Changes from report parliamentary committee draft to report parliamentary committee draft

RemovedEXPLANATORY STATEMENT

RemovedYour Rapporteur welcomes the European Commission’s Reporting Reduction and Data Sharing proposal, amending the ESRB, ESAs und InvestEU regulations, with its objective to reduce, rationalise and simplify reporting obligations and bureaucracy without compromising the associated policy objectives. This important revision on cutting red tape in the financial sector and in the context of InvestEU, gives the opportunity to show both citizens and businesses that the European Union is always working to reduce unnecessary bureaucracy and inefficient duplication of reporting and disclosure requirements.

RemovedFor your Rapporteur it was essential to invite the European Commission, the ESRB and the ESAs to share their views on the Reporting Reduction and Data Sharing Package during the first Shadows Meeting held on 5 December 2023. Their opinions, suggestions and recommendations have been duly considered in your Rapporteur’s Draft Report.

RemovedWhile the European Commission’s proposal goes in the right direction, your Rapporteur is convinced that further changes are necessary to significantly improve the impact of the intended effects on the entire financial sector. Against this background, your Rapporteur proposes the following amendments:

Removed Expanding the scope to the entire financial sector

RemovedIn order to foster exchange of information across the entire financial sector, your Rapporteur is of the opinion that the scope of this amending omnibus regulation should be enlarged. While the European Commission proposes to amend only the ESRB and ESAs regulations, your Rapporteur proposes to capture also anti-money laundering authorities, resolution authorities and the supervisory functions of central banks. Thereby, similar amendments are proposed to amend Council Regulation (EU) No 1024/2013, Regulation (EU) No 806/2014 as well as the Regulation establishing the Anti–Money Laundering Authority.

Removed Introducing the “report once principle” by default

RemovedAcross the financial sector in the Union, entities are often required to report similar or even identical information to various supervisors, either at Member State and EU level, or to various supervisors responsible for the supervision of different sub-sectors. Therefore, your Rapporteur is of the opinion that the “report once principle” should be more consistently enforced in the Union. While the European Commission’s proposal foresees exchange of information between authorities only “upon request” from other authorities, your Rapporteur suggests that authorities should only request information from entities, if they have not already reported this information to other authorities. If information has already been reported to an authority, other authorities should be able to request this information from that authority directly, thereby put an end to so-called “double reporting” phenomenon.

Removed Avoiding “Gold plating”, cross-sector inconsistencies and ensuring proportionality

RemovedThe exchange of information between authorities responsible for supervision in the financial sector will only have limited impact regarding the reduction of so-called “gold plating”, cross-sector inconsistencies and enhancing the degree of proportionality in reporting. While the European Commission proposes that the ESAs should review level-II measures in this respect, your Rapporteur suggests a broader mandate. In this regard, the authorities responsible for supervision in the financial sector should provide opinions not only on ongoing, but also on concluded legislative procedures on level-I. These opinions could provide input on potential reduction of these vertical inconsistencies in reporting and disclosure requirements ("gold plating"), horizontal inconsistencies across sector-specific and cross-sector legislation, as well as the adequacy of the degree of proportionality.

Removed Establishment of a Single Integrated Reporting System

RemovedOver the past years, the European Commission and the ESAs have made significant progress in exploring the possibilities of establishing integrated reporting systems. Such innovative reporting systems are necessary to reap the benefits of more data sharing between authorities responsible for supervision in the financial sector. Therefore, in line with the mandate in Article 430 of Regulation (EU) No 575/2013, your Rapporteur mandates the respective authorities in the Union to establish a Single Integrated Reporting System by 31 December 2026. This system should include a common data dictionary for coding and understanding of data, a joint repository enabling a common overview of requested and obtained data, a central data collection point for efficient data exchange as well as a single reporting point to enable entities to identify double, obsolete or redundant reporting and disclosure requirements.

Removed Removal of legal obstacles for data exchange

RemovedAs pointed out by the ESRB and the ESAs, there are still various legal obstacles in sectoral regulations that make it impossible for these authorities to exchange information. Therefore, your Rapporteur proposes to include a mandate to all authorities responsible for supervision in the financial sector to report these legal obstacles to the European Commission by 31 December 2024. The European Commission should, by 30 June 2025, propose a legislative proposal to remove the legal obstacles while simultaneously respecting intellectual property rights, professional secrecy and data protection.