A4-0156/99

Proposal for a European Parliament and Council Directive on the taking up, the pursuit and the prudential supervision of the business of electronic money institutions (COM(98)0461 - C4-0531/98 - 98/0252(COD))

The proposal was approved with the following amendments:

(Amendment 1)

Entire text

>Original text>

>Text following EP vote>

The words 'user' and 'users' to be replaced by the words 'bearer' and 'bearers' throughout the text.

(Amendment 2)

Recital 3

>Original text>

Whereas the approach adopted is appropriate to achieve only the essential harmonisation necessary and sufficient to secure the mutual recognition of authorisation and prudential supervision of electronic money institutions, making possible the granting of a single license recognised throughout the Community and the application of the principle of home Member State prudential supervision;

>Text following EP vote>

Whereas the approach adopted is appropriate to achieve the essential harmonisation necessary and sufficient to secure the mutual recognition of authorisation and prudential supervision of electronic money institutions, making possible the granting of a single licence recognised throughout the Community

and designed to ensure bearer confidence and the application of the principle of home Member State prudential supervision;

(Amendment 3)

Recital 3a (new)

>Original text>

>Text following EP vote>

Whereas this Directive shall be followed by another Directive on the rules applicable to contractual relations between issuers and bearers of electronic money;

(Amendment 4)

Recital 3b (new)

>Original text>

>Text following EP vote>

Whereas each country in the euro zone, with the exception of Luxembourg, has its own inter-bank systems which monitor payments within each country, as well as having its own system of controls on payments made with electronic purse cards;

(Amendment 5)

Recital 3c (new)

>Original text>

>Text following EP vote>

Whereas in practice this situation means that all payments in euros made outside the country are treated as international payments with the associated charges;

(Amendment 6)

Recital 3d (new)

>Original text>

>Text following EP vote>

Whereas these national inter-bank systems may function as monopolies controlling the access of any undertaking, even a multinational undertaking represented in various EU countries, to a system other than that in the country of establishment;

(Amendment 7)

Recital 3e (new)

>Original text>

>Text following EP vote>

Whereas this situation is incompatible with the internal market and may place a disproportionate burden on undertakings and, consequently, on consumers, and hinders competition within the euro zone;

(Amendment 8)

Recital 3f (new)

>Original text>

>Text following EP vote>

Whereas the Commission must use its powers under Directive 98/34/EC(1) to mandate the European Committee for Standardisation to introduce an interoperable electronic money system;

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(1) OJ L 204, 21.7.1998, p. 37.

(Amendment 9)

Recital 3g (new)

>Original text>

>Text following EP vote>

Whereas the standardisation and interoperability of electronic cards is a basic condition for their utilisation by bearers and for the speediest possible use of the euro, including for small payments;

(Amendment 10)

Recital 6a (new)

>Original text>

>Text following EP vote>

Whereas it is imperative for electronic money to be redeemable free of charge to maintain bearer confidence;

(Amendment 11)

Recital 8

>Original text>

Whereas, however, it is necessary to preserve a level playing field between credit institutions issuing electronic money and electronic money institutions and, thus, to ensure fair competition among a wider range of institutions to the benefits of users; whereas this is achieved since the above-mentioned less cumbersome features of the prudential supervisory regime applying to electronic money institutions are balanced by provisions that are more stringent than those applying to credit institutions, notably as regards restrictions of the business activities electronic money institutions may carry on and, particularly, prudent limitations of their investments aimed at ensuring that their financial liabilities related to outstanding electronic money are backed at all times by highly liquid low risk assets;

>Text following EP vote>

Whereas, however, it is necessary to preserve a level playing field between credit institutions issuing electronic money and electronic money institutions

, which should also cover interoperability questions, to ensure fair competition among a wider range of institutions to the benefits of bearers; whereas this is achieved since the above-mentioned less cumbersome features of the prudential supervisory regime applying to electronic money institutions are balanced by provisions that are more stringent than those applying to credit institutions, notably as regards restrictions of the business activities electronic money institutions may carry on and, particularly, prudent limitations of their investments aimed at ensuring that their financial liabilities related to outstanding electronic money are backed at all times by highly liquid low risk assets;

