1. Anne Maher Chief Executive Frankfurt The Pensions Board15 November 2006 EUROPEAN PENSIONS FUNDS CONGRESS Towards Pan-European Pension Vehicles – Is Europe delivering the right regulation for promoting or facilitating cross-border provision of workplace pensions?

2. 2 Agenda  Progress toward Pan-European Pensions  Is EU Pensions regulation delivering?  What else might be done? 2

3. 3 Progress Legal  EU aim to achieve Single Market for pensions  EU Communication on “The Elimination of tax obstacles to cross-border provision of occupational pensions” (April 2001)  EU Directive 2003/41/EC on “the activities and supervision of Institutions for Occupational Retirement Provision” known as the “Pensions Directive” (September 2003)  Pensions Directive was to be implemented into Member State legislation by 23 September 2005 3

4. 4 Progress EU Pensions Directive Principles  Sets framework for pension scheme supervision  Effectively sets common minimum level of supervision  Moves towards freedom of investment for pension schemes  Facilitates cross-border pension schemes  Provides possible legal framework for Pan European pension schemes 4

5. 5 Progress EU Pensions Directive  Slow implementation by Member States 20 with full notification 2 with partial notification 3 with no notification EU Commission taking legal action to enforce  Tax infringements in 18 Member States Dividend and/or interest taxation EU Commission pursuing in European Court  Committee of European Insurance and Pension Supervisors (CEIOPS) supervising implementation  Budapest Protocol agreed between pension supervisors 5

6. 6 Progress What is now possible  Investment pooling cross-border – already possible and happening  Pooling of liabilities  Pooling of administration 6

7. 7 Progress Other Current EU Pensions Regulation Initiatives  EU Portability of Pensions Directive  EU Directive on Equal Treatment in supply of goods and services 7

8. 8 Is EU Regulation Delivering? Obstacles  Social and Labour Law  Tax  Defined Benefit Funding Standards  Pension Reform  Member State attitude  Inexperience  First mover disadvantage 8

9. 9 Is EU Regulation Delivering?  Pensions Directive was a first step in Single Market for pensions  Implementation is very slow  EU Commission legal enforcement is lengthy process  Needs more indirect support? 9

10. 10 What Else Might Be Done? Immediate Steps  Implementation of Directive by all EU Member States  Clarification of some Directive requirements  Protocol in operation between Member State pension supervisors 10

11. 11 What Else Might Be Done?  Review of Pensions Directive (happening 2007 / 2008?)  2 nd Pensions Directive?  More indirect support through CEIOPS?  EU Commission action to encourage Member States to take positive approach to Single Market for pensions 11

12. 12 In Conclusion  Pensions Directive is reasonable first step  More needs to be done directly and indirectly  Full Pan-European Pension Funds Will take time And WILL come about But need another EU push 12