The European Insurance and Occupational Pensions Authority (EIOPA) published today the final Advice on the further development of a single European Union market for personal pension products (PPPs).
This Advice completes the European Commission's Call for Advice on how the European Union-wide framework for personal pensions can be further developed.
EIOPA confirms its views that in a highly heterogeneous market for personal pension products and complementary pension savings in Europe, harmonising Directives and rules across the different relevant sectors may not be the most efficient tool for creating a European Union Single Market for personal pension products.
Therefore, in line with its Advice of 1 February 2016, EIOPA remains of the view that a standardised Pan-European Personal Pension Product (PEPP) regulated by a 2nd regime for personal pensions has the best potential to promote the Single Market and to strengthen the regulatory framework for the benefit of protection of consumers.
The PEPP, a safe, transparent and cost-effective long-term retirement savings product, enables the much needed, at least in some Member States, additional pensions' savings. Furthermore, it is an important tool for the successful completion of the Capital Markets Union.
The final Advice can be viewed on page Requests and submissions to the EC.
The Final Advice on the development of an European Union Single Market for Personal Pension Products (PPPs) is based on EIOPA's 2014 preliminary report "Towards an EU-Single Market for personal pensions" (https://goo.gl/pESMxV), EIOPA's 2015 consultation paper on the creation of a standardised Pan-European Personal Pension product (PEPP) (https://goo.gl/VQvfWl) and EIOPA's 2016 consultation paper on EIOPA's advice on the development of an European Union Single Market for PPP (https://goo.gl/rnkMlK).
EIOPA's Advice on the standardised Pan-European Personal Pension Product (PEPP) of 1 February 2016 can be found in the consultation paper CP-16-001 (https://goo.gl/pQq3gH).
A "2nd regime" (sometime also referred to as a "29th regime") creates a standardised Pan-European Personal Pension Product (PEPP) through the new EU rules. This regime does not replace national rules but represents an optional alternative.