider the potential impact of their decisions on the stability of the financial system in all other Member States concerned and, in particular, in emergency situations, based on the information available at the relevant time. Competent authorities shall consider, with a view to a more effective supervision of EU parent institutions or EU parent financial holding companies and their subsidiaries, to delegate certain responsibilities to the EBA in accordance with Article 28 of Regulation (EU) No 1093/2010. EBA shall develop draft regulatory technical standards to specify the detailed procedures applicable to the exercise of the delegated responsibilities in accordance with Article 28(3) of Regulation (EU) No 1093/2010. Power is conferred on the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with the procedure laid down in Article 10 to 14 of Regulation (EU) No 1093/2010.
Amendment 128 #
Proposal for a directive
Article 49 a (new)
Article 49 a (new)
Article 49 a EBA Supervision for Global Systemically Important Institutions EBA shall be the competent authority for Global Systemically Important Institutions as identified by the Financial Stability Board, assisted by a special college of supervisors consisting of all Member States' competent authorities.
Amendment 130 #
Proposal for a directive
Article 51 – paragraph 1
Article 51 – paragraph 1
1. The competent authorities of the Member States concerned shall collaborate closely in order to supervise the activities of institutions operating, in particular through a branch, in one or more Member States other than that in which their head offices are situated. They shall supply one another as well as EBA with all information concerning the management and ownership of such institutions that is likely to facilitate their supervision and the examination of the conditions for their authorisation, and all information likely to facilitate the monitoring of institutions, in particular with regard to liquidity, solvency, deposit guarantee, the limiting of large exposures, administrative and accounting procedures and internal control mechanisms.
Amendment 133 #
Proposal for a directive
Article 51 – paragraph 2
Article 51 – paragraph 2
2. The competent authorities of the home Member State shall provide the competent authorities of host Member States as well as EBA immediately with any information and findings pertaining to liquidity supervision in accordance with Part Six of Regulation [inserted by OP(EU) No .../2012 of the European Parliament and of the Council of ... [on prudential requirements for credit institutions and investment firms] and Title VII, Chapter 3 of this Directive of the activities performed by the institution through the branch, to the extent that such information is relevant for the protection of depositors or investors in the host Member State.
Amendment 135 #
Proposal for a directive
Article 51 – paragraph 3
Article 51 – paragraph 3
3. The competent authorities of the home Member State shall inform the competent authorities of all host Member States as well as EBA immediately where liquidity stress occurs or can reasonably be expected to occur. This information shall also include details about the planning and implementation of a recovery plan and about any prudential measures taken in that context.
Amendment 139 #
Proposal for a directive
Article 52 – paragraph 4 a (new)
Article 52 – paragraph 4 a (new)
4a. EBA shall have the power to carry out on a case by case basis announced or unannounced on-the-spot inspections.
Amendment 144 #
Proposal for a directive
Article 54 – paragraph 2
Article 54 – paragraph 2
2. Paragraph 1 shall not prevent the competent authorities of the various Member States from exchanging information or transmitting information to EBA in accordance with this Directive, Regulation [inserted by OP(EU) No .../2012 of the European Parliament and of the Council of ... [on prudential requirements for credit institutions and investment firms], with other Directives applicable to credit institutions, and with Articles 31, 35 and 356 of Regulation (EU) No 1093/2010 and Article 15 of Regulation (EU) No 1092/2010. That information shall be subject to the conditions relating to professional secrecy set out in paragraph 1.
Amendment 145 #
Proposal for a directive
Article 58 – paragraph 2 – subparagraph 2
Article 58 – paragraph 2 – subparagraph 2
Member States shall communicate to EBA the names of the authorities which may receive information pursuant to paragraphs 1 and 2 and provide EBA on its request with that information.
