108 Amendments of Martin SCHIRDEWAN related to 2017/0143(COD)
Amendment 180 #
Proposal for a regulation
Recital 1
Recital 1
(1) EU households are amongst the highest savers in the world, but the bulk of these savings are held in bank accounts with short maturities. More investment into capital markets caWell-designed public pay-as-you- go pension systems are the instruments best equipped to ensure elderly citizens can lead a life of dignity and independence and to safeguard them from old age poverty. Third pillar personal pension products, on thelp meet the challenges posed by population ageing and low interest rates. other hand, are additional saving products for higher income households and are thus not suitable for ensuring widespread pension adequacy.
Amendment 185 #
Proposal for a regulation
Recital 1 a (new)
Recital 1 a (new)
(1a) Next to demographic challenges, public pension systems have especially come under heightened pressure due to recent policy trends. Far reaching austerity measures, rising wealth and income inequality, the spread of low paid and unstable jobs and sustained periods of high unemployment are all detrimental to the functioning of public pension systems.
Amendment 192 #
Proposal for a regulation
Recital 1 b (new)
Recital 1 b (new)
(1b) To help member states put their public pension systems on a sustainable footing, the economic governance framework of the EU should thus be changed. Instead of emphasising internal devaluation, labour market flexibilisation and budgetary leanness, full employment policies should be promoted.
Amendment 209 #
Proposal for a regulation
Recital 2
Recital 2
(2) Personal pensions care important in linking long- term savers with long-term investment opportunities. A larger, European market for personal pensions willmight support the supply of funds for institutional investors and investment into the real economy.
Amendment 213 #
Proposal for a regulation
Recital 4
Recital 4
(4) The Capital Markets Union (CMU) will help mobilise capital in Europe and channel it to all companies, including small and medium enterprises, infrastructure and long term sustainable projects that need it to expand and create jobs. One of the main objectives of the CMU is to increase investment and choices for retail investors by putting European savings to better useaims at promoting market-based finance by deepening capital markets and strengthening market-based banking, even though the academic literature has repeatedly established strong links between the financial instability inherent to market-based banking and the US subprime crisis as well as the EU’s bank and sovereign crisis.1a __________________ 1a Some examples include: Adrian, T. and Shin, H.S. (2010): Liquidity and leverage. Journal of Financial Intermediation 19 (3): 418-437. Brunnermeier, M.K. (2009): Deciphering the liquidity and credit crunch 2007-2008. Journal of Economic Perspectives 23 (1): 77-100. Gabor, D. and Ban, C. (2016):Banking and bonds: The new links between states and markets. The Journal of Common Market Studies 54(3): 617-635. Gorton, G. and Metrick, A. (2012): Securitized banking and the run on repo. Journal of Financial Economics 104(3): 425-451.
Amendment 218 #
Proposal for a regulation
Recital 4 a (new)
Recital 4 a (new)
(4a) Further liberalisation of capital markets and reviving securitisation, as envisioned by the Commission’s CMU project, will destabilise the economy of the EU and especially of the euro area even further by fostering the pro-cyclicality of the financial system and by aggravating already existing macroeconomic imbalances between member states.
Amendment 223 #
Proposal for a regulation
Recital 11
Recital 11
(11) A legislative framework for a PEPP will lay the foundations for a successful market in affordable and voluntary retirement-related investments that can be managed on a pan-European scale. By complementing the existing pension products and schemes, it will contribute to meeting the needs of people wishing to enhance the adequacy of their retirement savings, addressing the demographical challenge and providing a powerful new source of private capital for long-term investment. This framework will not replace or harmonise existing national personal pension schemes.
Amendment 226 #
Proposal for a regulation
Recital 12
Recital 12
(12) The Regulation harmonises a set of core features for the PEPP, which concern key elements such as distribution, investment policy, provider switching, or cross-border provision and portability. The harmonisation of these core features will improve the level playing field for personal pension providers at large and help boost the completion of the CMU and the integration of the internal market for personal pensions. It will lead to the creation of a largely standardised pan- European product, available in all Member States, empowering consumers to make full use of the internal market by transferring their pension rights abroad and offering a broader choice between different types of providers, including in a cross-border way. As a result of fewer barriers to the provision of pension services across borders, a pan-European Personal Pension Product will increase competition between providers on a pan- European basis and create economies of scale that should benefit savers.
Amendment 228 #
Proposal for a regulation
Recital 13
Recital 13
(13) Article 114 TFEU allows the adoption of acts both in the shape of Regulations or Directives. The adoption of a Regulation has been preferred as it would become directly applicable in all Member States. Therefore, a Regulation would allow a quicker uptake of the PEPP and contribute more rapidly to address the need for more pension savings and investments in the CMU context. Since this Regulation is harmonising the core features of the PEPPs, they do not have to be subject to specific national rules, so a Regulation appears better suited than a Directive in this case. On the contrary, the features which are out of the scope of the Regulation (e.g. accumulation phase conditions) are subject to national rules.
