Acting in accordance with the procedure laid down in Article 251 of the Treaty,’

Having regard to the opinion of the European Central Bank,

Having regard to the opinion of the European Economic and Social Committee,

Having regard to the proposal from the Commission,

‘Having regard to the Treaty establishing the European Community, and in particular Article 47(2) thereof,

Acting in accordance with the procedure laid down in Article 251 of the Treaty,’

Having regard to the opinion of the European Economic and Social Committee,

Having regard to the proposal from the Commission,

‘Having regard to the Treaty establishing the European Community, and in particular Article 47(2) thereof,

Since the Treaty requires consultation of the ECB on the proposed directive, a citation to this effect should be inserted in the proposed directive in line with Article 253 of the Treaty.

2. Paragraph 1 shall apply in respect of positions in new re-securitisations issued after 31 December 2010. In respect of positions in existing re-securitisations, paragraph 1 shall apply from 31 December 2014 where new underlying exposures are added or substituted after that date.’

1. Notwithstanding the risk weights for general re-securitisation positions in Annex IX, Part 4, the competent authorities shall require that credit institutions apply a 1 250 % risk weight to positions in highly complex re-securitisations, unless the credit institution has demonstrated to the competent authority for each such re-securitisation position concerned that it has complied with the requirements set out in Article 122a(4) and (5).

2. Paragraph 1 shall apply in respect of positions in new re-securitisations issued after 31 December 2010. In respect of positions in existing re-securitisations, paragraph 1 shall apply from 31 December 2014 where new underlying exposures are added or substituted after that date.’

1. Notwithstanding the risk weights for general re-securitisation positions in Annex IX, Part 4, the competent authorities shall require that credit institutions apply a 1 250 % risk weight to positions in highly complex re-securitisations, unless the credit institution has demonstrated to the competent authority for each such re-securitisation position concerned that it has complied with the requirements set out in Article 122a(4) and (5).

The issue of non-compliance with due diligence requirements for securitisation exposures is adequately addressed by Article 122a of the Directive adopted by the Council on 15 July 2009 (2) . Furthermore, the proposed treatment of highly complex re-securitisation exposures under proposed Article 122b is not in line with the proportionality principle applied in Article 122a(5) of the abovementioned Directive, which provided for a range of 250 % to 1 250 %, depending on the level of infringement of the due diligence provisions. As a consequence, the ECB suggests deleting the proposed Article 122b.

‘11. REMUNERATION POLICIES 22. When establishing and applying the remuneration policies for those categories of staff whose professional activities have a material impact on their risk profile, credit institutions shall comply with the following principles in a way that is appropriate to their size, internal organisation and the nature, the scope and the complexity of their activities: (a) the remuneration policy is consistent with and promotes sound and effective risk management and does not encourage risk-taking that exceeds the level of tolerated risk of the credit institution; (b) the remuneration policy is in line with the business strategy, objectives, values and long-term interests of the credit institution; (c) the management body (supervisory function) of the credit institution establishes the general principles of the remuneration policy and is responsible for its implementation; (d) the implementation of the remuneration policy is, at least annually, subject to central and independent internal review for compliance with policies and procedures for remuneration defined by the management body (supervisory function); (e) where remuneration is performance related, the total amount of remuneration is based on a combination of the assessment of the performance of the individual and of the business unit concerned and of the overall results of the credit institution; (f) fixed and variable components of total remuneration are appropriately balanced; the fixed component represents a sufficiently high proportion of the total remuneration to allow the operation of a fully flexible bonus policy, including the possibility to pay no bonus; (g) payments related to the early termination of a contract reflect performance achieved over time and are designed in a way that does not reward failure; (h) the measurement of performance used to calculate bonuses or bonus pools includes an adjustment for current and future risks and takes into account the cost of the capital and the liquidity required; (i) payment of the major part of a significant bonus is deferred for an appropriate period and is linked to the future performance of the firm.’