report parliamentary committee draft, 23 July 2026
On the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2019/1238 on a pan-European Personal Pension Product (PEPP)
Document ECON-PR-790827 · (COM(2025)0840 – C100307/2025 – 2025/0363(COD))
Committee on Economic and Monetary Affairs · Rapporteur: Stéphanie YonCourtin
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Draft european parliament legislative resolution 354 paragraphs
(COM(2025)0840 – C100307/2025 – 2025/0363(COD))
(Ordinary legislative procedure: first reading)
The European Parliament,
–having regard to the Commission proposal to Parliament and the Council (COM(2025)0840),
–having regard to Article 294(2) and Article 114 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C100307/2025),
–having regard to Article 294(3) of the Treaty on the Functioning of the European Union,
–having regard to the opinion of the European Economic and Social Committee of 23 February 2022,
–having regard to Rule 60 of its Rules of Procedure,
–having regard to the report of the Committee on Economic and Monetary Affairs (A100000/2026),
1.Adopts its position at first reading hereinafter set out;
2.Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;
3.Instructs its President to forward its position to the Council, the Commission and the national parliaments.
Read the rest (342 paragraphs)
Amendment 1
Proposal for a regulation
Recital 9
| Text proposed by the Commission | Amendment |
|---|---|
| (9) Tax incentives play an important role in encouraging the take-up of personal pension products in several Member States. Tax incentives for personal pension products can take different forms. In many Member States, the contributions paid for personal pension products qualify for some form of tax relief. Similarly, in many Member States, the investment results of the personal pension products are not subject to tax, either on the basis of an explicit exemption or de facto exemption, if the provider is subject to tax but can deduct the dotations to the pension reserve from the tax base. Tax incentives may also be granted in the decumulation phase, by applying a favourable tax rate to the out-payment of the personal pension. The national treatment principle applies to PEPP savers. Therefore, it should be possible for a PEPP that is objectively comparable to a personal pension product marketed in a given Member State to benefit from the same tax relief granted to the personal pension product in that Member State. That should also apply where the PEPP is provided by a provider from another Member State. The same no less favourable treatment should also apply to measures under national law relating to other incentives for personal pension products or measures having an equivalent purpose or effect. | (9) Tax incentives play an important role in encouraging the take-up of personal pension products in several Member States. Tax incentives for personal pension products can take different forms. In many Member States, the contributions paid for personal pension products qualify for some form of tax relief. Similarly, in many Member States, the investment results of the personal pension products are not subject to tax, either on the basis of an explicit exemption or de facto exemption, if the provider is subject to tax but can deduct the dotations to the pension reserve from the tax base. Tax incentives may also be granted in the decumulation phase, by applying a favourable tax rate to the out-payment of the personal pension. The national treatment principle applies to PEPP savers. Given that tax advantages play an incremental role in determining the take-up of a cross-border product on the national market, Member States should not discriminate against any such product. Without prejudice to the application of the tax laws of Member States, Article 110 of the Treaty on the Functioning of the European Union (TFEU) provides that ‘no Member State shall impose on the products of other Member States any internal taxation of such a nature as to afford indirect protection to other products’. That non-discrimination principle is well-established and consistently upheld in the case law of the Court of Justice of the European Union. Therefore, Member States should not use taxation as a tool to discriminate against PEPPs with regard to comparable national personal pension products (Pillar III products) so as to render PEPPs effectively less attractive than comparable national personal pension products. Where there is reasonable ground to consider that tax provisions are applied in a discriminatory manner so as to render PEPPs less attractive, the Commission, the European Parliament or any Member State should be able to require the relevant Member State to provide a justification for such measures without undue delay. Where the justification that is provided, or the absence of a justification, is considered unsatisfactory, the European Parliament should be able to request the Commission to act pursuant to Article 258 TFEU. Upon such a request, the Commission should take appropriate action in accordance with Article 258 TFEU. |
Or. en
Amendment 2
Proposal for a regulation
Recital 10
| Text proposed by the Commission | Amendment |
|---|---|
| (10) To foster the uptake of PEPPs, it is essential that a PEPP provides value for money to savers and is therefore attractive and competitive. To ensure that potential PEPP providers design products in line with those objectives, the application for registration of a PEPP should demonstrate capacity to comply with the product oversight and governance requirements and show how the product is designed to provide value for money to PEPP savers. | deleted |
Or. en
Amendment 3
Proposal for a regulation
Recital 11
| Text proposed by the Commission | Amendment |
|---|---|
| (11) To ensure that the most cost-efficient products attract a growing share of savings, thereby contributing to the consolidation and development of the personal pension sector, competition in the PEPP market should be fostered. To support that objective and help prospective savers make informed choices, the central public register maintained by EIOPA should be extended to include information on the past costs and performance of PEPP products. That extension should be done without creating undue reporting burdens for PEPP providers, as the relevant information will be available in the Key Information Document. To ensure accuracy and comparability, the information in the register should be updated at least annually. | (11) To ensure that the most cost-efficient products attract a growing share of savings, thereby contributing to the consolidation and development of the personal pension sector, competition in the PEPP market should be fostered. To support that objective and help prospective savers make informed choices, the central public register maintained by the European Insurance and Occupational Pensions Authority (EIOPA) should be reviewed. The current form of the central public register is not sufficiently user-friendly, and prominently features information that is not the most relevant to consumers. That is the case, for example, regarding the registration number of a PEPP, which is among the first items of information displayed, despite being primarily relevant to competent authorities. By contrast, information of greater relevance to consumers, such as the contact details of the PEPP provider, is currently not displayed. For that reason, it is fundamental that EIOPA provides the central public register as a consumer-facing platform. EIOPA should therefore update and maintain the central public register so that consumers are able to use it in a simple, user-friendly and interactive manner. After consumer testing, EIOPA should consider, where relevant, the use of graphs, images, filters by country, colours or any other elements that can make the platform simple and user-friendly. The central public register should focus on key information points relevant to consumers and not duplicate the Key Information Document (KID). The central public register should therefore identify key categories of information relevant to the consumer, and should encompass the Member States in which the PEPP is distributed, the product name, the product features, such as whether it is a EuroPension Product or a tailored PEPP, the assets in which the PEPP will be invested, the methods of exit, such as a lump sum or annuity, the possibilities for early withdrawal; risk indicators, fees, past performances, tax advantages, if any; contact information of the PEPP provider, and a link to the KID containing the remaining relevant information. That information aims to help the consumer identify the offer on the Union market, especially in Member States. To ensure accuracy and comparability, the information in the central public register should be updated at least annually. |
Or. en
Amendment 4
Proposal for a regulation
Recital 14
| Text proposed by the Commission | Amendment |
|---|---|
| (14) The level of costs and charges associated with personal pension products can have a significant impact on the final pension outcome for savers, which may not always be transparent or easily comparable. The absence of clear and harmonised criteria to assess whether costs are justified and proportionate to the returns offered risks undermining trust in PEPPs and discouraging participation. It is therefore necessary to establish a structured value-for-money framework, ensuring that PEPPs deliver fair outcomes to savers and that their costs and performance are proportionate to their characteristics, objectives and risk–return profile, thus offering good value for money. | (14) The level of costs and charges associated with personal pension products can have a significant impact on the final pension outcome for savers, which may not always be transparent or easily comparable. To ensure a high level of protection for PEPP savers and to promote regulatory coherence, the product oversight and governance requirements applicable to PEPP providers should be strengthened. That warrants alignment with the rules as amended in the context of the Retail Investment Strategy while accounting for the specificities of the PEPP as a long-term savings product. |
Or. en
Justification
Recitals 14 and 16 are merged.