Amendment 238 #
Proposal for a regulation
Recital 16
Recital 16
(16) In order to ensure a high quality of service and effective consumer protection, home and host Member States should closely cooperate in the enforcement of the obligations set out in this Regulation. Where PEPP providers and distributors pursue business in different Member States under the freedom to provide services, the competent authority of the home Member State should be responsible for ensuring compliance with the obligations set out in this Regulation, because of its closer links with the PEPP provider. In order to ensure fair sharing of responsibilities between the competent authorities from the home and the host Member States, if the competent authority of a host Member State becomes aware of any breaches of obligations occurring within its territory, it should inform EIOPA and the competent authority of the home Member State which should then be obliged to take the appropriate measures. Moreover, the competent authority of the host Member State should be entitled to intervene if the home Member State fails to take appropriate measures or if the measures taken are insufficient.
Amendment 240 #
Proposal for a regulation
Recital 17
Recital 17
(17) In the case of the establishment of a branch or a permanent presence in another Member State, it is appropriate to distribute responsibility for enforcement between home and host Member States. While responsibility for compliance with obligations affecting the business as a whole – such as the rules on professional requirements – should remain with the competent authority of the home Member State under the same regime as in the case of provision of services, the competent authority of the host Member State should assume responsibility for enforcing the rules on information requirements and conduct of business with regard to the services provided within its territory. However, where the competent authority of a host Member State becomes aware of any breaches of obligations occurring within its territory with respect to which this Directive does not confer responsibility on the host Member State, a close cooperation demands that that authority informs EIOPA and the competent authority of the home Member State so that the latter takes the appropriate measures. Such is the case in particular as regards breaches of the rules on good repute, professional knowledge and competence requirements. Moreover, in view of protecting consumers, the competent authority of the host Member State should be entitled to intervene if the home Member State fails to take appropriate measures or if the measures taken are insufficient.
Amendment 250 #
Proposal for a regulation
Recital 21
Recital 21
(21) In order to allow a smooth transition for PEPP providers, the obligation of providing PEPPs comprising compartments for each Member State will apply threfive years after the entry into force of this Regulation. However, uPEPP providers should be allowed to enter into partnership agreements with other PEPP providers for the provision of national compartments. These agreements should be made subject to authorisation by EIOPA. Upon launching a PEPP, the provider should provide information on which national compartments are immediately available, in order to avoid a possible misleading of consumers.
Amendment 260 #
Proposal for a regulation
Recital 24
Recital 24
(24) In order to ensure optimal product transparency, PEPP manufacturproviders should draw up the PEPP key information document for the PEPPs that they manufacture before the product can be distributed to PEPP savers. They should also be responsible for the accuracy of the PEPP key information document. The PEPP key information document should replacimprove and adapt the key information document for packaged retail and insurance-based investment products under Regulation (EU) No 1286/2014 of the European Parliament and of the Council33 which would not have to be provided for PEPPs. __________________ 33 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.
Amendment 262 #
Proposal for a regulation
Recital 25
Recital 25
(25) In order to ensure widespread dissemination and availability of PEPP key information documents, this Regulation should provide for publication by the PEPP manufacturprovider of PEPP key information documents on its website.
Amendment 263 #
Proposal for a regulation
Recital 26
Recital 26
(26) Pension product calculators are already being developed at national level. However, in order for the calculators to be as useful as possible to consumers, they should cover the costs and fees charged by the various PEPP manufacturproviders, together with any further costs or fees charged by intermediaries or other parts of the investment chain not already included by the PEPP manufacturproviders.
Amendment 265 #
Proposal for a regulation
Recital 27
Recital 27
(27) The details of the information to be included in the PEPP key information document in addition to elements already provided for in the key information document for packaged retail and insurance-based investment products under Regulation (EU) No 1286/2014 and the presentation of this information should be further harmonised through regulatory technical standards that complement the regulatory technical standards laid down by Commission delegated Regulation of 8 March 201734 , taking into account existing and ongoing research into consumer behaviour and understanding of financial products, including results from testing the effectiveness of different ways of presenting information with consumers. __________________ 34 Commission Delegated Regulation of 8 March 2017 supplementing 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) by laying down regulatory technical standards with regard to the presentation, content, review and revision of key information documents and the conditions for fulfilling the requirement to provide such documents.