Amendment 146 #
Proposal for a directive
Article 59 – paragraph 1 – introductory part
Article 59 – paragraph 1 – introductory part
1. Nothing in this Chapter shallMember States shall take the appropriate measures to remove obstacles prevent aing competent authorityies from transmitting information to the following for the purposes of their respective tasks:
Amendment 147 #
Proposal for a directive
Article 59 – paragraph 1 – point c
Article 59 – paragraph 1 – point c
(c) the European Systemic Risk Board (ESRB), the European Supervisory Authority (European Securities and Markets Authority) (ESMA) and the European Supervisory Authority (European Insurance and Occupational Pensions Authority) (EIOPA), where that information is relevant for the exercise of itstheir statutory tasks under Regulations (EU) No 1092/2010., (EU) No 1095/2010 and (EU) No 1094/2010
Amendment 148 #
Proposal for a directive
Article 59 – paragraph 4
Article 59 – paragraph 4
4. IMember States shall take the necessary measures to ensure that, in an emergency situation as referred to in Article 109(1), Member States shall allow the competent authorities to communicate, without delay, information to the central banks where that information is relevant for the exercise of their statutory tasks, including the conduct of monetary policy and related liquidity provision, the oversight of payments, clearing and settlement systems, and the safeguarding of the stability of the financial system, and to the ESRB where such information is relevant for the exercise of its statutory tasks.
Amendment 152 #
Proposal for a directive
Article 64 – point j a (new)
Article 64 – point j a (new)
(ja) to remove one or more members of the management body, where they do not fulfil the requirements imposed under Article 87.
Amendment 159 #
Proposal for a directive
Article 67 – paragraph 1 – point m a (new)
Article 67 – paragraph 1 – point m a (new)
Amendment 164 #
Proposal for a directive
Article 68
Article 68
Member States shall ensure that the competent authorities publish any sanction or measure imposed for breach of the provisions of Regulation [inserted by OP(EU) No .../2012 of the European Parliament and of the Council of ... [on prudential requirements for credit institutions and investment firms] or of the national provisions adopted in the implementation of this Directive without undue delay including information on the type and nature of the breach and the identity of persons responsible for it, unless such publication would seriously jeopardise the stability of financial markets. Where publication would cause a disproportionate damage to the parties involved, competent authorities shall publish the sanctions on an anonymous basis.;
Amendment 167 #
Proposal for a directive
Article 68 – paragraph 1 a (new)
Article 68 – paragraph 1 a (new)
Member States shall ensure that competent authorities inform EBA without delay and in detail about all sanctions imposed on institutions or individuals under their supervision.
Amendment 198 #
Proposal for a directive
Article 75 – paragraph 3 – subparagraph 2 a (new)
Article 75 – paragraph 3 – subparagraph 2 a (new)
The risk committee shall ensure that risks are fully reflected in prices of liabilities and assets in a manner that is consistent with general risk management framework and supervisory and public disclosures of risk. Where prices do not reflect risks in the manner described, the risk committee shall present a remedy plan to the management board.
Amendment 199 #
Proposal for a directive
Article 75 – paragraph 3 – subparagraph 2 b (new)
Article 75 – paragraph 3 – subparagraph 2 b (new)
The risk committee shall ensure that risk assessments take full account of environmental risks. Such risks include, but are not limited, to the risk to the long terms creditworthiness of obligors with significant exposure to environmental factors or changes in legal requirements relating to environmental matters, the impact of environmental matters on commodity price exposures and the impact of non-insurable risks not already taken into account in the institutions regulatory and internal operational risk framework.
Amendment 214 #
Proposal for a directive
Article 75 – paragraph 5 – subparagraph 3
Article 75 – paragraph 5 – subparagraph 3
The risk management function shall be able to report directly to the management body in its supervisory function when necessary, independent from senior management and to raise concerns and warn this body, where appropriate, in case of specific risk developments that affect or may affect the institution, without prejudice to the responsibilities of the management body in both its supervisory and/or managerial functions pursuant to this Directive and Regulation (EU) No .../2012 of the European Parliament and of the Council of ... [on prudential requirements for credit institutions and investment firms].
