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Member States upon request addressed to the PEPP pro-  prejudice to stricter applicable sectorial law)  Commission’s Recommendation on the tax treatment of personal pension products, including the PEPP
 vider.  -   At the time of decumulation, PEPP providers and
 -   Different forms of outpayment are possible (and   distributors will have to offer the PEPP saver personalised   The Commission encourages Member States to grant the same tax treatment to PEPP as is currently granted to similar
 the saver can change his/her chosen outpayment form).  benefit  projections,  including  a  personal  recommenda-  existing national products, even if the PEPP does not fully match the national criteria for tax relief.
 -   PEPP providers are encouraged to consider sus-  tion to the PEPP saver on his or her optimal form of out-  Member States are also invited to exchange best practices on the taxation of their current personal pension products
 tainability factors in their investment decisions and risk   payments.  which should foster convergence of tax regimes.
 management systems.  -   Insurance  intermediaries registered under  the
 IDD and investment firms authorised in accordance with   Along with the PEPP Regulation, in April 2019 the European Parliament adopted a Resolution on tax treatment of pen-
 Some  key  elements from  an intermediary perspective   MiFID II for the provision of investment advice may dis-  sion products, including the PEPP. The EP calls on the Council to elaborate proposals regarding incentives for PEPP sav-
 and on which BIPAR focused during the discussions:  tribute PEPPs within the territory of a host Member State   ers with a view to enhancing the uptake of the PEPP. Parliament suggests that the following approaches be considered:
 under  FOS or FOE, provided  they do so in compliance
 -   For insurers and  insurance intermediaries who   with the relevant rules and procedures established by or   -   analysing existing tax incentives for personal pension products and assessing their costs, effectiveness and
 distribute PEPPs, most of the IDD’s information require-  under the IDD / MiFID II.  redistributive effects, and, where applicable, addressing inefficiencies and regressive effects;
 ments  and  conduct  of  business  rules,  as  well  as  the   -   Regarding  Product  Oversight  and  Governance,   -   granting the same tax relief to PEPP as that granted to national personal pension products, even in cases where
 IDD’s IBIPs chapter apply (with the exception of the rules   PEPP distributors shall have in place adequate arrange-  PEPP features do not fully match all the national criteria;
 regarding  advice, information  conditions,  POG  and  exe-  ments in place to obtain the information and to under-  -   granting specific tax relief to PEPP, harmonised at Union level, to be laid down in a multilateral tax agreement
 cution-only). These IDD rules apply unless IDD was imple-  stand the characteristics and identified target market of   between Member States.
 mented  in  a  stricter way  at  national  level.  Most  of  the   each PEPP.
 PEPP Regulation’s  distribution  and information require-  The EP does recognise that tax is a Member State competence, but also recalls that Member States have the opportunity
 ments also apply to insurers and insurance intermediar-  Level II  to take part in enhanced cooperation.
 ies that distribute PEPPs, except for the PEPP suitability
 test (the IDD suitability test applies instead). There is no   EIOPA is currently working on the level 2 of the PEPP
 single distribution regime with general application of the   Regulation. It has to provide technical advice to the   Next steps
 MiFID II inducement rules (including ban on commission)   European Commission by August 2020 on:
 as had been proposed by the European Parliament.   -   the  PEPP information  documents:  the  pre-  The Regulation was published in the Official Journal of the EU on 25 July 2019 and entered into force 20 days after pub-
 -   For  investment  firms  that  provide  advice  and   contractual PEPP KID  and  the  annual  PEPP Pension   lication. The Regulation will apply 12 months after the publication of the delegated acts in the Official Journal.
 distribute PEPP, the MiFID II rules on conflict of interest,   Benefits Statement
 general principles and information to clients, suitability/   -   the  types  of  costs  and  charges  to  be  included   According to the Commission, the first PEPPs are expected to come on the market soon after the date of application of
 appropriateness and reporting to clients apply, as well as   withing the 1% cap for the Basic PEPP. Under discussion   the Regulation, i.e. mid- or end 2021.
 most of the PEPP distribution  and  information require-  here is whether advice costs should be withing the cap.
 ments (here also except for the PEPP suitability test as the   -   risk-mitigation techniques
 MiFID II suitability test applies instead).   -   supervisory reporting and cooperation between
 -   Ancillary insurance intermediaries cannot distrib-  NCAs and EIOPA
 ute PEPP.   -   EIOPA’s product intervention powers             “With PEPP in place, we estimate that the European mar-
 -   There is mandatory advice (with a suitability test)   -   reporting requirements for PEPP providers   ket for personal pension products could triple in size by
 and a demands and needs test for PEPP providers and             2030. This is roughly from €700 billion now to €2.1 trillion
 distributors, for all PEPPs (also for the “Basic PEPP” and   EIOPA launched two public consultations in this respect.   in 2030. And this is twice the growth that is expected to
 when using automated systems). PEPP providers and dis-  BIPAR provided  input,  focusing  on the cost cap of the   take place without PEPP.”
 tributors have to ensure and demonstrate to authorities   Basic  PEPP and  on  the  PEPP information  documents.   (Commission’s Vice-President Valdis Dombrovskis
 on request that natural persons giving  advice on PEPP   BIPAR also participated in EIOPA’s public hearing on PEPP   speech: “Impact of PEPP on EU Capital Markets and Sus-
 possess the necessary knowledge  and competence to   in February 2020.  tainable Pensions Income” at the Nordic-Baltic Confer-
 fulfil their obligations under the PEPP Regulation (without     ence on 23 April 2019)












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