Amendment 5
Proposal for a regulation
Recital 15
| Text proposed by the Commission | Amendment |
|---|---|
| (15) To ensure that PEPPs are designed and distributed in the best interests of savers, the value-for-money assessment should be embedded within the broader product oversight and governance framework. The product approval process should identify the target market, objectives and needs of savers, and demonstrate, before the product is approved for distribution, that the total costs and charges are justified and proportionate in view of the expected benefits and performance. To build consumers’ trust in PEPPs, a PEPP that does not meet these criteria should not be approved, manufactured or distributed. | deleted |
Or. en
Amendment 6
Proposal for a regulation
Recital 16
| Text proposed by the Commission | Amendment |
|---|---|
| (16) To ensure a high level of protection for PEPP savers and to promote regulatory coherence, the product oversight and governance requirements applicable to PEPP providers should be strengthened. This warrants aligning with those set out under Directive (EU) 2016/976 as amended in the context of the Retail Investment Strategy, and accounting for specificities of PEPP as a long-term savings product. | deleted |
| 6 Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance distribution (recast) (OJ L 26, 2.2.2016, p. 19, ELI: http://data.europa.eu/eli/dir/2016/97/oj) |
Or. en
Justification
Text added to recital 14.
Amendment 7
Proposal for a regulation
Recital 17
| Text proposed by the Commission | Amendment |
|---|---|
| (17) Since the registration of a PEPP takes place before it is possible to ascertain whether the product effectively delivers value for money to savers in practice, some PEPPs may in practice offer lower value for money than initially indicated. Competent authorities should have the powers to monitor developments and should be able to require corrective measures, where necessary. | deleted |
Or. en
Amendment 8
Proposal for a regulation
Recital 17 a (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (17a) The PEPP framework should be applied consistently with sectoral prudential legislation. That is particularly relevant for the provision of marketing communications and practices but also for the PEPP KID. For the latter, in order to ensure consistency and comparability across the KIDs required under various Union legislative instruments, the information provided to consumers should be presented in a clear and comprehensible manner and the PEPP KID should be aligned, where relevant, with the requirements applicable under the framework provided by Regulation (EU) No 1286/2014 of the European Parliament and of the Council1a. In the event of a substantial change to that Regulation, the PEPP KID should be aligned, where relevant, with the PRIIPs KID, to ensure comparability between financial products for consumers in the Union and to avoid unnecessary administrative burden for PEPP providers and distributors falling within the scope of other sectoral legislation. | |
| 1a Regulation (EU) No 1286/2014 of the European Parliament and of the Council of 26 November 2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs) (OJ L 352, 9.12.2014, p. 1 ELI: http://data.europa.eu/eli/reg/2014/1286/oj). |
Or. en
Amendment 9
Proposal for a regulation
Recital 18 a (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (18a) Consumer confidence is essential to the success of PEPPs. According to EIOPA's 2025 Eurobarometer survey, 54 % of Union consumers would be more likely to purchase a pension product carrying an official Union label, rising to 65 % among consumers under the age of 24. Consumers associate such a label with compliance with strict Union standards, greater trust in providers, enhanced consumer protection and increased transparency. The designation of the Basic PEPPs as the 'EuroPension Product' for PEPP savers should therefore be introduced as the Union label for the default PEPP in order to provide consumers with a clear and recognisable indication that the product complies with harmonised Union requirements relating to simplicity, safety, transparency and value for money. |
Or. en
Amendment 10
Proposal for a regulation
Recital 19
| Text proposed by the Commission | Amendment |
|---|---|
| (19) Article 45(2) of Regulation (EU) 2019/1238 requires that the Basic PEPP is subject to a cap on costs and fees of 1 %, while Article 34(2) of that Regulation obliges a PEPP provider or PEPP distributor to provide advice prior to the conclusion of a Basic PEPP contract. Those requirements have raised concerns among potential providers and distributors, as those requirements are deemed to limit the commercial viability of offering PEPPs, including through digital channels. Furthermore, the fixed 1 % cap on fees is not necessarily the most effective way to protect savers and beneficiaries, and does not reflect a proportional relationship between the benefits and returns offers to savers, the expenses borne by providers, and the fees charged. Providers often incur losses in the early years of a contract, when acquisition and setup costs are high, while savers may be disadvantaged by a fee cap in later years as their accumulated capital gros and the absolute costs charged increase, even though less management effort is required. The 1% fee cap may also lead to an unlevel playing field due to differences in VAT treatment across Member States. Therefore, to promote the uptake of the PEPP, and ensure a sustainable, high-quality product, it is necessary to remove those requirements. To preserve consumer protection and ensure that the Basic PEPP remains a simple product suitable for retirement purposes, it should be designed with an embedded life-cycle investment strategy, providing a suitable balance between growth and risk mitigation. For the same reason, the assets of the Basic PEPP should be invested predominantly in listed and non-complex assets within the meaning of Article 25(4), first subparagraph, of Directive 2014/65/EU of the European Parliament and of the Council7 . To promote diversification while maintaining simplicity, providers of the Basic PEPP should be allowed to allocate a small portion of assets, not exceeding 5 %, to other financial instruments, including alternative assets. | (19) Regulation (EU) 2019/1238 requires that the Basic PEPP is subject to a cap on costs and fees of 1 %. That requirement has raised concerns among potential providers and distributors, as it is deemed to limit the commercial viability of offering PEPPs, including through digital channels. Furthermore, the fixed 1 % cap on fees is not necessarily the most effective way to protect savers and beneficiaries, and does not reflect a proportional relationship between the benefits and returns offers to savers, the expenses borne by providers, and the fees charged. Providers often incur losses in the early years of a contract, when acquisition and setup costs are high, while savers may be disadvantaged by a fee cap in later years as their accumulated capital gros and the absolute costs charged increase, even though less management effort is required. The 1% fee cap may also lead to an unlevel playing field due to differences in VAT treatment across Member States. Therefore, to promote the uptake of the PEPP, and ensure a sustainable, high-quality product, it is necessary to remove those requirements. To preserve consumer protection and ensure that the Basic PEPP remains a simple product suitable for retirement purposes, it should be designed with an embedded life-cycle investment strategy, providing a suitable balance between growth and risk mitigation. The assets of the Basic PEPP labelled as the 'EuroPension Product' to PEPP savers should be invested in accordance with the ‘prudent person principle’, allowing for appropriate asset allocation over the different stages of the product’s lifetime, including investments in Union unlisted assets where appropriate. |
| 7 Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (recast), (OJ L 173 12.6.2014, p. 349, ELI: http://data.europa.eu/eli/dir/2014/65/oj) | 7 Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (recast), (OJ L 173 12.6.2014, p. 349, ELI: http://data.europa.eu/eli/dir/2014/65/oj) |
Or. en
Amendment 11
Proposal for a regulation
