[ParlTrack]

Proposal for a regulation
Recital 4 a (new)

(4a) Member States should have financially sustainable, adequate and poverty proof pensions. Priority must therefore be given to further developing, strengthening and reforming the first (public) and collective second (occupational) pillars of the pensions systems. However, the old age dependency is expected to increase sharply. This puts pressure on the financial sustainability of first pillar pay as you go systems, which may be partly alleviated by entitlements from second pillar funded schemes. A third pillar can complement these pension systems. The Pan-European Personal Pension Product may complement and strengthen the market for individual pension products across Europe.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Recital 10

(10) Among personal pension products, the development of a PEPP will contribute to increasing choices for retirement saving and establish an EU market for PEPP providers. It will provide households with ~~better~~well regulated, safe and sustainable options to meet their retirement goals, taking due account of their needs and preferences.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
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, and assist in addressing the demographical challenge ~~and~~by providing a powerful new source of private capital for long-term sustainable investment. This framework will not replace or harmonise existing national personal pension schemes.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Recital 18

(18) The competent authorities of the Member States should have at their disposal all means necessary to ensure the orderly pursuit of business by PEPP providers and distributors throughout the Union, whether pursued in accordance with the freedom of establishment or the freedom to provide services. In order to ensure the effectiveness of supervision, all actions taken by the competent authorities should be proportionate to the nature, scale and complexity of the risks inherent in the business of a particular provider or distributor~~, regardless of the importance of the provider or distributor concerned for the overall financial stability of the market~~.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
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 three years after the entry into force of this Regulation. However, upon launching a PEPP, the provider should provide information on which national compartments are immediately available, in order to avoid a possible misleading of consumersUpon launching a PEPP, the provider should provide information on which national compartments are immediately available, in order to avoid a possible misleading of consumers. When a PEPP saver changes her or his domicile to a Member state, where the PEPP provider or PEPP distributor does not offer a readily available compartment, switching providers shall be offered free of charge.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Recital 22

(22) Taking into account the nature of the pension scheme established and the administrative burden involved, PEPP providers and distributors should provide clear and adequate information to potential PEPP savers and PEPP beneficiaries to support their decision-making about their retirement. For the same reason, PEPP providers and distributors should equally 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, risks and guarantees, ~~and~~ costs and the integration of environmental, social and governance factors should be given. ~~Where p~~Projected levels of retirement benefits ~~are based on economic scenarios, that information should also include an unfavourable scenario, which should be extreme but plausible~~shall be based, inter alia, on economic scenarios, including an unfavourable scenario.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Recital 24

(24) In order to ensure optimal product transparency, PEPP manufacturers 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 ~~responsi~~liable for the accuracy of the PEPP key information document. The PEPP key information document should replace 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.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Recital 32

(32) In order to protect adequately the rights of PEPP savers and PEPP beneficiaries, PEPP providers should be able to opt for an asset allocation that suits the precise nature and duration of their liabilities. Therefore, efficient supervision is required as well as an approach to investment rules that allows PEPP providers sufficient flexibility to decide on the most secure and efficient investment policy, while obliging them to act prudently and in alignment with the PEPP saver’s preferences. Compliance with the prudent person rule therefore requires an investment policy geared to the customers’ structure of the individual PEPP provider.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Recital 33

(33) By setting the prudent person rule as the underlying principle for capital investment and making it possible for PEPP providers to operate across borders, the redirection of savings into the sector of personal retirement provision is encouraged, thereby contributing to economic ~~and soci~~, social and environmental progress.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Recital 34

(34) This Regulation should ensure an appropriate level of investment freedom for PEPP providers. As very long-term investors with low liquidity risks, PEPP providers are in a position to contribute to the development of the CMU by investing in non-liquid assets such as shares and in other instruments that have a long-term economic profile ~~and are not traded on regulated markets, multilateral trading facilities (MTFs) or organised trading facilities (OTFs) 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 other instruments that have a long- term economic profile ~~and are not traded on regulated markets, MTFs or OTFs~~ should therefore not be restricted, in line with the prudent person rule so as to protect the interest of PEPP savers and PEPP beneficiaries, except on prudential grounds.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
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 to allocate a sufficient part of their asset portfolio to sustainable investments in the real economy with long-term economic, environmental and social benefits, in particular to infrastructure projects and corporates.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
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 to~~ consider such factors in investment decisions and ~~to take into account how they form part of their risk management system~~. integrate them in their risk management system. They should conduct assessments on the impact their investments have on direct and long term climate, environmental and social factors, and disclose this information, including according to the Non-Financial Reporting Directive.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Recital 36 a (new)

