EIOPA OPSG meeting 15 October 2014

EC update

Anna Kadar Insurance and Pensions UnitDG Internal Market and Services – European Commission

Proposal to revise 2003 Directive

• The proposal has 3 goals• Professionalise governance and risk management• Provide more effective information to members and

beneficiaries• Facilitate cross-border activity and transfers

Recast, 81 articles, 3 delegated acts (under discussion)

Recent milestones

• 2014 – Council Working Groups

• Italian Presidency: 1st compromise issued on 17 September 2014

• Indicating which areas might be subject to change

• Next meeting: 29 October 2014

• European Parliament: to date, no rapporteur appointed

Topics under discussion in the Council

• Governance: • Remuneration

• Formalised risk assessment for IORPS

• Cross-border issues • authorisation procedure

• Pension Benefit Statement (PBS)• format, layout, structure and sequencing of the PBS

• Layered approach

• Delegated acts, EIOPA guidelines?

Next steps on IORP II

• Work in Council continues

• European Parliament: designation of rapporteurs

• Some shadow rapporteurs already known

• New Commission mandate

• New Commissioner as of 1/11/2014

Personal pensions

Call for Advice to EIOPA on the "development of an EU single market for personal pension products (PPP)"

• Multi-pillar diversification and the need to check whether consumer protection is adequate for all pension products, including PPPs

• Internal market/cross-border objective: reduce obstacles to cross-border mobility and enable more cross-border activity by improving transparency and comparability of PPPs across borders

• The scope of the Advice should be broad: including an analysis of life insurances, group pensions and 1st pillar bis schemes.

• To be delivered by 1 February 2016

Way forward

• Based on the EIOPA Advice, the Commission will analyse whether legislating PPPs specifically is necessary.

• Careful analysis of next steps: Commission takes into account existing financial services legislation that applies or could apply to PPPs

• Not necessarily resulting in EU level regulation

• Work continues on consumer protection • development of level 2 measures in financial services• work with EIOPA• new Commission as of 1 November 2014

New Directorate-Generals in the EC

• Current DG MARKT will be split into two

• DG for internal market, industry, entrepreneurship and SMEs (Commissioner: Elzbieta Bienkowska)

• DG for Financial Stability, financial services and capital markets union (Commissioner: Jonathan Hill)

• Staff issues

Lord Hill: EP hearing(s)

First hearing (1 October 2014)

Five priorities for the mandate:

•Implementing secondary legislation

•Taking forward the current major proposals (benchmarking, money market funds, banking structural reform)

•Delivering on growth through the Capital Markets Union

•International: G20 standard setting and equivalence

•Delivering more for consumers: help create more transparent retail financial products for consumers

Lord Hill: EP hearing(s)

Second hearing (7 October 2014)

"The big picture for 2019"

•Well-regulated and integrated Capital Markets Union

•Bring investment back to the economy (securitisation; Solvency II delegated acts)

•Further development and diversification of capital markets?

•Single market for European financial instruments to help foster funding for SMEs and other long-term projects

• Lord Hill was approved as Commissioner for Financial stability, financial services and capital markets union

• Vice-Presidents

• Valdis Dombrovskis - The euro and social dialogue and

• Jyrki Katainen - Jobs, growth, investment and competitiveness

Thank you for your attention.