Featured Product

    European Council Agrees Its Stance on Pan-European Pension Product

    June 19, 2018

    The European Council has agreed its negotiating stance on the proposal for pan-European pension product (PEPP), a new class of personal pension scheme. The regulation would add a pan-European framework for people who wish to use PEPPs as a saving option. PEPPs would complement state-based, occupational, and national personal pension schemes, but not replace or harmonize them.

    The pension plan providers would be able to develop PEPPs in different member states and pool assets more effectively. Electronic distribution channels would enable providers to reach consumers throughout the EU and an EU passport would enable providers to sell PEPPs in different member states. Additionally, when a product reaches maturity, providers and savers would have different options for payouts. PEPPs would present the following advantages for savers:

    • Savers would choose from a broad range of PEPP providers in a more competitive environment. They would be able to choose between a default safe investment option and options with different risk-return profiles.
    • The regulation would ensure that savers are aware of a PEPP's key features.
    • Savers would have the right to switch providers, both domestically and across borders, after a minimum of five years from the conclusion of the contract or from the most recent switch. (They could do so more frequently if the PEPP provider so allows.) The fee for doing so would be capped.
    • Savers would be able to continue contributing to their PEPP if they move to another member state.

    The draft regulation is aimed at providing greater choice for people who wish to save for their retirement while boosting the market for personal pensions. According to EC, only 27% of Europeans between 25 and 59 years of age have subscribed to a pension product. Under the proposal, PEPPs would have the same standard features wherever they are sold. They would be offered by a broad range of providers, principally insurance companies, banks, occupational pension funds, investment firms, and asset managers.

    Negotiations with the European Parliament can proceed as soon as the Parliament has agreed its stance. A qualified majority is needed for adoption by the Council, in agreement with the European Parliament. The legal basis for this is article 292 of the Treaty on the Functioning of EU. This regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. It shall apply twenty four months after its entry into force.

     

    Related Links

     

    Keywords: Europe, EU, Banking, Securities, Insurance, PEPP Regulation, Pensions, European Council

    Related Articles
    News

    BCBS Consults on Revised Disclosures for Market Risk Framework

    BCBS launched a consultation on the revised disclosure requirements for the market risk framework for banks.

    November 14, 2019 WebPage Regulatory News
    News

    FSB Examines Implementation of Resolution Regimes in Financial Sector

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions and sets out plans for further work.

    November 14, 2019 WebPage Regulatory News
    News

    PRA Publishes Final Policy on Maintenance of TMTP Under Solvency II

    PRA published the policy statement (PS25/19) that contains the final supervisory statement (SS6/16) on maintenance of the transitional measure on technical provisions (TMTPs) under Solvency II.

    November 14, 2019 WebPage Regulatory News
    News

    BCBS Consults on Disclosure Templates of Sovereign Exposures of Banks

    BCBS published a consultation on the voluntary disclosure templates related to sovereign exposures of banks.

    November 14, 2019 WebPage Regulatory News
    News

    IAIS Adopts ComFrame, ICS, and Holistic Framework for Systemic Risk

    IAIS adopted a comprehensive set of reforms—Common Framework (ComFrame), Insurance Capital Standard (ICS) Version 2.0, and Holistic Framework for Systemic Risk—that will enable effective cross-border supervision of insurance groups and contribute to global financial stability.

    November 14, 2019 WebPage Regulatory News
    News

    PRA Publishes Templates for Statistical Disclosures Under Solvency II

    PRA published templates for statistical disclosures, as required under Article 31(2) of the Solvency II Directive.

    November 14, 2019 WebPage Regulatory News
    News

    FASB Proposes Improvements to Derivatives and Hedging Standard

    FASB proposed an Accounting Standards Update, on codification improvements to hedge accounting under Topic 815, to clarify certain sections of the 2017 hedge accounting standard (Update 2017-12).

    November 13, 2019 WebPage Regulatory News
    News

    FASB Approves Guidance to Assist in Transition to New Reference Rates

    FASB approved an Accounting Standards Update (Topic 848) to provide temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the reference rate reform on financial reporting.

    November 13, 2019 WebPage Regulatory News
    News

    BIS and MAS Launch Innovation Hub in Singapore

    BIS and MAS launched the BIS Innovation Hub Center in Singapore.

    November 13, 2019 WebPage Regulatory News
    News

    MAS and Industry to Create Framework for Adoption of Responsible AIDA

    MAS announced that it is working with financial industry partners to create a framework for financial institutions to promote the responsible adoption of Artificial Intelligence and Data Analytics (AIDA).

    November 13, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4142