Amendment 270 #
Proposal for a regulation
Recital 31
Recital 31
(31) During the phase when retirement benefits are paid, PEPP beneficiaries should continue to receive information on their benefits and corresponding pay-out options. This is particularly important when a significant level of investment risk is borne by PEPP beneficiaries in the pay- out phase. PEPP beneficiaries should also be informed of any reduction in the level of benefits due, prior to the application of any such reduction, after a decision which will result in a reduction has been taken. As a matter of best practice, PEPP providers are recommended to consult PEPP beneficiaries in advance of any such decision.
Amendment 273 #
Proposal for a regulation
Recital 33
Recital 33
Amendment 280 #
Proposal for a regulation
Recital 35
Recital 35
(35) In the context of deepening the CMU, the understanding of what constitutes instruments with a long-term economic profile is broad. Such 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 and should be understood to include participation and debt instruments in, and loans provided to, non-listed undertakings. 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 financing. Considering the long- term nature of their liabilities, PEPP providers are encouraged toshould allocate a sufficient part of their asset portfolio to sustainable investments in the real economy with long- term economic benefits, in particular to low carbon and climate resilient infrastructure projects and corporates.
Amendment 285 #
Proposal for a regulation
Recital 36
Recital 36
(36) Environmental, social and governance factors, as referred to in the United Nations-supported Principles for Responsible Investment, are important for the investment policy and risk management systems of PEPP providers. PEPP providers should be encouraged tosystematically consider such factors in investment decisions and to take into account how they form part of their risk management system.
Amendment 291 #
Proposal for a regulation
Recital 37
Recital 37
(37) In ensuring compliance with their obligation to develop an investment policy in accordance with the prudent person rule, PEPP providers should be prevented to invest in high-risk and non-cooperative jurisdictions identified by the Financial Action Task Force, nor in a country on the EU list of non-cooperative tax jurisdictions, nor in a country on the EU list of high-risk third countries with strategic deficiencies in their regime on anti-money laundering and countering terrorist financing.
Amendment 293 #
Proposal for a regulation
Recital 38
Recital 38
(38) In view of the long-term retirement objective of the PEPP, the investment options granted to the PEPP savers should be framed, covering the elements which allow investors to make an investment decision, including the number of investment options they can choose from. After the initial choice made upon the subscription of a PEPP, the PEPP saver should have the possibility to modify this choice at reasonable intervals (every five years), so that sufficient stability is offered to providers for their long-term investment strategy whilst at the same time investor protection is ensuredthree years).
Amendment 300 #
Proposal for a regulation
Recital 39
Recital 39
(39) The default investment option should allow the PEPP saver to recoup the invested capital. The PEPP providers could in addition include an inflation indexation mechanism to at least partly cover inflation in real terms.
Amendment 304 #
Proposal for a regulation
Recital 41
Recital 41
(41) Where the PEPP provider is an institution for occupational retirement provision or an investment firm, it should appoint a depositary in relation to the safe- keeping of its assets. This is necessary for protecting consumers, since the sectorial legislation applicable to institutions for occupational retirement provision and investment firms does not provide for the appointment of a depositary.
Amendment 308 #
Proposal for a regulation
Recital 47
Recital 47
(47) In order to find better conditions for their investments, thus also stimulating the competition among PEPP providers, PEPP savers should have the right to switch providers during the accumulation and the decumulation phases, through a clear, quick, low cost and safe procedure.
Amendment 310 #
Proposal for a regulation
Recital 53
Recital 53
(53) PEPP savers should be greceiven the freedom to decide upon subscription of a PEPP about their pay-out choicir PEPP benefits in the form of lifetime (annuities, lump sum, or other) in the decumulation phase, but with a possibility to revise their choice once every five years thereafter, in order to be able to best adapt their pay-out choice to their needs when they near retiremen. Only where the capital invested does not allow for the pay out of meaningful lifetime annuities, the PEPP saver should be allowed to choose a lump sum or periodically limited annuity pay- out.
Amendment 315 #
Proposal for a regulation
Recital 54
Recital 54
Amendment 321 #
Proposal for a regulation
Recital 61
Recital 61
(61) Competent authorities should be empowered to impose pecuniary sanctions which are sufficiently high to offset or go beyond the actual or potential profits, and to be dissuasive even for larger financial undertakings and their managers.
