”Cross-border pension issues in the EU” Ann Devos Member, CEIOPS OPC Warsaw, 18 Sept. 2006

Warsaw, 18 September Topics CEIOPS Work of the OPC –Budapest Protocol –Cross-border issues Closing remarks

I. Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS)

Warsaw, 18 September Lamfalussy Approach Level 1: Framework Principles Level 1: Framework Principles Level 2: Decision Making Level 2: Decision Making Level 3: Implementation Implementation Level 3: Implementation Implementation Level 4: Enforcement Enforcement Commission, Council, Parliament Commission, EIOPC CEIOPS, CEBS, CESR Commission, Member States

Warsaw, 18 September Tasks L2 activities: advise the Commission on implementation measures and regulations L3 activities: –establish supervisory standards –forum for supervisory cooperation   enhance effective application of regulations  facilitate cooperation between supervisors  convergence of supervisory practices

Warsaw, 18 September Members’ Meeting Managing Board Consultative Panel CEIOPS Secretariat WORKING GROUPS Insurance Groups Supervision Financial Stability Occupational Pensions Insurance Intermediaries Solvency II- Pillar I Solvency II- Pillar II Solvency II- Pillar III/Accounting Solvency II- Groups/Cross-sector European Institutions (Parliament, Council, Commission)

II. Work of the Occupational Pensions Committee (OPC)

Warsaw, 18 September Occupational Pensions Committee permanent Committee secretariat in Budapest (HFSA) 24 members + 1 observer 5 meetings a year attendance of the Commission and Secretariat feedback to the Members’ Meeting

Warsaw, 18 September Working Plan to support the smooth implementation of the IORP Directive –developing common understanding –developing protocols for supervisory cooperation –coordination and exchange of information on cross-border membership

Warsaw, 18 September Working Plan (2) to monitor the application of the Directive –calculation of technical provisions –application of investment rules –optional application of the Directive to analyse the regulatory situation of pension savings institutions to serve as a basis for supervisory convergence

BUDAPEST Protocol a framework for the cooperation of supervisors in the area of cross-border activity

Warsaw, 18 September Development first draft  Sept first public consultation  28 Feb –comments from 4 organisations –discussed in OPC second public consultation  28 Oct approval CEIOPS Members’ Meeting  Feb. 2006

Warsaw, 18 September Supervisory Framework general picture HomeHost IORP Auth. Sponsor Auth. employees Host name Sponsor name Main char. S&L law Info req. Inv. rules Prudential supervision Social supervision pension scheme

Warsaw, 18 September ”Open Doors” Approach CA Home Host CA

Warsaw, 18 September Content of the Protocol general considerations authorised IORPs and the notification process ongoing supervision and exchange of information after the notification process appendices

Warsaw, 18 September General Considerations CEIOPS members, non-CEIOPS competent authorities of EEA States commitment to cooperate in all cases required under the Directive aim to harmonise documents additional cooperation where needed language used for cooperation

Warsaw, 18 September Notification Procedure only authorised IORPs can start operating cross- border such authorisation has to be granted only once –not for each cross-border activity

Warsaw, 18 September Ongoing Supervision dialogue between the authorities –changes in provided information about the laws, the pension schemes and the IORPs –sharing information about interventions procedures in case of non-compliance ring-fencing of the assets and liabilities

Warsaw, 18 September step by step …

Warsaw, 18 September Ex. : Belgium - Poland Belgian IORP Polish undertaking główne cechy systemu emerytalnego Belgian supervisorPolish supervisor pension scheme notification

Warsaw, 18 September Ex. : Belgium - Poland Belgian IORP Polish undertaking Belgian supervisorPolish supervisor prawo socjalne i prawo pracy wymogi informacyjne ograniczenia inwestycyjne pension scheme

Warsaw, 18 September Ex. : Belgium - Poland Belgian IORP Polish undertaking Belgian supervisorPolish supervisor info on compliance, interventions, … prudential supervisionsocial supervision pension scheme

Warsaw, 18 September Ex. : Poland - Belgium Polish IORP Belgian undertaking voornaamste kenmerken pensioenregeling Polish supervisorBelgian supervisor pension scheme notification

Warsaw, 18 September Ex. : Poland - Belgium Polish IORP Belgian undertaking Polish supervisorBelgian supervisor sociale en arbeidswetgeving informatievereisten beleggingsregels pension scheme

Warsaw, 18 September Ex. : Poland - Belgium Polish IORP Belgian undertaking Polish supervisorBelgian supervisor info on compliance, interventions, … prudential supervisionsocial supervision pension scheme

Cross-border Issues Trust, convergence, common understanding, exchange of information and experience.

Warsaw, 18 September Trust in Each Other host authority relies on home’s judgement about the authorisation and notification host authority relies on home’s control, except –relevant S&L law –information requirements host authority relies on home’s measures, except –lack of measures, or –measures, taken against the breach of relevant S&L law, not effective

Warsaw, 18 September Supervisory Convergence different levels of convergence –in the field of occupational pensions –with other financial services in the field of occupational pensions –to avoid supervisory arbitrage –prudent person rule: exchange of experience –exchange of information on supervisory framework and content

Warsaw, 18 September Common Understanding fully funding ring-fencing subordinated loans

Warsaw, 18 September Exchange of Information investment rules custody and depositary reporting and information requirements insolvency and insurance systems cross-border membership optional application of the Directive private schemes and the EU legislation –not covered ”pillars”, institutions and activities

Warsaw, 18 September Exchange of Experience authorisation and notification procedures supervisory actions/sanctions supervisory approaches case studies

III. Closing Remarks

Warsaw, 18 September Expectations the OPC should not be expected to –overtake responsibilities from member states –determine the relevant S&L law –find a solution for regulatory problems –reach a uniform application of the whole Directive

Warsaw, 18 September Closing Remarks implementation of the Directive –20 countries OK, 2 partial notification, 3 no notification –quality matters rather than time –long process: primary and secondary legislation pan-European pension funds not classical pan-European solutions –asset pooling –central services

Warsaw, 18 September Closing Remarks pensions coordination –no competent body on S&L law –competent authorities having no supervisory responsibility –several aspects of pension services supervisory cooperation –CEIOPS-CEBS-CESR

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