Recital 20
| Text proposed by the Commission | Amendment |
|---|---|
| (20) To ensure the quality of advice and to safeguard the interests of prospective PEPP savers, any advice provided in relation to the Basic PEPP should be given on an independent basis and only upon the request of the client. Considering both the non-complex nature of the Basic PEPP and the independent character of the advice, it is appropriate to provide that, where such advice is given, the PEPP distributor is under no obligation to obtain information on the prospective PEPP saver’s knowledge and experience. That approach ensures that the advice remains objective, proportionate and efficient for distributors, while maintaining a high standard of investor protection and promoting the accessibility of the Basic PEPP across the Union through a variety of distribution channels. For the tailored, more sophisticated PEPPs, advice remains essential to provide the most suitable and tailor-made offer to prospective savers, taking into account their knowledge, financial situation, and risk appetite. | (20) Regardless of whether it is a Basic PEPP or a tailored PEPP, advice is an important aspect of the subscription of a personal pension product for a PEPP saver. Member States should ensure that advice is provided at important steps in the life of the product or in the event of a significant change in the financial situation of the PEPP saver. Due to the objectives and nature of the Basic PEPP, PEPP savers should benefit from being accompanied in their investment journey in the most accessible and efficient manner. That is why, to uphold the level of PEPP saver protection and ensure the most user-friendly experience, the PEPP advice should be provided via digital means. The PEPP saver should retain the right to request in-person advice provided through a financial adviser, which the PEPP provider or PEPP distributor should make available upon such request. . |
Or. en
Amendment 12
Proposal for a regulation
Recital 22
| Text proposed by the Commission | Amendment |
|---|---|
| (22) Employers’ contributions, including through auto-enrolment arrangements, have proven effective in overcoming behavioural barriers to savings, including inertia or lack of financial literacy, while fostering trust, engagement, and participation in supplementary pensions. Explicitly recognising that employers are allowed to make voluntary contributions to a PEPP could significantly enhance the visibility, relevance, and uptake of PEPPs, particularly among underserved groups, including low-income and part-time workers and young workers early in their careers. Similarly, allowing employers to select the PEPP in the context of a workplace arrangement using auto-enrolment could further strengthen the uptake of the PEPP and offer employees, especially in Member States with less developed occupational pension systems, the possibility to invest their savings for retirement in well-regulated and cost-effective products. Member States should therefore not prevent employers from contributing to PEPPs and should ensure that such contributions are supported by clear rules on the provision of information to employees. Without prejudice to the personal nature of the PEPP, Member Stats should also be able to allow PEPPs to be provided as part of a workplace arrangement using auto-enrolment, where this is in line with national social and labour laws, compatible with the organisation of pension systems and with collective agreements, and does not interfere with the existing occupational pension schemes. To facilitate the use of the PEPP in a workplace context, several amendments to Regulation (EU) 2019/1238 are necessary to ensure that no undue obstacles hinder employers’ contributions and to adapt the relevant framework to the specificities of workplace arrangements. | (22) Employers’ contributions, including through auto-enrolment arrangements, have proven effective in overcoming behavioural barriers to savings, including inertia or lack of financial literacy, while fostering trust, engagement, and participation in supplementary pensions. A PEPP, contributed to by both employer and employee, should remain a third-pillar pension product. Explicitly recognising that employers are allowed to make voluntary contributions to a PEPP could present a valuable opportunity to bridge the gap in those Member States or sectors where no second-pillar pension schemes exists and where few viable third-pillar pension products are available to consumers. That would as a result also enhance the visibility, relevance, and uptake of PEPPs, particularly among underserved groups, including low-income and part-time workers and young workers early in their careers. Therefore, allowing employers to select the PEPP in the context of a workplace arrangement using auto-enrolment, where no existing second-pillar occupational pension scheme is available in a given Member State, could offer employees the possibility to invest their savings for retirement in well-regulated and cost-effective products, where they have no alternative options. This should respect national social and labour laws, be compatible with the organisation of national pension systems and collective agreements and should not interfere with existing occupational pension schemes. Where a second-pillar product exists, the work PEPP may be offered by the employer to the employee as an additional, complementary third-pillar option. While Member States should not prevent employers from contributing to PEPPs, they should ensure that such contributions are supported by clear rules on the provision of information to employees. To facilitate the use of the PEPP in a workplace context, several amendments to Regulation (EU) 2019/1238 are necessary to ensure that no undue obstacles hinder employers’ contributions and to adapt the relevant framework to the specificities of workplace arrangements. |
Or. en
Amendment 13
Proposal for a regulation
Recital 23
| Text proposed by the Commission | Amendment |
|---|---|
| (23) Savings accumulated in personal pension products are by nature long-term. However, to facilitate the take-up of PEPPs, it is important that Member States do not hinder the transfer of other retirement savings to PEPPs. To make such transfers attractive, Member States should ensure that PEPPs are not subject to discriminatory or disproportionate financial or administrative obstacles that would make a transfer to a PEPP more costly than transfers between other personal pension products. For the same reason, PEPPs should also benefit from the same tax treatment as comparable national personal pension products. | (23) Savings accumulated in personal pension products are by nature long-term. However, to facilitate the take-up of PEPPs, it is important that Member States do not hinder transfers between PEPPs, and between PEPPs and other personal pension products. Consumers should be able to benefit from full portability between all PEPP configurations. Therefore, Member States should allow transfers between PEPPs, irrespective of the type of PEPP concerned, whether it is a 'EuroPension Product' or a tailored PEPP. A work PEPP should also be eligible to be transferred. Furthermore, to make the PEPP framework attractive for Union consumers, Member States should ensure that consumers can transfer between their PEPPs and other national personal pension products. Member States should ensure that those transfers are not subject to discriminatory or disproportionate financial or administrative obstacles that would make transfers between a PEPP and another personal pension product more costly than transfers between other personal pension products. In that framework, a similar tax treatment between comparable national pension products and the PEPP would prove to be instrumental to ensure the success of the PEPP’s portability with other PEPPs and national pension products. |
Or. en
Amendment 14
Proposal for a regulation
Recital 26
| Text proposed by the Commission | Amendment |
|---|---|