Amendment 339 #
Proposal for a regulation
Article 2 – paragraph 1 – point 1 – point d a (new)
Article 2 – paragraph 1 – point 1 – point d a (new)
(da) in-payments equal at least out- payments in real terms;
Amendment 342 #
Proposal for a regulation
Article 2 – paragraph 1 – point 2
Article 2 – paragraph 1 – point 2
(2) “pan-European Personal Pension Product (PEPP)” means a long-term savings personal pension product, which is provided under an agreed PEPP scheme by a regulated financial undertaking listed in Article 5 (1) authorised under Union law to manage collective or individual investments or savings, and subscribed to voluntarily by an individual PEPP saver or by an independent PEPP savers association on behalf of its members in view of retirement, with no or strictly limited redeemability;
Amendment 350 #
Proposal for a regulation
Article 2 – paragraph 1 – point 3 – point b a (new)
Article 2 – paragraph 1 – point 3 – point b a (new)
(ba) an independent association subscribing PEPP products for its members
Amendment 355 #
Proposal for a regulation
Article 2 – paragraph 1 – point 9
Article 2 – paragraph 1 – point 9
(9) “PEPP retirement benefits” means benefits paid by reference to reaching, or the expectation of reaching, retirement. These benefits may take the form of payments for life, payments made for a temporary periodlifelong annuities, or, under specified circumstances, a lump sum, or any combination thereofperiodically limited annuities;
Amendment 358 #
Proposal for a regulation
Article 2 – paragraph 1 – point 11
Article 2 – paragraph 1 – point 11
(11) “decumulation phase” means the period during which assets accumulated in a PEPP account are drawn upon to fund retirement or other income requirementsincome;
Amendment 361 #
Proposal for a regulation
Article 2 – paragraph 1 – point 13
Article 2 – paragraph 1 – point 13
(13) “drawdownlump sum payments” means the possibility for the PEPP beneficiaries to draw discretionary amounts, up to a certain limit on a periodic basisfull pay out of the accumulated capital at the beginning of the decumulation phase;
Amendment 373 #
Proposal for a regulation
Article 2 – paragraph 1 – point 21
Article 2 – paragraph 1 – point 21
(21) “capital” means aggregate capital contributions and uncalled committed capital, calculated on the basis of amounts investible afterbefore deduction of all fees, charges and expenses that are directly or indirectly borne by investors;
Amendment 385 #
Proposal for a regulation
Article 2 – paragraph 1 – point 28 a (new)
Article 2 – paragraph 1 – point 28 a (new)
(28a) “Biometric risks” mean risks linked to longevity, disability and death.
Amendment 406 #
Proposal for a regulation
Article 5 – paragraph 1 – point c
Article 5 – paragraph 1 – point c
Amendment 412 #
Proposal for a regulation
Article 5 – paragraph 1 – point e
Article 5 – paragraph 1 – point e
Amendment 414 #
Proposal for a regulation
Article 5 – paragraph 1 – point f
Article 5 – paragraph 1 – point f
Amendment 456 #
Proposal for a regulation
Article 6 – paragraph 2
Article 6 – paragraph 2
2. Before taking a decision on the application, EIOPA shall consult the competent authority of the applicant. The competent authority may submit an objection to the authorisation process.
Amendment 481 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
EIOPA shall keep a central public register identifying each PEPP authorised under this Regulation, the provider of this PEPP, the available national compartments it offers and the competent authority of the PEPP provider. The register shall be made publicly available and free of charge in electronic format.
Amendment 503 #
Proposal for a regulation
Article 13 – paragraph 3
Article 13 – paragraph 3
3. Three years at the latest after the entry into application of this Regulation, each PEPP shall offer national compartments for allt least 15 Member States upon request addressed to the PEPP provider. Compartments for all member states shall be offered by no later than five years after the entry into application of this regulation.
Amendment 528 #
Proposal for a regulation
Article 15 – paragraph 1
Article 15 – paragraph 1
1. Without prejudice to the deadline under Article 13(3), immediately after being informed about the PEPP saver’s intention to exercise his right of mobility between Member States, the PEPP provider shall inform the PEPP saver about the possibility to open a new compartment free of charge within the PEPP saver’s individual account and about the deadline within which such compartment could be opened.
Amendment 533 #
Proposal for a regulation
Article 15 – paragraph 3
Article 15 – paragraph 3
3. Not later than three months following the reception of the request under paragraph 2, the PEPP provider shall provide the PEPP saver with complete information and advice free of charge and advice under Chapter IV, Sections II and III regarding the conditions applicable to the new compartment.
Amendment 534 #
Proposal for a regulation
Article 15 a (new)
Article 15 a (new)
Amendment 542 #
Proposal for a regulation
Article 17 – paragraph 1
Article 17 – paragraph 1
1. All contractual arrangements for providing the portability service shall be notified by the PEPP provider to the respective national authority exercising prudential supervision over itEIOPA.
