Changes from report parliamentary committee draft to plenary report

Change 3

RemovedSHORT JUSTIFICATION

AddedAMENDMENTS BY THE EUROPEAN PARLIAMENT*

RemovedThe Council position at first reading reflects the agreement reached between Parliament and the Council in interinstitutional negotiations at early second reading stage, after legal-linguistic verification. Since the Committee on Economic and Monetary Affairs (ECON), in its vote on 19 March 2025, already confirmed the outcome of those interinstitutional negotiations, as your rapporteur, I propose that ECON recommends that the Plenary confirms the position of the Council at first reading without amending it.

Addedto the Commission proposal

Added---------------------------------------------------------

Added2023/0363 (COD)

AddedProposal for a

AddedREGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

Addedamending Regulations (EU) No 1092/2010, (EU) No 1093/2010, (EU) No 1094/2010, (EU) No 1095/2010 and (EU) 2021/523 as regards certain reporting requirements in the fields of financial services and investment support

Added(Text with EEA relevance)

AddedTHE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

AddedHaving regard to the Treaty on the Functioning of the European Union, and in particular Article 114, Article 173 and Article 175, third paragraph, thereof,

AddedHaving regard to the proposal from the European Commission,

AddedAfter transmission of the draft legislative act to the national parliaments,

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

AddedHaving regard to the opinion of the Committee of the Regions,

AddedActing in accordance with the ordinary legislative procedure,

AddedWhereas:

Added(1) Reporting and disclosure requirements play a key role in ensuring proper monitoring and correct enforcement of legislation. However, it is important to streamline those requirements, in order to ensure that they fulfil their intended purpose, ▌to limit the administrative burden and to avoid undue duplication, not least for the regulatory and supervisory authorities of smaller financial jurisdictions. Reporting and disclosure requirements can also impose a disproportionate burden on entities, particularly on small and medium-sized enterprises or micro-enterprises.

Added(2) Streamlining reporting obligations and reducing administrative burdens without undermining policy objectives are therefore priorities including as regards reporting requirements in the financial sector and as regards the frequency of reporting related to the InvestEU Programme established under Regulation (EU) 2021/523 of the European Parliament and of the Council.

Added(3) Regulations (EU) No 1092/2010, (EU) No 1093/2010, (EU) No 1094/2010, (EU) No 1095/2010, (EU) No 806/20147a, Regulation (EU) …/…7b of the European Parliament and of the Council, Council Regulation (EU) No 1024/20137c and Regulation (EU) 2021/523 contain a number of reporting and disclosure, requirements which should be simplified as part of a qualitative, rather than a quantitative, exercise in line with the Commission’s Communication on ‘Long-term competitiveness of the EU: looking beyond 2030’.

Added(3a) That qualitative exercise is not intended to undermine any Union policy achievements and, moreover, acknowledges the growing demand for data needed to fulfil the objectives of the legislative acts pertaining to the sustainable finance agenda. Yet consistency and standardisation across legal frameworks and jurisdictions and over time can make requirements more workable without affecting the actual content of reporting standards.

Added(3b) Divergences of data between Member States should also be analysed in a qualitative way. In particular, some Union legislative acts are by virtue of their legal basis meant to provide partial or minimum harmonisation. Furthermore, some reporting standards are voluntary or follow an opt-in regime. Also, Member States may develop best practices or be frontrunners in reporting requirements, as long as they adhere to the requirements provided for in Union legislative acts.

Added(4) Financial institutions and other entities active on financial markets are required to report a wide range of information to enable Union and national authorities overseeing the financial system to monitor risks, ensure financial stability and market integrity, and protect investors and consumers of financial services in the Union. The European Supervisory Authorities and the European Anti-Money Laundering Authority should regularly review the reporting and disclosure requirements and propose, where appropriate, to streamline and remove redundant, ▌obsolete or disproportionate requirements in relevant regulatory and implementing technical standards. The European Supervisory Authorities▌ should coordinate this work via the Joint Committee of the European Supervisory Authorities. ▌ In addition, peer reviews of competent authorities should also be conducted to improve the effectiveness and the degree of convergence of those requirements. Both the tasks under the common supervisory culture as well as the peer reviews should be carried out on a standing basis, for which more human and material resources should be allocated as necessary.

Added(4a) A large proportion of the redundant, obsolete or disproportionate reporting and disclosure requirements stem from vertical inconsistencies between Member State requirements and Union requirements (‘gold plating’), horizontal inconsistencies across sector-specific and cross-sector legislation, as well as a lack of proportionality in the requirements themselves. The European Supervisory Authorities and the European Anti-Money Laundering Authority should therefore not only review regulatory and implementing technical standards, but should also provide opinions on ongoing ordinary legislative procedures and legislative acts already in force.

