”Cross-border pension issues in the EU”

  • Published on
    23-Jan-2016

  • View
    45

  • Download
    0

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 Presentation

Transcript

  • Cross-border pension issues in the EU

    Ann DevosMember, CEIOPS OPCWarsaw, 18 Sept. 2006

    Warsaw, 18 September 2006

  • TopicsCEIOPSWork of the OPCBudapest ProtocolCross-border issuesClosing remarks

    Warsaw, 18 September 2006

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

    Warsaw, 18 September 2006

  • Lamfalussy ApproachLevel 1: Framework PrinciplesLevel 2: Decision MakingLevel 3: ImplementationLevel 4: EnforcementCommission, Council, ParliamentCommission, EIOPCCEIOPS, CEBS, CESRCommission, Member States

    Warsaw, 18 September 2006

  • TasksL2 activities: advise the Commission on implementation measures and regulationsL3 activities: establish supervisory standardsforum for supervisory cooperation

    enhance effective application of regulations facilitate cooperation between supervisors convergence of supervisory practices

    Warsaw, 18 September 2006

  • Members MeetingManaging Board

    Consultative PanelCEIOPS SecretariatWORKING GROUPSInsurance Groups SupervisionFinancial StabilityOccupational PensionsInsurance IntermediariesSolvency II- Pillar I Solvency II- Pillar IISolvency II- Pillar III/AccountingSolvency II- Groups/Cross-sectorEuropean Institutions (Parliament, Council, Commission)

    Warsaw, 18 September 2006

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

    Warsaw, 18 September 2006

  • Occupational PensionsCommitteepermanent Committeesecretariat in Budapest (HFSA)24 members + 1 observer5 meetings a yearattendance of the Commission and Secretariatfeedback to the Members Meeting

    Warsaw, 18 September 2006

  • Working Planto support the smooth implementation of the IORP Directivedeveloping common understandingdeveloping protocols for supervisory cooperationcoordination and exchange of information on cross-border membership

    Warsaw, 18 September 2006

  • Working Plan (2)to monitor the application of the Directivecalculation of technical provisionsapplication of investment rulesoptional application of the Directiveto analyse the regulatory situation of pension savings institutionsto serve as a basis for supervisory convergence

    Warsaw, 18 September 2006

  • BUDAPEST Protocola framework for the cooperation of supervisors in the area of cross-border activity

    Warsaw, 18 September 2006

  • Developmentfirst draft Sept. 2004first public consultation 28 Feb. 2005comments from 4 organisationsdiscussed in OPCsecond public consultation 28 Oct. 2005approval CEIOPS Members Meeting Feb. 2006

    Warsaw, 18 September 2006

  • Supervisory Frameworkgeneral pictureHomeHostIORPAuth.SponsorAuth.employeesHost nameSponsor nameMain char.S&L lawInfo req.Inv. rulesPrudential supervisionSocial supervisionpension scheme

    Warsaw, 18 September 2006

  • Open Doors ApproachCACAHomeHostCACACACACACACACA

    Warsaw, 18 September 2006

  • Content of the Protocolgeneral considerationsauthorised IORPs and the notification processongoing supervision and exchange of information after the notification processappendices

    Warsaw, 18 September 2006

  • General ConsiderationsCEIOPS members, non-CEIOPS competent authorities of EEA Statescommitment to cooperate in all cases required under the Directiveaim to harmonise documentsadditional cooperation where neededlanguage used for cooperation

    Warsaw, 18 September 2006

  • Notification Procedureonly authorised IORPs can start operating cross-bordersuch authorisation has to be granted only oncenot for each cross-border activity

    Warsaw, 18 September 2006

  • Ongoing Supervisiondialogue between the authoritieschanges in provided information about the laws, the pension schemes and the IORPssharing information about interventionsprocedures in case of non-compliancering-fencing of the assets and liabilities

    Warsaw, 18 September 2006

  • step by step

    Warsaw, 18 September 2006

  • Ex. : Belgium - PolandBelgian IORPPolish undertakinggwne cechy systemuemerytalnegoBelgian supervisorPolish supervisorpension schemenotification

    Warsaw, 18 September 2006

  • Ex. : Belgium - PolandBelgian IORPPolish undertakingBelgian supervisorPolish supervisorprawo socjalne i prawo pracy wymogi informacyjneograniczenia inwestycyjnepension scheme

    Warsaw, 18 September 2006

  • Ex. : Belgium - PolandBelgian IORPPolish undertakingBelgian supervisorPolish supervisorinfo on

    compliance, interventions, prudential supervisionsocial supervisionpension scheme

