Directive 2019/2162 - Issue of covered bonds and covered bond public supervision - Main contents
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Directive (EU) 2019/2162 of the European Parliament and of the Council of 27 November 2019 on the issue of covered bonds and covered bond public supervision and amending Directives 2009/65/EC and 2014/59/EU| Legal instrument | Directive |
|---|---|
| Number legal act | Directive 2019/2162 |
| Original proposal | COM(2018)94  |
| CELEX number i | 32019L2162 |
| Document | 27-11-2019; Date of signature |
|---|---|
| Publication in Official Journal | 18-12-2019; OJ L 328 p. 29-57 |
| Signature | 27-11-2019 |
| Effect | 07-01-2020; Entry into force Date pub. +20 See Art 33 |
| Deadline | 08-07-2022; See Art 30.1 And 30.2 08-07-2024; Review See Art 31.1 08-07-2024; See Art 31.3 And 31.4 And 31.5 08-07-2025; See Art 31.2 08-07-2027; See Art 30.2 |
| End of validity | 31-12-9999 |
| Transposition | 08-07-2021; Adoption See Art 32.1 08-07-2022; Application See Art 32.1 |
18.12.2019 |
EN |
Official Journal of the European Union |
L 328/29 |
DIRECTIVE (EU) 2019/2162 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 27 November 2019
on the issue of covered bonds and covered bond public supervision and amending Directives 2009/65/EC and 2014/59/EU
(Text with EEA relevance)
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 114 thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
Having regard to the opinion of the European Economic and Social Committee (1),
Acting in accordance with the ordinary legislative procedure (2),
Whereas:
(1) |
Article 52(4) of Directive 2009/65/EC of the European Parliament and of the Council (3) provides for very general requirements relating to the structural elements of covered bonds. Those requirements are limited to the need for covered bonds to be issued by a credit institution which has its registered office in a Member State, and to be subject to special public supervision and to a dual recourse mechanism. National covered bond frameworks address those issues while regulating them in much greater detail. Those national frameworks also contain other structural provisions, in particular rules regarding the composition of the cover pool, eligibility criteria for assets, the possibility of pooling assets, transparency and reporting obligations, and rules on liquidity risk mitigation. Member State approaches to regulation also differ in substance. In several Member States, there is no dedicated national framework for covered bonds. As a consequence, the key structural elements with which covered bonds issued in the Union are to comply are not yet set out in Union law. |
(2) |
Article 129 of Regulation (EU) No 575/2013 of the European Parliament and of the Council (4) adds further conditions to those referred to in Article 52(4) of Directive 2009/65/EC for obtaining preferential treatment as regards capital requirements which allow credit institutions investing in covered bonds to hold less capital than when investing in other assets. While those additional requirements increase the level of harmonisation of covered bonds within the Union, they serve the specific purpose of establishing the conditions to be satisfied in order for covered bond investors to receive such preferential treatment, and are not applicable outside the framework of Regulation (EU) No 575/2013. |
(3) |
Other Union legal acts, such as Commission Delegated Regulations (EU) 2015/35 (5) and (EU) 2015/61 (6) and Directive 2014/59/EU of the European Parliament and of the Council (7), also refer to the definition set out in Directive 2009/65/EC as a reference for identifying the covered bonds that benefit from the preferential treatment for covered bond investors under those acts. However, the wording of those acts differs according to their purpose and subject matter, and thus the term ‘covered bond’ is not used consistently. |
(4) |
Overall, the treatment of covered bonds can be considered to be harmonised regarding the conditions for investing in covered bonds. There is, however, a lack of harmonisation across the Union regarding the conditions for the issue of covered bonds and that has several consequences. First, preferential treatment is granted equally to instruments which differ in nature as well as in their level of risk and investor protection. Second, differences between national frameworks or the absence of such a framework and the lack of a commonly agreed definition of the term ‘covered bond’ could create obstacles to the development of a truly integrated single market for covered bonds. Third, the differences in safeguards provided by national rules could create risks to... |
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