(Amendment 12)

Recital 12a (new)

>Original text>

>Text following EP vote>

Whereas the Commission must submit as soon as possible a proposal for a Directive on the establishment of an inter-bank network for the euro zone;

(Amendment 13)

Recital 12b (new)

>Original text>

>Text following EP vote>

Whereas, with a view to ensuring genuine competition, the Commission must submit a proposal for a Directive to allow the free access of any undertaking to the services provided by the issuing institutions in any country in the euro zone;

(Amendment 14)

Article 1(3)(a)

>Original text>

(a) 'electronic money' institution shall mean an undertaking, other than a credit institution as defined in Article 1, first indent, (a) of Council Directive 77/780/EEC, which issues means of payment in the form of electronic money, or which invests the proceeds from such activities without being subject to Council Directive 93/22/EEC;

>Text following EP vote>

(a)

'electronic money' institution shall mean an undertaking or any other legal person, other than a credit institution as defined in Article 1, first indent, (a) of Council Directive 77/780/EEC, which issues means of payment in the form of electronic money, or which invests the proceeds from such activities without being subject to Council Directive 93/22/EEC;

(Amendment 15)

Article 1(3)(b)

>Original text>

(b) 'electronic money' shall mean monetary value which 15:

>Text following EP vote>

(b)

'electronic money' shall mean monetary value which is:

>Original text>

(i) stored electronically on an electronic device such as a chip card or a computer memory;

>Text following EP vote>

(i) stored on an electronic device such as a chip card or a computer memory;

>Original text>

(ii) accepted as means of payment by undertakings other than the issuing institution;

>Text following EP vote>

(ii) accepted as means of payment by natural and legal persons other than the issuing institution or its subsidiaries, its parent undertaking or subsidiaries of the parent undertaking;

>Original text>

(iii) generated in order to be put at the disposal of users to serve as an electronic surrogate for coins and banknotes; and

>Text following EP vote>

(iii) generated in order to be put at the disposal of bearers to serve as an electronic surrogate for coins and banknotes; and

(iiia) does not give rise to the levying of charges on the bearer at the time of payment.

>Original text>

(iv) generated for the purpose of effecting electronic transfers of limited value payments.

>Text following EP vote>

>Original text>

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(ba) 'competent authorities' shall mean those national authorities which are responsible for the supervision of electronic money institutions, and

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>Text following EP vote>

(bb) 'own funds' shall mean own funds as defined in Council Directive 89/299/EEC(1).

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(1) OJ L 124, 5.5.1989, p. 16.

(Amendment 16)

Article 2(1)

>Original text>

1. Save where otherwise expressly provided for, references to credit institutions in Community Regulations, Directives other than Directives 77/780/EEC and 89/646/EEC, recommendations and opinions shall not apply to electronic money institutions.

>Text following EP vote>

1.

Save where otherwise expressly provided for, references to credit institutions in Directives 77/780/EEC, 89/646/EEC 91/308/EEC(1) and 92/30/EEC(2) shall apply to electronic money institutions.

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(1) OJ L 166, 28.6.1991, p. 77.

(2) OJ L 110, 28.4.1992, p. 52.

(Amendment 17)

Article 2(3)

>Original text>

3. Council Directives 91/308/EEC(1) and 92/30/EEC(2) shall apply to electronic money institutions.

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(1) OJ L 166, 28.6.1991, p. 77.

(2) OJ L 110, 28.4.1992, p. 52.

>Text following EP vote>

Deleted

(Amendment 18)

Article 2(4), 2nd paragraph

>Original text>

Redeemability of electronic money is, in itself, not a sufficient reason for considering the funds advanced by the user to be deposits within the meaning of Article 3 of Directive 89/646/EEC. The contract between the issuer and the user shall define if the stored electronic money is redeemable or not, and, if appropriate, the conditions, the formalities and the time period of redeemability.

