Trade bodies urge EU to reconsider pensions directive

In mid-February, the European Commission released a white paper on the directive set out to govern Institutions for Occupational Retirement Provisions, reinterating its plan to introduce Solvency II-like capital requirements for pension funds.

As the public review process of the IORP Directive starts today, EVCA and seven other associations, including the European Fund and Asset Management Association the European Trade Union Confederation. The joint statement urges the Commission to reconsider its plans with regard to its negative impact on pensioners and the economy:

"Any effort to harmonise the regulatory regime is based on flawed logic and could have unintended consequences on pension plan members, IORPs and the economy as a whole by impeding growth and job creation."

The group of associations also argues for the importance of quantitative impact studies before any implementation of new rules. It also stresses the severe differences between pension funds and insurerers, such as absence of competition and collective character, making equal regulation untenable.

"Applying Solvency II to pension schemes would severly jeopardise this virtuous circle of value creation," said Dörthe Höppner, secretary general of EVCA, with regard to pension funds' role as institutional investors in private equity.

The review process will focus on the number of corss-border IORPs, risk-based supervision and prudential regulation for defined contribution schemes.

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• Topics
• Regulation
• EU Commission
• EVCA