”cross-border pension issues in the eu”
DESCRIPTION
”Cross-border pension issues in the EU”. Ann Devos Member, CEIOPS OPC Warsaw, 18 Sept. 2006. Topics. CEIOPS Work of the OPC Budapest Protocol Cross-border issues Closing remarks. I. Committee of European Insurance and Occupational Pensions Supervisors. (CEIOPS). Lamfalussy Approach. - PowerPoint PPT PresentationTRANSCRIPT
””Cross-border pension Cross-border pension issues in the EU”issues in the EU”
Ann DevosAnn Devos
Member, CEIOPS OPCMember, CEIOPS OPC
Warsaw, 18 Sept. 2006Warsaw, 18 Sept. 2006
Warsaw, 18 September 2006 2
Topics
• CEIOPS• Work of the OPC
– Budapest Protocol– Cross-border issues
• Closing remarks
I.I.Committee of European Committee of European
Insurance and Occupational Insurance and Occupational Pensions SupervisorsPensions Supervisors
(CEIOPS)(CEIOPS)
Warsaw, 18 September 2006 4
Lamfalussy Approach
Level 1: Level 1: Framework PrinciplesFramework Principles
Level 1: Level 1: Framework PrinciplesFramework Principles
Level 2: Level 2: Decision MakingDecision Making
Level 2: Level 2: Decision MakingDecision Making
Level 3:Level 3: ImplementationImplementation
Level 3:Level 3: ImplementationImplementation
Level 4: Level 4: EnforcementEnforcement
Level 4: Level 4: EnforcementEnforcement
Commission, Council, Parliament
Commission, EIOPC
CEIOPS, CEBS, CESR
Commission, Member States
Warsaw, 18 September 2006 5
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 2006 6
Members’ Meeting Managing
BoardConsultative Panel CEIOPS Secretariat
WORKING GROUPSInsurance Groups
SupervisionFinancial Stability
Occupational PensionsInsurance Intermediaries
Solvency II- Pillar I Solvency II- Pillar IISolvency II- Pillar III/Accounting
Solvency II- Groups/Cross-sector
European Institutions (Parliament, Council, Commission)
II.II.Work of the Occupational Work of the Occupational
Pensions CommitteePensions Committee
(OP(OPCC))
Warsaw, 18 September 2006 8
Occupational PensionsCommittee• 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 2006 9
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 2006 10
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 ProtocolBUDAPEST Protocol
a framework for the cooperation of supervisors in the area of cross-border
activity
Warsaw, 18 September 2006 12
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
Warsaw, 18 September 2006 13
Supervisory Frameworkgeneral picture
Home Host
IORP
Auth.
Sponsor
Auth.
employees
Host nameSponsor nameMain char.
S&L lawInfo req.Inv. rules
Prudential supervision
Social supervision
pension scheme
Warsaw, 18 September 2006 14
”Open Doors” Approach
CA CA
Home Host
CACA CACA
CA
CA
CA
CA
Warsaw, 18 September 2006 15
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 2006 16
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 2006 17
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 2006 18
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 2006 19
step by step …
Warsaw, 18 September 2006 20
Ex. : Belgium - Poland
Belgian IORP Polish undertaking
główne cechy systemuemerytalnego
Belgian supervisor Polish supervisor
pension scheme
notification
Warsaw, 18 September 2006 21
Ex. : Belgium - Poland
Belgian IORP Polish undertaking
Belgian supervisor Polish supervisor
prawo socjalne i prawo pracy wymogi informacyjneograniczenia inwestycyjne
pension scheme
Warsaw, 18 September 2006 22
Ex. : Belgium - Poland
Belgian IORP Polish undertaking
Belgian supervisor Polish supervisor
info on
compliance, interventions, …
prudential supervision social supervision
pension scheme
Warsaw, 18 September 2006 23
Ex. : Poland - Belgium
Polish IORP Belgian undertaking
voornaamste kenmerken pensioenregeling
Polish supervisor Belgian supervisor
pension scheme
notification
Warsaw, 18 September 2006 24
Ex. : Poland - Belgium
Polish IORP Belgian undertaking
Polish supervisor Belgian supervisor
sociale en arbeidswetgevinginformatievereistenbeleggingsregels
pension scheme
Warsaw, 18 September 2006 25
Ex. : Poland - Belgium
Polish IORP Belgian undertaking
Polish supervisor Belgian supervisor
info on
compliance, interventions, …
prudential supervision social supervision
pension scheme
Cross-border IssuesCross-border Issues
Trust, convergence, common understanding, exchange of information
and experience.
Warsaw, 18 September 2006 27
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 2006 28
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 2006 29
Common Understanding• fully funding• ring-fencing• subordinated loans
Warsaw, 18 September 2006 30
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 2006 31
Exchange of Experience• authorisation and notification procedures• supervisory actions/sanctions• supervisory approaches• case studies
III.III.Closing RemarksClosing Remarks
Warsaw, 18 September 2006 33
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 2006 34
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 2006 35
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
Thank you for your attention !Thank you for your attention !Dziękuję za uwagę !Dziękuję za uwagę !
Dank u voor uw aandacht !Dank u voor uw aandacht !
more info on more info on www.ceiops.org