| (26) Where a PEPP is distributed across borders, effective supervision of PEPP providers and distributors requires close cooperation and consistent approaches among competent authorities across the Union. Divergences in supervisory actions may create uncertainty for market participants and lead to unequal levels of consumer protection. To strengthen supervisory coordination and ensure proportionate and consistent action in cases where the interests of PEPP savers or beneficiaries may be at risk, it is necessary to formalise the role of the European Insurance and Occupational Pensions Authority (EIOPA) as a facilitator in finding appropriate solutions. To that end, EIOPA should be empowered to set up and coordinate collaboration platforms bringing together the relevant competent authorities, to promote the exchange of information, support convergence of supervisory practices, and, where appropriate, assist in resolving disagreements between authorities in accordance with its powers under Regulation (EU) No 1094/2010. | (26) Where a PEPP is distributed across borders, effective supervision of PEPP providers and distributors requires close cooperation and consistent approaches among competent authorities across the Union. Divergences in supervisory actions may create uncertainty for market participants and lead to unequal levels of consumer protection. To strengthen supervisory coordination and ensure proportionate and consistent action in cases where the interests of PEPP savers or beneficiaries may be at risk, it is necessary to formalise the role of the European Insurance and Occupational Pensions Authority (EIOPA) as a facilitator in finding appropriate solutions. To that end, EIOPA should be empowered to set up and coordinate collaboration platforms bringing together the relevant competent authorities, to promote the exchange of information, support convergence of supervisory practices, and, where appropriate, assist in resolving disagreements between authorities in accordance with its powers under Regulation (EU) No 1094/2010. EIOPA's market intervention powers are essential to ensure the protection of PEPP savers where significant concerns arise and competent authorities have not taken action, or have not taken sufficient action, to address those concerns. Those supervisory powers are essential to safeguard the integrity, credibility, and reputation of the new ‘EuroPension Product’ for PEPP savers and to maintain confidence in the Union market. |
Or. en
Amendment 15
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Regulation (EU) 2019/1238
Article 2 – paragraph 1 – point 34
| Text proposed by the Commission | Amendment |
|---|---|
| (34) ‘advice on an independent basis’ means advice in relation to which the PEPP provider or PEPP distributor: | deleted |
| (a) assesses a sufficiently large number of personal pension products available on the market which are sufficiently diversified with regard to their type and product providers to ensure that the prospective PEPP saver’s objectives can be suitably met and shall not be limited to personal pension products issued or provided by entities having close links with the PEPP provider or PEPP distributor; | |
| (b) does not accept and retain fees, commissions or any monetary or non-monetary benefits paid or provided by any third party or a person acting on behalf of a third party in relation to the provision of the service to prospective PEPP savers; |
Or. en
Amendment 16
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Regulation (EU) 2019/1238
Article 2 – paragraph 1 – point 35
| Text proposed by the Commission | Amendment |
|---|---|
| (35) ‘life-cycle investment strategy’ means an investment strategy that adjusts the level of risk attached to investments according to a predetermined glide path directed at mitigating investment risk and providing a reasonable degree of long-term appreciation, taking into account the individual’s age or retirement date, and where relevant, the pay-out profile of the product, to minimise the risk of large losses.; | (35) ‘life-cycle investment strategy’ means an investment strategy that adjusts the level of risk attached to investments according to a predetermined glide path directed at mitigating investment risk and providing a reasonable degree of long-term appreciation, taking into account the individual’s age or retirement date, as well as the saver’s risk appetite, and where relevant, the pay-out profile of the product, to minimise the risk of large losses. Such strategy assumes a higher level of risk when the saver’s remaining investment horizon is long, including through exposure to unlisted assets when appropriate, while gradually reducing the risk level as the decumulation phase approaches; |
Or. en
Amendment 17
Proposal for a regulation
Article 1 – paragraph 1 – point 2
Regulation (EU) 2019/1238
Article 3 – paragraph 2
| Text proposed by the Commission | Amendment |
|---|---|
| Member States shall ensure that PEPPs receive a tax treatment that is not less favourable than that granted to other personal pension products. Where a Member State applies different types or levels of tax relief with regard to such other personal pension products, PEPP shall be eligible for the most favourable treatment available under the law of that Member State.; | Without prejudice to the application of Member States’ tax laws, and in line with the TFEU, Member States shall ensure that cross-border PEPPs receive a tax treatment that is not discriminatory in relation to other comparable national personal pension products. Where there is reasonable ground to consider that tax provisions are applied in a discriminatory manner so as to render the PEPP less attractive, the Commission, the European Parliament or any Member State shall have the power to require the relevant Member State to provide a justification for such measures without undue delay. Where the justification that is provided, or the absence of a justification, is considered unsatisfactory, the European Parliament may request the Commission to act pursuant to Article 258 TFEU. Upon such request, the Commission shall take appropriate action in accordance with Article 258 TFEU.; |
Or. en
Amendment 18
Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point a
Regulation (EU) 2019/1238
Article 6 – paragraph 2 – point fa
| Text proposed by the Commission | Amendment |
|---|---|
| (fa) documentation that demonstrates compliance with product oversight and governance requirements referred to in Article 25, including information on how the PEPP is designed to provide value for money to PEPP savers;; | (fa) documentation that demonstrates compliance with product oversight and governance requirements in accordance with Article 3(b) and Articles 23 and 25 of this Regulation ; |
Or. en
Amendment 19
Proposal for a regulation
Article 1 – paragraph 1 – point 5 a (new)
Regulation (EU) 2019/1238
Article 9 – paragraph 1
| Present text | Amendment |
|---|---|
| (5a) in Article 9, paragraph 1 is replaced by the following: | |
| The designation ‘pan-European Personal Pension Product’ or ‘PEPP’ in relation to a personal pension product may only be used where the personal pension product has been registered by EIOPA to be distributed under the designation ‘PEPP’ in accordance with this Regulation. | "The designation ‘pan-European Personal Pension Product’ or ‘PEPP’, or “EuroPension Product” pursuant to Article 45(1), in relation to a personal pension product may only be used where the personal pension product has been registered by EIOPA to be distributed under the designation ‘PEPP’ in accordance with this Regulation." |
Or. en
((02019R1238))
Amendment 20
Proposal for a regulation
Article 1 – paragraph 1 – point 5 b (new)
Regulation (EU) 2019/1238
Article 13 – paragraph –1 (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (5b) in Article 13, the following paragraph is inserted: | |
| ‘-1. EIOPA shall keep an online central public register that stores all essential information of each PEPP registered in the Union. The central public register shall be a consumer facing platform maintained by EIOPA.’ |
Or. en
Amendment 21
Proposal for a regulation
Article 1 – paragraph 1 – point 6
Regulation (EU) 2019/1238
Article 13 – paragraph 1
| Text proposed by the Commission | Amendment |
|---|---|
