Featured Product

    EIOPA Consults on Approach for Regulating Key Aspects of PEPP

    December 02, 2019

    EIOPA launched a consultation on the proposed approaches and considerations for its technical advice and its implementing and regulatory technical standards, as mandated by the Pan-European Personal Pension Product (PEPP) Regulation. The consultation paper sets out EIOPA's current stance to approach the regulation of key aspects of the PEPP, underpinning the idea of establishing a simple, safe, and cost-efficient savings product. The consultation paper presents the objective and the policy approach to draft technical advice and technical standards, along with an explanatory text and a technical annex, where relevant. The consultation ends on March 02, 2020.

    The corresponding analysis of the expected impact from key options in the proposed policy is covered under Annex I (Impact Assessment). In developing its proposals, EIOPA sought input from the supervisory community of the insurance and pension sectors and the other ESAs and conducted an active dialog with its stakeholder groups and the Expert Practitioner Panel on PEPP. The resulting key considerations include the following:

    • PEPP Key Information Documents (KIDs)—Pre-contractual and annual information on the PEPP and its investment options have to be highly standardized to allow for comparability between PEPPs and for the consumer to track the performance of the chosen PEPP. The information needs to be relevant and tailored to the pension objective of the PEPP. The proposals are built on the experience with packaged retail investment and insurance-based products (PRIIPs) and the Directive on the activities and supervision of institutions for occupational retirement provision (IORP 2), yet tailored to the specificities of PEPP, in particular its long-term nature, while making the PEPP ready for digitalization.
    • Cost Cap of the Basic PEPP—The cost-efficiency of the Basic PEPP is enforced by the introduction of a cost cap. In line with the policy objective of PEPP, an all-inclusive approach is suggested, while ensuring a level playing field among providers offering different features and in particular a guarantee on the capital invested.
    • Risk-Mitigation Techniques—It is necessary to set out the principle objectives for the risk-mitigation techniques to foster investment strategies leading to better pension outcomes. Clear and auditable criteria are needed to ensure the effectiveness of the chosen risk-mitigation technique.
    • Supervisory Reporting and Cooperation Between National Competent Authorities and EIOPA—Enabling an efficient functioning of the PEPP market requires close monitoring and effective product supervision both from a home and host perspective, which is only possible with regular information exchange on PEPP business.
    • Product Intervention Powers of EIOPA—Relevant criteria, tailored to the PEPP, have been developed, building on past experience with product intervention powers at the level of the ESAs.

     

    Related Links

    Comment Due Date: March 02, 2020

    Keywords: Europe, EU, Insurance, Pensions, PEPP Regulation, PEPP, KID, IORP 2, PRIIPs, Reporting, EIOPA

    Featured Experts
    Related Articles
    News

    APRA Publishes Proposal to Increase Transparency of Banking Data

    APRA proposed to substantially increase the volume and breadth of data it makes publicly available on authorized deposit-taking institutions, including banks, credit unions, and building societies.

    December 05, 2019 WebPage Regulatory News
    News

    ESMA Consults on Guide to Internal Controls for Credit Rating Agencies

    ESMA launched a consultation on the guidelines on internal controls for credit rating agencies (CRAs).

    December 05, 2019 WebPage Regulatory News
    News

    EU Finalizes Directive and Prudential Rules for Investment Firms

    EU published, in the Official Journal of the European Union, the Directive (2019/2034) and Regulation (2019/2033) on the prudential requirements and supervision of investment firms.

    December 05, 2019 WebPage Regulatory News
    News

    OSFI Revises Guideline on Principles for Management of Liquidity Risk

    OSFI finalized Guideline B-6 on the principles for the management of liquidity risk.

    December 05, 2019 WebPage Regulatory News
    News

    PRA Consults on Framework to Manage Outsourcing and Third-Party Risk

    PRA published a consultation paper CP30/19 that sets out proposals to modernize the regulatory framework on outsourcing and third-party risk management.

    December 05, 2019 WebPage Regulatory News
    News

    BoE, PRA, and FCA Consult to Strengthen Operational Resilience

    BoE, PRA, and FCA published a shared policy summary and coordinated consultation papers on new requirements to strengthen operational resilience in the financial services sector.

    December 05, 2019 WebPage Regulatory News
    News

    EC Amends Rule on Mapping of External Credit Assessment Institutions

    EC published the implementing regulation (EU) 2019/2028, which amends Regulation 2016/1799, regarding the mapping tables specifying correspondence between the credit risk assessments of external credit assessment institutions (ECAIs) and the credit quality steps set out in the Capital Requirements Regulation.

    December 04, 2019 WebPage Regulatory News
    News

    EBA Issues Second Part of Advice on Implementation of Basel III in EU

    EBA published the second part of its advice on the implementation of Basel III in EU, which complements the report published on August 05, 2019.

    December 04, 2019 WebPage Regulatory News
    News

    EU Approves European Council Proposal on CCP Recovery and Resolution

    EU ambassadors approved the position of European Council on a proposed framework for clearing houses and their authorities to prepare for and deal with financial difficulties.

    December 04, 2019 WebPage Regulatory News
    News

    OSFI Releases Guideline on Foreign Bank Branch Deposit Requirements

    OSFI released the final version of Guideline A-10 on foreign bank branch deposit requirements, along with guideline impact analysis statement.

    December 04, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4268