”cross-border pension issues in the eu” ann devos member, ceiops opc warsaw, 18 sept. 2006
TRANSCRIPT
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””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
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Warsaw, 18 September 2006 2
Topics
• CEIOPS• Work of the OPC
– Budapest Protocol– Cross-border issues
• Closing remarks
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I.I.Committee of European Committee of European
Insurance and Occupational Insurance and Occupational Pensions SupervisorsPensions Supervisors
(CEIOPS)(CEIOPS)
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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
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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
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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)
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II.II.Work of the Occupational Work of the Occupational
Pensions CommitteePensions Committee
(OP(OPCC))
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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
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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
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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
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BUDAPEST ProtocolBUDAPEST Protocol
a framework for the cooperation of supervisors in the area of cross-border
activity
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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
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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
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”Open Doors” Approach
CA CA
Home Host
CACA CACA
CA
CA
CA
CA
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Content of the Protocol• general considerations• authorised IORPs and the notification
process• ongoing supervision and exchange of
information after the notification process• appendices
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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
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Notification Procedure• only authorised IORPs can start operating
cross-border• such authorisation has to be granted only
once– not for each cross-border activity
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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
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step by step …
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Ex. : Belgium - Poland
Belgian IORP Polish undertaking
główne cechy systemuemerytalnego
Belgian supervisor Polish supervisor
pension scheme
notification
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Ex. : Belgium - Poland
Belgian IORP Polish undertaking
Belgian supervisor Polish supervisor
prawo socjalne i prawo pracy wymogi informacyjneograniczenia inwestycyjne
pension scheme
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Ex. : Belgium - Poland
Belgian IORP Polish undertaking
Belgian supervisor Polish supervisor
info on
compliance, interventions, …
prudential supervision social supervision
pension scheme
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Ex. : Poland - Belgium
Polish IORP Belgian undertaking
voornaamste kenmerken pensioenregeling
Polish supervisor Belgian supervisor
pension scheme
notification
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Ex. : Poland - Belgium
Polish IORP Belgian undertaking
Polish supervisor Belgian supervisor
sociale en arbeidswetgevinginformatievereistenbeleggingsregels
pension scheme
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Ex. : Poland - Belgium
Polish IORP Belgian undertaking
Polish supervisor Belgian supervisor
info on
compliance, interventions, …
prudential supervision social supervision
pension scheme
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Cross-border IssuesCross-border Issues
Trust, convergence, common understanding, exchange of information
and experience.
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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
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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
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Common Understanding• fully funding• ring-fencing• subordinated loans
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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
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Exchange of Experience• authorisation and notification procedures• supervisory actions/sanctions• supervisory approaches• case studies
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III.III.Closing RemarksClosing Remarks
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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
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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
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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
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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