PensionsEurope response to EIOPA consultation on solvency for IORPs

On 13 January 2015, PensionsEurope submitted its response to the EIOPA Consultation Paper on solvency for IORPs.

The response is available here.

PensionsEurope publishes its statistical survey 2014

Today, PensionsEurope published its Statistical Survey 2014. The survey is based on data provided by PensionsEurope’s members and covers different figures for the year 2012 and best estimates for 2013.

The survey and the accompanying explanatory note are available here

PensionsEurope welcomes Council agreement on IORP II

Today, the Permanent Representatives Committee agreed, on behalf of the Council, its negotiating stance on a draft IORP II directive. This agreement enables negotiations with the European Parliament.

PensionsEurope welcomes the Council negotiating stance agreed today and is looking forward to engage and discuss with the European Parliament.

PensionsEurope will continue working closely on this topic with the aim to support institutions for occupational pensions provisions (IORPs) in providing adequate, safe and sustainable pensions for the people of Europe.

You can find the press release here.

EIOPA publishes Consultation Paper on Further Work on Solvency of IORPs

On 13 October 2014, EIOPA published a consultation paper on further technical work on the holistic balance sheet to gather input from stakeholders. The paper constitutes a further step in EIOPA’s work on a risk-based framework for occupational pension funds.

The consultation paper proposes improved definitions and methodologies to value the holistic balance sheet, covering areas such as the valuation of sponsor support, the benefit reduction mechanisms and discretionary decision-making processes and the definition of contract boundaries. The paper consults on different possible uses of the holistic balance sheet within a supervisory framework, ranging from an instrument to establish funding requirements to a risk management and transparency tool to assess the long-term sustainability of IORPs.

The further work on the holistic balance sheet has to be tested through a quantitative assessment. EIOPA expects to publish draft technical specifications for such an assessment by early 2015.

The consultation will end on January 13, 2015

More information can be found here

PensionsEurope published position paper on IORP II

On 6 October 2014, PensionsEurope published a detailed position paper on the proposal for an IORP 2 Directive. PensionsEurope welcomes the Commission’s commitment to high standards of pension scheme governance and communications but is convinced that important features of the occupational pension sector need to be adequately taken into account in the Directive proposal.

The paper provides a detailed analysis and amendment proposals. 

The position paper is available here.

PensionsEurope publishes position paper on Shareholder Rights Directive

PensionsEurope has today published the position paper on the revised Shareholder Rights Directive. PensionsEurope welcomes the intention of the Commission to encourage and facilitate long-term shareholder engagement with investee companies. An engaged shareholder base alongside high standards of governance, transparency and protection of minority shareholder rights should enhance the attractiveness of the EU market for both investors and issuers. However, PensionsEurope is concerned that some of the proposals might be too prescriptive for schemes.

You can read the position paper here

PensionsEurope response to consultation on risk-mitigation of non-cleared OTC Derivatives

PensionsEurope has submitted a response to the Consultation Paper on Draft regulatory technical standards on risk-mitigation techniques for OTC-derivative contracts not cleared by a CCP under EMIR. In its response to this consultation of the European Supervisory Authority, PensionsEurope has expressed its concerns on the impact that the proposed measures would have on IORPs when trading derivatives. It is PensionsEurope’s view that said measures go against the rationale behind the temporary exemption from the clearing obligation granted to IORPs and their asset managers under EMIR. It also fails to recognise the very low counterparty risk of IORPs as well as the way they use derivatives to mitigate financial risk.

The PensionsEurope response is available here.

PensionsEurope promotes workplace pensions in Europe

PensionsEurope was invited to an APFIPP seminar in Lisbon on 2 July 2014 where PensionsEurope chair Joanne Segars presented the PensionsEurope Manifesto. In the Manifesto, PensionsEurope expresses its concerns regarding the pension landscape in Europe. José Veiga Sarmento, APFIPP president, pleaded for an increase of workplace pensions in Portugal. He was supported by PensionsEurope Secretary General Matti Leppälä, who stressed the need for workplace pensions in Europe. 

You can find an article in the Portuguese newspaper Expresso here.

The PensionsEurope Manifesto is available here.

PensionsEurope publishes statement on the IORP II Directive Proposal

PensionsEurope has today published a statement on the IORP II Directive proposal. PensionsEurope welcomes the intention of the Commission to improve governance and information provision for IORPs and that no additional capital requirement has been included in the proposed Directive. However, PensionsEurope is concerned that some of the proposals risk creating unnecessary extra burdens for schemes. This paper aims to focus on the general approach of the proposal and on key general issues for PensionsEurope.

PensionsEurope publishes position paper on Money Market Funds

PensionsEurope has adopted a position paper on Money Market Funds (MMFs). Long-term investors such as pension funds also make use of short dated instruments for the purpose of managing their liquidity needs on a diversified and efficient manner. PensionsEurope supports any initiative that is aimed at strengthening the financial sector, and even more so if that would result in a reduction of (systemic) risks. However, PensionsEurope does feel that any such regulation should be proportionate and that institutional investors, occupational pension funds and their asset managers more in particular, should not unnecessarily be restricted in their investment options.