Art. 518b · Report on overshootings and supervisory powers to limit distributions

Version in force 27 June 2020, Inserted +717 −0§

Amended by Regulation (EU) 2020/873 32020R0873 on EUR-Lex (external, EUR-Lex)

Applies from: not readable (an inserted provision states its own application date only in prose) why

Explanation, written by a model and checked against the cited text

A new Article 518b is added, requiring the Commission to report to the European Parliament and the Council by 31 December 2021 on whether exceptional circumstances causing serious economic disturbance in financial markets justify letting competent authorities exclude certain overshootings from institutions' market risk internal models, and granting those authorities additional binding powers to restrict distributions by institutions during such periods.

The provision also states that the Commission shall consider further measures if appropriate.

Cited: Art. 518b, v2 (external, EUR-Lex)

v1 is the previous version, v2 this one.

Article 518b
Report on overshootings and supervisory powers to limit distributions
By 31 December 2021, the Commission shall report to the European Parliament and to the Council on whether exceptional circumstances that trigger serious economic disturbance in the orderly functioning and integrity of financial markets justify:
(a) during such periods, permitting competent authorities to exclude from institutions’ market risk internal models overshootings that do not result from deficiencies in those models;
(b) during such periods, granting additional binding powers to competent authorities to impose restrictions on distributions by institutions.
The Commission shall consider further measures, if appropriate.