Amendment 229 #
Proposal for a directive
Article 76 a (new)
Article 76 a (new)
Article 76 a Supervisory Benchmarking of Internal Approaches for calculating own funds requirements 1. Competent authorities shall design an hypothetical portfolio of instruments representing the full range of risks to which institutions are exposed and for which they are permitted to use internal models for calculating own fund requirements. 2. Competent authorities shall ensure that institutions permitted to use internal approaches calculate own fund requirements for each of the exposures in the portfolio and submit the results of the calculations together with an explanation of the methodologies used to produce them to the competent authority at an appropriate frequency which shall not be less than once a year. 3. Competent authorities shall, on the basis of the information submitted by institutions in accordance with paragraph 2, monitor the range of own fund calculations resulting from the internal approaches of those institutions and, at least once a year, make an assessment of the quality of those approaches paying particular attention to those approaches that exhibit significant differences in own fund requirements for the same exposure and to an assessment of which approaches constitute best practice. 4. Where particular institutions diverge significantly from the majority of their peers or where there is little commonality in approaches leading to a wide variance of results, competent authorities shall investigate the reasons for this and take such corrective action as is required to ensure adherence to best practice and avoidance of understatement of own fund requirements. 5. Competent authorities shall establish effective procedures for sharing the information and assessments made in accordance with paragraphs 2 and 3 with each other and with EBA in order to promote consistency in the supervision of internal approaches across Member States. 6. EBA may make recommendations in accordance with Article 16 of Regulation (EU) No 1093/2010 where it deems them necessary on the basis of the information and assessments referred to in paragraph 5 in order to improve supervisory practices with regard to internal approaches or deficiencies identified in standard approaches to own fund calculations. 7. EBA shall develop draft regulatory technical standards to further define the minimum standards for the design of an hypothetical portfolio as referred to in paragraph 1, the minimum standards for the content of the submissions by institutions referred to in paragraph 2 and the minimum standards for the assessments made by competent authorities referred to in paragraph 3. EBA shall submit those draft regulatory technical standards to the Commission by 1 January 2014. Power is conferred on the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with the procedure laid down in Article 14 of Regulation (EU) No 1093/2010.
Amendment 232 #
Proposal for a directive
Article 79
Article 79
Competent authorities shall ensure that the concentration risk arising from exposures to sovereign states, regional governments and local authorities, counterparties, including central counterparties, groups of connected counterparties, and counterparties in the same economic sector, geographic region or from the same activity or commodity, the application of credit risk mitigation techniques, and including in particular risks associated with large indirect credit exposures such as a single collateral issuer, is addressed and controlled by means of written policies and procedures.
Amendment 234 #
Proposal for a directive
Article 83 – paragraph 1
Article 83 – paragraph 1
1. Competent authorities shall ensure that institutions implement policies and processes to evaluate and manage the exposure to operational risk, including tomodel risk and covering low-frequency high-severity events. Institutions shall articulate what constitutes operational risk for the purposes of those policies and procedures.
Amendment 235 #
Proposal for a directive
Article 84 – paragraph 2 a (new)
Article 84 – paragraph 2 a (new)
Amendment 236 #
Proposal for a directive
Article 84 – paragraph 6
Article 84 – paragraph 6
6. Competent authorities shall ensure that institutions consider different liquidity risk mitigation tools, including a system of limits and liquidity buffers and long term stable funding in order to be able to withstand a range of different stress eventshort, medium and long-term stress events, which shall include a range of scenarios involving greater stress than those implicit in the provisions for the assessment of liquidity coverage and stable funding requirements in Regulation (EU) No .../2012 of the European Parliament and of the Council of ... [on prudential requirements for credit institutions and investment firms], and an adequately diversified funding structure and access to funding sources. Those arrangements shall be reviewed regularly.
Amendment 249 #
Proposal for a directive
Article 86 – paragraph 1 a (new)
Article 86 – paragraph 1 a (new)
1a. Competent authorities shall ensure that Global Systemically Important Institutions as identified by the Financial Stability Board and those institutions identified by EBA in accordance with Article 22(2) of Regulation (EU) No 1093/2010 develop a comprehensive resolution plan (living will) within one year of the entry into force of this directive. Competent authorities shall approve these plans only if they are compliant with the analysis of EBA pursuant to Article 25 of Regulation (EU) No 1093/2010 and it is demonstrated that the institution can be wound up smoothly and at no cost to public finances. If after two years after the entry into force of this directive no such plan is adopted, the competent authority shall impose corrective prudential requirements and take steps to render the institution resolvable.
Amendment 269 #
Proposal for a directive
Article 86 a (new)
Article 86 a (new)
Amendment 270 #
Proposal for a directive
Article 86 b (new)
Article 86 b (new)
Article 86b Public disclosure of return on assets Institutions shall disclose in their annual report among the key indicators their return on assets, calculated as their net profit divided by their total balance sheet.
