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Document 02019R1238-20240109
Regulation (EU) 2019/1238 of the European Parliament and of the Council of 20 June 2019 on a pan-European Personal Pension Product (PEPP) (Text with EEA relevance)Text with EEA relevance
Consolidated text: Regulation (EU) 2019/1238 of the European Parliament and of the Council of 20 June 2019 on a pan-European Personal Pension Product (PEPP) (Text with EEA relevance)Text with EEA relevance
Regulation (EU) 2019/1238 of the European Parliament and of the Council of 20 June 2019 on a pan-European Personal Pension Product (PEPP) (Text with EEA relevance)Text with EEA relevance
- Date of document:
- 09/01/2024
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- 09/01/2024
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02019R1238 — EN — 09.01.2024 — 001.001
This text is meant purely as a documentation tool and has no legal effect. The Union's institutions do not assume any liability for its contents. The authentic versions of the relevant acts, including their preambles, are those published in the Official Journal of the European Union and available in EUR-Lex. Those official texts are directly accessible through the links embedded in this document
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REGULATION (EU) 2019/1238 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 20 June 2019 on a pan-European Personal Pension Product (PEPP) (OJ L 198 25.7.2019, p. 1) |
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REGULATION (EU) 2023/2869 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 13 December 2023 |
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REGULATION (EU) 2019/1238 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 20 June 2019
on a pan-European Personal Pension Product (PEPP)
(Text with EEA relevance)
CHAPTER I
GENERAL PROVISIONS
Article 1
Subject matter
This Regulation lays down uniform rules on the registration, manufacturing, distribution and supervision of personal pension products that are distributed in the Union under the designation ‘pan-European Personal Pension product’ or ‘PEPP’.
Article 2
Definitions
For the purposes of this Regulation, the following definitions apply:
‘personal pension product’ means a product which:
is based on a contract between an individual saver and an entity on a voluntary basis and is complementary to any statutory or occupational pension product;
provides for long-term capital accumulation with the explicit objective of providing income on retirement and with limited possibilities for early withdrawal before that time;
is neither a statutory nor an occupational pension product;
‘pan-European Personal Pension Product’ or ‘PEPP’ means a long-term savings personal pension product, which is provided by a financial undertaking eligible according to Article 6(1) under a PEPP contract, and subscribed to by a PEPP saver, or by an independent PEPP savers association on behalf of its members, in view of retirement, and which has no or strictly limited possibility for early redemption and is registered in accordance with this Regulation;
‘PEPP saver’ means a natural person who has concluded a PEPP contract with a PEPP provider;
‘PEPP contract’ means a contract between a PEPP saver and a PEPP provider which fulfils the conditions laid down in Article 4;
‘PEPP account’ means a personal pension account held in the name of a PEPP saver or a PEPP beneficiary which is used for the recording of transactions allowing the PEPP saver to contribute periodically sums towards retirement and the PEPP beneficiary to receive PEPP benefits;
‘PEPP beneficiary’ means a natural person receiving PEPP benefits;
‘PEPP customer’ means a PEPP saver, a prospective PEPP saver or a PEPP beneficiary;
‘PEPP distribution’ means advising on, proposing, or carrying out other work preparatory to the conclusion of contracts for providing a PEPP, concluding such contracts, or assisting in the administration and performance of such contracts, including the provision of information concerning one or more PEPP contracts in accordance with criteria selected by PEPP customers through a website or other media and the compilation of a PEPP ranking list, including price and product comparison, or a discount on the price of a PEPP, when the PEPP customer is able to directly or indirectly conclude a PEPP contract using a website or other media;
‘PEPP retirement benefits’ means benefits paid by reference to reaching, or the expectation of reaching, retirement in one of the forms referred to in Article 58(1);
‘PEPP benefits’ means PEPP retirement benefits and other additional benefits to which a PEPP beneficiary is entitled in accordance with the PEPP contract, in particular for the strictly limited cases of early redemption or if the PEPP contract provides a coverage of biometric risks;
‘accumulation phase’ means the period during which assets are accumulated in a PEPP account and ordinarily runs until the decumulation phase starts;
‘decumulation phase’ means the period during which assets accumulated in a PEPP account may be drawn upon to fund retirement or other income requirements;
‘annuity’ means a sum payable at specific intervals over a period, such as the PEPP beneficiary’s life or a certain number of years, in return for an investment;
‘drawdown payments’ means discretionary amounts which PEPP beneficiaries may draw up to a certain limit on a periodic basis;
‘PEPP provider’ means a financial undertaking as referred to in Article 6(1) authorised to manufacture a PEPP and to distribute that PEPP;
‘PEPP distributor’ means a financial undertaking as referred to in Article 6(1) authorised to distribute PEPPs not manufactured by it, an investment firm providing investment advice, or an insurance intermediary as defined in point (3) of Article 2(1) of Directive (EU) 2016/97 of the European Parliament and of the Council ( 1 );
‘durable medium’ means any instrument which:
enables a PEPP customer to store information addressed personally to that customer in a way accessible for future reference and for a period of time adequate for the purposes of the information; and
allows the unchanged reproduction of the information stored;
‘competent authorities’ means the national authorities designated by a Member State to supervise PEPP providers or PEPP distributors, as the case may be or to carry out the duties provided for in this Regulation;
‘home Member State of the PEPP provider’ means home Member State as defined in the relevant legislative act referred to in Article 6(1);
‘home Member State of the PEPP distributor’ means:
where the distributor is a natural person, the Member State in which his or her residence is situated;
where the distributor is a legal person, the Member State in which its registered office is situated or, where the distributor under its national law has no registered office, the Member State in which its head office is situated;
‘host Member State of the PEPP provider’ means a Member State, other than the home Member State of the PEPP provider, in which the PEPP provider provides PEPPs under the freedom to provide services or the freedom of establishment or for which the PEPP provider has opened a sub-account;
‘host Member State of the PEPP distributor’ means a Member State, other than the home Member State of the PEPP distributor, in which the PEPP distributor distributes PEPPs under the freedom to provide services or the freedom of establishment;
‘sub-account’ means a national section which is opened within each PEPP account and which corresponds to the legal requirements and conditions for using possible incentives fixed at national level for investing in a PEPP by the Member State of the PEPP saver’s residence; accordingly, an individual may be a PEPP saver or a PEPP beneficiary in each sub-account, depending on the respective legal requirements for the accumulation phase and decumulation phase;
‘capital’ means aggregate capital contributions, calculated on the basis of amounts investible after deduction of all fees, charges and expenses that are directly or indirectly borne by PEPP savers;
‘financial instruments’ means those instruments specified in Section C of Annex I to Directive 2014/65/EU of the European Parliament and of the Council ( 2 );
‘depositary’ means an institution charged with the safekeeping of assets and oversight of compliance with the fund rules and applicable law;
‘Basic PEPP’ means an investment option as laid down in Article 45;
‘risk mitigation techniques’ means techniques for a systematic reduction in the extent of exposure to a risk and/or the likelihood of its occurrence;
‘biometric risks’ means risks linked to death, disability and/or longevity;
‘switching provider’ means, upon a PEPP saver’s request, transferring from one PEPP provider to another the corresponding amounts, or where applicable assets-in-kind in accordance with Article 52(4), from one PEPP account to the other, with closing the former PEPP account without prejudice to point (e) of Article 53(4);
‘advice’ means a personal recommendation provided by the PEPP provider or PEPP distributor to a PEPP customer in respect of one or more PEPP contracts;
‘partnership’ means cooperation between PEPP providers to offer sub-accounts for different Member States in the context of the portability service, as referred to in Article 19(2);
‘environmental, social and governance factors’ or ‘ESG factors’ means environmental, social and governance matters such as those referred to in the Paris Agreement, the United Nations Sustainable Development Goals, the United Nations Guiding Principles on Business and Human Rights and the United Nations-supported Principles for Responsible Investment.
