European Commission - press release
Commission takes Italy and Poland to Court for incomplete transposition of the third Directive on capital requirements
Brussels, 24 November 2011 – The Commission has decided to bring Italy and Poland before the Court of Justice for failure to transpose the provisions of the Third Directive on capital requirements (2010/76/EU), and to ask the Court to impose penalty payments on those two Member States. The deadline for transposition was 1 January 2011. The Third Directive on capital requirements concerns the provisions of the Directive on remuneration policies and other provisions regarding the extension of certain minimum capital requirements for credit institutions (a second deadline for transposition of the Directive has been set for 31 December 2011; this referral to the Court does not concern the above‑mentioned provisions).
The Commission has made use of the new possibility provided by the Lisbon Treaty of asking the Court on first referral to impose daily penalty payments on Member States that have not transposed the Directive in full by the date of its judgment establishing non‑compliance. The payments requested are € 96 446.70 / day for Italy and € 37 396.80 / day for Poland. The amounts have been set in the light of the situations in the respective countries and hence the gravity of the infringement. The financial penalties requested are daily fines payable with effect from the day on which the Court hands down its judgment (and hence unless the situation has been rectified in the meantime) and for as long as transposition remains incomplete.
Directive 2010/76/EU was adopted on 24 November 2010. In March 2011, the Commission began launching procedures against Member States that had failed to meet the transposition deadline (see IP/11/612). The two Member States to which the present referral relates are the only ones that have not yet transposed the text in full. Poland has already notified the Commission of certain measures adopted with a view to implementing the Directive, but it has yet to transpose all the provisions concerning the extension of minimum capital requirements and notify the Commission of the implementing measures adopted by the supervisory authority responsible for remuneration policies. Italy has not so far given notification of any transposition measure.
The purpose of the EU rules in question
Directive 2010/76/EU amends Directives 2006/48/EC and 2006/49/EC on capital requirements, which are intended to ensure that banks and investment companies are financially sound. They lay down rules on the amounts of capital that these financial establishments must keep in order to cover their risks and protect depositors. This legal framework requires regular adjustment and updating on the basis of the needs of the financial system as a whole.
By requiring banks and investment companies to conduct appropriate remuneration policies that do not encourage or reward excessive risk‑taking, the Directive aims to combat remuneration‑based incentives practices that have unfortunate consequences. The supervisory authorities are empowered to impose penalties on banks conducting remuneration policies that do not comply with the new requirements.
It also lays down a ratio for capital specifically earmarked for re-securitisations so as to ensure that banks take due account of the risks involved in investing in this kind of complex financial product, together with new and stricter rules on advertising with a view to securing the confidence of the markets that the banks need if they are to resume lending to each other.
Finally, the Directive changes the way in which banks assess the risks attached to their negotiation portfolios, so as to ensure that they take full account of the losses that may result from adverse market developments in times of crisis.
Latest information on infringement procedures against Member States:
For further information on infringement procedures, see MEMO/11/824