EXPLANATORY MEMORANDUM
1.CONTEXT OF THE DELEGATED ACT
1.1.General background
Regulation (EU) 2019/1238 of the European Parliament and of the Council of 20 June 2019 on a pan-European Personal Pension Product (PEPP) introduces an EU-wide complementary personal pension savings framework.
Europe’s population is ageing. In 2060, for every retired person there will be on average only two people of working age, compared to four today. As a result, despite the important reforms carried out by many EU Member States, the sustainability and adequacy of pension systems in the Member States will be under increasing strain. In particular state-run pension systems are already under pressure.
More savings are necessary to complement retirement incomes from traditional state-run pension systems by supplementary pensions. To this end, the PEPP Regulation is an important milestone on the road to addressing the pension gap and achieving a pan-European market for personal pension products within the Capital Markets Union.
It provides consumers with an additional option to save for retirement. The PEPP Regulation lays down the foundations for a pan-European personal pension market, by providing standardised rules for the core product features, such as transparency requirements, advice, investment rules, switching right, type of investment options, and type of out-payments.
1.2.Objectives
In accordance with the PEPP Regulation, this delegated Regulation aims to achieve the following objective:
1. to supplement the PEPP Regulation by specifying the additional information referred to in Article 40, with a view to ensuring to the appropriate extent convergence of supervisory reporting.
1.3.Legal background
This act supplements Regulation (EU) No 2019/1238 of the European Parliament and of the Council of 20 June 2019 on a pan-European Personal Pension Product (PEPP) following the legal basis for empowerment provided to the Commission in Article 40(9) thereof. The choice of one legal instrument reflects the substantial links between the legal bases.
2.CONSULTATIONS PRIOR TO THE ADOPTION OF THE ACT
This Act is based on technical advice provided by EIOPA, in accordance with Article 10(1) of Regulation (EU) No 1094/2010. Before submitting the technical advice to the Commission, EIOPA conducted an open public consultation from 2 December 2019 to 2 March 2020. Before the public consultation and EIOPA received joint opinions by its two stakeholder groups, Insurance and Reinsurance Stakeholder Group (IRSG) and Occupational Pension Stakeholder Group (OPSG). Further, EIOPA set up a consultative group of Expert Practitioners for the PEPP to discuss practical aspects of the developed ideas as well as exchanged views with the OECD and outstanding pension academics. On 24 February 2020, EIOPA organised a public hearing in which it sought stakeholder input. EIOPA also performed a cost-benefit analysis, which was included in the final report together with the outcome of the public consultation and EIOPA’s responses to stakeholders. EIOPA sent the final report with technical advice to the Commission on 14 August 2020.
3.LEGAL ELEMENTS OF THE DELEGATED ACT
This Delegated Regulation aims to specify supplementary elements the PEPP regime that do not imply strategic decisions or policy choices. They complement the policy framework laid down in Regulation (EU) 2019/1238 with more details and clarifications for those elements covered by the empowerment.
Article 1 specifies the additional information for the convergence of supervisory reporting that competent authorities must gather.
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