A4-0047/96

Decision on the common position established by the Council with a view to the adoption of a European Parliament and Council Directive on investor-compensation schemes (C4-0523/95 - 00/0471(COD))

(Codecision procedure: second reading)

The European Parliament,

- having regard to the common position of the Council, C4-0523/95 - 00/0471(COD) ((OJ C 320, 30.11.1995, p. 9.)),

- having regard to its opinion at first reading ((OJ C 128, 9.5.1994, p. 85.)) on the Commission proposal to Parliament and the Council, COM(93)0381 ((OJ C 321, 27.11.1993, p. 15.)),

- having regard to the amended Commission proposal, COM(94)0585 ((OJ C 382, 31.12.1994, p. 27.)),

- having regard to Article 189b(2) of the EC Treaty,

- having regard to Rule 72 of its Rules of Procedure,

- having regard to the recommendation for second reading of the Committee on Legal Affairs and Citizens' Rights (A4-0047/96),

1. Amends the common position as follows;

2. Calls on the Commission to support Parliament's amendments in the opinion it is required to deliver pursuant to Article 189b(2)(d) of the EC Treaty;

3. Calls on the Council to approve all Parliament's amendments, amend its common position accordingly and definitively adopt the act;

4. Instructs its President to forward this decision to the Council and Commission.

(Amendment 1)

Recital 16

>Original text>

16. Whereas market disturbances could be caused by branches of investment firms established in Member States other than their Member States of origin which offer levels of cover higher than those offered by investment firms authorized in their host Member States; whereas it not appropriate that the level or scope of cover offered by compensation schemes should become an instrument of competition; whereas it is therefore necessary, at least during an initial period, to stipulate that neither the level nor the scope of cover offered by a home Member State's scheme to investors at branches located in another Member State should exceed the maximum level or scope offered by the corresponding scheme in the host Member State; whereas any market disturbances should be reviewed after a number of years, on the basis of the experience acquired and in the light of developments in the financial sector;

>Text following EP vote>

Deleted

(Amendment 2)

Article 2(2), 1st subparagraph, 1st indent

>Original text>

- the competent authorities have determined that in their view an investment firm appears, for the time being, for reasons directly related to its financial circumstances, to be unable to meet its obligations arising out of investors' claims and has no early prospect of being able to do so, or

>Text following EP vote>

- the competent authorities or investor-compensation scheme have determined that in their view an investment firm appears, for the time being, to be unable to meet its obligations arising out of investors' claims and has no early prospect of being able to do so, or

(Amendment 3)

Article 2(2), 1st subparagraph, 2nd indent

>Original text>

- a judicial authority has made a ruling, for reasons directly related to an investment firm's financial circumstances, which has the effect of suspending investors' ability to make claims against it,

>Text following EP vote>

- a judicial authority or investor-compensation scheme has made a ruling which has the effect of suspending investors' ability to make claims against it,

(Amendment 4)

Article 2(4)

>Original text>

4. The amount of an investor's claim shall be calculated in accordance with the legal and contractual conditions, in particular those concerning set off and counter claims, that are applicable to the assessment, on the date of the determination or ruling referred to in paragraph 2, of the amount of the money or the value of the instruments belonging to the investor which the investment firm is unable to pay or return.

>Text following EP vote>

4. The amount of an investor's claim shall be calculated in accordance with the legal and contractual conditions, in particular those concerning set off and counter claims, that are applicable to the assessment, on the date of the determination or ruling referred to in paragraph 2, of the amount of the money or the market value of the instruments belonging to the investor which the investment firm is unable to pay or return.

(Amendment 5)

Article 5(2)

>Original text>

2. If those measures fail to secure compliance on the part of the investment firm, the scheme may, where national law permits the exclusion of a member, with the express consent of the competent authorities, give not less than twelve months notice of its intention of excluding the investment firm from membership of the scheme. The scheme shall continue to provide cover under the second subparagraph of Article 2(2) in respect of investment business transacted during that period. If, on expiry of the period of notice, the investment firm has not met its obligations, the compensation scheme may, again having obtained the express consent of the competent authorities, proceed to exclusion.

>Text following EP vote>

2. If those measures fail to secure compliance on the part of the investment firm, the scheme may, where national law permits the exclusion of a member, with the express consent of the competent authorities exclude the investment firm from membership of the scheme. The coverage of money or instruments belonging to investors and held by the investment firm or branch thereof at the date of exclusion shall be maintained for twelve months from the date of exclusion.

(Amendment 6)

Article 7(1), 2nd subparagraph

>Original text>

Until 31 December 1999, neither the level nor the scope, including the percentage, of the cover provided for may exceed the maximum level or scope of the cover offered by the corresponding compensation scheme within the territory of the host Member State. Before that date the Commission shall draw up a report on the basis of the experience acquired in applying this subparagraph and shall consider the need to continue those provisions. If appropriate, the Commission shall submit a proposal for a Directive to the European Parliament and the Council, with a view to the extension of their validity.

>Text following EP vote>

Deleted

(Amendment 7)

Article 7(2), 2nd paragraph

>Original text>

If those measures fail to ensure that the branch meets the obligations referred to in this Article, after an appropriate period of notice of not less than 12 months the compensation scheme may, with the consent of the competent authorities which issued the authorization, exclude the branch. Investment business transacted before the date of exclusion shall continue to be covered after that date by the compensation scheme of which the branch was a voluntary member. Investors shall be informed of the withdrawal of the supplementary cover and of the date on which it takes effect.

>Text following EP vote>

If those measures fail to ensure that the branch meets the obligations referred to in this Article, the compensation scheme may, with the consent of the competent authorities which issued the authorization, exclude the branch. Investment business transacted before the date of exclusion shall continue to be covered after that date by the compensation scheme of which the branch was a voluntary member. Investors shall be informed of the withdrawal of the supplementary cover and of the date on which it takes effect.

(Amendment 8)

Article 9(2), 1st subparagraph

>Original text>

2. The scheme shall be in a position to pay an investor's claim within three months of the establishment of the eligibility and the amount of the claim.

>Text following EP vote>

2. The scheme shall be in a position to pay an investor's claim within three months of the date of the determination or ruling referred to in Article 2(2) if the eligibility and the amount of the claim have been established.