IORPII
Janwillem Bouma will tell delegates that that PensionsEurope welcomes the significant progress made by the Dutch Presidency, the European Parliament and the European Commission in the trilogue negotiations on IORPII.
He will say: “In general, PensionsEurope welcomes the direction of the IORPII discussions. Particularly, we have been pleased that the IORP II directive will not contain additional solvency capital requirements for IORPs, which could have had significant negative impacts on IORPs, sponsors and members.”
Risk Assessment
He will welcome that EIOPA has taken note of some concerns raised by PensionsEurope that there is no need for a harmonised solvency framework for IORPs. “A one-size fits-all solvency regime is not appropriate and would have potential significant negative impacts”, he will explain.
EIOPA has proposed to introduce a standardized risk assessment to value IORPs on a common framework balance sheet.
Janwillem will note that “EIOPA’s proposal for the mandatory use of a common framework balance sheet is impractical, unnecessary and costly. It is doubtful whether the outcomes of the common framework balance sheet have any additional use to national financial assessments in day-to-day supervisory practice.”
Capital Markets Union
Furthermore, he will highlight that a proportionate regulatory environment that reflects the specificities of pension funds as entities which have a social purpose is needed in order to enable pension funds to reach their full potential as long-term investors in the Capital Markets Union.
He will say: “I hope that the analysis that the Commission services will complete in July will result in changes to a number of pieces of EU financial legislation. The European Market Infrastructure Regulation (EMIR) should allow for more proportionality. The negative impact that the interactions of EMIR with bank capital rules currently have on pension funds needs to be prevented as well. At present, the cumulative impact of bank capital requirements (CRDIV) and EMIR is overly burdensome for pension funds”.
Janwillem will say: “Good governance is essential if workplace DC pension plans are to retain the confidence of employees and employers. This paper sets out 14 key principles of good governance to which we believe all workplace DC pension plans throughout Europe should adhere (as a minimum) in order to ensure this.”
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