Article 3
Applicable rules
The registration, manufacturing, distribution and supervision of PEPPs shall be subject to:
this Regulation; and
in the case of matters not regulated by this Regulation:
relevant sectorial Union law including the corresponding delegated and implementing acts;
the laws adopted by Member States in implementation of relevant sectorial Union law and implementation of measures relating specifically to PEPPs;
other national laws which apply to PEPPs.
Article 4
PEPP contract
The PEPP contract shall in particular include the following:
a description of the Basic PEPP, as referred to in Article 45, including information on the guarantee on the capital invested or the investment strategy directed at ensuring the capital protection;
a description of the alternative investment options, as referred to in Article 42(2), where applicable;
the conditions related to the modification of the investment option referred to in Article 44;
where the PEPP offers biometric risk coverage, details of that coverage, including the circumstances that would trigger it;
a description of the PEPP retirement benefits, in particular the possible forms of out-payments and the right to change the form of out-payment referred to in Article 59;
the conditions related to the portability service referred to in Articles 17 to 20 including information on the Member States for which a sub-account is available;
the conditions related to the switching service referred to in Articles 52 to 55;
the categories of costs and total aggregate costs expressed in percentage terms and in monetary terms, where applicable;
the conditions related to the accumulation phase for the sub-account corresponding to the Member State of residence of the PEPP saver referred to in Article 47;
the conditions related to the decumulation phase for the sub-account corresponding to the Member State of residence of the PEPP saver referred to in Article 57;
where applicable, the conditions under which advantages or incentives granted are to be repaid to the Member State of residence of the PEPP saver.
CHAPTER II
REGISTRATION
Article 5
Registration
Supervision of compliance with this Regulation on an ongoing basis shall be carried out in accordance with Chapter IX.
Article 6
Application for registration of a PEPP
Only the following financial undertakings authorised or registered under Union law may apply for registration of a PEPP:
credit institutions authorised in accordance with Directive 2013/36/EU of the European Parliament and of the Council ( 3 );
insurance undertakings authorised in accordance with Directive 2009/138/EC of the European Parliament and of the Council ( 4 ), engaged in direct life insurance according to Article 2(3) of Directive 2009/138/EC and Annex II to that Directive;
institutions for occupational retirement provision (IORPs) authorised or registered in accordance with Directive (EU) 2016/2341 which, pursuant to national law, are authorised and supervised to provide also personal pension products. In that case, all assets and liabilities corresponding to PEPP provision business shall be ring-fenced, without any possibility to transfer them to the other retirement provision business of the institution;
investment firms authorised in accordance with Directive 2014/65/EU, providing portfolio management;
investment companies or management companies authorised in accordance with Directive 2009/65/EC;
EU alternative investment fund managers (EU AIFM) authorised in accordance with Directive 2011/61/EU.
Financial undertakings listed in paragraph 1 of this Article shall submit the application for registration of a PEPP to their competent authorities. The application shall include the following:
the standard contract terms of the PEPP contract to be proposed to PEPP savers, as referred to in Article 4;
information on the identity of the applicant;
information on arrangements regarding portfolio and risk management and administration with regard to the PEPP, including arrangements as referred to in Articles 19(2), 42(5) and 49(3);
a list of Member States where the applicant PEPP provider intends to market the PEPP, where applicable;
information on the identity of the depositary, where applicable;
PEPP key information as referred to in Article 26;
a list of Member States for which the applicant PEPP provider will be able to ensure the immediate opening of a sub-account.
The competent authorities shall set a time limit by which the applicant is to provide additional information, if the application is not complete. After the application is considered to be complete, the competent authorities shall notify the applicant accordingly.
EIOPA shall not be responsible or be held liable for a decision for registration taken by competent authorities.
Where the competent authorities refuse to grant registration, they shall issue a reasoned decision which shall be subject to a right to appeal.
Any subsequent modifications to the information and documents provided in the application referred to in paragraph 2 shall be immediately notified to the competent authorities. Where modifications are in relation to the information and documents referred to in points (a), (b), (d), (f) and (g) of paragraph 2, the competent authorities shall communicate those modifications to EIOPA without undue delay.
Article 7
Registration of a PEPP
Article 8
Conditions for deregistration of a PEPP
The competent authorities shall issue a decision for deregistration of the PEPP when:
the PEPP provider expressly renounces the registration;
the PEPP provider has obtained the registration by making false statements or by any other irregular means;
the PEPP provider has seriously or systematically infringed this Regulation; or
the PEPP provider or the PEPP no longer meets the conditions under which registration was granted.
Article 9
Designation
The designation ‘pan-European Personal Pension Product’ or ‘PEPP’ in relation to a personal pension product may only be used where the personal pension product has been registered by EIOPA to be distributed under the designation ‘PEPP’ in accordance with this Regulation.
Article 10
Distribution of PEPPs
Article 11
Prudential regime applicable to different types of providers
PEPP providers and PEPP distributors shall comply with this Regulation, as well as with the relevant prudential regime applicable to them in accordance with the legislative acts referred to in Articles 6(1) and 10(2).
Article 12
Publication of national provisions
Article 13
Central public register
CHAPTER III
CROSS-BORDER PROVISION AND PORTABILITY OF PEPP
SECTION I
Freedom to provide services and freedom of establishment
Article 14
Exercise of the freedom to provide services and freedom of establishment by PEPP providers and PEPP distributors
Article 15
Exercise of the freedom to provide services by IORPs and EU AIFM
PEPP providers as referred to in points (c) and (f) of Article 6(1) which intend to provide PEPPs to PEPP savers within the territory of a host Member State for the first time under the freedom to provide services and after notifying their intention to open a sub-account for this host Member State in accordance with Article 21, shall communicate the following information to the competent authorities of their home Member State:
the name and address of the PEPP provider;
the Member State in which the PEPP provider intends to provide or distribute PEPPs to PEPP savers.
Where the competent authorities of the home Member State refuse to communicate the information to the competent authorities of the host Member State, they shall give reasons for such refusal to the PEPP provider concerned within one month of receiving all the information and documents. The refusal or any failure to reply shall be subject to the right to appeal to the courts in the PEPP provider’s home Member State.
