Activities of Marco VALLI related to 2014/0091(COD)
Plenary speeches (1)
Activities and supervision of institutions for occupational retirement provision (A8-0011/2016 - Brian Hayes) IT
Shadow reports (1)
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Amendments (45)
Amendment 267 #
Proposal for a directive
Recital 1 a (new)
Recital 1 a (new)
(1a) Social security is primarily a matter for public authorities and consistent with the principles of solidarity between generations and social justice. Member States have to be able to provide their citizens with a decent pension that will genuinely protect them against poverty and social hardship.
Amendment 269 #
Proposal for a directive
Recital 2
Recital 2
(2) The internal market should allow institutions to operate in other Member States and ensure aMember States should take the steps required to ensure that institutions for occupational retirement provision offer the necessary high level of secure protection for members and beneficiaries of occupational retirement schemes, especially where cross-border activities are concerned.
Amendment 276 #
Proposal for a directive
Recital 3
Recital 3
(3) Directive 2003/41/EC represented a first leghas brought about minimum harmonislative stepon onf the way to an internal market forrules applying to occupational retirement provision organised on a European scale. A genuine internal market foras regards prudential requirements, good governance, and transparency. Proper management and supervision of occupational retirement provision remains crucial for seconomic growth and job creation in the European Union and for tackling the challenge of an ageing European society. The Directive, dating from 2003, has not been substantially amended to introduce a modern risk-based governance system also for institutions for occupational retirement provisionure, effective substantive protection of the right which citizens have to draw a pension and live with dignity.
Amendment 283 #
Proposal for a directive
Recital 4
Recital 4
(4) Appropriate action is needed to further develop complementary private retirement savings such as occupational pensions. This is important since social-security systems are coming under increasing pressure, which meansstrengthen public social security systems, which have been hard hit by the swingeing cuts in welfare expenditure entailed in austerity policies. Member States should be allowed to earmark the necessary resources for that purpose, for instance by establishing a citizen’s income commensurate with a decent standard of living. This is important in order to ensure that citizens will not increasingly rely onbe forced to rely on complementary occupational retirement pensions as a complementn alternative in the future. Occupational retirement pensions should be developed, without, however, calling into question the importance of social-security pension systems to inadequate compulsory social security systems, bearing in mind that the gradual switch to complementary provision schemes would undermine the principles of social justice and intergenerational solidarity underlying terms of secure, durable and effective social protection, which should guarantee a decent standard of living in old age and should therefore be at the centhe European social model; private pension schemes have, moreover, proved during the crisis to be vulnerable and strongly procyclical and do not, therefore, of the objective of strengthening the European social modelfer secure, lasting, and effective social protection.
Amendment 294 #
Proposal for a directive
Recital 5
Recital 5
(5) This Directive respects the fundamental rights and observes the principles recognised by the Charter of Fundamental Rights of the European Union, notably the right that older people have to live with dignity and independently, the right that workers have to be informed and consulted at company level, the right of collective bargaining and collective action, the right to social security benefits and welfare provision affording protection and the means of living decently into old age, these being entitlements that should be enjoyed by every person legally residing in, or moving within, the Union, the right to protection of personal data, the right to conduct a business and the right to a high level of consumer protection, in particular by strengthening compulsory pension schemes and ensuring a higher level of transparency of retirement provisioning, informed personal financial and retirement planning, as well as facilitating cross- border businessnd sound and prudent management of institutions for occupational retirement provision and businesses, including where cross-border business is concerned. This Directive must be implemented in accordance with these rights and principles.
Amendment 303 #
Proposal for a directive
Recital 6
Recital 6
(6) Despite the entry into force of Directive 2003/41/EC important prudential barriers remain which make it more expensive for institutions to operate pension schemes across borderirective 2003/41/EC failed to establish the necessary effective rules to govern the business of institutions for occupational retirement provision, which are continuing to be exposed to major risks and influenced by financial market trends. Moreover, the current minimum level of protection for members and beneficiaries needs to be increased. This is all the more important as the number of Europeans relying on schemes that shift longevity and market risks from the institution or the undertaking offering the occupational scheme (“sponsoring undertaking”) to the individual has increased significantly. In addition, the current minimum level of information provision to members and beneficiaries needs to be increased. Those developments warrant an amendment of the Directive.