(36a) One of the objectives of this regulation is channelling capital towards European long-term investments in the real economy. PEPP providers should integrate environmental, social and governance (ESG) factors in their investment decisions. PEPP savings should be invested in line with the Union’s climate and sustainability objectives as set out in the Paris agreement, Sustainable Development Goals, and the United Nations Guiding Principles on Business and Human Rights.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Recital 36 b (new)

(36b) PEPP providers should engage regularly with their clients to ensure their concerns and preferences, including regarding ESG factors, are properly integrated into the investment decisions.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Recital 36 c (new)

(36c) PEPP providers should adopt an investment exclusion policy in order to ensure that savings are not invested in the most controversial and harmful products such as coal-based energy, nuclear weapons, cluster munition, the production of tobacco or harmful conducts such as serious human rights violations, severe environmental, climate damage, corruption and tax avoidance.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
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 tofrom engage in aggressive tax avoidance strategies and investing in high-risk and non-cooperative jurisdictions identified by the Financial Action Task Force and the Commission delegated regulation identifying high-risk third countries with strategic deficiencies and jurisdictions on the common EU list of third country jurisdictions for tax purposes.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
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 align with their customers’ preferences and 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 ensured.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Recital 39

(39) The default investment option should allow the PEPP saver to recoup the invested capital before the deduction of fees. The PEPP providers cshould in addition include an inflation indexation mechanism to ~~at least partly~~ cover inflation.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
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, low- cost, quick and safe procedure.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Recital 48

(48) The switching process should be straightforward for the PEPP saver. Accordingly, the receiving PEPP provider should be responsible for initiating and managing the process on behalf of the PEPP saver. PEPP providers should be able to use additional means, such as a technical solution, on a voluntary basis when establishing the switching service. Switching providers shall be provided free of charge in cases of limited portability, withdrawal of authorisation and upon request of the PEPP saver less frequent than every 5 years.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Recital 53

(53) PEPP savers should be given the freedom to decide upon subscription of a PEPP about their pay-out choice (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 retirementGiven that PEPP constitutes a pension product aiming at supporting households during their retirement, the outpayments in the decumulation phase shall be primarily in the form of annuities.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Recital 54

(54) PEPP providers should be allowed to make available to PEPP savers a wide range of decumulation options. This approach would achieve the goal of enhanced take-up of the PEPP through increased flexibility and choice for PEPP savers. It would allow providers to design their PEPPs in the most cost-effective way. It is coherent with other EU policies and politically feasible, as it preserves enough flexibility for Member States to decide about which decumulation options they wish to encourage.deleted

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Recital 67 a (new)

(67a) In the EU, 14,6% of people aged 65 or over is at risk of poverty. Since capital income tends to be concentrated in upper income brackets, tax incentives for private pensions may result in effective tax rates that are negative, and regressive. These foregone tax revenues are better spent enhancing the sustainability and adequacy of first pillar systems. Member States should cap and target tax incentives for private pension products including PEPP at specific groups with limited access to other complementary pension provisions such as low income groups, self-employed and people with long gaps in their contribution periods.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Recital 69

(69) Following the launch of the PEPP, Member States are encouraged to take into consideration Commission Recommendation (EU) 2017/… and to extend the benefits of the tax advantages they grant to national PPPs also to the PEPP.deleted

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Recital 70 a (new)

(70a) Given the possible long term implications of this Regulation, it is essential to closely monitor the developments during the initial phase of application. A panel of stakeholders and experts with at least one ESG expert should be set up for the purpose of monitoring on an ongoing basis all relevant aspects of PEPP, and report to Commission, Parliament and Council any observations it may have.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Recital 71

(71) This Regulation respects fundamental rights and observes the principles recognised ~~in particular~~ by the Charter of the Fundamental Rights of the European Union, in particular the rights of the elderly to lead a life of dignity and independence and to participate in social and cultural life, the right to the protection of personal data, the right to property, the freedom to conduct a business, the principle of equality between men and women and the principle of a high level of consumer protection.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 2 – paragraph 1 – point 1 – point a

(a) is based on a contract between an individual saver and an entity on a voluntary and complementary basis;

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 2 – paragraph 1 – point 2 a (new)

(2a) “sustainable pan-European Personal Pension Product (SPEPP)” means a long-term sustainable savings personal pension product compliant with the additional sustainability requirements listed in Article 33a of this Regulation. All rules and conditions applicable to PEPP, as laid down in this Directive, shall be at least applicable to SPEPP;