Article 16
Powers of the competent authorities of the host Member State
In addition, the competent authorities of the home Member State or the competent authorities of the host Member State may refer the matter to EIOPA and request its assistance in accordance with Article 19 of Regulation (EU) No 1094/2010.
SECTION II
Portability
Article 17
The portability service
Article 18
Provision of the portability service
Article 19
Sub-accounts of the PEPP
Having regard to the scope of the functions to be carried out by the partner, the partner shall be qualified and capable of undertaking the delegated functions. The PEPP provider shall enter into a written agreement with the partner. The agreement shall be legally enforceable and shall clearly define the rights and obligations of the PEPP provider and of the partner. The agreement shall comply with the relevant rules and procedures for delegation and outsourcing established by or under the Union law applicable to them, as referred to in Article 6(1). Notwithstanding that agreement, the PEPP provider shall remain solely liable for its responsibilities under this Regulation.
Article 20
Opening of a new sub-account
In that case, the PEPP provider shall provide the PEPP saver free of charge with the PEPP KID, containing the specific requirements referred to in point (g) of Article 28(3) for the sub-account corresponding to the new Member State of residence of the PEPP saver.
In the case that a new sub-account is not available, the PEPP provider shall inform the PEPP saver about the right to switch without delay and free of charge and of the possibility to continue saving in the last sub-account opened.
If the PEPP saver intends to make use of the possibility to open a sub-account, the PEPP saver shall inform the PEPP provider of the following:
the PEPP saver’s new Member State of residence;
the date from which the contributions shall be directed to the new sub-account;
any relevant information about other conditions for the PEPP.
Where the PEPP provider is not able to ensure the opening of a new sub-account corresponding to the PEPP saver’s new Member State of residence, the PEPP saver shall according to his or her choice be able to:
switch PEPP provider without delay and free of charge notwithstanding the requirements of Article 52(3) on the frequency of switching; or
continue contributing to the last sub-account opened.
Article 21
Provision of information on portability to the competent authorities
The PEPP provider shall include in the notification the following information and documents:
standard contract terms of the PEPP contract, as referred to in Article 4, including the annex for the new sub-account;
the PEPP KID, containing the specific requirements for the sub-account corresponding to the new sub-account in accordance with point (g) of Article 28(3);
the PEPP Benefit Statement referred to in Article 36;
information about contractual arrangements referred to in Article 19(2), where applicable.
In the absence of acknowledgment of receipt as referred to in paragraph 4 within 10 working days of the date of the transmission of the documentation as referred to in paragraph 3, the competent authorities of the home Member State shall inform the PEPP provider that the sub-account for that Member State can be opened.
CHAPTER IV
DISTRIBUTION AND INFORMATION REQUIREMENTS
SECTION I
General provisions
Article 22
General principle
When carrying out distribution activities for PEPPs, PEPP providers and PEPP distributors shall always act honestly, fairly and professionally in accordance with the best interests of their PEPP customers.
Article 23
Distribution regime applicable to different types of PEPP providers and PEPP distributors
For the distribution of PEPPs, the different types of PEPP providers and PEPP distributors shall comply with the following rules:
insurance undertakings as referred to in point (b) of Article 6(1) of this Regulation and insurance intermediaries as referred to in Article 10(2) of this Regulation shall comply with the applicable national law giving effect to the rules set out in Chapters V and VI of Directive (EU) 2016/97, with the exception of Articles 20, 23, 25 and Article 30(3) of that Directive for the distribution of insurance-based investment products, with any directly applicable Union law adopted under those rules with respect to the distribution of such products and with this Regulation, with the exception of Article 34(4);
investment firms as referred to in Article 10(2) of this Regulation shall comply with the applicable national law giving effect to the rules on marketing and distribution of financial instruments set out in the first subparagraph of Article 16(3) and Articles 23, 24 and 25 of Directive 2014/65/EU, with the exception of Article 24(2) and Article 25(3) and (4) of that Directive, with any directly applicable Union law adopted under those provisions, and with this Regulation with the exception of Article 34(4);
all other PEPP providers and PEPP distributors shall comply with the applicable national law giving effect to the rules on marketing and distribution of financial instruments set out in the first subparagraph of Article 16(3) and in Articles 23, 24 and 25 of Directive 2014/65/EU, with the exception of Article 24(2) and Article 25(2), (3) and (4) of that Directive, with any directly applicable Union law adopted under those provisions and with this Regulation.
Article 24
Electronic distribution and other durable mediums
PEPP providers and PEPP distributors shall provide all documents and information under this Chapter free of charge to PEPP customers electronically, provided that the PEPP customer is able to store such information in a way accessible for future reference and for a period of time adequate for the purposes of the information and that the tool allows the unchanged reproduction of the information stored.
Upon request, PEPP providers and PEPP distributors shall provide free of charge those documents and information also on another durable medium, including paper. PEPP providers and PEPP distributors shall inform PEPP customers about their right to request a copy of those documents on another durable medium, including paper, free of charge.
Article 25
Product oversight and governance requirements
The product approval process shall be proportionate and appropriate to the nature of the PEPP.
The product approval process shall specify an identified target market for each PEPP, ensure that all relevant risks to such identified target market are assessed and that the intended distribution strategy is consistent with the identified target market, and take reasonable steps to ensure that the PEPP is distributed to the identified target market.
The PEPP provider shall understand and regularly review the PEPPs it provides, taking into account any event that could materially affect the potential risk to the identified target market, to assess at least whether the PEPPs remain consistent with the needs of the identified target market and whether the intended distribution strategy remains appropriate.
PEPP providers shall make available to PEPP distributors all appropriate information on the PEPP and the product approval process, including the identified target market of the PEPP.
PEPP distributors shall have in place adequate arrangements to obtain the information referred to in the fifth subparagraph and to understand the characteristics and identified target market of each PEPP.
SECTION II
Pre-contractual information
Article 26
PEPP KID
A separate PEPP KID shall be drawn up for the Basic PEPP.
Where a PEPP provider offers to a PEPP saver a range of alternative investment options such that all information required in Article 28(3) regarding those underlying investment options cannot be provided within a single, concise, stand-alone PEPP KID, PEPP providers shall produce one of the following:
a stand-alone PEPP KID for each alternative investment option;
a generic PEPP KID providing at least a generic description of the alternative investment options and stating where and how more detailed pre-contractual information relating to the investments backing those investments options can be found.
In accordance with Article 24, the PEPP KID shall be drawn up as a short document written in a concise manner. It shall:
be presented and laid out in a way that is easy to read, using characters of readable size;
focus on the key information that PEPP customers need;
be clearly expressed and written in language and a style that facilitates the understanding of the information and, in particular, in language that is clear, succinct and comprehensible.
Article 27
Language of the PEPP KID
The translation shall faithfully and accurately reflect the content of the original PEPP KID.
Article 28
Content of the PEPP KID
The PEPP KID shall be presented in the sequence laid down in paragraphs 2 and 3.