| 1. EIOPA shall keep a central public register identifying each PEPP registered under this Regulation, the registration number of the PEPP, the PEPP provider of this PEPP, the competent authorities of the PEPP provider, the date of the registration of the PEPP, whether the PEPP is a Basic PEPP or a tailored PEPP, a complete list of Member States in which this PEPP is offered and a complete list of Member States for which the PEPP provider offers a sub-account. The register shall also indicate, for each PEPP registered, the total annual costs and the average past performance over the previous one, three, five and ten years, and summary risk indicators, all as disclosed in the key information document referred to in Article 26 The register shall be publicly available in electronic format and shall be kept up to date.; | 1. The central public register shall identify key categories of information relevant to the consumer and shall encompass the following: |
| i. the countries in which the PEPP is distributed; | |
| ii. the product name; | |
| iii. the product features, such as whether it is an Europension product or a tailored PEPP, the assets in which the PEPP will be invested, the methods of exit as a lump sum or annuity and the possibilities for early withdrawal; | |
| iv. risk indicators; | |
| v. fees; | |
| vi. past performances over the last five and ten years, where applicable; | |
| vii. tax advantages, if any; | |
| viii. contact information of the PEPP provider; and | |
| ix. a link to the KID containing the rest of the relevant information.; |
Or. en
Amendment 22
Proposal for a regulation
Article 1 – paragraph 1 – point 6 a (new)
Regulation (EU) 2019/1238
Article 13 – paragraph 3 a (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (6a) in Article 13, the following paragraph is added: | |
| ‘3a. Consumers shall be able to use the central public register in a simple, digitally-friendly and interactive manner. Following consumer testing, EIOPA shall update the central public register to ensure it is consumer-facing and user-friendly, and shall consider, where relevant, the use of graphs and images. In particular, consumers shall be able to filter the PEPPs offered in each country in a user-friendly manner.’ |
Or. en
Amendment 23
Proposal for a regulation
Article 1 – paragraph 1 – point 7 a (new)
Regulation (EU) 2019/1238
Article 23 – paragraph 1
| Present text | Amendment |
|---|---|
| (7a) In Article 23, paragraph 1 is replaced by the following: | |
| 1. For the distribution of PEPPs, the different types of PEPP providers and PEPP distributors shall comply with the following rules: | "1. For the distribution of PEPPs, the different types of PEPP providers and PEPP distributors shall comply with the following rules: |
| (a) insurance undertakings as referred to in point (b) of Article 6(1) of this Regulation and insurance intermediaries as referred to in Article 10(2) of this Regulation shall comply with the applicable national law giving effect to the rules set out in Chapters V and VI of Directive (EU) 2016/97, with the exception of Articles 20, 23, 25 and Article 30(3) of that Directive for the distribution of insurance-based investment products, with any directly applicable Union law adopted under those rules with respect to the distribution of such products and with this Regulation, with the exception of Article 34(4); | (a) insurance undertakings as referred to in point (b) of Article 6(1) of this Regulation and insurance intermediaries as referred to in Article 10(2) of this Regulation shall comply with the applicable national law giving effect to the rules set out in Chapters V and VI of Directive (EU) 2016/97, with the exception of Articles 20, 23, 25 and Article 30(3) of that Directive for the distribution of insurance-based investment products, with any directly applicable Union law adopted under those rules with respect to the distribution of such products and with this Regulation, with the exception of Article 34(4); |
| (b) investment firms as referred to in Article 10(2) of this Regulation shall comply with the applicable national law giving effect to the rules on marketing and distribution of financial instruments set out in the first subparagraph of Article 16(3) and Articles 23, 24 and 25 of Directive 2014/65/EU, with the exception of Article 24(2) and Article 25(3) and (4) of that Directive, with any directly applicable Union law adopted under those provisions, and with this Regulation with the exception of Article 34(4); | (b) investment firms as referred to in Article 10(2) of this Regulation shall comply with the applicable national law giving effect to the rules on marketing and distribution of financial instruments set out in the first subparagraph of Article 16(3) and Articles 23, 24, 24c and 25 of Directive 2014/65/EU, with the exception of Article 24(2) and Article 25(3) and (4) of that Directive, with any directly applicable Union law adopted under those provisions, and with this Regulation with the exception of Article 34(4); |
| (c) all other PEPP providers and PEPP distributors shall comply with the applicable national law giving effect to the rules on marketing and distribution of financial instruments set out in the first subparagraph of Article 16(3) and in Articles 23, 24 and 25 of Directive 2014/65/EU, with the exception of Article 24(2) and Article 25(2), (3) and (4) of that Directive, with any directly applicable Union law adopted under those provisions and with this Regulation. | (c) all other PEPP providers and PEPP distributors shall comply with the applicable national law giving effect to the rules on marketing and distribution of financial instruments set out in the first subparagraph of Article 16(3) and in Articles 23, 24, 24c and 25 of Directive 2014/65/EU, with the exception of Article 24(2) and Article 25(2), (3) and (4) of that Directive, with any directly applicable Union law adopted under those provisions and with this Regulation." |
Or. en
(02019R1238)
Amendment 24
Proposal for a regulation
Article 1 – paragraph 1 – point 7 b (new)
Regulation (EU) 2019/1238
Article 24 – paragraph 2
| Present text | Amendment |
|---|---|
| (7b) in Article 24, paragraph 2 is replaced by the following: | |
| Upon request, PEPP providers and PEPP distributors shall provide free of charge those documents and information also on another durable medium, including paper. PEPP providers and PEPP distributors shall inform PEPP customers about their right to request a copy of those documents on another durable medium, including paper, free of charge. | "Upon request, PEPP providers and PEPP distributors shall provide free of charge those documents and information also on another durable medium, including paper. PEPP providers and PEPP distributors shall inform PEPP customers about their right to request a copy of those documents on another durable medium, including paper, free of charge. The content of the KID shall be the same whether provided in an electronic format or on another durable medium." |
Or. en
(02019R1238)
Amendment 25
Proposal for a regulation
Article 1 – paragraph 1 – point 9
Regulation (EU) 2019/1238
Article 25
| Text proposed by the Commission | Amendment |
|---|---|
| [...] | deleted |
Or. en
Amendment 26
Proposal for a regulation
Article 1 – paragraph 1 – point 9 a (new)
Regulation (EU) 2019/1238
Article 26 – paragraph 3 – subparagraph 1
| Present text | Amendment |
|---|---|
| (9a) in Article 26(3), the first subparagraph is replaced by the following: | |
| 3. The PEPP KID shall be a stand-alone document, clearly separate from marketing materials. It shall not contain cross-references to marketing materials. It may contain cross-references to other documents including a prospectus where applicable, only where such cross-references are related to the information required to be included in the PEPP KID by this Regulation. | "3. The PEPP KID shall be a stand-alone document, clearly separate from marketing communications. It shall not contain cross-references to marketing communications. It may contain cross-references to other documents, including a prospectus, where applicable, only where such cross-references are related to the information required to be included in the PEPP KID by this Regulation." |
Or. en
(02019R1238)
Amendment 27
Proposal for a regulation
Article 1 – paragraph 1 – point 9 b (new)
Regulation (EU) 2019/1238
Article 26 – paragraph 9
| Text proposed by the Commission | Amendment |
|---|---|
| (9b) in Article 26, paragraph 9 is deleted; |
Or. en
(02019R1238)
Justification
Moved to Article 28(3) point (d)(iii).