Amendment 545 #
Proposal for a regulation
Article 17 – paragraph 2 – introductory part
Article 17 – paragraph 2 – introductory part
2. The information under paragraph 1 shall be filed electronically in a central database held with the national supervisory authority within one month of opening the new compartment andEIOPA within one month of opening the new compartment. National competent authorities shall have access to the database and shall be informed instantaneously of any changes relating to national compartments falling under their remit. The database shall contain at least:
Amendment 553 #
Proposal for a regulation
Article 19 – paragraph 1 – introductory part
Article 19 – paragraph 1 – introductory part
For the distribution of PEPPs, the different types of PEPP providers and distributors shall comply with the following rules:
Amendment 554 #
Proposal for a regulation
Article 19 – paragraph 1 – point a
Article 19 – paragraph 1 – point a
Amendment 559 #
Proposal for a regulation
Article 19 – paragraph 1 – point b
Article 19 – paragraph 1 – point b
(b) investment firms as defined in point (1) of Article 4(1) of Directive 2014/65/EU shall comply with the applicable national legislation laws giving effect to the rules on marketing and distribution of financial instruments under Directive 2014/65/EU, set out in the first subparagraph of Article 16(3) of that Directive, in Articles 23, 24 and 25 of that Directive, with any directly applicable Union legislation adopted under those provisions, and with the provisions of Articles 18, 19, 21 to 23, and 27 to 32 of this Chapter;
Amendment 563 #
Proposal for a regulation
Article 19 – paragraph 1 – point c
Article 19 – paragraph 1 – point c
Amendment 564 #
Proposal for a regulation
Article 20 – paragraph 1
Article 20 – paragraph 1
With regard to the payment or reception of fees or commissions or the provision or reception of non-monetary benefits in connection with the distribution of a PEPP to or by any party except the PEPP saver or a person acting on behalf of the PEPP saver, PEPP providers or distributors referred to in Article 19(c) of this Regulation shall comply with the applicable national laws giving effect to the rules set out for investment firms in Article 24(7)(b) and (9) of Directive 2014/65/EU. For the purposes of this Article, the reference in Article 24(9) of Directive 2014/65/EC to Article 23 of that Directive shall be read as a reference to Article 18 of this Regulationnot receive any inducements.
Amendment 565 #
Proposal for a regulation
Article 21 – paragraph 1
Article 21 – paragraph 1
Amendment 571 #
Proposal for a regulation
Article 23 – paragraph 1
Article 23 – paragraph 1
1. Before a PEPP is proposed to PEPP savers, the PEPP provider shall draw up for that product a PEPP key information document in accordance with the requirements of this Chapter and shall publish the document on its website.
Amendment 572 #
Proposal for a regulation
Article 23 – paragraph 1 a (new)
Article 23 – paragraph 1 a (new)
1a. The key information document shall constitute pre-contractual information. It shall be accurate, fair, clear and not misleading. It shall provide key information and shall be consistent with any binding contractual documents, with the relevant parts of the offer documents and with the terms and conditions of the PEPP.
Amendment 573 #
Proposal for a regulation
Article 23 – paragraph 1 b (new)
Article 23 – paragraph 1 b (new)
1b. PEPP providers shall make the key information document available free of charge on their websites and in another durable medium.
Amendment 588 #
Proposal for a regulation
Article 23 – paragraph 3 – point iv
Article 23 – paragraph 3 – point iv
(iv) general information on the portability service, including information on the compartments and the tax treatments applicable to the compartments;
Amendment 590 #
Proposal for a regulation
Article 23 – paragraph 3 – point v
Article 23 – paragraph 3 – point v
(v) general information on the switching service, and a reference to the specific information about the switching service available under Article 50;
Amendment 593 #
Proposal for a regulation
Article 23 – paragraph 3 – point vi
Article 23 – paragraph 3 – point vi
(vi) available information related to the performance of the investment policyroduct in terms of environmental, social and governance factors;
Amendment 597 #
Proposal for a regulation
Article 23 – paragraph 3 – point vii a (new)
Article 23 – paragraph 3 – point vii a (new)
(viia) information on the implication of early redemption including penalties;
Amendment 599 #
Proposal for a regulation
Article 23 – paragraph 3 – point vii b (new)
Article 23 – paragraph 3 – point vii b (new)
(viib) information on structure and amount of costs and fees charged to PEPP customers for the provision of the PEPP;
Amendment 600 #
Proposal for a regulation
Article 23 – paragraph 3 – point vii c (new)
Article 23 – paragraph 3 – point vii c (new)
(viic) information on the decumulation phase and the forms of out-payments.
Amendment 604 #
Proposal for a regulation
Article 23 – paragraph 4
Article 23 – paragraph 4
4. In addition to the PEPP key information document, PEPP providers and PEPP distributors shall provide potential PEPP savers, free of charge, with references to any reports on the solvency and financial condition of the PEPP provider, allowing them easy access to this information.