An explanatory statement shall appear directly underneath the title. It shall read:
‘This document provides you with key information about this pan-European Personal Pension Product (PEPP). It is not marketing material. The information is required by law to help you understand the nature, risks, costs, potential gains and losses of this personal pension product and to help you compare it with other PEPPs.’.
The PEPP KID shall contain the following information:
at the beginning of the document: the name of the PEPP, whether it is a Basic PEPP or not, the identity and contact details of the PEPP provider, information about the competent authorities of the PEPP provider, the registration number of the PEPP in the central public register and the date of the document;
the statement: ‘The retirement product described in this document is a long-term product with limited redeemability which cannot be terminated at any time.’;
under a section titled ‘What is this product?’, the nature and main features of the PEPP, including:
its long-term objectives and the means for achieving them, in particular whether the objectives are achieved by means of direct or indirect exposure to the underlying investment assets, including a description of the underlying instruments or reference values, including a specification of the markets the PEPP provider invests in, as well as an explanation of how the return is determined;
a description of the type of PEPP saver to whom the PEPP is intended to be marketed, in particular in terms of the PEPP saver’s ability to bear investment loss and the investment horizon;
a statement as to
a description of the PEPP retirement benefits, in particular the possible forms of out-payments and the right to modify the form of out-payments as referred to in Article 59(1);
where the PEPP covers biometric risk: details of the risks covered and of the insurance benefits, including the circumstances in which those benefits may be claimed;
information on the portability service, including a reference to the central public register referred to in Article 13 where information for the conditions for the accumulation phase and the decumulation phase determined by Member States in accordance with Articles 47 and 57 is contained;
a statement on the consequences for the PEPP saver of early withdrawal from the PEPP, including all applicable fees, penalties, and possible loss of capital protection and of other possible advantages and incentives;
a statement on the consequences for the PEPP saver if the PEPP saver stops contributing to the PEPP;
information on the sub-accounts available and on the PEPP saver’s rights referred to in Article 20(5);
information about the PEPP saver’s right to switch and the right to receive information about the switching service as referred to in Article 56;
the conditions for modification of the chosen investment option referred to in Article 44;
information, where available, related to the performance of the PEPP provider’s investments in terms of ESG factors;
the law applicable to the PEPP contract where the parties do not have a free choice of law or, where the parties are free to choose the applicable law, the law that the PEPP provider proposes to choose;
where applicable, whether there is a cooling-off period or cancellation period for the PEPP saver;
under a section titled ‘What are the risks and what could I get in return?’, a short description of the risk-reward profile comprising the following elements:
a summary risk indicator, supplemented by a narrative explanation of that indicator, its main limitations and a narrative explanation of the risks which are materially relevant to the PEPP and which are not adequately captured by the summary risk indicator;
the possible maximum loss of invested capital, including, information on:
appropriate performance scenarios and the assumptions on which they are based;
where applicable, conditions for returns to PEPP savers or built-in performance caps;
a statement that the tax law of the PEPP saver’s Member State of residence may have an impact on the actual payout;
under a section titled ‘What happens if [the name of the PEPP provider] is unable to pay out?’, a short description of whether the related loss is covered by an investor compensation or guarantee scheme and if so, which scheme it is, the name of the guarantor and which risks are covered by the scheme and which are not;
under a section titled ‘What are the costs?’, the costs associated with an investment in the PEPP, comprising both direct and indirect costs to be borne by the PEPP saver, including one-off and recurring costs, presented by means of summary indicators of those costs and, to ensure comparability, total aggregate costs expressed in monetary and percentage terms, to show the compound effects of the total costs on the investment.
The PEPP KID shall include a clear indication that the PEPP provider or PEPP distributor shall provide information detailing any cost of distribution that is not already included in the costs specified above, so as to enable the PEPP saver to understand the cumulative effect that those aggregate costs have on the return of the investment;
under a section titled ‘What are the specific requirements for the sub-account corresponding to [my Member State of residence]?’:
under a sub-section titled ‘Requirements for the pay-in phase’:
a description of the conditions for the accumulation phase, as determined by the Member State of residence of the PEPP saver in accordance with Article 47;
under a sub-section titled: ‘Requirements for the pay-out phase’:
a description of the conditions for the decumulation phase, as determined by the Member State of residence of the PEPP saver in accordance with Article 57;
under a section titled ‘How can I complain?’: information about how and to whom a PEPP saver can make a complaint about the PEPP or the conduct of the PEPP provider or PEPP distributor.
In order to ensure consistent application of this Article, EIOPA shall, after consulting the other ESAs and after conducting consumer testing and industry testing, develop draft regulatory technical standards specifying:
the details of the presentation, including the form and length of the document, and the content of each of the elements of information referred to in paragraph 3;
the methodology underpinning the presentation of risk and reward as referred to in points (d)(i) and (iii) of paragraph 3;
the methodology for the calculation of costs, including the specification of summary indicators, as referred to in point (f) of paragraph 3;
where information is presented in an electronic format with layering of information, which information shall be in the first layer, and which information may be provided in the additional layers of detail.
When developing the draft regulatory technical standards, EIOPA shall take into account the various possible types of PEPPs, the long-term nature of the PEPP, the capabilities of PEPP savers, and the features of the PEPPs, in order to allow the PEPP saver to select from different investment options and other options provided for by the PEPP, including where that selection may be undertaken at different points in time, or changed in the future.
EIOPA shall submit those draft regulatory technical standards to the Commission by 15 August 2020.
Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1094/2010.
Article 29
Marketing materials
Marketing materials that contain specific information relating to the PEPP shall not include any statement that contradicts the information contained in the PEPP KID or diminishes the significance of the PEPP KID. Marketing materials shall indicate that a PEPP KID is available and supply information on how and where to obtain it, including the PEPP provider’s website.
Article 30
Revision of the PEPP KID
EIOPA shall submit those draft regulatory technical standards to the Commission by 15 August 2020.
Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1094/2010.
Article 31
Civil liabilities
Article 32
PEPP contracts which cover biometric risks
Where the PEPP KID concerns a PEPP contract covering biometric risks, the PEPP provider’s obligations under this section shall be only towards the PEPP saver.
Article 33
Provision of the PEPP KID
EIOPA shall submit those draft regulatory technical standards to the Commission by 15 August 2020.
Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1094/2010.
SECTION III
Advice
Article 34
Specification of demands and needs and provision of advice
Any PEPP contract proposed shall be consistent with the PEPP saver’s retirement-related demands and needs, taking into account his or her accrued retirement entitlements.
The PEPP provider or PEPP distributor shall also provide the prospective PEPP saver with personalised pension benefit projections for the recommended product based on the earliest date on which the decumulation phase may start and a disclaimer that those projections may differ from the final value of the PEPP benefits received. If the pension benefit projections are based on economic scenarios, that information shall also include a best estimate scenario and an unfavourable scenario, taking into consideration the specific nature of the PEPP contract.
SECTION IV
Information during the term of the contract
Article 35
General provisions
In addition to the PEPP Benefit Statement, the PEPP saver shall be informed promptly throughout the term of the contract of any change concerning the following information:
the contract terms including general and special policy conditions;
the name of the PEPP provider, its legal form or the address of its head office and, where appropriate, of the branch which concluded the contract;
information on how the investment policy takes into account ESG factors.