Amendment 307 #
Proposal for a directive
Recital 7
Recital 7
(7) The prudential rules laid down in this Directive are intended both to guarantee a high degree of security for future pensioners through the imposition of stringent supervisory standards, and to clear the way for the sound, prudent, and efficient management of occupational pension schemes.
Amendment 308 #
Proposal for a directive
Recital 8
Recital 8
(8) Institutions which are completely separated from any sponsoring undertaking and which operate on a funded basis for the sole purpose of providing retirement benefits should have freedom to provide services and freedom of investment, subject only to coordinated prudential requirements, regardless of whether these institutions are considered as legal entitThe freedom to provide services and the freedom of investment to be accorded to institutions for occupational retirement provision are subject to minimum prudential and supervision requirements in order to guarantee a high level of protection for members and beneficiaries.
Amendment 310 #
Proposal for a directive
Recital 9
Recital 9
(9) In accordance with the principle of subsidiarity, Member States should retain full responsibility for the organisation of their pension systems as well as for the decision on the role of each of the three “pillars” of the retirement system in individual Member States. In the context of the second pillar, they should also retain full responsibility for the role and functions of the various institutions providing occupational retirement benefits, such as industry-wide pension funds, company pension funds and life- assurance companies. This Directive is not intended to call this prerogative into question, provided that a high level of protection and regulation is guaranteed.
Amendment 331 #
Proposal for a directive
Recital 18
Recital 18
(18) In the event of the bankruptcy of a sponsoring undertaking, a member faces the risk of losing both his/her job and his/her acquired pension rights. This makes it necessary to ensure that there is a clear separation between that undertaking and the institution and that minimum prudential standards and an appropriate guarantee fund are laid down to protect members.
Amendment 332 #
Proposal for a directive
Recital 19
Recital 19
Amendment 341 #
Proposal for a directive
Recital 20
Recital 20
(20) Institutions for occupational retirement provision are financial service providers whichperform an important social function and bear a heavy responsibility for the provision of occupational retirement benefits and therefore should meet certain minimum prudential standards with respect to their activities and conditions of operation.
Amendment 346 #
Proposal for a directive
Recital 21
Recital 21
(21) The huge number of institutions in certain Member States means a pragmatic solution is necessary as regards prior authorisation of institutions. However, iIf an institution wishes to manage a scheme in another Member State, a prior authorisation granted by the competent authority of the home Member State should be required.
Amendment 349 #
Proposal for a directive
Recital 22
Recital 22
(22) Without prejudice to national social and labour legislation on the organisation of pension systems, including compulsory membership and the outcomes of collective bargaining agreements, institutions should have the possibility of providing their services in other Member States upon receipt of the authorisation from the competent authority of the institution’s home Member State. Institutions should be allowed to accept sponsorship from undertakings located in any Member State and to operate pension schemes with members in more than one Member State. This would potentially lead to significant economies of scale for these institutions, improve the competitiveness of the Union industry and facilitate labour mobility.
Amendment 362 #
Proposal for a directive
Recital 27
Recital 27
(27) Sufficient and appropriate assets to cover the technical provisions protect the interests of members and beneficiaries of the pension scheme if the sponsoring undertaking becomes insolvent. In particular in cases of cross-border activity, the mutual recognition of supervisory principles applied in Member States requires that the technical provisionsThe technical provisions have to be fully funded at all times.
Amendment 368 #
Proposal for a directive
Recital 28
Recital 28
Amendment 375 #
Proposal for a directive
Recital 33
Recital 33
(33) As very long-term investors with low liquidity risksa specific social function, institutions for occupational retirement provision are in a position to invest in non-liquid assets such as shares as well as inshould invest in low-risk assets and in simple instruments that have a long- term economic profile and are not traded on regulated markets, multilateral trading facilities or organised trading facilities within prudent limits. They can also benefit from the advantages of international diversification. Investments in shares in currencies other than those of the liabilities and in instruments that have a long-term economic profile and are not traded on regulated markets, multilateral trading facilities or organised trading facilities should therefore not be restricted except on prudential grounds beneficial economic, social, and environmental impact. Investments should therefore be restricted with a view to making them secure, sustainable, and transparent in the interest of members and society.