Amendment 609 #
Proposal for a regulation
Article 23 – paragraph 5
Article 23 – paragraph 5
5. Potential PEPP savers shall also be provided with information, free of charge, on the past performance of investments related to the PEPP scheme covering a minimum of five years, or, where the scheme has been operating for fewer than five years, covering all the years that the scheme has been operating, as well as with information on the structure of costs borne by PEPP savers and PEPP beneficiaries.
Amendment 632 #
Proposal for a regulation
Article 24 – paragraph 2
Article 24 – paragraph 2
2. The information referred to in this paragraph 1 shall be provided in a standardised format allowing for comparison and in a comprehensible form in such a manner that PEPP savers are reasonably able to understand the nature and risks concerning the PEPP offered and, consequently, to take investment decisions on an informed basis.
Amendment 634 #
Proposal for a regulation
Chapter 4 – section 3 – title
Chapter 4 – section 3 – title
Advice and standards for sales where no advice is given
Amendment 637 #
Proposal for a regulation
Article 25 – paragraph 1 – subparagraph 1
Article 25 – paragraph 1 – subparagraph 1
Prior to the conclusion of a PEPP-related contract, the PEPP provider or distributor referred to in Article 19(c) of this Regulation shall specify, on the basis of information obtained from the PEPP saver, the retirement-related demands and the needs of that PEPP saver and shall provide the PEPP saver with objective information about the PEPP in a comprehensible form to allow that PEPP saver to make an informed decision.
Amendment 646 #
Proposal for a regulation
Article 25 – paragraph 2
Article 25 – paragraph 2
2. Where advice is provided prior to the conclusion of any specific contract, the PEPP provider or distributor referred to in Article 19(c) of this RegulationThe PEPP provider or distributor shall provide the PEPP saver with a personalised recommendation explaining why a particular PEPP would best meet the PEPP savers’s demands and needs.
Amendment 651 #
Proposal for a regulation
Article 25 – paragraph 3
Article 25 – paragraph 3
3. When providing advice on PEPPs, the PEPP provider or distributor referred to in Article 19(c) of this RegulationThe PEPP provider or distributor shall comply with the applicable national laws giving effect to the rules set out in Article 25(2) of Directive 2014/65/EU and with any directly applicable Union legislation adopted under Article 25(8) of that Directive relating to those rules.
Amendment 654 #
Proposal for a regulation
Article 25 – paragraph 4
Article 25 – paragraph 4
4. Where a PEPP providers or distributor referred to in Arts shall give advicle 19(c) of this Regulation informs the PEPP saver that it gives its adviceto PEPP savers on an independent basis, meaning it shall give that advice on the basis of an analysis of a sufficiently large number of personal pension products available on the market to enable it to make a personal recommendation, in accordance with professional criteria, regarding which the PEPP-related contract would be adequate to meet the PEPP saver’s needs. Such advice must not be limited to PEPP-related contracts provided by the PEPP provider or distributor itself, by entities having close links with the PEPP provider or distributor or by other entities with which the PEPP provider or distributor has close legal or economic relationships, including contractual relationships, as to pose a risk of impairing the independent basis of the advice provided.
Amendment 657 #
Proposal for a regulation
Article 25 – paragraph 5
Article 25 – paragraph 5
5. PEPP providers and distributors referred to in Article 19(c) of this Regulation shall ensure and demonstrate to competent authorities on request that natural persons giving advice on PEPPs possess the necessary knowledge and competence to fulfil their obligations under this Chapter. Member States shall publish the criteria to be used for assessing such knowledge and competence.
Amendment 663 #
Proposal for a regulation
Article 26
Article 26
Amendment 672 #
Proposal for a regulation
Article 27 – paragraph 1
Article 27 – paragraph 1
1. PEPP providers shall draw up a concise and comprehensible personalised document containing key information for each PEPP saver taking into consideration the specific nature of national pension systems and of relevant national social, labour and tax law (“PEPP Benefit Statement”). The title of the document shall contain the words “PEPP Benefit Statement”.
Amendment 673 #
Proposal for a regulation
Article 27 – paragraph 1 a (new)
Article 27 – paragraph 1 a (new)
1a. PEPP providers shall make the PEPP Benefit Statement available free of charge to PEPP savers at least once a year either electronically or on paper, whichever the PEPP saver prefers.