Article 36
PEPP Benefit Statement
The PEPP Benefit Statement shall include, at least, the following key information for PEPP savers:
personal details of the PEPP saver and the earliest date on which the decumulation phase may start for any sub-account;
the name and contact address of the PEPP provider and an identification of the PEPP contract;
the Member State in which the PEPP provider is authorised or registered and the names of the competent authorities;
information on pension benefit projections based on the date referred to in point (a), and a disclaimer that those projections may differ from the final value of the PEPP benefits received. If the pension benefit projections are based on economic scenarios, that information shall also include a best estimate scenario and an unfavourable scenario, taking into consideration the specific nature of the PEPP contract;
information on the contributions paid by the PEPP saver or any third party into the PEPP account over the previous 12 months;
a breakdown of all costs incurred, directly and indirectly, by the PEPP saver over the previous 12 months, indicating the costs of administration, the costs of safekeeping of assets, the costs related to portfolio transactions and other costs, as well as an estimation of the impact of the costs on the final PEPP benefits; such costs should be expressed both in monetary terms and as a percentage of contributions over the previous 12 months;
where applicable, the nature and the mechanism of the guarantee or risk mitigation techniques referred to in Article 46;
where applicable, the number and value of units corresponding to the PEPP saver’s contributions over the previous 12 months;
the total amount in the PEPP account of the PEPP saver on the date of the statement referred to in Article 35;
information on the past performance of the PEPP saver’s investment option covering performance of a minimum of 10 years or, in cases where the PEPP has been provided for less than 10 years, covering all the years for which the PEPP has been provided. Information on past performance shall be accompanied by the statement ‘past performance is not indicative of future performance’;
for PEPP accounts with more than one sub-account, information in the PEPP Benefit Statement shall be broken down for all existing sub-accounts;
summary information on the investment policy relating to ESG factors.
EIOPA shall submit those draft regulatory technical standards to the Commission by 15 August 2020. Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Article 10 to 14 of Regulation (EU) No 1094/2010.
Article 37
Supplementary information
The PEPP Benefit Statement shall specify where and how to obtain supplementary information including:
further practical information about the PEPP saver’s rights and options, including with regard to investments, the decumulation phase, the switching service and the portability service;
the annual accounts and annual reports of the PEPP provider that are publicly available;
a written statement of the PEPP provider’s investment-policy principles, containing at least information on the investment risk measurement methods, the risk-management processes implemented and the strategic asset allocation with respect to the nature and duration of PEPP liabilities, as well as how the investment policy takes ESG factors into account;
where applicable, information about the assumptions used for amounts expressed in annuities, in particular with respect to the annuity rate, the type of PEPP provider and the duration of the annuity;
the level of PEPP benefits, in the case of redemption before the date referred to in point (a) of Article 36(1).
EIOPA shall submit those draft regulatory technical standards to the Commission by 15 August 2020.
Power is conferred on the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1094/2010.
Article 38
Information to be given to PEPP savers during the pre-retirement phase and to PEPP beneficiaries during the decumulation phase
Where the PEPP saver continues to make contributions or to bear investment risk during the decumulation phase, the PEPP provider shall continue providing the PEPP Benefit Statement containing the relevant information.
Article 39
Information to be given on request to PEPP savers and PEPP beneficiaries
At the request of a PEPP saver or of a PEPP beneficiary or of their representatives, the PEPP provider shall provide the supplementary information referred to in Article 37(1) and supplementary information about the assumptions used to generate the projections referred to in point (d) of Article 36(1).
SECTION V
Reporting to national authorities
Article 40
General provisions
PEPP providers shall submit to their competent authorities the information which is necessary for the purposes of supervision in addition to the information provided under the relevant sectorial law. That additional information shall include, where applicable, the information necessary to carry out the following activities when performing a supervisory review process:
to assess the system of governance applied by the PEPP providers, the business they are pursuing, the valuation principles applied for solvency purposes, the risks faced and the risk-management systems, and their capital structure, needs and management;
to make any appropriate decisions resulting from the exercise of their supervisory rights and duties.
The competent authorities, in addition to the powers conferred to them according to national law, shall have the following powers:
to determine the nature, the scope and the format of the information referred to in paragraph 1 which they require PEPP providers to submit at predefined intervals, upon occurrence of predefined events or during enquiries regarding the situation of a PEPP provider;
to obtain from the PEPP providers any information regarding contracts which are held by PEPP providers or regarding contracts which are entered into with third parties; and
to require information from external experts, such as auditors and actuaries.
The information referred to in paragraphs 1 and 2 shall comprise the following:
qualitative or quantitative elements, or any appropriate combination thereof;
historic, current or prospective elements, or any appropriate combination thereof;
data from internal or external sources, or any appropriate combination thereof.
The information referred to in paragraphs 1 and 2 shall:
reflect the nature, scale and complexity of the business of the PEPP provider concerned, and in particular the risks inherent in that business;
be accessible, complete in all material respects, comparable and consistent over time;
be relevant, reliable and comprehensible.
PEPP providers shall submit to the competent authorities annually the following information:
for which Member States the PEPP provider offers sub-accounts;
number of notifications in accordance with Article 20(1) received from PEPP savers that have changed their residence to another Member State;
number of requests for opening a sub-account and number of sub-accounts opened in accordance with Article 20(2);
number of requests from PEPP savers for switching and actual transfers made in accordance with point (a) of Article 20(5);
number of requests from PEPP savers for switching and actual transfers made in accordance with Article 52(3).
The competent authorities shall forward the information to EIOPA.
EIOPA, after consulting the other ESAs and the competent authorities and after industry testing, shall develop draft implementing technical standards regarding the format of supervisory reporting.
EIOPA shall submit those draft implementing technical standards to the Commission by 15 August 2020.
Power is conferred on the Commission to adopt the implementing technical standards referred to in the second subparagraph in accordance with Article 15 of Regulation (EU) No 1094/2010.
CHAPTER V
ACCUMULATION PHASE
SECTION I
Investment rules for PEPP providers
Article 41
Investment rules
PEPP providers shall invest the assets corresponding to the PEPP in accordance with the ‘prudent person’ rule and in particular in accordance with the following rules:
the assets shall be invested in the best long-term interests of PEPP savers as a whole. In the case of a potential conflict of interest, a PEPP provider, or the entity which manages its portfolio, shall ensure that the investment is made in the sole interest of PEPP savers;
within the prudent person rule, PEPP providers shall take into account risks related to and the potential long-term impact of investment decisions on ESG factors;
the assets shall be invested in such a manner as to ensure the security, quality, liquidity and profitability of the portfolio as a whole;
the assets shall be predominantly invested on regulated markets. Investment in assets which are not admitted to trading on a regulated financial market shall be kept to prudent levels;
investment in derivative instruments shall be possible insofar as such instruments contribute to a reduction in investment risks or facilitate efficient portfolio management. Those instruments shall be valued on a prudent basis, taking into account the underlying asset, and included in the valuation of a PEPP provider’s assets. PEPP providers shall also avoid excessive risk exposure to a single counterparty and to other derivative operations;
the assets shall be properly diversified in such a way as to avoid excessive reliance on any particular asset, issuer or group of undertakings and accumulations of risk in the portfolio as a whole. Investments in assets issued by the same issuer or by issuers belonging to the same group shall not expose a PEPP provider to excessive risk concentration;
the assets shall not be invested in a non-cooperative jurisdiction for tax purposes identified in the applicable Council’s conclusions on the list of non-cooperative jurisdictions for tax purposes, nor in a high-risk third country with strategic deficiencies identified by the applicable Commission Delegated Regulation adopted on the basis of Article 9 of Directive (EU) 2015/849;
the PEPP provider shall not expose itself and the assets corresponding to the PEPP to risks stemming from excessive leverage and excessive maturity transformation.