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 2 – paragraph 1 – point 28 a (new)

(28a) “partnerships” means cooperation between PEPP providers to offer compartments in different Member States, in the view of portability service as referred to in Article 12.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 2 – paragraph 1 – point 28 b (new)

(28b) “Environmental, social and governance factors (ESG)” comprise the Union’s climate and sustainability objectives as set out in the Paris agreement, Sustainable Development Goals, the United Nations Guiding Principles on Business and Human Rights and the UNPRI definitions in which environmental factors include climate change, greenhouse gas (GHG) emissions, resource depletion (including water waste and pollution) and deforestation; social factors include Human Rights, working conditions (including slavery and child labour), local communities (including indigenous communities), conflict, health and safety, employee relations and diversity; and governance factors include executive pay, bribery and corruption, political lobbying and donations, board diversity and structure, and tax strategy.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 5 – paragraph 1 – point a

(a) credit institutions a~~uthorised in accordance with Directive 2013/36~~nd investment firms subject to the provisions of Directive 2013/36/EU and Regulation 2013/575/EU of the European Parliament and of the Council43 ; __________________ 43 Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338).

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 5 – paragraph 1 – point c

(c) institutions for occupational retirement provision registered or authorised in accordance with Directive 2016/2341/EU of the European Parliament and of the Council45 ; __________________ 45 Directive 2016/2341/EU of the European Parliament and of the Council of 14 December 2016 on the activities and supervision of institutions for occupational retirement provision (IORPs) (recast) (OJ L 354, 23.12.2016, p. 37).deleted

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 5 – paragraph 1 – point d

~~(d) investment firms authorised in accordance with Directive 2014/65/EU, engaged in portfolio management or investment advice;~~deleted

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 5 – paragraph 1 – point e

(e) investment companies or management companies authorised in accordance with Directive 2009/65/EC of the European Parliament and of the Council46 ; __________________ 46 Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (recast) (OJ L 302, 17.11.2009, p. 32).deleted

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 5 – paragraph 1 – point f

(f) alternative investment fund (“AIF”) managers authorised in accordance with Directive 2011/61/EU of the European Parliament and of the Council47 . __________________ 47 Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010 (OJ L 174, 1.7.2011, p. 1).deleted

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 5 – paragraph 2 – point d

(d) information on arrangements regarding portfolio and risk management and administration with regard to the PEPP, including the integration of environmental, social and governance factors and risks;

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 5 – paragraph 2 – point e

(e) information about the investment strategies, the risk profile and other characteristics of the PEPP including the integration of environmental, social and governance factors and in particular how the investment strategy is aligned with the Union’s climate and sustainability objectives as set out in the Paris agreement, Sustainable Development Goals, and the United Nations Guiding Principles on Business and Human Rights;

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 5 – paragraph 2 – point e a (new)

(ea) Information about the investment exclusion policy related to severe environmental damage, serious violations of human rights and the production of weapons;

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 5 – paragraph 2 – point f a (new)

(fa) information on any partnerships between PEPP providers to offer compartments in different Member States

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 5 – paragraph 4

4. EIOPA may ask the competent authority of the financial undertaking applying for the authorisation for clarification and information as regards the documentation referred to in paragraph 2. The competent authority shall reply to the request within 10 working days from the date on which it has received the request submitted by EIOPA. In case of withdrawal of authorisation , PEPP savers are entitled to switch the PEPP provider free of charge irrespective of the switching frequency stipulated in Article 45. PEPP savers should be clearly informed of any withdrawal and its consequences by their National Competent Authorities.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 6 – paragraph 1 – point b a (new)

(ba) the applicant has adopted and published a credible investment exclusion policy related to severe environmental damage, serious violations of human rights and the production of weapons;

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 6 – paragraph 1 – point d a (new)

(da) the proposed PEPP effectively integrates environmental, social and governance factors into its investment strategy and risk management and ensures that its portfolio management is aligned with the Union’s climate and sustainability objectives as set out in the Paris agreement, Sustainable Development Goals, and the United Nations Guiding Principles on Business and Human Rights;

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 6 a (new)

Article 6 a Authorisation of partnerships for the provision of national compartments 1. Partnerships between PEPP providers to offer national compartments shall be submitted to EIOPA for authorisation. EIOPA shall inform the relevant competent authorities upon reception of a request for authorisation. National authorities shall have the possibility to submit objections. EIOPA shall inform the relevant competent authorities of any authorisation granted and inform and coordinate with ESMA and EBA. 2. Financial undertakings engaged in partnerships shall submit a joint application for authorisation to EIOPA. The application shall include at least the following: (a) information on the identity of the applicants and their current and previous financial experience and history; (b) information on contractual terms between partnering PEPP providers; (c) information on the prudential regime applicable to each PEPP provider. 3. As part of the authorisation process EIOPA shall ensure that the PEPP providers involved are subject to an appropriate prudential regime, in accordance with Article 5.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 6 b (new)

