Update on Call for Advice on personal pensions Cees Karregat OPSG Frankfurt, 15 October 2014

Brief recapitulation 18/7/2012 – EC request for technical advice to develop an EU single market for personal pension schemes May 2013 – EIOPA discussion paper on a possible EU single market for personal pensions products. Feb 2014 – EIOPA preliminary report to EC: Towards an EU single market for personal pensions 23/7/2014 - EC Call for advice on the development of an EU single market for personal pensions 15 October 2014

Content Call for Advice (CfA) CfA chapters provisionally grouped into three clusters Work stream 1 - ‘Horizontal’ issues a. Scope of PPPs (ch. 1 CfA) - annuity products (reverse mortgages) / 1st pillar bis fact finding b. Product standardisation (ch. 5, part 1) c. Cross-border activity and transfers (ch. 6) d. 2nd regime (ch. 8) 2. Work stream 2 - Institution focussed issues a. Governance financial institution (ch. 2) b. Product governance (ch. 5, part 2) c. Quantitative requirements (ch. 7) 3. Work stream 3 - Conduct of business issues a. Pre- and postcontractual information to PPP holders (ch. 3) b. Distribution (ch. 4) 15 October 2014

Data requests Number of PPPs (contracts) in EU per industry category Assets managed (broken down by DB/hybrid schemes and DC schemes) Distributors of PPPs PPPs offered through freedom of establishment (FOE) or freedom to provide services (FTPS) PPPs offered by financial institutions that do not benefit from ‘passport’ PPP schemes transferred across Member States Detailed data on 1st pillar bis schemes Investigate possible discriminatory issues in field of taxation 15 October 2014

Current line of thinking Way forward Current line of thinking Should new (legal) initiatives be contemplated if existing EU legislation (Solvency, IORP, CRD, UCITs, Mifid, PRIIPs, IMD2) is sufficiently suitable for PPPs? Thorough analysis cross-sectorial legislation needed E.g. governance financial institutions, quantitative requirements, distribution 2. Issues that will require new initiatives E.g. pre- and postcontractual information to PPP holders, scope of PPPs (EC requested to include analysis on bringing annuity products (e.g. reverse mortgages) under PPP definition, product standardisation as it is linked to 2nd regime and product governance 15 October 2014

OPSG involvement The aim is to seek OPSG input before public consultation (July – September 2015) on specifically relevant CfA topics OPSG members are invited to also participate in the public consultation 15 October 2014

Provisional timeline Finalising draft reports 3 work streams – by 2nd week February 2015 Finalising overall draft report – by 1 June 2015 Public consultation – 1 July until 30 September 2015 Seeking BoS approval of final draft advice – January 2016 Final advice to EC – 1 February 2016 15 October 2014

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