>Text following EP vote>

(c) ensure full redeemability of the funds received without charges, conditions or time periods other than those strictly necessary to carry out that operation. Redeemability of electronic money is, in itself, not a sufficient reason for considering the funds advanced by the bearer to be deposits within the meaning of Article 3 of Directive 89/646/EEC. The contract between the issuer and the bearer shall state that the stored electronic money is redeemable and, if appropriate, the conditions and the formalities of redeemability.

(Amendment 19)

Article 2a (new)

>Original text>

>Text following EP vote>

Article 2a

Redeemability

1. A bearer of electronic money may, during the period of validity, ask the issuer to redeem it in coins and bank notes free of charge.

2. The contract between the issuer and the bearer shall clearly state the conditions of redemption.

The contract may stipulate a minimum threshold for redemption. The threshold may not exceed EUR 10.

(Amendment 20)

Article 3(1)

>Original text>

1. Electronic money institutions shall have an initial capital of no less than ECU 500 000. Notwithstanding paragraphs 2 and 3 their own funds shall not fall below that amount.

>Text following EP vote>

1.

Electronic money institutions shall have an initial capital of no less than EUR 500 000. Notwithstanding paragraphs 2 and 3 their own funds shall not fall below that amount.

'ECU' to be replaced by 'EUR' throughout the text

(Amendment 21)

Article 4(1)(b)(i)

>Original text>

(i) highly liquid;

>Text following EP vote>

(i) sufficiently liquid;

(Amendment 22)

Article 4(3)

>Original text>

3. For the purpose of hedging market risks arising from the issuance of electronic money and from the investments referred to in paragraph 1, electronic money institutions may use highly liquid interest-rate and foreign-exchange-related off balance-sheet items in the form of exchange-traded derivative instruments to which Annex II to Directive 89/647/EEC does not apply. The use of derivative instruments according to the first sentence is permissible only if the full elimination of market risks is intended and, to the extent possible, achieved.

>Text following EP vote>

3.

For the purpose of hedging market risks arising from the issuance of electronic money and from the investments referred to in paragraph 1, electronic money institutions may use sufficiently liquid interest-rate and foreign-exchange-related off balance-sheet items in the form of exchange-traded derivative instruments to which Annex II to Directive 89/647/EEC does not apply. The use of derivative instruments according to the first sentence is permissible only if the full elimination of market risks is intended and, to the extent possible, achieved.

(Amendment 23)

Article 7(2)

>Original text>

2. For the purpose of applying this Directive to undertakings which seek for a waiver according to paragraph 1 to be approved or for which the waiver has been approved:

>Text following EP vote>

Deleted

>Original text>

(a) 'competent authorities' shall mean those national authorities which are responsible for the supervision of electronic money institutions; and

>Text following EP vote>

>Original text>

(b) 'own funds' shall mean own funds as defined in Council Directive 89/299/EEC(1).

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(1) OJ L 124, 5.5.1989, p. 16.

>Text following EP vote>

Legislative resolution embodying Parliament's opinion on the proposal for a European Parliament and Council Directive on the taking up, the pursuit and the prudential supervision of the business of electronic money institutions (COM(98)0461 - C4-0531/98 - 98/0252(COD)) (Codecision procedure: first reading)

The European Parliament,

- having regard to the Commission proposal to Parliament and the Council, COM(98)0461 -98/0252(COD) ((OJ C 317, 15.10.1998, p. 7.))

- having regard to Articles 189b(2) and 57(2) of the EC Treaty, pursuant to which the Commission submitted the proposal to Parliament (C4-0531/98),

- having regard to Rule 58 of its Rules of Procedure,

- having regard to the report of the Committee on Legal Affairs and Citizens' Rights and the opinion of the Committee on Economic and Monetary Affairs and Industrial Policy (A4-0156/99),

1. Approves the Commission proposal, subject to Parliament's amendments;

2. Calls on the Commission to alter its proposal accordingly, pursuant to Article 189a(2) of the EC Treaty;

3. Calls on the Council to incorporate Parliament's amendments in the common position that it adopts in accordance with Article 189b(2) of the EC Treaty;

4. Points out that the Commission is required to submit to Parliament any modification it may intend to make to its proposal as amended by Parliament;

5. Instructs its President to forward this opinion to the Council and Commission.