Added(4b) Facilitating the sharing and reuse of information collected by the authorities responsible for supervision in the financial sector, while safeguarding data protection, professional secrecy and intellectual property, should reduce the burden on reporting entities and on authorities by avoiding duplicative requests, in line with the Commission’s strategy on supervisory data in Union financial services. Information sharing should also contribute to better coordination of supervisory activities and supervisory convergence.

Added(4c) In order to foster the exchange of information across the entire financial sector, all authorities responsible for supervision in the financial sector, including the ESRB, the ESAs, the AMLA, the SSM, the SRB, as well as all respective competent, supervisory and resolution authorities in the Member States, should be included in the scope of this amending Regulation.

Added(5) To that end, the ‘report once’ principle should be more consistently enforced in the Union. All▌ authorities responsible for supervision in the financial sector should only request ▌information from financial institutions or other reporting entities if they have not already reported that information to other authorities. If information has already been reported to an authority, other authorities, ▌should be able to request that information from that authority directly ▌ as opposed to ▌collecting the same information, thereby putting an end to so-called double ▌reporting ▌. With the same objective of improving efficiency in the collection, processing and use of information, authorities that enhance information by cleaning or enriching it should also be able to share such enhanced information.

Added(5a) Some data points that are needed by financial institutions from companies to comply with their reporting obligations are still not reflected in the Union reporting framework and need to be added. Therefore, in addition to the need to address redundant, duplicative or obsolete reporting requirements, regulatory gaps should be considered. That makes it even more important to ensure consistency between financial and non-financial reporting requirements.

Added(5b) Where relevant, financial institutions should be able to rely on a sequential approach, meaning that they should be able to refer to information which has already been published by companies in their value chain.

Added(5c) In order to facilitate the detection, monitoring, prevention and mitigation of systemic risks to financial stability, the ESRB should have access to relevant information from the ESAs and the ECB by default. In that way, systematic risks could be better detected ex ante, as opposed to ex post, due to more rigorous request and sharing procedures.

Added(6) Such sharing of information should be complementary to the existing possibilities of information exchange provided for in Union law, and should not in any case restrict those existing possibilities.

Added(6a) The European Supervisory Authorities should assess policy options to further integrate reporting processes from a procedural and content perspective. The European Supervisory Authorities should duly assess opportunities arising from an increase in the use of digital technology to promote effective and efficient formats that embrace metrics, methods, and parameters, which will foster the competitiveness of the financial sector.

Added(6b) With that in mind, over the past few years, the 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 increased data sharing between the authorities responsible for supervision in the financial sector. Therefore, all authorities responsible for supervision in the financial sector in the Union should establish a Single Integrated Reporting System. That system should include a common data dictionary that ensures consistency and clarity of reporting requirements and data standardisation, a joint repository of requested and obtained data, a central data space for efficient data collection and exchange as well as a permanent single contact point for entities to indicate double, obsolete or redundant reporting and disclosure requirements.

Added(6c) Legal obstacles in sectoral regulations make it impossible, at times, for authorities to exchange relevant information. Therefore, those authorities should report those legal obstacles to the Commission, and the Commission should, where appropriate, propose to remove those obstacles, while simultaneously respecting intellectual property rights, professional secrecy and data protection.

Added(7) The Commission requires accurate and comprehensive information to develop policies, evaluate existing legislation and assess the impact of potential legislative and non-legislative initiatives, including during negotiations of legislative proposals. The sharing by authorities with the Commission of information that financial institutions or other entities have reported to those authorities pursuant to their obligations under Union law, should help in providing an evidence-based foundation for the formulation and evaluation of Union policies. For that purpose, such information should be in a form that does not allow the identification of individual entities and does not contain personal data. Authorities may also benefit from anonymised data and therefore should also share such information among themselves where necessary for the fulfilment of their tasks.

Added(8) Innovation cycles in the financial sector are accelerating, becoming more open and increasingly collaborative. To that end, authorities should be able to share information with financial institutions, researchers, and other entities for the purposes of research and innovation beyond the initial purpose for which the information was collected. The sharing of such information held by authorities should enhance its utility by expanding the information available for financial sector research and provide more opportunities to test products and business models as well as greater collaboration between various financial market participants, including fintech, start-ups and incumbent financial institutions. The re-use of data shared by competent authority is governed by the general framework for the re-use of data set out in Chapter II of Regulation (EU) 2022/868 of the European Parliament and of the Council. However, considering the sensitive nature of the data received for supervision purposes by the authorities in the financial sector, specific mandatory conditions should be introduced for the re-use of this data, including the anonymisation of personal and non-personal data which would not allow the identification of individual financial institutions and the protection of confidential information. It follows that all procedures and steps in the collection, standardisation, anonymisation, storage and sharing of data will on an ongoing basis remain subject to the latest cyber security measures prescribed by Union law.