SECTION II
Investment options for PEPP savers
Article 42
General provisions
Article 43
Choice of investment option by the PEPP saver
Having received the relevant information and advice, the PEPP saver shall choose an investment option when concluding the PEPP contract.
Article 44
Conditions for modification of the chosen investment option
Article 45
The Basic PEPP
When developing the draft regulatory technical standards, EIOPA shall take into account the various possible types of PEPPs, the long-term retirement nature of the PEPP and the various possible features of the PEPPs, in particular out-payments in the form of long-term annuities or annual drawdowns until at least the age corresponding with the average life expectancy of the PEPP saver. EIOPA shall also assess the peculiar nature of the capital protection with specific regard to the capital guarantee. EIOPA shall submit those draft regulatory technical standards to the Commission by 15 August 2020.
Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1094/2010.
The Commission is empowered to adopt delegated acts in accordance with Article 72 to amend the percentage value referred to in paragraph 2 of this Article in the light of its reviews with a view to allowing appropriate market access for PEPP providers.
Article 46
Risk-mitigation techniques
All risk-mitigation techniques, whether applied under the Basic PEPP or for the alternative investment options, shall be sound, robust and consistent with the risk profile of the corresponding investment option.
The applicable risk-mitigation techniques may include, inter alia, provisions:
for gradually adapting the investment allocation to mitigate the financial risks of investments for cohorts corresponding to the remaining duration (life-cycling);
establishing reserves from contributions or investment returns, which shall be allocated to PEPP savers in a fair and transparent manner, to mitigate investment losses; or
for using appropriate guarantees to protect against investment losses.
EIOPA shall submit those draft regulatory technical standards to the Commission by 15 August 2020.
Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1094/2010.
SECTION III
Other aspects of the accumulation phase
Article 47
Conditions related to the accumulation phase
CHAPTER VI
INVESTOR PROTECTION
Article 48
Depositary
Article 49
Coverage of biometric risks
Article 50
Complaints
Article 51
Out-of-court redress
CHAPTER VII
SWITCHING OF PEPP PROVIDERS
Article 52
Provision of the switching service
When using the switching service, the transferring PEPP provider shall transfer all information linked to all sub-accounts of the former PEPP account, including reporting requirements, to the receiving PEPP provider. The receiving PEPP provider shall register that information in the corresponding sub-accounts.
A PEPP saver may request to switch to a PEPP provider established in the same Member State (domestic switching) or in a different Member State (cross-border switching). The PEPP saver may exercise the right to switch providers during the accumulation phase and the decumulation phase of the PEPP.
The written consent of the receiving PEPP provider shall be required where the PEPP saver requests a transfer of assets-in-kind.
Article 53
The switching service
The request from the PEPP saver shall be drawn up in an official language of the Member State where the switching service is being initiated or in any other language agreed between the parties. In the request, the PEPP saver shall:
give his or her specific consent to the performance by the transferring PEPP provider of each of the tasks referred to in paragraph 4 and shall give his or her specific consent to the performance by the receiving PEPP provider of each of the tasks referred to in paragraph 5;
in agreement with the receiving PEPP provider, specify the date from which payments are to be executed to the PEPP account opened with the receiving PEPP provider.
That date shall be at least two weeks after the date on which the receiving PEPP provider receives the documents transferred from the transferring PEPP provider pursuant to paragraph 4.
Member States may require the request from the PEPP saver to be in writing and that a copy of the accepted request is provided to the PEPP saver.
Upon receipt of a request from the receiving PEPP provider, the transferring PEPP provider shall:
within five working days, send the PEPP Benefit Statement for the period from the date of the last drawn up PEPP Benefit Statement to the date of the request to the PEPP saver and to the receiving PEPP provider;
within five working days, send a list of the existing assets that are being transferred in the case of transfer of assets-in-kind as referred to in Article 52(4) to the receiving PEPP provider;
stop accepting incoming payments on the PEPP account with effect from the date specified by the PEPP saver in the request referred to in point (b) of paragraph 2;
transfer the corresponding amounts, or where applicable, assets-in-kind in accordance with Article 52(4), from the PEPP account to the new PEPP account opened with the receiving PEPP provider on the date specified by the PEPP saver in the request;
close the PEPP account on the date specified by the PEPP saver if the PEPP saver has no outstanding obligations. The transferring PEPP provider shall immediately inform the PEPP saver where such outstanding obligations prevent the PEPP saver’s account from being closed.
Article 54
Fees and charges connected with the switching service
Member States may set a lower percentage of the fees and charges as referred to in the first subparagraph and a different percentage when the PEPP provider allows PEPP savers to switch PEPP provider more frequently as referred to in Article 52(3).
The transferring PEPP provider shall not charge any additional fees or charges to the receiving PEPP provider.
Article 55
Protection of PEPP savers against financial loss
Article 56
Information about the switching service
PEPP providers shall give to PEPP savers the following information about the switching service in order to enable the PEPP saver to make an informed decision:
the roles of the transferring and receiving PEPP provider for each step of the switching process, as set out in Article 53;
the time-frame for completion of the respective steps;
the fees and charges charged for the switching process;
the possible implications of the switching, in particular on the capital protection or guarantee, and other information related to the switching service;
information about the possibility for a transfer of assets-in-kind, if applicable.
The receiving PEPP provider shall comply with the requirements of Chapter IV.
The receiving PEPP provider shall, where applicable, inform the PEPP saver of the existence of any guarantee scheme, including a deposit guarantee scheme, investor-compensation scheme or insurance guarantee scheme, which covers that PEPP saver.
CHAPTER VIII
DECUMULATION PHASE
Article 57
Conditions related to the decumulation phase
Article 58
Forms of out-payments
PEPP providers shall make available to PEPP savers one or more of the following forms of out-payments:
annuities;
lump sum;
drawdown payments;
combinations of the above forms.
Article 59
Modifications of the forms of out-payments
If the PEPP provider provides different forms of out-payments, the PEPP saver shall be allowed to modify the form of out-payments of each opened sub-account:
one year before the start of the decumulation phase;
at the start of the decumulation phase;
at the moment of switching.
The modification of the form of out-payment shall be free of charge for the PEPP saver.