Amendment 679 #
Proposal for a regulation
Article 28 – paragraph 1 – introductory part
Article 28 – paragraph 1 – introductory part
1. The PEPP Benefit Statement, which shall be provided at least annually to the PEPP saver, shall include, at least, the following key information for PEPP savers:
Amendment 682 #
Proposal for a regulation
Article 28 – paragraph 1 – point a
Article 28 – paragraph 1 – point a
(a) personal details of the PEPP saver, name of the PEPP provider, information on pension benefit projections, the expected start of the decumulation phase, information on accrued entitlements or accumulated capital, contributions paid by the PEPP saver or any third party and information on the funding level of the PEPP scheme, for which Article 39, paragraphs 1(a), (b), (d), (e), (f) and (h) of Directive 2016/2341/EU shall be applied, where the “member” means the PEPP saver, the “IORP” means the PEPP provider, the “pension scheme” means the PEPP scheme and “the sponsoring undertaking” means any third party for the purposes of this Regulation;
Amendment 687 #
Proposal for a regulation
Article 28 – paragraph 1 – point d
Article 28 – paragraph 1 – point d
(d) information on the past performance of the PEPP scheme as a whole or, where relevant, of the PEPP saver’s investment option presented in a chart covering performance for any years available and up to the last ten years;
Amendment 690 #
Proposal for a regulation
Article 28 – paragraph 1 – point e
Article 28 – paragraph 1 – point e
(e) a breakdown of the costs deducted by the PEPP provider at least over the last 1236 months, indicating the costs of administration, costs of safekeeping of assets, costs related to portfolio transactions and other costs, as well as an estimation of the impact of the costs on the final benefits.
Amendment 716 #
Proposal for a regulation
Article 33 – paragraph 1 – point c
Article 33 – paragraph 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 levels;
Amendment 722 #
Proposal for a regulation
Article 33 – paragraph 1 – point f
Article 33 – paragraph 1 – point f
(f) the assets shall not be invested in a high-risk and non-cooperative jurisdiction identified by the Financial Action Task Force, nor in a country on the EU list of non-cooperative tax jurisdictions, nor in a country on the EU list of high-risk third countries with strategic deficiencies in their regime on anti-money laundering and countering terrorist financing;
Amendment 727 #
Proposal for a regulation
Article 33 – paragraph 1 – point g a (new)
Article 33 – paragraph 1 – point g a (new)
(ga) the PEPP provider shall clearly demonstrate to the competent authority the positive long-term impacts of their investment decisions on environmental, social and governance matters.
Amendment 730 #
Proposal for a regulation
Article 33 – paragraph 2
Article 33 – paragraph 2
2. The rules set out in points (a) to (ga) of paragraph 1 apply only to the extent that there is no more stringent provision in the relevant sectorial legislation applicable to the PEPP provider.
Amendment 741 #
Proposal for a regulation
Article 34 – paragraph 2
Article 34 – paragraph 2
2. The investment optionPEPP providers shall includeoffer a default investment option and may includeoffer alternative investment options.
Amendment 742 #
Proposal for a regulation
Article 34 – paragraph 2 a (new)
Article 34 – paragraph 2 a (new)
2a. Any PEPP provider recommending to a PEPP saver an investment option other than the default option, shall provide the PEPP saver with a written explanation as to why the option recommended by the PEPP provider is more suitable for them than the default option.
Amendment 754 #
Proposal for a regulation
Article 36 – paragraph 1
Article 36 – paragraph 1
1. The PEPP saver shall be able to opt for a different investment option once every fivthree years of accumulation in the PEPP.
Amendment 771 #
Proposal for a regulation
Article 37 – paragraph 1
Article 37 – paragraph 1
1. The default investment option shall ensure capital protectioninclude a capital guarantee for the PEPP saver, on the basis of a risk-mitigation technique that results in a safe investment strategy.
Amendment 783 #
Proposal for a regulation
Article 37 – paragraph 2
Article 37 – paragraph 2
2. CThe capital protectionguarantee shall allow the PEPP saver to recoup the capital invested in real terms.
Amendment 788 #
Proposal for a regulation
Article 37 – paragraph 2 a (new)
Article 37 – paragraph 2 a (new)
2a. The default investment option shall be a cost-effective investment option.
Amendment 789 #
Proposal for a regulation
Article 37 – paragraph 2 b (new)
Article 37 – paragraph 2 b (new)
2b. Without prejudice to paragraph 3, overall costs and fees for the default investment option shall not exceed 0.75% of the accumulated capital per annum.
Amendment 792 #
Proposal for a regulation
Article 38 – paragraph 1
Article 38 – paragraph 1
1. If PEPP providers offer alternative investment options, at least onell of them shall offer a cost-effective investment option to PEPP savers.
Amendment 807 #
Proposal for a regulation
Article 39 – paragraph 1 – point a
Article 39 – paragraph 1 – point a
(a) the risk-mitigation technique to ensure a capital protectionguarantee under the default investment option;
Amendment 819 #
Proposal for a regulation
Article 40 – paragraph 2
Article 40 – paragraph 2
2. Such conditions may include in particular age limits for starting the accumulation phase, minimum duration of the accumulation phase, maximum and minimum amount of in-payments and their continuity, as well as conditions for redemption before retirement age in case of particular hardship. In order to ensure that PEPP savings are first and foremost used for the retirement phase, PEPP savings shall be protected during periods of unemployment. Member States shall ensure that unemployment is not considered particular hardship requiring PEPP savers to terminate their contracts prior to retirement.