Amendment 271 #
Proposal for a directive
Article 87 – paragraph -1 (new)
Article 87 – paragraph -1 (new)
-1. For the purpose of this Directive a non-executive director is defined as follows: A non-executive director or outside director is a member of the board of directors of a company who does not form part of the executive management team. He or she is not an employee of the company or affiliated with it in any other way. They are differentiated from inside directors, who are members of the board who also serve or previously served as executive managers of the company. Non-executive directors should have responsibilities in the following areas: - Non-executive directors should constructively challenge and contribute to the development of strategy; - Non-executive directors should scrutinise the performance of management in meeting agreed goals and objectives and monitoring, and where necessary removing, senior management and in succession planning; - Non-executive directors should satisfy themselves that financial information is accurate and that financial controls and systems of risk management are robust and defensible; - Non-executive directors should be responsible for determining appropriate levels of remuneration of executive directors and have a prime role in appointing, and where necessary removing, senior management and in succession planning. Non-executive directors should also provide independent views on: - resources; - appointments; - standards of conduct. Non-executive directors are the custodians of the governance process. They are not involved in the day-to-day running of business but monitor the executive activity and contribute to the development of strategy.
Amendment 281 #
Proposal for a directive
Article 87 – paragraph 1 – point a – point i
Article 87 – paragraph 1 – point a – point i
(i) one executive directorship with twoone non-executive directorships;
Amendment 284 #
Proposal for a directive
Article 87 – paragraph 1 – point a – point ii
Article 87 – paragraph 1 – point a – point ii
(ii) fourtwo non-executive directorships.
Amendment 294 #
Proposal for a directive
Article 87 – paragraph 1 – point a – subparagraph 2
Article 87 – paragraph 1 – point a – subparagraph 2
Executive or non-executive directorships held within the same group or within institutions which have established links according to Art. 108(6) and (7) of Regulation (EU) No .../2012 of the European Parliament and of the Council of ... [on prudential requirements for credit institutions and investment firms] shall count as one single directorship.
Amendment 300 #
Proposal for a directive
Article 87 – paragraph 1 – point a a (new)
Article 87 – paragraph 1 – point a a (new)
(aa) Where a non-executive director in one institution combines his or her role with an executive directorship in another institution, none of the executive directors of the former institution shall have a non- executive director position in the second.
Amendment 302 #
Proposal for a directive
Article 87 – paragraph 1 – point b
Article 87 – paragraph 1 – point b
(b) The management body shall possess adequate collectivindividually and collectively adequate knowledge, skills and experience to be able to understand the institution's activities, including the main risks.
Amendment 312 #
Proposal for a directive
Article 87 – paragraph 3
Article 87 – paragraph 3
3. Competent authorities shall require institutions to take into account diversity as one of the criteria for selection of members of the management body. In particular, institutions shall put in place a policy promoting gender, age, geographical, educational and professional diversity on the management body. Competence authorities shall require institutions to have implemented a 1/3 third gender quota at the latest two years after the entry into force of this Directive.
Amendment 322 #
Proposal for a directive
Article 87 – paragraph 5 – subparagraph 1 – point b
Article 87 – paragraph 5 – subparagraph 1 – point b
(b) the notion of adequate individual and collective knowledge, skills and experience of the management body as referred to in paragraph 1(b);
Amendment 327 #
Proposal for a directive
Article 88 – paragraph 1 a (new)
Article 88 – paragraph 1 a (new)
1a. Competent authorities shall ensure that in no case total remuneration exceeds 3 times the salary of the head of the respective government.
Amendment 328 #
Proposal for a directive
Article 88 – paragraph 1 b (new)
Article 88 – paragraph 1 b (new)
1b. Competent authorities shall ensure that in no case total remuneration exceeds 4 times the salary of the head of the respective competent authority.
Amendment 329 #
Proposal for a directive
Article 88 – paragraph 1 c (new)
Article 88 – paragraph 1 c (new)
1c. Competent authorities shall ensure that the highest remuneration in the institution does not exceed 30 times the average remuneration of the lowest paid 5 percent of employees.
Amendment 330 #
Proposal for a directive
Article 88 – paragraph 1 d (new)
Article 88 – paragraph 1 d (new)
1d. Competent authorities shall ensure that a pay ratio of 1 to 20 between the average total remuneration and highest total remuneration within the same institution is respected.