Article 60
Retirement planning and advice on out-payments
For the Basic PEPP, at the start of the decumulation phase, the PEPP provider shall offer the PEPP saver personal retirement planning on the sustainable use of the capital accumulated in the PEPP sub-accounts, taking into account at least:
the value of the capital accumulated in the PEPP sub-accounts;
the total amount of other accrued retirement entitlements; and
the long-term retirement-related demands and needs of the PEPP saver.
CHAPTER IX
SUPERVISION
Article 61
Supervision by the competent authorities and monitoring by EIOPA
Article 62
Powers of competent authorities
Each Member State shall ensure that the competent authorities have all supervisory and investigatory powers that are necessary for the exercise of their functions pursuant to this Regulation.
Article 63
Product intervention powers of competent authorities
Competent authorities may prohibit or restrict in or from its Member State the marketing or distribution of a PEPP under the following conditions:
the competent authorities are satisfied that there are reasonable grounds to believe that the PEPP gives rise to significant or reiterated saver’s protection concerns or poses a risk to the orderly functioning and integrity of financial markets or the stability of whole or part of the financial system within at least one Member State;
the action is proportionate taking into account the nature of the risks identified, the level of sophistication of PEPP savers concerned and the likely effect of the action on PEPP savers who have concluded a PEPP contract;
the competent authorities have properly consulted competent authorities in other Member States that may be significantly affected by the action; and
the action does not have a discriminatory effect on services or activities provided from another Member State.
Where the conditions set out in the first subparagraph are fulfilled, competent authorities may impose the prohibition or restriction on a precautionary basis before a PEPP has been marketed or distributed to PEPP savers. A prohibition or restriction may apply in circumstances, or be subject to exceptions, specified by the competent authorities.
The competent authorities shall not impose a prohibition or restriction under this Article unless, not less than one month before the measure is intended to take effect, they have notified all other competent authorities involved and EIOPA in writing or through another medium agreed between the authorities of the details of:
the PEPP to which the proposed action relates;
the precise nature of the proposed prohibition or restriction and when it is intended to take effect; and
the evidence upon which they have based their decision and upon which they have reasonable grounds to believe that each of the conditions in paragraph 1 are met.
Article 64
Facilitation and coordination
Article 65
Product intervention powers of EIOPA
A prohibition or restriction may apply in circumstances, or be subject to exceptions, to be specified by EIOPA.
EIOPA shall take a decision under paragraph 2 of this Article after consulting the other ESAs, where appropriate, and only if all of the following conditions are fulfilled:
the proposed action addresses a significant PEPP saver protection concern, including with respect to the long-term retirement nature of the product, or a threat to the orderly functioning and integrity of financial markets or to the stability of the whole or part of the financial system in the Union;
regulatory requirements under Union law that are applicable to PEPPs do not address the threat;
a competent authority or competent authorities have not taken action to address the threat or the actions that have been taken do not adequately address the threat.
Where the conditions set out in the first subparagraph are fulfilled, EIOPA may impose the prohibition or restriction referred to in paragraph 2 on a precautionary basis before a PEPP has been marketed, distributed or sold to PEPP customers.
When taking action under this Article, EIOPA shall ensure that the action does not:
have a detrimental effect on the efficiency of financial markets or on PEPP savers that is disproportionate to the benefits of the action; or
create a risk of regulatory arbitrage.
Where a competent authority or competent authorities have taken a measure under Article 63, EIOPA may take any of the measures referred to in paragraph 2 of this Article without issuing the opinion provided for in Article 64.
Those criteria and factors shall include:
the degree of complexity of the PEPP and the relation to the type of PEPP saver to whom it is marketed and sold;
the degree of innovation of a PEPP, an activity or a practice;
the leverage a PEPP or practice provides;
in relation to the orderly functioning and integrity of financial markets, the size or the total amount of accumulated capital of the PEPP.
Article 66
Cooperation and consistency
EIOPA shall submit those draft implementing technical standards to the Commission by 15 August 2020.
Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) No 1094/2010.
CHAPTER X
PENALTIES
Article 67
Administrative penalties and other measures
Member States may decide not to lay down rules for administrative penalties as referred to in the first subparagraph for infringements which are subject to criminal sanctions under their national law.
By the date of application of this Regulation, Member States shall notify the rules referred to in the first and second subparagraph to the Commission and to EIOPA. They shall notify the Commission and EIOPA without delay of any subsequent amendment thereto.
The administrative penalties and other measures laid down in paragraph 3 of this Article shall apply at least to situations where:
a financial undertaking as referred to in Article 6(1) has obtained a registration of a PEPP through false or misleading statements or any other irregular means in infringement of Articles 6 and 7;
a financial undertaking as referred to in Article 6(1) provides, respectively distributes, products bearing the designation ‘pan-European Personal Pension Product’ or ‘PEPP’ without the required registration;
a PEPP provider has not provided the portability service in infringement of Article 18 or 19 or the information about that service required under Articles 20 and 21, or has failed to meet the requirements and obligations set out in Chapter IV, Chapter V, Articles 48 and 50, and Chapter VII;
a depositary has failed to fulfil its oversight duties under Article 48.
Member States shall, in accordance with national law, provide for competent authorities to have the power to impose at least the following administrative penalties and other measures in relation to the situations referred to in paragraph 2 of this Article:
a public statement, which indicates the identity of the natural or legal person and the nature of the infringement in accordance with Article 69;
an order requiring the natural or legal person to cease the conduct and to desist from a repetition of that conduct;
a temporary ban on any member of the financial undertaking’s management, supervisory or administrative body or any other natural person, who is held responsible, from exercising management functions in such undertakings;
in case of a legal person, maximum administrative fines of at least EUR 5 000 000 , or in the Member States whose currency is not the euro, the corresponding value in the national currency on 14 August 2019;
in the case of a legal person, the maximum administrative fines referred to in point (d) may be up to 10 % of the total annual turnover according to the latest available accounts approved by the management, supervisory or administrative body; where the legal person is a parent undertaking or a subsidiary of the parent undertaking which has to prepare consolidated financial accounts in accordance with Directive 2013/34/EU of the European Parliament and of the Council ( 7 ), the relevant total annual turnover shall be the total annual turnover or the corresponding type of income in accordance with the relevant accounting legislative acts according to the latest available consolidated accounts approved by the management, supervisory or administrative body of the ultimate parent undertaking;
in the case of a natural person, maximum administrative fines of at least EUR 700 000 or, in the Member States whose currency is not the euro, the corresponding value in the national currency on 14 August 2019;
maximum administrative fines of at least twice the amount of the benefit derived from the infringement where that benefit can be determined, even if that exceeds the maximum amounts in point (d), (e) or (f), respectively.
Article 68
Exercise of the power to impose administrative penalties and other measures
Competent authorities shall exercise the powers to impose administrative penalties and other measures referred to in Article 67 in accordance with their national legal frameworks:
directly;
in collaboration with other authorities;
by application to the competent judicial authorities.