Amendment 28
Proposal for a regulation
Article 1 – paragraph 1 – point 9 c (new)
Regulation (EU) 2019/1238
Article 28 – paragraph 3 – point a
| Present text | Amendment |
|---|---|
| (9c) in Article 28(3), point (a) is replaced by the following: | |
| (a) at the beginning of the document: the name of the PEPP, whether it is a Basic PEPP or not, the identity and contact details of the PEPP provider, information about the competent authorities of the PEPP provider, the registration number of the PEPP in the central public register and the date of the document; | "(a) at the beginning of the document: the name of the PEPP, whether it is a Basic PEPP or not, the identity and contact details of the PEPP provider, information about the competent authorities of the PEPP provider, the registration number of the PEPP in the central public register and the date of the document; for a Basic PEPP, only the designation 'EuroPension Product' shall be displayed to the consumers;" |
Or. en
(02019R1238)
Amendment 29
Proposal for a regulation
Article 1 – paragraph 1 – point 9 d (new)
Regulation (EU) 2019/1238
Article 28 – paragraph 3 – point ba (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (9d) In Article 28(3), the following point is inserted: | |
| '(ba) a short disclaimer informing the PEPP saver of the existence of the central public register referred to in Article 13, indicating that all registered PEPPs are available in that register, including the internet link to that register.' |
Or. en
Amendment 30
Proposal for a regulation
Article 1 – paragraph 1 – point 10 – point a – point ii
Regulation (EU) 2019/1238
Article 28 – paragraph 3 – point c – point xviii
| Text proposed by the Commission | Amendment |
|---|---|
| (xviii) information that all registered PEPPs are available in the central public register referred to in Article 13, including the internet link to that register.; | deleted |
Or. en
Justification
Moved up in the PEPP KID (see amendment at Article 28(3), new point (ba))
Amendment 31
Proposal for a regulation
Article 1 – paragraph 1 – point 10 – point a a (new)
Regulation (EU) 2019/1238
Article 28 – paragraph 3 – point d – point iii
| Present text | Amendment |
|---|---|
| (aa) in Article 28(3), point (d), point (iii) is replaced by the following: | |
| (iii) appropriate performance scenarios and the assumptions on which they are based; | "(iii) past performance, where possible, and appropriate performance scenarios with the assumptions on which they are based;" |
Or. en
(02019R1238)
Amendment 32
Proposal for a regulation
Article 1 – paragraph 1 – point 10 a (new)
Regulation (EU) 2019/1238
Article 29
| Present text | Amendment |
|---|---|
| (10a) Article 29 is replaced by the following: | |
| Article 29 | "Article 29 |
| Marketing materials | Marketing communications and practices |
| Marketing materials that contain specific information relating to the PEPP shall not include any statement that contradicts the information contained in the PEPP KID or diminishes the significance of the PEPP KID. Marketing materials shall indicate that a PEPP KID is available and supply information on how and where to obtain it, including the PEPP provider’s website. | Marketing communications that contain specific information relating to the PEPP shall not include any statement that contradicts the information contained in the PEPP KID or diminishes the significance of the PEPP KID. Marketing communications shall indicate that a PEPP KID is available and supply information on how and where to obtain it, including the PEPP provider’s website." |
Or. en
(02019R1238)
Amendment 33
Proposal for a regulation
Article 1 – paragraph 1 – point 12 – point b
Regulation (EU) 2019/1238
Article 34 – paragraph 3 – subparagraph 1
| Text proposed by the Commission | Amendment |
|---|---|
| The requirement to provide advice to a prospective PEPP saver in accordance with paragraph 2, first subparagraph, shall not apply in relation to the distribution of the Basic PEPP. | By way of derogation from paragraph 2, and as a way to facilitate the investor journey, advice provided to Basic PEPP prospective savers shall be provided by default via digital means. The Basic PEPP saver shall retain the right to request in person advice provided through a financial adviser, which the PEPP provider or PEPP distributor shall make available upon such request. Where the PEPP provider or PEPP distributor is informed of a change in the personal or financial situation of the PEPP saver, or in the investment objectives of the PEPP saver, the PEPP provider or distributor shall apply the requirements set out in paragraph 4. |
Or. en
Amendment 34
Proposal for a regulation
Article 1 – paragraph 1 – point 12 – point b
Regulation (EU) 2019/1238
Article 34 – paragraph 3 – subparagraph 2
| Text proposed by the Commission | Amendment |
|---|---|
| In case advice is provided in relation to the distribution of the Basic PEPP, advice shall be provided only upon request of the PEPP saver. The PEPP provider or the PEPP distributor shall provide advice on an independent basis.; | deleted |
Or. en
Amendment 35
Proposal for a regulation
Article 1 – paragraph 1 – point 12 – point c
Regulation (EU) 2019/1238
Article 34 – paragraph 4a
| Text proposed by the Commission | Amendment |
|---|---|
| (c) the following paragraph 4a is inserted: | deleted |
| ‘4a. By way of derogation from paragraph 4, where advice is provided in relation to distribution of the Basic PEPP, the PEPP provider or PEPP distributor shall be under no obligation to obtain information on the prospective PEPP saver’s knowledge and experience;’ |
Or. en
Amendment 36
Proposal for a regulation
Article 1 – paragraph 1 – point 12 a (new)
Regulation (EU) 2019/1238
Article 35 – paragraph 1
| Present text | Amendment |
|---|---|
| (12a) in Article 35, paragraph 1 is replaced by the following: | |
| 1. PEPP providers shall draw up a concise personalised document to be provided during the accumulation phase containing key information for each PEPP saver taking into consideration the specific nature of national pension systems and of any relevant law, including national social, labour and tax law (PEPP Benefit Statement). The title of the document shall contain the words ‘PEPP Benefit Statement’. | "1. PEPP providers shall draw up a concise personalised document to be provided during the accumulation phase containing key information for each PEPP saver taking into consideration the specific nature of national pension systems and of any relevant law, including national social, labour and tax law (PEPP Benefit Statement). The title of the document shall contain the words ‘PEPP Benefit Statement’ for a tailored PEPP and ‘Europension Product Benefit Statement’ for a basic PEPP." |
Or. en
(02019R1238)
Amendment 37
Proposal for a regulation
Article 1 – paragraph 1 – point 17
Regulation (EU) 2019/1238
Article 42 – paragraph 2 – point a
| Text proposed by the Commission | Amendment |
|---|---|
| (a) the Basic PEPP referred to in Article 45; | (a) the Basic PEPP labelled as ‘Europension Product’ to PEPP savers ; |
Or. en
Amendment 38
Proposal for a regulation
Article 1 – paragraph 1 – point 17
Regulation (EU) 2019/1238
Article 42 – paragraph 3
| Text proposed by the Commission | Amendment |
|---|---|
| 3. PEPP providers shall design investment options on the basis of a risk-mitigation technique within the meaning of Article 46.; | 3. Without prejudice to Article 45(1) of this Regulation, PEPP providers shall design investment options on the basis of a risk-mitigation technique within the meaning of Article 46.; |
Or. en
Amendment 39
Proposal for a regulation
Article 1 – paragraph 1 – point 19
Regulation (EU) 2019/1238
Article 45 – title
| Text proposed by the Commission | Amendment |
|---|---|
| The Basic PEPP | The Basic PEPP labelled 'EuroPension Product' |
Or. en
Amendment 40
Proposal for a regulation
Article 1 – paragraph 1 – point 19
Regulation (EU) 2019/1238
Article 45 – paragraph 1
| Text proposed by the Commission | Amendment |
|---|---|
| 1. PEPP providers shall design the Basic PEPP investment option on the basis of a life cycle investment strategy. | 1. PEPP providers shall design the Basic PEPP investment option, offered to PEPP savers under the label 'EuroPension Product', on the basis of a life cycle investment strategy. |
Or. en
Amendment 41
Proposal for a regulation
Article 1 – paragraph 1 – point 19
Regulation (EU) 2019/1238
Article 45 – paragraph 2
| Text proposed by the Commission | Amendment |
|---|---|
