EIOPA OPSG meeting 15 October 2014 EC update

EIOPA OPSG meeting 15 October 2014 EC update Anna Kadar Insurance and Pensions Unit DG 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: 1 st 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 1 st 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: G 20 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.