    Warsaw, 18 September 2006

  • Ex. : Poland - BelgiumPolish IORPBelgian undertakingvoornaamste kenmerken pensioenregelingPolish supervisorBelgian supervisorpension schemenotification

    Warsaw, 18 September 2006

  • Ex. : Poland - BelgiumPolish IORPBelgian undertakingPolish supervisorBelgian supervisorsociale en arbeidswetgevinginformatievereistenbeleggingsregelspension scheme

    Warsaw, 18 September 2006

  • Ex. : Poland - BelgiumPolish IORPBelgian undertakingPolish supervisorBelgian supervisorinfo on

    compliance, interventions, prudential supervisionsocial supervisionpension scheme

    Warsaw, 18 September 2006

  • Cross-border IssuesTrust, convergence, common understanding, exchange of information and experience.

    Warsaw, 18 September 2006

  • Trust in Each Otherhost authority relies on homes judgement about the authorisation and notificationhost authority relies on homes control, exceptrelevant S&L lawinformation requirementshost authority relies on homes measures, exceptlack of measures, or measures, taken against the breach of relevant S&L law, not effective

    Warsaw, 18 September 2006

  • Supervisory Convergencedifferent levels of convergencein the field of occupational pensionswith other financial servicesin the field of occupational pensionsto avoid supervisory arbitrageprudent person rule: exchange of experienceexchange of information on supervisory framework and content

    Warsaw, 18 September 2006

  • Common Understandingfully fundingring-fencingsubordinated loans

    Warsaw, 18 September 2006

  • Exchange of Informationinvestment rulescustody and depositaryreporting and information requirementsinsolvency and insurance systemscross-border membershipoptional application of the Directiveprivate schemes and the EU legislationnot covered pillars, institutions and activities

    Warsaw, 18 September 2006

  • Exchange of Experienceauthorisation and notification proceduressupervisory actions/sanctionssupervisory approachescase studies

    Warsaw, 18 September 2006

  • III.Closing Remarks

    Warsaw, 18 September 2006

  • Expectationsthe OPC should not be expected toovertake responsibilities from member statesdetermine the relevant S&L lawfind a solution for regulatory problemsreach a uniform application of the whole Directive

    Warsaw, 18 September 2006

  • Closing Remarksimplementation of the Directive20 countries OK, 2 partial notification, 3 no notificationquality matters rather than timelong process: primary and secondary legislationpan-European pension fundsnot classical pan-European solutionsasset poolingcentral services

    Warsaw, 18 September 2006

  • Closing Remarkspensions coordinationno competent body on S&L lawcompetent authorities having no supervisory responsibilityseveral aspects of pension servicessupervisory cooperationCEIOPS-CEBS-CESR

    Warsaw, 18 September 2006

  • Thank you for your attention !Dzikuj za uwag !Dank u voor uw aandacht !more info on www.ceiops.org

    Warsaw, 18 September 2006

    EIOPC: European Insurance and Occupational Pensions CommitteeCEIOPS: Committee of European Insurance and Pensions SupervisorsCEBS: Committee of European Banking SupervisorsCESR: Committee of European Securities Regulators

    CEIOPS is composed of high level representatives from the insurance and occupational pensions supervisory authorities of the European Union Member States. The authorities of the Member States of the European Economic Area (Norway, Iceland and Liechtenstein) and the present candidate countries, Bulgaria and Romania, as well as the European Commission, participate in CEIOPS' activities as observers.CEIOPS performs the functions of the Level 3 Committee for the insurance and occupational pensions sectors, following the extension to those sectors of the "Lamfalussy Process", as also applied by CEBS and CESR, respectively, in the banking and capital markets sectors. This role involves providing advice to the European Commission on the drafting of implementation measures for framework directives and regulations on insurance and occupational pensions ("Level 2 activities"), and establishing supervisory standards, recommendations and guidelines to enhance convergent and effective application of the regulations and to facilitate cooperation between national supervisors ("Level 3 activities"). The role also involves the participation of CEIOPS in the work of different European institutions with responsibilities for issues relating to insurance and occupational pensions, in particular the Economic and Financial Committee (EFC) and the Financial Services Committee (FSC).