| 2. Without prejudice to the investment rules laid down in Article 41, at least 95 % of the assets of the Basic PEPP other than cash shall be invested into any of the financial instruments referred to in Article 25(4)(a), points (i) to (iv), of Directive 2014/65/EU.; | 2. Without prejudice to the investment rules laid down in Article 41, the basic PEPP offered to PEPP savers under the label 'EuroPension Product' shall be invested following the ‘prudent person principle’, allowing investments in European unlisted companies, such as units or shares of European long-term investment funds (ELTIFs) authorised in accordance with Regulation (EU) 2015/760, European venture capital funds authorised in accordance with Regulation 2013/345 or European social entrepreneurship funds in accordance with Regulation 2013/346.; |
Or. en
Amendment 42
Proposal for a regulation
Article 1 – paragraph 1 – point 20 – point a
Regulation (EU) 2019/1238
Article 46 – paragraph 1
| Text proposed by the Commission | Amendment |
|---|---|
| 1. The use of risk-mitigation techniques shall ensure that the investment strategies for the PEPP are designed to build up a stable and adequate individual future retirement income from the PEPP and to ensure a fair treatment of all generations of PEPP savers. Those risk-mitigation techniques shall take into consideration the expected remaining duration of the PEPP saver’s or group of PEPP savers’ individual accumulation phase and the PEPP saver’s chosen decumulation option. All risk-mitigation techniques shall be sound, robust and consistent with the risk profile of the corresponding investment option.; | 1. The use of risk-mitigation techniques shall ensure that the investment strategies for the PEPP are designed to build up a stable and adequate individual future retirement income from the PEPP and to ensure a fair treatment of all generations of PEPP savers. Those risk-mitigation techniques shall take into consideration the expected remaining duration of the PEPP saver’s or group of PEPP savers’ individual accumulation phase and, where relevant, the PEPP saver’s chosen decumulation option. All risk-mitigation techniques shall be sound, robust and consistent with the risk profile of the corresponding investment option.; |
Or. en
Amendment 43
Proposal for a regulation
Article 1 – paragraph 1 – point 21
Regulation (EU) 2019/1238
Article 47 – paragraph 3
| Text proposed by the Commission | Amendment |
|---|---|
| 3. Without prejudice to national social and labour law on the organisation of pension systems and the autonomy of social partners, including compulsory membership and the outcomes of collective bargaining agreements, and insofar as it does not interfere with the existing occupational pension schemes, Member States shall not prevent employers from voluntarily contributing to a PEPP for their employees that are PEPP savers and who agree to this. | 3. Without prejudice to national social and labour law on the organisation of pension systems and the autonomy of social partners, including compulsory membership and the outcomes of collective bargaining agreements, and insofar as it does not interfere with the existing occupational pension schemes, Member States shall not prevent employers from voluntarily contributing to a PEPP for their employees that are PEPP savers and who agree to this. The PEPP, contributed to by both employer and employee, shall remain a third-pillar pension product. |
Or. en
Amendment 44
Proposal for a regulation
Article 1 – paragraph 1 – point 21
Regulation (EU) 2019/1238
Article 47 – paragraph 4 – subparagraph 1
| Text proposed by the Commission | Amendment |
|---|---|
| Without prejudice to national social and labour law regarding the organisation of pension systems and the autonomy of social partners, including compulsory membership and the outcomes of collective bargaining agreements, and insofar as it does not interfere with the existing occupational pension schemes, Member States may allow the PEPP to be provided to an employee as part of a workplace arrangement using auto-enrolment. | Without prejudice to national social and labour law regarding the organisation of pension systems and the autonomy of social partners, including compulsory membership and the outcomes of collective bargaining agreements, and insofar as it does not interfere with the existing occupational pension schemes, Member States may allow the PEPP to be provided to an employee as part of a workplace arrangement using auto-enrolment where no existing second-pillar occupational pension scheme is available in the Member State concerned. The PEPP, contributed to by both employer and employee, shall remain a third-pillar pension product. |
Or. en
Amendment 45
Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point a a (new)
Regulation (EU) 2019/1238
Article 51a a (new)
| Text proposed by the Commission | Amendment |
|---|---|
| (aa) the following article is inserted before Article 52: | |
| Article 51aa | |
| Transfers between PEPPs | |
| Member States shall allow transfers between PEPPs, irrespective of the type of PEPP concerned, whether a 'EuroPension Product' or a tailored PEPP. A work PEPP shall also be eligible for those transfers. |
Or. en
Amendment 46
Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point b
Regulation (EU) 2019/1238
Article 56b – title
| Text proposed by the Commission | Amendment |
|---|---|
| Transfers from other personal pension products | Transfers from and to other personal pension products |
Or. en
Amendment 47
Proposal for a regulation
Article 1 – paragraph 1 – point 23 – point b
Regulation (EU) 2019/1238
Article 56b – paragraph 1
| Text proposed by the Commission | Amendment |
|---|---|
| 1. Member States shall allow transfers from other personal pension products to a PEPP. | 1. Member States shall allow transfers from other personal pension products to a PEPP and from a PEPP to another personal pension product . |
Or. en
Amendment 48
Proposal for a regulation
Article 1 – paragraph 1 – point 25 a (new)
Regulation (EU) 2019/1238
Article 61 – paragraph 2
| Present text | Amendment |
|---|---|
| (25a) in Article 61, paragraph 2 is replaced by the following: | |
| 2. EIOPA and competent authorities shall monitor personal pension products provided or distributed in order to verify that such products are designated ‘PEPP’ or it is suggested that such products are PEPPs only when they are registered under this Regulation. | "2. EIOPA and competent authorities shall monitor personal pension products provided or distributed in order to verify that such products are designated ‘EuroPension Product’, ‘PEPP’ or it is suggested that such products are PEPPs only when they are registered under this Regulation." |
Or. en
(02019R1238)
Amendment 49
Proposal for a regulation
Article 1 – paragraph 1 – point 25 b (new)
Regulation (EU) 2019/1238
Article 62 – paragraph 1
| Present text | Amendment |
|---|---|
| (25b) in Article 62, paragraph 1 is replaced by the following: | |
| Each Member State shall ensure that the competent authorities have all supervisory and investigatory powers that are necessary for the exercise of their functions pursuant to this Regulation. | "Each Member State shall ensure that the competent authorities have all supervisory and investigatory powers, including the ability to carry out mystery shopping activities, that are necessary for the exercise of their functions pursuant to this Regulation." |
Or. en
(02019R1238)
Amendment 50
Proposal for a regulation
Article 1 – paragraph 1 – point 28 a (new)
Regulation (EU) 2019/1238
Article 65 – paragraph 3 – subparagraph 2
| Present text | Amendment |
|---|---|
| (28a) in Article 65(3), the second subparagraph is replaced by the following: | |
| Where the conditions set out in the first subparagraph are fulfilled, EIOPA may impose the prohibition or restriction referred to in paragraph 2 on a precautionary basis before a PEPP has been marketed, distributed or sold to PEPP customers. | "Where the conditions set out in the first subparagraph are fulfilled, EIOPA may impose the prohibition or restriction referred to in paragraph 2 on a precautionary basis before a PEPP has been marketed, distributed or sold to PEPP customers, especially when it concerns a Basic PEPP labelled as ‘EuroPension Product’." |
Or. en
(02019R1238)
Explanatory statement 17 paragraphs
The Rapporteur acknowledges that PEPP has been in place for years, although its take-up remains extremely limited. Only 2 providers offer it across the European Union (EU), and 76% of Europeans have never heard of it, according to EIOPA's Consumer Trends Report 2024.
