04.03.2015 EFAMA RECOMMENDATIONS FOR EUROPEAN PERSONAL PENSIONS

The European Fund and Asset Management Association (EFAMA) has published further recommendations for a new EU-wide pension product based on extensive research and feedback from the asset management industry in a report entitled “Towards a Single Market for European Personal Pensions: building blocks for an EU framework”. The report sets out EFAMA’s key arguments in favour of the creation and implementation of a standardised pension product – the European Personal Pension (EPP).

The report’s key observations are:

  • A survey used in the report shows that 100 per cent of asset managers would want to take part in the European Personal Pension market as providers of investment solutions, and that one-third of these would also wish to act as distributors.
  • Such a market would equally help personal pension providers operating on a cross-border basis to achieve economies of scale.
  • A framework for an EU-wide personal pension product has real potential to achieve a more efficient environment for personal pensions, enhancing the choice between different types of pension products and providers.
  • By removing barriers for cross-borders flows of pension savings, the creation of a European Personal Pension would contribute to a well-functioning Capital Markets Union and enhance the flow of capital to long-term investment projects.

Finally, the EPP would improve the portability of pension saving across borders. This would simplify life for people working and living in more than one EU member country.

The report recommends the following measures:

  • The EEP should specify an appropriate investment default option, including life-cycle strategies or balanced funds and would be designed to ensure an acceptable level of risk for pension savers.
  • Pre-enrolment communication should be standardised and applied uniformly by all providers in a way that facilitate the comparison between EPPs, helping consumers make the right choice.
  • The EU framework for an EPP should be sufficiently standardised to reduce distribution costs, encouraging more consumers to save for retirement.

27.02.2015 ECON SUPPLEMENTARY REPORT ON ELTIF REGULATION

The European Parliament’s Economic and Monetary Affairs Committee (ECON) has published a supplementary report dated 16 February 2015, on the proposed Regulation on European Long-Term Investment Funds (ELTIF Regulation).

The report contains a draft European Parliament legislative resolution on the ELTIF Regulation, showing suggested amendments. New or amended text is highlighted in bold italics and deletions are indicated by a symbol.

The European Parliament will consider the proposed Regulation in its plenary session to be held from 9 to 12 March 2015.