Amendment 331 #
Proposal for a directive
Article 88 – paragraph 1 e (new)
Article 88 – paragraph 1 e (new)
1e. EBA shall develop a draft regulatory standard specifying the categories of staff that are considered risk takers.
Amendment 332 #
Proposal for a directive
Article 88 – paragraph 2 – introductory part
Article 88 – paragraph 2 – introductory part
2. Competent authorities shall ensure that, when establishing and applying the total remuneration policies, inclusive of salaries and discretionary pension benefits, for categories of staff including senior management, risk takers, staff engaged in control functions and any employee receiving total remuneration that takes them into the same remuneration bracket as senior management and risk takers, whose professional activities have a material impact on their risk profile, or any staff whose total remuneration exceeds EUR 1 million, institutions comply with the following principles in a way and to the extent that is appropriate to their size, internal organisation and the nature, the scope and the complexity of their activities:
Amendment 340 #
Proposal for a directive
Article 88 – paragraph 2 – point f a (new)
Article 88 – paragraph 2 – point f a (new)
(fa) the remuneration policy makes a clear distinction between criteria for setting: - basic fixed remuneration, which should primarily reflect relevant professional experience and organisational responsibility as set out in an employee's job description as part of the terms of employment, - variable remuneration, which should reflect performance in excess of that required to fulfil the employee's job description as part of the terms of employment, - any other employee benefits beyond those required by law.
Amendment 345 #
Proposal for a directive
Article 89 – point a a (new)
Article 89 – point a a (new)
(aa) total remuneration shall not exceed EUR 500 000;
Amendment 352 #
Proposal for a directive
Article 90 – paragraph 1 – subparagraph 1 – point d
Article 90 – paragraph 1 – subparagraph 1 – point d
(d) there shall be no guaranteed variable remuneration is exceptional and occurs only when hiring new staff and is limited to the first year of employment;
Amendment 354 #
Proposal for a directive
Article 90 – paragraph 1 – subparagraph 1 – point e
Article 90 – paragraph 1 – subparagraph 1 – point e
(e) fixed and variable components of total remuneration are appropriately balanced and the fixed component represents a sufficiently high proportion of the total remuneration to allow the operation of a fully flexible policy on variable remuneration components, including the possibility to pay no variable remuneration component; variable remuneration shall not exceed 50% of fixed remuneration;
Amendment 373 #
Proposal for a directive
Article 92 – paragraph 4 a (new)
Article 92 – paragraph 4 a (new)
4a. Member States shall ensure that whenever a review shows that an institution may pose systemic risk in accordance with Article 23 of Regulation (EU) No 2010/1093 the competent authority informs EBA immediately about the results of the review.
Amendment 374 #
Proposal for a directive
Article 92 – paragraph 4 b (new)
Article 92 – paragraph 4 b (new)
4b. Competent authorities shall establish intervention plans with appropriate triggers and the necessary instruments to intervene early in order to prevent institutions' financial condition to deteriorate and to ensure that at no time costs for public finances are incurred. EBA shall monitor the range of practices in this area and shall, in accordance with Article 16 of Regulation (EU) No. 1093/2010, issue guidelines.
Amendment 375 #
Proposal for a directive
Article 95 – title
Article 95 – title
Application of supervisory measures to a type of institutions, all institutions, and cross boarder measures (reciprocation)
Amendment 376 #
Proposal for a directive
Article 95 – paragraph 1 – subparagraph 1
Article 95 – paragraph 1 – subparagraph 1
Where the competent authorities determine under Article 92 that a certain type of institutions, all institutions, or in case of cross border institutions the EBA, is or might be exposed to similar risks or pose similar risks to the financial system, they may apply Articles 98 and 99 in a similar manner to this type of institutions, all institutions, or across borders (reciprocation).