Amendment 378 #
Proposal for a directive
Recital 34
Recital 34
(34) The understanding of what constitutes instruments with a long-term economic profile is broad. These instruments are non- transferable securities and therefore do not have access to the liquidity of secondary markets. They often require fixed term commitments which restrict their marketability. These instruments should be understood to include participations, debt instruments in non-listed undertakings and loans provided to them. Non-listed undertakings include infrastructure projects, unlisted companies seeking growth, real estate or other assets that could be suitable for long term investment purposes. Low carbon and climate resilient infrastructure projects are often non-listed assets and rely on long term credits for project financingInstitutions should not invest in infrastructure projects, real estate or other assets with a high environmental and social impact.
Amendment 405 #
Proposal for a directive
Recital 43
Recital 43
(43) The investment policy of an institution is a decisive factor for both the security and affordthe long-term economic sustainability of occupational pensions. The institutions should therefore draw up and, at least every three years, review a statement of investment principles. It should be made available to the competent authorities and on request also to members and beneficiaries of each pension scheme.
Amendment 407 #
Proposal for a directive
Recital 44
Recital 44
(44) Institutions should be allowed, after informing, and obtaining the consent of, members and beneficiaries, to entrust their management, in whole or in part, to other entities operating on their behalf. Institutions should remain fully responsible for discharging all of their obligations under this Directive when they outsource key functions or any other activities.
Amendment 411 #
Proposal for a directive
Recital 46
Recital 46
(46) Institutions should provide clear and adequate information to prospective members, members and beneficiaries to support their decision-making about their retirement and ensure a high level of transparency throughout the various phases of a scheme comprising pre-enrolment, membership (including pre-retirement) and post-retirement. In particular, information concerning accrued pension entitlements, projected levels of retirement benefits, financial risks and guarantees, and costs should be given. Where members bear an investment risk, additional information on the investment profile, any available options and past performance are also crucial.
Amendment 412 #
Proposal for a directive
Recital 47
Recital 47
(47) Before joining a scheme, prospective members should be given all the necessary information to make an informed choice such as possibilities to opt out, contributions, costs, financial risks, and investment options, where applicable.
Amendment 432 #
Proposal for a directive
Recital 59
Recital 59
Amendment 469 #
Proposal for a directive
Article 12 – paragraph 10
Article 12 – paragraph 10
Amendment 473 #
Proposal for a directive
Article 13 – paragraph 1
Article 13 – paragraph 1
1. Member States shallmay allow institutions authorised or registered in their territories to transfer all or a part of their pension schemes to receiving institutions authorised or registered in other Member States, provided that the rights of the members of those schemes are adequately protected.
Amendment 481 #
Proposal for a directive
Article 13 – paragraph 4 – point a
Article 13 – paragraph 4 – point a
(a) the written agreement between the transferring and the receiving institutions setting out the conditions of the transfer, including the main characteristics of the pension scheme and the description of the transferred assets, and, where applicable, the corresponding liabilitieilities and technical provisions, in addition to other obligations and rights;
Amendment 524 #
Proposal for a directive
Article 20 – paragraph 1 – subparagraph 1 – introductory part
Article 20 – paragraph 1 – subparagraph 1 – introductory part
Member States shall require institutions located in their territories to investmplement low-risk investments with a long-term horizon, in accordance with the ‘prudent person’ rule and in particular in accordance with the following rules:
Amendment 529 #
Proposal for a directive
Article 20 – paragraph 1 – subparagraph 1 – point a a (new)
Article 20 – paragraph 1 – subparagraph 1 – point a a (new)
(aa) the assets shall be invested exclusively in simple, unstructured, low- risk financial instruments in order to ensure the stability of the investments in the long term;
Amendment 531 #
Proposal for a directive
Article 20 – paragraph 1 – subparagraph 1 – point b – introductory part
Article 20 – paragraph 1 – subparagraph 1 – point b – introductory part
(b) the assets shall be invested in such a manner as to ensure the security, quality, liquidity and profitabilat the capital is maintained over time, in addition to ensuring the security, quality and liquidity of the portfolio as a whole.
