The PEPP Regulation empowers EIOPA to:
- Develop technical standards around reporting to the supervisors about PEPP providers and products to enable consistency and transparency
- Register new PEPPs in a central register. EIOPA will provide for a central database to get information on all PEPPs in Europe. Once registered, the providers can distribute their products in all European Union countries.
- Monitor the evolution of the market with strong monitoring powers to enable an efficient PEPP market.
- Issue a temporary ban or restriction of the marketing, distribution or sale of specific PEPPs within the whole EU, under certain conditions.
EIOPA will be able to support the development of an internal market for personal pensions, while implementing the Regulation at European level. The focus will be on establishing an efficient market for PEPP in the consumer's interest.
Aiming to deliver adequate, safe and sustainable pensions to its citizens, in 2013 the European Commission tasked EIOPA to work towards creating an EU single market for personal pensions safeguarded by prudential regulation and consumer protection measures. This work resulted in the publication of a preliminary report in 2014 Towards an EU single market for personal pensions.
Subsequently, EIOPA submitted an advice in 2016 recommending the creation of a standardised Pan-European Personal Pension Product (PEPP) Advice on the development of an EU Single Market for personal pension products (PPP), in the form of a complimentary regime alongside national regimes. EIOPA proposed the PEPP as being the best option to promote the Single Market and to strengthen the regulatory framework for the benefit of protection of consumers.
As a result, the European Commission published in 2017 a proposal for a regulation on a PEPP. The proposal was accompanied by a recommendation to the Member States on the tax treatment of personal pension products including the PEPP. The legislative proposal was discussed and further developed by the co-legislators.
The PEPP Regulation was published on 25 July 2019, with entry into force on 14 August 2020.
The Regulation on the PEPP establishes the legal foundation for a pan-European personal pension market, by ensuring standardisation of the core product features, such as: transparency requirements, investment rules, switching right and type of investment options.