Added(9) The change of frequency of the reporting on the InvestEU Programme by implementing partners from biannual to annual should reduce the workload of the implementing partners, the financial intermediaries, SMEs and other companies without changing any of the substantive elements of Regulation (EU) 2021/523.

Added(10) Regulations (EU) No 1092/2010, (EU) No 1093/2010, (EU) No 1094/2010, (EU) No 1095/2010, and (EU) 2021/523 should therefore be amended accordingly,

AddedHAVE ADOPTED THIS REGULATION:

AddedAmendments to Regulation (EU) No 1092/2010

AddedRegulation (EU) No 1092/2010 is amended as follows:

Added1. in Article 8, paragraph 3 is replaced by the following:

Added‘3. Without prejudice to Articles 15 and 16 and the application of criminal law, no confidential information received by the persons referred to in paragraph 1 whilst performing their duties shall be divulged to any person or authority whatsoever, except in summary or aggregate form, such that individual financial institutions cannot be identified.’;

Added1a. In Article 15, paragraphs 1 to 7 are replaced by the following:

Added1. The ESAs, the European System of Central Banks (ESCB), the Commission, the national supervisory authorities and national statistics authorities shall cooperate closely with the ESRB by sharingthe information and analysis necessary for the achievement of their tasks.2. The ESRB, the ESAs, and the ECB shall coordinate their efforts to detect, monitor, prevent and mitigate systemic risks to financial stability. Notwithstanding other provisions on the sharing of supervisory and statistical information in this Article, and in other Union legislative acts, the ESAs and the ECB shall share all relevant information without undue delay after it becomes available, including supervisory and statistical information, as well as the results of their analysis of such information, with the ESRB, necessary for the achievement of its mission, objectives and tasks.

AddedFor the purposes of sharing that information, the ESAs and the ECB shall use the Single Integrated Reporting System referred to in Article 15a, upon its establishment.

Added3. Where the existing information available to the ESRB through the ESAs, the ECB and the European Statistical System is not sufficient or not available in a timely manner, the ESRB shall request the information necessary to fulfil its mandate from national central banks, national supervisory authorities and national statisticalauthorities in accordance with this Article. If the information remains unavailable, the ESRB may request it from the Member State concerned, without prejudice to the prerogatives conferred, respectively, on the Council, the Commission (Eurostat), the ECB, the Eurosystem and the ESCB in the field of statistics and data collection.

Added4. If the ESRB requests, in accordance with paragraph 3, information that is not in summary or aggregate form, the reasoned request shall explain why data on the respective individual financial institution is deemed to be systemically relevant and necessary, considering the prevailing market situation.

Added5. Before each request made in accordance with paragraph 3 for information of a supervisory nature which is not in summary or aggregate form, the ESRB shall duly consult the relevant ESAsin order to ensure that the request is justified and proportionate. If the relevant ESAdoes not consider the request to be justified and proportionate, it shall, without delay, send the request back to the ESRB and ask for additional justification. After the ESRB has provided the relevant ESA with such additional justification, the requested information shall be transmitted to the ESRB by the addressees of the request, provided that they have legal access to the relevant information.

Added2. in Article 15, the following paragraphs are added:

Added‘8. The ESRB shall share with another of the authorities referred to in paragraph 1, another member authority of the ESFS or the other authorities, on a case-by-case or regular basis, information it obtained from another ▌of those authorities, or the other authorities, when ▌ the requesting authority is entitled to obtain that ▌information ▌pursuant to its mission, objectives, tasks and powers or in accordance with relevant Union law.

AddedFor the purposes of sharing the information referred to in the first subparagraph of this paragraph, the ESRB shall use the Single Integrated Reporting System referred to in Article 15a, upon its establishment.

Added8a. The ESRB shall request from the other authorities information it would otherwise request from financial institutions or other competent authorities, where both of the following conditions are met:

Added(a) it is entitled to obtain that information pursuant to its mission, objectives, tasks and powers or in accordance with relevant Union law;

Added(b) that information has been obtained by at least one of the other authorities.

AddedThe first subparagraph shall be without prejudice to the possibility for the ESRB to obtain the requested information from financial institutions or other competent authorities where, for operational reasons, the other authority is unable to share the data.

AddedFor the purposes of determining whether the condition referred to in the first subparagraph, point (b), is met, the ESRB shall use the Single Integrated Reporting System referred to in Article 15a, upon its establishment.

Added8b. For the purposes of this Article and Article 15a, ‘other authorities’ means any of the following authorities:

Added(a) the European Supervisory Authorities;