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

2. Warsaw, 18 September 20062 Topics CEIOPS Work of the OPC –Budapest Protocol –Cross-border issues Closing remarks

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

4. Warsaw, 18 September 20064 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

5. Warsaw, 18 September 20065 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

6. Warsaw, 18 September 20066 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)

7. II. Work of the Occupational Pensions Committee (OPC)

8. Warsaw, 18 September 20068 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

9. Warsaw, 18 September 20069 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

10. Warsaw, 18 September 200610 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

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

12. Warsaw, 18 September 200612 Development first draft  Sept. 2004 first public consultation  28 Feb. 2005 –comments from 4 organisations –discussed in OPC second public consultation  28 Oct. 2005 approval CEIOPS Members’ Meeting  Feb. 2006

13. Warsaw, 18 September 200613 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

14. Warsaw, 18 September 200614 ”Open Doors” Approach CA Home Host CA

15. Warsaw, 18 September 200615 Content of the Protocol general considerations authorised IORPs and the notification process ongoing supervision and exchange of information after the notification process appendices

16. Warsaw, 18 September 200616 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

17. Warsaw, 18 September 200617 Notification Procedure only authorised IORPs can start operating cross- border such authorisation has to be granted only once –not for each cross-border activity

18. Warsaw, 18 September 200618 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

19. Warsaw, 18 September 200619 step by step …

20. Warsaw, 18 September 200620 Ex. : Belgium - Poland Belgian IORP Polish undertaking główne cechy systemu emerytalnego Belgian supervisorPolish supervisor pension scheme notification

21. Warsaw, 18 September 200621 Ex. : Belgium - Poland Belgian IORP Polish undertaking Belgian supervisorPolish supervisor prawo socjalne i prawo pracy wymogi informacyjne ograniczenia inwestycyjne pension scheme

22. Warsaw, 18 September 200622 Ex. : Belgium - Poland Belgian IORP Polish undertaking Belgian supervisorPolish supervisor info on compliance, interventions, … prudential supervisionsocial supervision pension scheme

23. Warsaw, 18 September 200623 Ex. : Poland - Belgium Polish IORP Belgian undertaking voornaamste kenmerken pensioenregeling Polish supervisorBelgian supervisor pension scheme notification

24. Warsaw, 18 September 200624 Ex. : Poland - Belgium Polish IORP Belgian undertaking Polish supervisorBelgian supervisor sociale en arbeidswetgeving informatievereisten beleggingsregels pension scheme

25. Warsaw, 18 September 200625 Ex. : Poland - Belgium Polish IORP Belgian undertaking Polish supervisorBelgian supervisor info on compliance, interventions, … prudential supervisionsocial supervision pension scheme

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

27. Warsaw, 18 September 200627 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

28. Warsaw, 18 September 200628 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

29. Warsaw, 18 September 200629 Common Understanding fully funding ring-fencing subordinated loans

30. Warsaw, 18 September 200630 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

31. Warsaw, 18 September 200631 Exchange of Experience authorisation and notification procedures supervisory actions/sanctions supervisory approaches case studies

32. III. Closing Remarks

33. Warsaw, 18 September 200633 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

34. Warsaw, 18 September 200634 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

35. Warsaw, 18 September 200635 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

36. Thank you for your attention ! Dziękuję za uwagę ! Dank u voor uw aandacht ! more info on www.ceiops.org www.ceiops.org