PensionsEurope has responded to a European Commission’s consultation on the review of the European Market Infrastructure Regulation (EMIR). Here you can read our paper which explains that pension funds need a stable financial system. PensionsEurope sees the benefits of EMIR, however it is crucial that pension funds get an appropriate treatment. A robust solution needs to be found for the cash variation margin (VM) issue. Otherwise, applying EMIR towards pension funds will not increase the stability of the financial system, but will affect long term investments by PSAs and hence will increase the costs of pensions.
PensionsEurope calls on the Commission to maintain the exemption for pension funds from the central clearing obligation in place until a suitable clearing solution has been found. The market has not yet developed a practicable and efficient process for central clearing of pension scheme’s OTC derivative transactions. In addition to this, the existing exemption has not delivered a relief from mandatory clearing for three to six years as originally envisaged, as the clearing obligation is still not effective.
PensionsEurope is currently looking to reinforce its Brussels team with an economic adviser in a full-time permanent position.
For more information, take a look at our vacancies section or contact the pensionseurope secretariat.
Workplace pension funds play an important social role in the European economy: they contribute to ensure that European citizens have an adequate retirement income.
Pension funds are important investors in the European economy. Pension fund capital contributes – and could even more than today – to growth and jobs. Here you can read our paper which explains what should be done to increase the flow of capital to European projects and companies. You can also find our press release here
PensionsEurope welcomes the opportunity to reply to the “consultation on the Assessment Methodologies for Identifying Non-Bank Non-Insurer Global Systemically Important Financial Institutions - Proposed High-Level Framework and Specific Methodologies”, published on 4 March 2015 by the Financial Stability Board (“FSB”) and the International Organization of Securities Commissions (“IOSCO”).
Increasing long term investments in the real European economy is the core policy of the CMU initiative, and this means it is vital that the CMU works for pension funds. Many pension funds currently encounter barriers in the form of a mismatch between their own long-term investment horizons and the short-term focus of much of the regulatory framework. Furthermore, political and regulatory risks are a key source of uncertainty for investors and can undermine pension funds’ willingness to invest.
PensionsEurope’s position and response to the consultation explore these and other issues. Such as why and for whom pension funds invest. Under the right conditions, pension fund capital can contribute to the future growth of the EU real economy. However, this will only happen if EU policies take into account the characteristics of pension funds.
The current low-interest rate environment and the Quantitative Easing (QE) policy of the ECB put severe pressure on both Defined Benefit (DB) and Defined Contributions (DC) pensions funds. While PensionsEurope does not question the ECB monetary policy as such, we warn against the damaging impact of QE on pension funds and European pensioners. We therefore call the national and European regulators to consider this issue. PensionsEurope also provides some recommendations in order to find an adequate balance between the short/medium term challenging environment and the sustainability of pension promises.
You can find the paper here
In January 2015 EIOPA published the consultation paper report on Good Practices on individual transfers of supplementary occupational pension rights, which relates back to the Call for Advice (CfA) on portability EIOPA received from DG Employment and Social Affairs. PensionsEurope provided input to EIOPA, which can be found here
PensionsEurope today reaffirmed its opposition to EIOPA’s Holistic Balance Sheet (HBS) project and called on EIOPA to divert its energies to tackling more pressing pension challenges. PensionsEurope’s statement came in a position paper summarising its response to EIOPA’s 111-question consultation paper on the Holistic Balance Sheet. The consultation was published on 13 October 2014 at EIOPA’s own initiative.
Although PensionsEurope recognises that EIOPA has addressed some of the issues raised during previous rounds of consultations, the HBS still contains many shortcomings and is not suitable as a regulatory instrument at EU level. PensionsEurope warns that the HBS would place unacceptable burdens on IORPs and their sponsoring undertakings and would have detrimental effects for millions of EU citizens.
You can find the press release here.
PensionsEurope endorses Fleming Europe's 2nd Annual Pension Funds in CEE on 18 - 19 March 2015 in Prague Republic. You can find the programme here.
On 13 January 2015, PensionsEurope submitted its response to the EIOPA Consultation Paper on solvency for IORPs.
The response is available here.