Amendment 532 #
Proposal for a directive
Article 20 – paragraph 1 – subparagraph 1 – point c
Article 20 – paragraph 1 – subparagraph 1 – point c
(c) the assets shall be predominantly invested on regulated markets. Investment in assets which are not admitted to trading on a regulated financial market must in any event be kept to prudent levelsshall be prohibited;
Amendment 533 #
Proposal for a directive
Article 20 – paragraph 1 – subparagraph 1 – point d
Article 20 – paragraph 1 – subparagraph 1 – point d
(d) investments in derivative instruments shall be possible insofar as they contribute to a reduccomplex and structured financial instruments, in particular operation ofs investment risks or facilitate efficient portfolio management. They must be valued on a prudent basis, taking into account the underlying asset, and included in the valuation of the institution’s assets. The institution shall also avoid excessive risk exposure to a single counterparty and to other derivative operationolving derivative instruments and securitisations, shall not be permitted; institutions, moreover, may not hold shares or units in hedge funds;
Amendment 535 #
Proposal for a directive
Article 20 – paragraph 1 – subparagraph 1 – point d a (new)
Article 20 – paragraph 1 – subparagraph 1 – point d a (new)
(da) investments which expose the institution to a high level of risk and/or low environmental and social level, including investments in infrastructure projects, shall not be permitted;
Amendment 537 #
Proposal for a directive
Article 20 – paragraph 1 – subparagraph 1 – point f a (new)
Article 20 – paragraph 1 – subparagraph 1 – point f a (new)
(fa) assets shall be directed towards long- term productive investments which have a positive social and environmental impact; Member States may make provision for measures to concentrate investments within their own countries.
Amendment 540 #
Proposal for a directive
Article 20 – paragraph 4
Article 20 – paragraph 4
Amendment 541 #
Proposal for a directive
Article 20 – paragraph 6 – subparagraph 2
Article 20 – paragraph 6 – subparagraph 2
Amendment 567 #
Proposal for a directive
Article 24 – paragraph 3 – point a – indent 1
Article 24 – paragraph 3 – point a – indent 1
– the remuneration policy shall be established, implemented and maintained in line with the institution’s activities and risk managelong-term investment strategy, wits risk profile, objectives, risk management practich sound and prudent risk management, with the social function and purposes and the long-term interests and performance of the institution as a whole, in addition to the requirements relating to its stability and soundness;
Amendment 569 #
Proposal for a directive
Article 24 – paragraph 3 – point a – indent 3
Article 24 – paragraph 3 – point a – indent 3
Amendment 576 #
Proposal for a directive
Article 25 – paragraph 3
Article 25 – paragraph 3
3. Without prejudice to the role of social partners in the overall management of institutions, the person or organisational unit carrying out the key function shall be different from the one carrying out a similar key function in the sponsoring undertaking. On the basis of a reasoned request from the institution, the competent authority may grant an exemption from this restriction taking into account the size, nature, scope and complexity of the activities of the institution.
Amendment 587 #
Proposal for a directive
Article 26 – paragraph 2 – point c
Article 26 – paragraph 2 – point c
(c) investment, in particular derivatives and similar commitments;
Amendment 588 #
Proposal for a directive
Article 26 – paragraph 2 – point e
Article 26 – paragraph 2 – point e
(e) operational and market risk management;
Amendment 609 #
Proposal for a directive
Article 30
Article 30
Amendment 619 #
Proposal for a directive
Article 33
Article 33
Amendment 620 #
Proposal for a directive
Article 34 – paragraph 1
Article 34 – paragraph 1
Amendment 715 #
Proposal for a directive
Article 59 – paragraph 1
Article 59 – paragraph 1
1. The main objective of prudential supervision is the protection of the rights of members and beneficiaries and the financial stability of the institutions.
Amendment 730 #
Proposal for a directive
Article 77
Article 77