Ann Devos
Member, CEIOPS OPC
Warsaw, 18 Sept. 2006
”Cross-border pension
issues in the EU”
Topics
• CEIOPS
• Work of the OPC
– Budapest Protocol
– Cross-border issues
• Closing remarks
Warsaw, 18 September 2006
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I.
Committee of European Insurance
and Occupational Pensions
Supervisors
(CEIOPS)
Lamfalussy Approach
Level 1:
Framework Principles
Commission,
Council, Parliament
Level 2:
Decision Making
Commission,
EIOPC
Level 3:
Implementation
CEIOPS,
CEBS, CESR
Level 4:
Enforcement
Warsaw, 18 September 2006
Commission,
Member States
4
Tasks
• L2 activities: advise the Commission on
implementation measures and regulations
• L3 activities:
– establish supervisory standards
– forum for supervisory cooperation
  enhance effective application of regulations
 facilitate cooperation between supervisors
 convergence of supervisory practices
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European Institutions
(Parliament, Council, Commission)
Members’ Meeting
Consultative
Panel
Managing Board
CEIOPS Secretariat
WORKING GROUPS
Insurance Groups Supervision
Financial Stability
Occupational Pensions
Insurance Intermediaries
Solvency II- Pillar I
Solvency II- Pillar II
Solvency II- Pillar III/Accounting
Solvency II- Groups/Cross-sector
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II.
Work of the Occupational
Pensions Committee
(OPC)
Occupational Pensions
Committee
•
•
•
•
•
•
permanent Committee
secretariat in Budapest (HFSA)
24 members + 1 observer
5 meetings a year
attendance of the Commission and Secretariat
feedback to the Members’ Meeting
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Working Plan
• to support the smooth implementation of the IORP
Directive
– developing common understanding
– developing protocols for supervisory cooperation
– coordination and exchange of information on
cross-border membership
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Working Plan (2)
• to monitor the application of the Directive
– calculation of technical provisions
– application of investment rules
– optional application of the Directive
• to analyse the regulatory situation of pension
savings institutions
• to serve as a basis for supervisory convergence
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BUDAPEST Protocol
a framework for the cooperation of supervisors
in the area of cross-border activity
Development
• first draft  Sept. 2004
• first public consultation  28 Feb. 2005
– comments from 4 organisations
– discussed in OPC
• second public consultation  28 Oct. 2005
• approval CEIOPS Members’ Meeting  Feb. 2006
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Supervisory Framework
general picture
Home
Host
pension scheme
IORP
Host name
Sponsor name
Main char.
Sponsor
employees
Prudential
supervision
Auth.
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Social
supervision
S&L law
Info req.
Inv. rules
Auth.
13
”Open Doors” Approach
Home
Host
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
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Content of the Protocol
• general considerations
• authorised IORPs and the notification process
• ongoing supervision and exchange of information
after the notification process
• appendices
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General Considerations
• CEIOPS members, non-CEIOPS competent
authorities of EEA States
• commitment to cooperate in all cases required
under the Directive
• aim to harmonise documents
• additional cooperation where needed
• language used for cooperation
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Notification Procedure
• only authorised IORPs can start operating crossborder
• such authorisation has to be granted only once
– not for each cross-border activity
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Ongoing Supervision
• dialogue between the authorities
– changes in provided information about the laws,
the pension schemes and the IORPs
– sharing information about interventions
• procedures in case of non-compliance
• ring-fencing of the assets and liabilities
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step by step …
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Ex. : Belgium - Poland
pension scheme
Belgian IORP
Polish undertaking
notification
główne cechy systemu
emerytalnego
Belgian supervisor
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Polish supervisor
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Ex. : Belgium - Poland
pension scheme
Belgian IORP
Polish undertaking
prawo socjalne i prawo pracy
wymogi informacyjne
ograniczenia inwestycyjne
Belgian supervisor
Warsaw, 18 September 2006
Polish supervisor
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Ex. : Belgium - Poland
pension scheme
Belgian IORP
Polish undertaking
prudential supervision
social supervision
info on
compliance, interventions, …
Belgian supervisor
Warsaw, 18 September 2006
Polish supervisor
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Ex. : Poland - Belgium
pension scheme
Polish IORP
Belgian undertaking
notification
voornaamste kenmerken
pensioenregeling
Polish supervisor
Warsaw, 18 September 2006
Belgian supervisor
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Ex. : Poland - Belgium
pension scheme
Polish IORP
Belgian undertaking
sociale en arbeidswetgeving
informatievereisten
beleggingsregels
Polish supervisor
Warsaw, 18 September 2006
Belgian supervisor
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Ex. : Poland - Belgium
pension scheme
Polish IORP
Belgian undertaking
prudential supervision
social supervision
info on
compliance, interventions, …
Polish supervisor
Warsaw, 18 September 2006
Belgian supervisor
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Cross-border Issues
Trust, convergence, common understanding,
exchange of information and experience.
Trust in Each Other
• host authority relies on home’s judgement about
the authorisation and notification
• host authority relies on home’s control, except
– relevant S&L law
– information requirements
• host authority relies on home’s measures, except
– lack of measures, or
– measures, taken against the breach of relevant
S&L law, not effective
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Supervisory Convergence
• different levels of convergence
– in the field of occupational pensions
– with other financial services
• in the field of occupational pensions
– to avoid supervisory arbitrage
– prudent person rule: exchange of experience
– exchange of information on supervisory
framework and content
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Common Understanding
• fully funding
• ring-fencing
• subordinated loans
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Exchange of Information
•
•
•
•
•
•
•
investment rules
custody and depositary
reporting and information requirements
insolvency and insurance systems
cross-border membership
optional application of the Directive
private schemes and the EU legislation
– not covered ”pillars”, institutions and activities
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Exchange of Experience
•
•
•
•
authorisation and notification procedures
supervisory actions/sanctions
supervisory approaches
case studies
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III.
Closing Remarks
Expectations
• the OPC should not be expected to
– overtake responsibilities from member states
– determine the relevant S&L law
– find a solution for regulatory problems
– reach a uniform application of the whole
Directive
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Closing Remarks
• implementation of the Directive
– 20 countries OK, 2 partial notification, 3 no
notification
– quality matters rather than time
– long process: primary and secondary legislation
• pan-European pension funds
• not classical pan-European solutions
– asset pooling
– central services
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Closing Remarks
• pensions coordination
– no competent body on S&L law
– competent authorities having no supervisory
responsibility
– several aspects of pension services
• supervisory cooperation
– CEIOPS-CEBS-CESR
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Thank you for your attention !
Dziękuję za uwagę !
Dank u voor uw aandacht !
more info on www.ceiops.org