At the request of the European Commission, the European Insurance and Occupational Pensions Authority (EIOPA) has issued a Report on the prudential regulations and consumer protection measures needed to create a single market for personal pensions.
EIOPA’s analysis has revealed that taxation, social law and difficulties in the area of harmonisation of contract law appear to be the most significant hurdles.
EIOPA has identified two main options for creating the single market for personal pensions.
Option one is to introduce common EU rules for all existing and future personal pensions by way of a Directive, providing for enhanced consumer protection requirements to cover the whole spectrum of existing products.
Option two is to introduce a European Regulation that accommodates the tax and other differences among the regimes of Member States. It should enable transferability of accumulated capital and highly standardised product rules.
Gabriel Bernardino, EIOPA’s Chair, said: “Pensions should also be dealt with from a European perspective. The advantages for consumers, providers, and for the broader EU economy are obvious. EIOPA is committed to strongly promote this single market for pensions. Our Report should lay the foundation for future EU initiatives aimed at fostering sustainable, adequate and safe pensions for EU citizens.”