Amendment 377 #
Proposal for a directive
Article 95 – paragraph 1 – subparagraph 2
Article 95 – paragraph 1 – subparagraph 2
Amendment 413 #
Proposal for a directive
Article 108 – paragraph 3 – subparagraph 1
Article 108 – paragraph 3 – subparagraph 1
In the absence of such a joint decision between the competent authorities within the time period referred to in paragraph 2, a decision on the application of Articles 72, 84, 92, 98 and 99 shall be taken on a consolidated basis by the consolidating supervisor after duly considering the risk assessment of subsidiaries performed by relevant competent authorities. If, at the end of the time period referred to in paragraph 2, any of the competent authorities concerned has referred the matter to EBA in accordance with Article 19 of Regulation (EU) No 1093/2010, the consolidating supervisor shall defer its decision and await any decision that EBA may take in accordance with Article 19(3) of that Regulation, and shall take its decision in conformity with the decision of EBA. The time period referred to in paragraph 2 shall be deemed the conciliation period within the meaning of the Regulation. EBA shall take its decision within 1 month. The matter shall not be referred to EBA after the end of the four month period or after a joint decision has been reached. EBA may start a mediation process also on its own initiative pursuant to Article 19 Paragraph 1 Subparagraph 2 of Regulation (EU) No 1093/2010.
Amendment 415 #
Proposal for a directive
Article 108 – paragraph 3 – subparagraph 2
Article 108 – paragraph 3 – subparagraph 2
The decision on the application of Articles 72, 84, 92, 98 and 99 shall be taken by the respective competent authorities responsible for supervision of subsidiaries of an EU parent credit institution or a EU parent financial holding company or EU parent mixed financial holding company on an individual or sub-consolidated basis after duly considering the views and reservations expressed by the consolidating supervisor. If EBA started an mediation process on its own initiative in accordance with Article 19 of Regulation (EU) No 1093/2010 or if, at the end of the time period referred to in paragraph 2, any of the competent authorities concerned has referred the matter to EBA in accordance with Article 19 of Regulation (EU) No 1093/2010, the competent authorities shall defer their decision and await any decision that EBA shall take in accordance with Article 19(3) of that Regulation, and shall take its decision in conformity with the decision of EBA. The time period referred to in the paragraph 2 shall be deemed the conciliation period within the meaning of that Regulation. EBA shall take its decision within 1 month. The matter shall not be referred to EBA after the end of the four- month period or after a joint decision has been reached.
Amendment 420 #
Proposal for a directive
Article 110 – paragraph 1 – subparagraph 2
Article 110 – paragraph 1 – subparagraph 2
Under these arrangements additional tasks may be entrusted to the consolidating supervisor or EBA and procedures for the decision- making process and for cooperation with other competent authorities, may be specified.
Amendment 421 #
Proposal for a directive
Article 112 – paragraph 1 – subparagraph 4
Article 112 – paragraph 1 – subparagraph 4
Information referred to in the first subparagraph shall at least be regarded as essential if it could materially influence the assessment of the financial soundness of a institution or financial institution in another Member State.
Amendment 422 #
Proposal for a directive
Article 112 – paragraph 2 – subparagraph 2
Article 112 – paragraph 2 – subparagraph 2
Without prejudice to Article 258 TFEU, EBA may act on its own initiative in accordance with the powers conferred on it under Article 19 of Regulation (EU) No 1093/2010.
Amendment 430 #
Proposal for a directive
Chapter 4 – Section I – title
Chapter 4 – Section I – title
Capital Conservation and, Countercyclical Capital Buffers, and Capital Buffers for Global Systemically Important Institutions (G-SIFIs)
Amendment 441 #
Proposal for a directive
Article 122 – paragraph 1 – point 5 a (new)
Article 122 – paragraph 1 – point 5 a (new)
(5a ) "Capital Buffers for Global Systemically Important Institutions (G- SIFIs)" means additional capital requirements for G-SIFIs in accordance with the recommendations and criteria of the Financial Stability Board.
Amendment 453 #
Proposal for a directive
Article 123 – paragraph 1
Article 123 – paragraph 1
1. Member States shall require institutions to maintain, in addition to the Common Equity Tier 1 capital maintained to meet the own funds requirement imposed by 87 of Regulation [inserted by OP(EU) No. .../2012 of ... [on prudential requirements for credit institutions and investment firms], a Capital Conservation Buffer of Common Equity Tier 1 capital equivalent to 2.5% - 5% of their total risk exposure amount calculated in accordance with Article 87(3) of that Regulation on an individual and consolidated basis, as applicable in accordance with Part One, Title II of that Regulation. Member States requiring a Capital Conservation Buffer exceeding 2.5% shall submit a justification to the European Banking Authority and the ESRB. The ESRB or EBA may assess the existence of the risks addressed by these stricter prudential requirements adopted , as well as whether they may affect other Member States or the financial system of the European Union as a whole. The ESRB shall conduct the assessment when so requested by the Commission or by at least three Member States. Where it is assessed that the risks addressed by the stricter prudential requirements do not exist, the Commission may adopt a decision ordering the relevant Member State to abolish the stricter requirements within the date established in the decision and, in any case, not more than 20 days from the notification of the decision to the relevant Member State; if the relevant Member State does not comply with the decision of the Commission by the established deadline, the Commission may act under Article 258 of the TFEU.
