Crypto-asset fund manager specified in exposure to crypto-asset markets for instituional investors, HNWI and sophisticated retail investors. We have designed a new fund element, conservative, low volatile returns, specifically tailored for pension fund investment policies. The right allocation could help pension funds to increase their fund ratio's through actuarial interest rate improvement. Investment strategy is mainly based on a fixed-income strategy through audited smart-contracts and stable-coin investments. We believe it is from utmost importance for these institutions to start looking in this new and promising asset-class in order to tailor the right approach for their specific investment policies.

The following answer has been drafted on the basis of occupational pension funds regulated by Directive EU 2016/2341, known as the 'IORP II Directive'. Pension funds regulated by the IORP II Directive are referred to as Institutions of Occupational Retirement Provisions (IORPs). The question has been rejected from the Q&A process as it asks for specific view which lies outside EIOPA’s competence.

The IORP II Directive allows IORPs sufficient flexibility in deciding their investment policy and asset allocation. IORPs investing in crypto-assets should explain in the Statement of Investment Policy Principles (Article 30 of the IORP II Directive) how their decision to invest in crypto-assets complies with the investment rules set in Article 19 of the IORP II Directive, also known as Prudent Person Rule. Furthermore, it is also the responsibility of IORPs to evaluate and review in the own-risk assessment (Article 28 of the IORP II Directive) how such investments are compatible with the Prudent Person Rule.

Because it is currently unclear to what extent several types of crypto assets are currently covered by the EU regulatory framework or if they are covered at all, IORPs investing in unregulated assets would need to explain that investing in a specific crypto-asset fulfils requirements comparable to those laid down in the IORP II Directive associated with regulated financial instruments and within prudent limits for the protection of members and beneficiaries.

Whilst the IORP II Directive provides an appropriate level of investment freedom to IORPs, the Directive gives Members States some discretion to impose more stringent investment rules on IORPs located in their territories provided that these rules are prudentially justified and do not restrict the free movement of capital (Article 19 of the IORP II Directive). We are not aware of any Member States imposing specific rules on crypto-asset investment. However, the national law of some Member States lists the types of assets in which IORPs are permitted to invest. If the list of the relevant Member State does not include crypto-assets, this effectively means that direct investment in crypto-assets by IORPs is not permitted.

You should note that the EU is planning its response to the emergence of crypto-assets such as bitcoin and the effect these new technologies will have on how financial assets are issued, exchanged, shared and accessed. This work on the possibility for a EU regulatory framework for crypto-assets includes mitigating the risks posed by crypto-assets (fraud, cyberattacks, market manipulation). This initiative will assess:

• how far crypto-assets are covered by current EU legislation

• whether new legislation is needed in this field

• whether it would be sufficient to issue guidelines.

The following link provides more detail: https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12089-Directive-regulation-establishing-a-European-framework-for-markets-in-crypto-assets

As an independent advisory body to the EU institutions, EIOPA’s mission is to strengthen European supervision and consumer protection in the area of insurance and private pensions across the EU. It is therefore not within the competence of EIOPA to provide views on IORPs’ appetite for the use of crypto-asset investment or any other types of investments.