Page 45 - BIPAR Annual Report 2020_EN

eIDAS Pan-European Personal

Pension Products (PEPP)

Background In the spring of 2018, the European Commission launched a pilot project Regulation on PEPP Background
to make eIDAS better known and to enhance the uptake of the eIDAS tools
by SMEs, amongst others focusing on SMEs in the financial services sector. After the European Parliament and the Council of the EU had proposed
The eIDAS Regulation has applied several amendments to the Commission’s proposal for Regulation on In June 2017, the European
since 2016 and creates a European BIPAR participated in a number of events organised by the Commission PEPP, the three European legislators agreed on the text in trilogue in early Commission published a proposal
and shared the information packs and tools with its members (practical 2019. The text was published in the Official Journal of the EU in July 2019.
internal market for the so-called for Regulation on a Pan-European
guides, checklists, interactive tools, …).
“eTrust Services” by ensuring that BIPAR and its member associations have been very active on this file all Personal Pension Product (PEPP).
these Services will work across This also included a specific 1-hour Commission webinar in October 2018 along the legislative process. It was adopted and published early
on the possible use of the eIDAS systems and services by SMEs in the finan-
borders and have the same legal status 2019. Work on level II is now on
cial services sector. The webinar aimed to demonstrate the benefits of Some key features of PEPP:
as traditional paper-based processes. its way. The Regulation will apply
introducing eIDAS solutions into daily business in the financial services sec-
tor, focusing on: - PEPP is available to individuals with their residence in one of the (directly) 12 months after publication
These eTrust services are e-signatures, - Specific applications, EU Member States, irrespective of their nationality. of the level II. The Regulation deals
- Benefits for SMEs in the financial sector: productivity gains, cus- - PEPP can only be provided and distributed in the Union where
electronic seals (i.e. the electronic with the registration, manufacturing,
tomer experience, national authorities decide that they can be registered. This is done in a
equivalent of a seal or stamp which is - Practical examples of implementation. central public register, kept by EIOPA distribution and supervision of PEPP.

applied on a document to guarantee - PEPP can be provided by credit institutions, insurers (engaged PEPP is intended as an optional, 2nd
The pilot project was concluded at the end of 2018 but the material remains in direct life insurance), IORPs under certain conditions, investment firms
its origin and integrity), electronic regime instrument, complementary
accessible on the Commission’s website. providing portfolio management, investment companies or management
Time Stamps (i.e. date and time on an to the existing state-based (pillar 1),
companies and EU alternative investment fund managers.
electronic document which proves Next steps Insurance intermediaries (under IDD) and investment firms providing occupational (pillar 2) and national

that the document existed at a point-in- The European Commission has to report (to the European Parliament and advice (under MiFID II) can distribute PEPP personal pensions (pillar 3) and has
the Council) on the application of the eIDAS Regulation by 1 July 2020. - PEPP providers have to offer a “Basic PEPP”, which is a “simple
time and that it has not changed since standardised key product features.
The report will assess to what extent the eIDAS framework remains fit for and affordable default investment option” and where costs and fees shall
then), electronic registered delivery purpose delivering the intended outcomes, results and impacts and may not exceed 1 % of the accumulated capital per year. The Basic PEPP has to The Commission described PEPP
service (i.e. the equivalent in the digital identify possible further actions to improve regulatory performance. The provide capital protection (capital guarantee or other risk mitigation tech- as “a new, additional opportunity
Commission will conduct an evaluation in line with the Better Regulation niques with the objective to ensure that savers recoup the capital invested).
world for registered mail) and website to save for retirement: simple,
guidelines, also involving a public and a targeted stakeholder consultation. Providers may offer up to 6 investment options (including the Basic PEPP).
authentication certificates (i.e. a transparent & portable”. The PEPP
All investment options shall be designed on the basis of a guarantee or
trustmark for websites). risk-mitigation technique which shall ensure sufficient protection for PEPP proposal was launched together with a
savers. Recommendation on the tax treatment
- There will be a precontractual PEPP Key Information Document,
The eIDAS Regulation ensures that of personal pension products,
largely following the example of the PRIIPs KID. This PEPP KID will also con-
people and businesses can use their tain a heading on costs, including the cost of distribution. The PEPP KID including PEPP. The initiatives are part
own national electronic identification shall include a clear indication that the PEPP provider or PEPP distribu- of the bigger framework of the Capital
schemes (eIDs) to access public tor shall provide information detailing any cost of distribution that is not Markets Union.
already included in the costs specified, so as to enable the PEPP saver to
services in other EU countries where
understand the cumulative effect that those aggregate costs have on the
eIDs are available (this happens on return of the investment. On top of the PEPP KID, there is a standardised
the basis of mutual recognition; for PEPP Benefit Statement during the product lifetime.
- PEPP portability: this concerns the possibility of continuing to con-
the private sector the legislation only
tribute into an existing PEPP account when changing residence to another
encourages Member States to open Member State. In case portability is not available, consumers can switch
the use of eID to the private sector). provider free of charge or can continue to contribute to the PEPP of the
previous country. Within three years of the date of application of the Regu-
lation, each PEPP provider shall offer national sub-accounts for at least two

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