Amendment 454 #
Proposal for a directive
Article 123 a (new)
Article 123 a (new)
Article 123a Requirement to maintain Capital Buffers for Systemically Important Institutions 1. Member States shall require G-SIFIs to maintain additional Common Equity Tier 1 capital requirements in accordance with the criteria and corresponding dynamic list established by the Financial Stability Board and endorsed by the G20. 2. Such additional capital buffers shall be set at 1% to 2.5%, with an empty bucket of 3.5%. 3. Member States shall increase annually the respective buffers by 0,25% until such time as the institution submits a plan for ending its classification as a G-SIFIs as referred to in paragraph 1 and this plan is accepted by the competent authority
Amendment 458 #
Proposal for a directive
Article 124 a (new)
Article 124 a (new)
Article 124a Prudential requirements established at national level 1. Member States shall designate an authority for macro-prudential supervision. Each designated authority, either upon its own initiative or upon recommendation of the ESRB under Regulation (EU) No 1092/2010, shall be empowered to impose on domestically authorised institutions stricter prudential requirements than those provided for in this Directive and Regulation (EU) No. .../2012 of ... [on prudential requirements for credit institutions and investment firms] in the areas specified under Article 443 of that Regulation where macro- prudential risks are identified as posing a threat to financial stability at national level. The designated authorities in the other Member States shall be empowered to: a) recognise these stricter prudential requirements for the purposes of the calculation of prudential requirements by domestically authorised institutions in those other Member States, with reference to activities in the Member State where the risks have been identified, and; b) adopt stricter prudential requirements for the purposes of the calculation of prudential requirements by domestically authorised institutions with reference to activities in the Member State where those institutions were authorised, when macro- prudential risks can affect also the stability of their national financial system. In recognising or adopting the stricter prudential requirements, those other designated authorities shall follow any act EBA and the ESRB may adopt under respectively Regulation (EU) No 1093/2010 and Regulation (EU) No 1092/2010. 2. Each designated authority shall notify the adoption or the recognition of the stricter prudential requirements to the Commission, to EBA and to the ESRB within two working days from the day of their adoption or of their recognition. The stricter prudential requirements shall be published by the designated authorities and by EBA and the ESRB on their websites. 3. The ESRB may assess the existence of the macro-prudential risks addressed by the stricter prudential requirements adopted by the designated authorities under paragraph 1, as well as whether they may affect other Member States or the financial system of the Union as a whole. The ESRB shall conduct the assessment when so requested by the Commission or by at least three Member States. 4. Where it is assessed under paragraph 2 that the macro-prudential risks addressed by the stricter prudential requirements do not exist, the Commission may adopt a decision ordering the relevant Member State to abolish the stricter requirements within the date established in the decision and, in any case, not more than 20 days from the notification of the decision to the relevant Member State. If the relevant Member State does not comply with the decision of the Commission by the established deadline, the Commission may act under Article 258 TFEU.
Amendment 461 #
Proposal for a directive
Article 125 – title
Article 125 – title
ESRB and EBA guidance on setting countercyclical buffer rates
Amendment 468 #
Proposal for a directive
Article 125 – paragraph 2
Article 125 – paragraph 2
2. Where it has issued a recommendation under paragraph 1, the ESRB and EBA shall keep it under review and update it, where necessary, in the light of experience of setting buffers under this Directive or of developments in internationally agreed practices. In case the ESRB can demonstrate a threat to financial stability, the recommendations under paragraph 1 shall be binding.