Given the challenges we currently face (in particular the scarcity of public funds to guarantee decent retirement income for citizens through Pillar I alone), citizens should have options available to them if they wish to supplement their Pillar I pension. Indeed, numbers published by EIOPA show that by 2070, state pensions are expected represent only 38% of a worker’s average past earnings. Therefore, it is important to empower citizens with more financial options to address this issue in line with the Savings and Investments Union objectives. Member States must ensure that Pillar 1 remains robust, while allowing citizens to complement it with other revenue sources should they wish to do so. This could mean occupational pensions offered by their employers (Pillar 2), or offering attractive pension products that citizens can individually invest into (Pillar 3).
The Rapporteur considers the Commission's proposal a good basis, while believing that certain amendments are necessary to pursue more effectively the initial objective.
Taxation
Experience has shown that the tax treatment of a financial product is a concrete benefit that consumers look for when making an investment decision, therefore making it a key determinant of the success of a financial product’s take up. According to Article 110 of the Treaty on the Functioning of the European Union, ‘no Member State shall impose on the products of other Member States any internal taxation of such a nature as to afford indirect protection to other products’. In light of this provision, the Rapporteur suggested to rewrite Article 3 of the PEPP Regulation. In addition, the Rapporteur suggests that the European Commission, the European Parliament or any Member State shall be able to require a Member State to provide, without undue delay, a justification for national measures where there are reasonable grounds to consider that tax provisions are being applied in a discriminatory manner as to render the PEPP less attractive to a national pension product. Where the justification provided, or the absence of a justification, is considered unsatisfactory, the European Parliament may request the Commission to start an infringement procedure under Article 258 TFEU.
The Basic PEPP
In the context of the Savings and Investments Union the Rapporteur believes that financial products need to be more accessible to consumers, even in their naming. The Rapporteur therefore suggests to label the Basic PEPP, as ‘EuroPension Product’ to consumers.
Furthermore, given that the Basic PEPP (‘EuroPension Product’) follows a life-cycling approach, investments made should respect the prudent person principle without the need to further restrict asset allocation with quantitative limits. Indeed, quantitative limits on the asset allocation of a PEPP would be inconsistent with the investment strategy (life cycling approach), where the asset allocation is intended to evolve over the lifetime of a PEPP.
Finally, advice for the Basic PEPP shall remain available, in a more user-friendly manner. This advice should be provided through digital means by default, with consumers able to request in-person advice if they prefer.
The work PEPP
The Rapporteur strongly supports the Commission's work PEPP proposal. Work PEPPs are most valuable in Member States where Pillar 2 products do not exist for workers. In this scenario (where no alternative is proposed), the PEPP should be able to be provided as a Pillar III product by an employer to an employee, with the possibility to introduce auto-enrolment. However, where Pillar II products are available, the work PEPP could be proposed as an option from the employer to the employee, to provide an additional source of pension revenue.
Switching PEPPs
While frequent switching of PEPPs should be avoided, as it is not in the financial interest of the consumer given the long-term nature of pension investments, the right to switch PEPP should remain possible, to allow consumers to move to a more attractive pension product. This portability should be facilitated between PEPPs, including workplace PEPPs, and between a PEPP and a national pension product. This is key to leaving the consumer the greatest possible choice in the case of a more attractive offer.
EIOPA’s public register
EIOPA's public register is, in its current form, not fit for practical use. It is lacking usability and displays information that is not relevant to the consumer. The Rapporteur suggests that EIOPA designs it in a consumer-facing manner, to ensure it is readable, informative, and easier to navigate. After consumer testing, information shall be limited to what is essential for consumers, and digitalisation shall be leveraged to make the website more user-friendly.
Coherence with other legislations
The Rapporteur believes that it is important to uphold consistency across legislation to achieve the objectives of the Savings and Investments Union (i.e., enhance consumer outcomes and options for consumers) and reduce the administrative burden for companies. With PEPP, coherence should be ensured with the IORP review (on the product person principle), and the Retail Investment Strategy (on value for money, marketing materials, supervision powers and the Key Information Document drawn in accordance with the PRIIPs Regulation).
Annex: declaration of input 4 paragraphs
Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that she included in her report input on matters pertaining to the subject of the file that she received, in the preparation of the draft report, from the following interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from the following representatives of public authorities of third countries, including their diplomatic missions and embassies:
| 1. Interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register |
| European Insurance and Occupational Pensions Authority (EIOPA) |
| InvestEurope |
| European Fund and Asset Management Association (EFAMA) |
| Pan-European Personal Pension Providers Association (PEPPA) |
| Better Finance |
| Bureau Européen des Unions de Consommateurs |
| PensionsEurope |
| Insurance Europe |
| Fédération Européenne des Conseils et Intermédiaires Financiers |
| European Association of Paritarian Institutions of Social Protection |
| FranceInvest |
| Gesamtverband der Deutschen Versicherungswirtschaft e.V. |
| Pensioenfederatie (Federation of the Dutch Pension Funds) |
| Association Française de la Gestion financière (AFG) |
| Capital International Management Company (ICI) |
| BlackRock |
| France Assureurs |
| 2. Representatives of public authorities of third countries, including their diplomatic missions and embassies |
| None |
The list above is drawn up under the exclusive responsibility of the rapporteur.
Where natural persons are identified in the list by their name, by their function or by both, the rapporteur declares that she has submitted to the natural persons concerned the European Parliament's Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.