    CEIOPS advises the Commission, either at the Commission's request or on the Committee's own initiative, in particular on the preparation of draft implementing measures in the fields of insurance, reinsurance and occupational pensions;contributes to the consistent implementation of EU Directives and to the convergence of Member States' supervisory practices throughout the Community;constitutes a forum for supervisory co-operation, including the exchange of information on supervised institutions;deals with convergence in the supervision of insurance companies and occupational pension funds.The main body of CEIOPS is the Members' Meeting, which includes all CEIOPS' Members and Observers. The Members' Meeting is responsible for all tasks regarding CEIOPS, where they are not defined by law or the Articles of Association to be within the competence of the Managing Board. It is responsible for the main resolutions of the Committee, regarding both its organisational aspects, such as the approval of the budget, and its institutional tasks, such as resolutions on the advice to the European Commission. The Managing Board is the body with responsibility for progressing CEIOPS' business by implementing the resolutions passed by the Members' Meetings and fulfilling the administrative tasks of the Committee. The permanent structure of the Committee is represented by its Secretariat, which assists the Managing Board and the Committee in carrying out their tasks. The Secretariat also acts as coordinator in the dialogue with market participants and maintains relations with the European Commission and other third parties. The Consultative Panel, composed of a limited number of high level experts committed to the objectives of the European Union, monitors CEIOPS' work programme and results. It also acts as a "sounding board" to support CEIOPS' policy-making process. To prepare its statements and documents and carry out the technical work of the Association, CEIOPS set up Working Groups consisting of experts from the national supervisory authorities, and to which other stakeholders contribute from their expertise and insight. The organisation of the working groups depends on the CEIOPS' Work Programme. So far, CEIOPS has created five Expert Groups and three Permanent Committees. BackgroundThe Committee was set up in February 2004 in view of dealing with the challenges of the implementation of the directive 2003/41/EC on the activities and supervision of institutions for occupational retirement provision (IORP Directive), which has to be implemented by the Member States by 23 September 2005.Terms of ReferenceThe tasks of the Committee areto develop a common understanding of the IORP Directive;to facilitate the supervisory cooperation, coordination and exchange of information on the cross-border membership and on related issues;to carry out the preparatory work for dealing with issues related to pension funds.Main issues under the Terms of ReferencePreparation of a Protocol organising the cooperation, coordination and regular information exchange between occupational pensions supervisors in view of the implementation of the IORP Directive;Analyses of the current status of the pension savings institutions from the EU legislation point of view;Monitoring of the practices in the calculation of technical provisions;Monitoring of the progress achieved in the adaptation of investment rules and the use of depositaries in the national supervisory systems.

    work with colleagues from differentpension systems (new EU members)backgrounds (market maturity)supervisory approaches and supervisory systemsThe host country is not always the country where the sponsor is located. The directive determines that the host country is the country for which the social and labour legislation prevails on the relationship between the sponsoring employer and the members. This is independent from where the sponsor is located and/or where the employees live and work.The Protocol does not limit the free communication between Competent Authorities.Appendices: summary of terms used in the documentmain characteristics regarding the IORP and the schemelegal status of the IORPname of the home Member States competent authoritiesname of the host Member States competent authoritiesflowchart outlining the processesjoinder agreement

    The IORP communicates the following information to the home MSCA:name of host MSname of sponsoring undertaking in host MSmain characteristics of the pension scheme to be operated for the sponsoring undertaking

    The home MSCA considers if it has reason to doubt whether the IORPs:administrative structurefinancial situationgood repute and professional qualifications or experience of the persons running the IORPare compatible with the proposed operations in the host MS.

    If the home MSCA has no reason to doubt, it will pass the information to the host MSCA within 3 monhts after the notification.The host MSCA notifies the home MSCA, within 2 months, of its requirements for compliance with any:host MS relevant social and labour lawspecial rules about investment that are to apply to those assets of the Guest IORP attributable to activities carried out in the host MSinformation requirements to be met by IORPs operating in the host MS.

    The home MSCA passes on the information to the IORP.The Competent Authorities confirm that the home Member State Competent Authority will be responsible for supervision of the IORP as a whole, including the appropriate governance of, and compliance generally by, the Guest IORP, and enforcement, in accordance with the Competent Authoritys normal supervisory practices. This will include supervision of compliance with the investment restrictions (if applied); the host Member State Competent Authority will supervise the activities of the Guest IORP in the host Member State in relation to compliance with any social and labour law relevant to the field of occupational pensions, and in relation to additional information requirements applied in accordance with Article 20 (7) of the Directive (information to be given to the members and beneficiaries), and report to the home Member State Competent Authority any suspected breaches or issues about which it is concerned.

    The Competent Authori...

Recommended

View more >