Amendment 471 #
Proposal for a directive
Article 126 – paragraph 2 – introductory part
Article 126 – paragraph 2 – introductory part
2. Each designated authority shall calculate for every quarter a buffer guide as a reference to guide its exercise of judgement in setting the countercyclical buffer rate in accordance with paragraph 3. The buffer guide shall maybe based on the deviation of the ratio of credit-to-GDP from its long-term trend or the reaching of any other critical asset class level as detected by national macro-prudential institutions or the ESRB, taking into account, inter alia:
Amendment 486 #
Proposal for a directive
Article 126 – paragraph 4 – subparagraph 2
Article 126 – paragraph 4 – subparagraph 2
Where, in setting the countercyclical buffer rate, a designated authority takes into account variables mentioned in point (c), and the setting of that buffer rate would have been lower if variables mentioned in point (c) had not been taken into account, the designated authority shall notify EBA and the ESRB. EBA and the ESRB shall assess whether the variables on which the buffer rate is based relate to risks to financial stability and whether the setting of a buffer rate taking into account those variables is consistent with the fundamental principles of the internal market for financial services as reflected in Union legislation in the field of financial services.
Amendment 491 #
Proposal for a directive
Article 126 – paragraph 4 – subparagraph 3
Article 126 – paragraph 4 – subparagraph 3
By way of derogation from paragraph 3, the designated authority shall review the part of the countercyclical buffer rate based on the other variables referred to in point (c) of paragraph 3 on an annual basis only. That part shallneed not be taken into account by institutions established in another Member State for the purposes of calculating their institution specific countercyclical capital buffer.
Amendment 492 #
Proposal for a directive
Article 126 – paragraph 5
Article 126 – paragraph 5
5. The countercyclical buffer rate, expressed as a percentage of the total risk exposure amount referred to in Article 87(3) of Regulation [inserted by OP(EU) No. .../2012 of ... [on prudential requirements for credit institutions and investment firms] of institutions that have credit exposures in that Member State, must be between 0% and 27.5%, calibrated in steps of 0.25 percentage points or multiples of 0.25 percentage points. Where justified in view of the considerations set out in paragraph 3, a designated authority may set a countercyclical buffer rate in excess of 2.5% of the total risk exposure amount referred to in Article 87(3) of Regulation [inserted by OP(EU) No. .../2012 of ... [on prudential requirements for credit institutions and investment firms] for the purpose set out in Article 130(3).
Amendment 535 #
Proposal for a directive
Article 149 – paragraph 6
Article 149 – paragraph 6
6. Member States may impose a shorter transitional period than that specified in paragraph 1 where that is justified by excessive credit or other asset class growth at any time during that period. Where a Member States does so, the shorter period shall apply only for the purposes of the calculation of the institution specific Countercyclical Capital Buffer by institutions that are authorised in the Member State for which the designated authority is responsiblemay be recognised by other Member States.
Amendment 538 #
Proposal for a directive
Article 150 – paragraph 1 a (new)
Article 150 – paragraph 1 a (new)
1a. The Commission shall ensure that D- SIFIs established in the Union shall be subjected to the same extra requirements as G-SIFIs after endorsement of the future criteria.
Amendment 543 #
Proposal for a directive
Article 150 – paragraph 4 a (new)
Article 150 – paragraph 4 a (new)
4a. By 31 December 2014, the Commission shall consult the ESAs, the ESCB, the ESRB and other relevant parties to review the effectiveness of information-sharing arrangements under this Directive, in particular under Title VII, Chapter 1, Section 2 and will formulate proposals, as appropriate, to further develop these provisions and/or arrangements, in particular, taking into account the significant information- related synergies between the central banking and the prudential supervisory functions, both in normal times and during times of stress.
Amendment 546 #
Proposal for a directive
Article 150 – paragraph 4 b (new)
Article 150 – paragraph 4 b (new)
4b. By 31 December 2014, EBA shall review and report on the application of the provisions in this Directive and Regulation (EU) No. .../2012 of ... [on prudential requirements for credit institutions and investment firms], on the cooperation of the Union and Member States with third countries. That review shall identify any lacunae and assess the areas which require further development as regards cooperation, information sharing and reciprocity arrangements, including enforcement of supervisory rules in third countries. EBA shall also assess the need to further develop cooperation agreements between Member States and EBA on the one hand and international financial institutions or bodies such as the IMF or the Financial Stability Board on the other hand. The Commission shall examine the assessment contained in the EBA report to determine whether legislative proposals are necessary.'