Competent authorities, when determining the type and level of an administrative penalty or other measure imposed under Article 67(3), shall take into account all relevant circumstances, including, where appropriate:
the materiality, gravity and the duration of the infringement;
the degree of responsibility of the natural or legal person responsible for the infringement;
the financial strength of the responsible natural or legal person, as indicated in particular by the total turnover of the responsible legal person or the annual income and net assets of the responsible natural person;
the importance of profits gained or losses avoided by the responsible natural or legal person, insofar as they can be determined;
the losses for third parties caused by the infringement, insofar as they can be determined;
the level of cooperation of the responsible natural or legal person with the competent authorities, without prejudice to the need to ensure disgorgement of profits gained or losses avoided by that person;
previous infringements by the responsible natural or legal person.
Article 69
Publication of administrative penalties and other measures
Where the publication of the identity, in the case of legal persons, or the identity and personal data, in the case of natural persons, is considered by the competent authorities to be disproportionate following a case-by-case assessment, or where the competent authorities consider that the publication jeopardises the stability of financial markets or an on-going investigation, competent authorities shall either:
defer the publication of the decision imposing the administrative penalty or other measure until the reasons for non-publication cease to exist;
publish the decision imposing the administrative penalty or other measure, omitting for a reasonable period of time the identity and personal data of the addressee, if it is envisaged that within that period the reasons for anonymous publication shall cease to exist and provided that such anonymous publication ensures an effective protection of the personal data concerned; or
not publish at all the decision to impose the administrative penalty or other measure in the event that the options set out in points (a) and (b) are considered to be insufficient to ensure:
that the stability of financial markets would not be put in jeopardy;
the proportionality of the publication of such decisions with regard to measures which are deemed to be of a minor nature.
Article 70
Duty to submit information to EIOPA in relation to administrative penalties and other measures
EIOPA shall publish that information in an annual report.
Article 70a
Accessibility of information on the European single access point
That information shall comply with the following requirements:
be submitted in a data extractable format as defined in Article 2, point (3), of Regulation (EU) 2023/2859 or, where required by Union law, in a machine-readable format, as defined in Article 2, point (4), of that Regulation;
be accompanied by the following metadata:
all the names of the PEPP provider to which the information relates;
the legal entity identifier of the PEPP provider, as specified pursuant to Article 7(4), point (b), of Regulation (EU) 2023/2859;
the size of the PEPP provider by category, as specified pursuant to Article 7(4), point (d), of that Regulation;
the type of information, as classified pursuant to Article 7(4), point (c), of that Regulation;
an indication of whether the information contains personal data.
That information shall comply with the following requirements:
be submitted in a data extractable format as defined in Article 2, point (3), of Regulation (EU) 2023/2859;
be accompanied by the following metadata:
all the names of the PEPP provider to which the information relates;
where available, the legal entity identifier of the PEPP provider, as specified pursuant to Article 7(4), point (b), of Regulation (EU) 2023/2859;
the type of information, as classified pursuant to Article 7(4), point (c), of that Regulation;
an indication of whether the information contains personal data.
That information shall comply with the following requirements:
be submitted in a data extractable format, as defined in Article 2, point (3), of Regulation (EU) 2023/2859;
be accompanied by the following metadata:
all the names of the PEPP provider to which the information relates;
where available, the legal entity identifier of the PEPP provider, as specified pursuant to Article 7(4), point (b), of Regulation (EU) 2023/2859;
the type of information, as classified pursuant to Article 7(4), point (c), of that Regulation;
an indication of whether the information contains personal data.
For the purpose of ensuring the efficient collection and management of information submitted in accordance with paragraph 1, EIOPA shall develop draft implementing technical standards to specify:
any other metadata to accompany the information;
the structuring of data in the information;
for which information a machine-readable format is required and, in such cases, which machine-readable format is to be used.
For the purposes of point (c), EIOPA shall assess the advantages and disadvantages of different machine-readable formats and conduct appropriate field tests for that purpose.
EIOPA shall submit those draft implementing technical standards to the Commission.
Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph of this paragraph in accordance with Article 15 of Regulation (EU) No 1094/2010.
CHAPTER XI
FINAL PROVISIONS
Article 71
Processing of personal data
With regard to the processing of personal data within the framework of this Regulation, PEPP providers, PEPP distributors and competent authorities shall carry out their tasks for the purpose of this Regulation in accordance with Regulation (EU) 2016/679 and Directive 2002/58/EC. With regard to the processing of personal data by EIOPA within the framework of this Regulation, EIOPA shall comply with Regulation (EU) 2018/1725.
Article 72
Exercise of the delegation
Article 73
Evaluation and report
The Report shall cover in particular the following:
the functioning of the procedure for registration of PEPPs in accordance with Chapter II;
portability, in particular the sub-accounts available to PEPP savers and the possibility for the saver to continue to contribute to the last opened sub-account in accordance with Article 20(3) and (4);
development of partnerships;
the functioning of the switching service and the level of the fees and charges;
the level of market penetration of the PEPP and the effect of this Regulation on pension provision across Europe, including substitution of existing products and the uptake of the Basic PEPP;
the complaints procedure;
the integration of ESG factors in the PEPP investment policy;
the level of fees, charges and expenses that are directly or indirectly borne by PEPP savers, including an assessment of possible market failures;
the compliance of PEPP providers with this Regulation and the standards set by the applicable sectorial law;
the application of different risk-mitigation techniques used by the PEPP providers;
the provision of PEPP under the freedom to provide services and freedom of establishment;
if there are merits to disclosing information on the past performance of the product to prospective PEPP savers, taking into account the information for the performance scenarios which will be included in the PEPP;
whether advice provided to PEPP savers is adequate, in particular regarding possible forms of out-payments.
The assessment referred to in point (e) of the first subparagraph shall take into account reasons for not opening sub-accounts in certain Member States and assess the progress and effort made by PEPP providers in developing technical solutions for opening sub-accounts.
The secretariat of the panel shall be EIOPA.
Article 74
Entry into force and application
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
This Regulation shall apply 12 months after the publication in the Official Journal of the European Union of the delegated acts referred to in Articles 28(5), 30(2), 33(3), 36(2), 37(2), 45(3) and 46(3).
This Regulation shall be binding in its entirety and directly applicable in all Member States.
( 1 ) Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance distribution (OJ L 26, 2.2.2016, p. 19).
( 2 ) Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349).
( 3 ) Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338).
( 4 ) Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (OJ L 335, 17.12.2009, p. 1).
( 5 ) Directive 2013/11/EU of the European Parliament and of the Council of 21 May 2013 on alternative dispute resolution for consumer disputes and amending Regulation (EC) No 2006/2004 and Directive 2009/22/EC (OJ L 165, 18.6.2013, p. 63).
( 6 ) Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1).
( 7 ) Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19).
( 8 ) Regulation (EU) 2023/2859 of the European Parliament and of the Council of 13 December 2023 establishing a European single access point providing centralised access to publicly available information of relevance to financial services, capital markets and sustainability (OJ L, 2023/2859, 20.12.2023, ELI: http://data.europa.eu/eli/reg/2023/2859/oj).