Amendment 820 #
Proposal for a regulation
Article 41 – paragraph 1
Article 41 – paragraph 1
1. Where the PEPP provider is an institution for occupational retirement provision or an investment firm as referred to in Article 5(1), it shall appoint one or more depositaries for the safe-keeping of assets and oversight duties.
Amendment 823 #
Proposal for a regulation
Article 42 – paragraph 1
Article 42 – paragraph 1
PEPP providers may offer PEPPs with an option ensuring the coverage of the risk of biometric risks. For the purpose of this Regulation, “biometric risks” mean risks linked to longevity, disability and death.
Amendment 831 #
Proposal for a regulation
Article 45 – paragraph 2
Article 45 – paragraph 2
2. The PEPP saver may switch PEPP providers no more frequently than once every five years after conclusion of the PEPP contractshall have the right to switch PEPP providers once every twelve months after conclusion of the PEPP contract. The PEPP saver shall be allowed to switch providers at any time when their current PEPP provider has been proven to be negligent or to have breached the law.
Amendment 837 #
Proposal for a regulation
Article 45 – paragraph 2 a (new)
Article 45 – paragraph 2 a (new)
2a. Without prejudice to paragraph 2, PEPP savers shall be allowed to switch providers when entering into the decumulation phase.
Amendment 841 #
Proposal for a regulation
Article 48 – paragraph 3
Article 48 – paragraph 3
3. The total fees and charges applied by the transferring PEPP provider to the PEPP saver for the closure of the PEPP account held with it shall be limited to no more than 1.0,25 % of the positive balance to be transferred to the receiving PEPP provider and shall in any case not exceed € 150.
Amendment 848 #
Proposal for a regulation
Article 48 – paragraph 4
Article 48 – paragraph 4
4. Fees and charges, if any, applied by the transferring or the receiving PEPP provider to the PEPP saver for any service provided under Article 46, other than those referred to in paragraphs 1, 2 and 3 of this Article, shall be reasonable and in line withnot exceed the actual costs of that PEPP provider.
Amendment 849 #
Proposal for a regulation
Article 48 – paragraph 4 a (new)
Article 48 – paragraph 4 a (new)
4a. PEPP savers shall not be subject to any fees and charges when the switching occurs as a consequence of proven negligence by the PEPP provider or where it has breached Union or national law.
Amendment 850 #
Proposal for a regulation
Article 49 – paragraph 4
Article 49 – paragraph 4
Amendment 851 #
Proposal for a regulation
Article 49 – paragraph 5
Article 49 – paragraph 5
Amendment 857 #
Proposal for a regulation
Article 51 – paragraph 2
Article 51 – paragraph 2
2. Such conditions may include in particular the setting of the retirement age, of a mandatory link between reaching the retirement age and commencing the decumulation phase, of a minimum period of belonging to a PEPP scheme, of a maximum period before reaching the retirement age for joining a PEPP scheme, as well as conditions for redemption in case of particular hardship. In order to ensure that PEPP savings are first and foremost used for the retirement phase PEPP savings should be protected during periods of unemployment. Member States shall ensure that unemployment is not considered particular hardship requiring PEPP savers to terminate their contracts prior to retirement.
Amendment 860 #
Proposal for a regulation
Article 52 – paragraph 1 – introductory part
Article 52 – paragraph 1 – introductory part
1. The PEPP providers may make available to PEPP savers one or more of the following forms of out-payments:shall be paid out in the form of a lifetime annuity.
Amendment 861 #
Proposal for a regulation
Article 52 – paragraph 1 – point a
Article 52 – paragraph 1 – point a
Amendment 864 #
Proposal for a regulation
Article 52 – paragraph 1 – point b
Article 52 – paragraph 1 – point b
Amendment 865 #
Proposal for a regulation
Article 52 – paragraph 1 – point c
Article 52 – paragraph 1 – point c
Amendment 867 #
Proposal for a regulation
Article 52 – paragraph 1 – point d
Article 52 – paragraph 1 – point d
Amendment 876 #
Proposal for a regulation
Article 52 – paragraph 2
Article 52 – paragraph 2
2. The choice of the form of out- payments for the decumulation phase shall be exercised by PEPP savers upon conclusion of a PEPP contract and can be changed once every five years thereafter during the accumulation phase, if applicable can be changed from a lifetime annuity to a lump sum or a periodically limited annuity if the capital accumulated is not sufficient to provide an annual retirement income of at least 25% of the annual minimum wage of the Member State in which the PEPP saver is resident.