Article 6 b Additional conditions for granting authorisation of SPEPPs EIOPA shall grant authorisation of a SPEPP only where the provisions of Articles 6 and 33a are met.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 13 – paragraph 3

3. Th~~ree years at th~~e available compartments shall be lat~~est after the entry into application of this Regulation, each PEPP shall offer national compartments for all Member States upon request addressed to the PEPP provider.~~ least ten and listed in the contract between the PEPP saver and PEPP provider. The PEPP provider shall be obliged to offer free of charge at least the compartments listed in the contract. By derogation from Articles 45 and 48, PEPP savers shall have the right to switch providers free of charge and irrespective of the switching frequency stipulated in Article 45, when changing their domicile to a Member state, where the PEPP provider or PEPP distributor does not offer a readily available compartment.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 14 – paragraph 1

~~Without prejudice to the deadline under Article 13(3),~~ PEPP providers shall ensure that within each individual PEPP account a new compartment could be opened, corresponding to the legal requirements and conditions for using incentives fixed at national level for the PEPP by the Member State to which the PEPP saver moves.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 15 – paragraph 1

1. ~~Without prejudice to the deadline under Article 13(3), i~~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 within the PEPP saver’s individual account and about the deadline within which such compartment could be opened.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
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 it~~as well as any partnerships falling under the scope of Article 2, point 28b shall be notified by the PEPP provider to EIOPA.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
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 withi~~EIOPA within one month of opening the new compartment or establishing a new partnership. The database shall be accessible to the national competent authorities, who shall automatically receive information con~~e month of open~~cerning the local compartments ing the ~~new compartment and~~case of any changes as well as the details of any existing or new partnership arrangements between providers. The database shall contain at least:

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 17 – paragraph 2 – point c a (new)

(ca) identification of the financial undertakings (name of the undertaking, applicable prudential regime) engaged in partnership agreements;

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
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:~~applicable national 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;

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 19 – paragraph 1 – point a

(a) insurance distributors as defined in point (8) of Article 2(1) of Directive (EU) 2016/97 shall comply with the applicable national laws giving effect to the rules set out in Chapters V and VI of that Directive for the distribution of insurance-based investment products, with any directly applicable Union legislation adopted under those rules with respect to the distribution of such products and with the provisions of Articles 18, 19, 21 to 23, and 27 to 32 of this Chapter;deleted

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
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 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;deleted

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 19 – paragraph 1 – point c

~~(c) all other PEPP providers and distributors shall comply with the all the provisions of this Chapter.~~deleted

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 23 – paragraph 2

2. ~~PEPP providers and PEPP distributors shall comply with Articles 5(2), and 6 to 18 of Regulation (EU) No 1286/2014.~~ 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.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 23 – paragraph 3 – introductory part

3. ~~In addition to the information set out in Article 8(3)(c) of Regulation (EU) No 1286/2014, the section titled “What is this product?” shall contain the following~~The key information document shall be a stand-alone document, clearly separate from marketing materials. It shall not contain cross-references to marketing material. It may contain cross- references to other documents including a prospectus where applicable, and only where the cross-reference is related to the information required to be included in the key information: document.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 23 – paragraph 3 – point i

~~(i) a description of the retirement benefits and the extent to which they are guaranteed;~~deleted

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 23 – paragraph 3 – point ii

~~(ii) any minimum or maximum period for belonging to the PEPP scheme;~~deleted

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 23 – paragraph 3 – point iii

~~(iii) the retirement age;~~deleted

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 23 – paragraph 3 – point iv

~~(iv) general information on the portability service, including information on the compartments;~~deleted

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
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;~~deleted

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 23 – paragraph 3 – point vi

~~(vi) available information related to the performance of the investment policy in terms of environmental, social and governance factors;~~deleted

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 23 – paragraph 3 – point vii

(vii) the law applicable to the PEPP contract where the parties do not have a free choice of law or, where the parties are free to choose the applicable law, the law that the PEPP provider proposes to choose.deleted

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 23 – paragraph 4

4. In addition to the PEPP key information document, PEPP providers and PEPP distributors shall provide potential PEPP savers with references to any reports on the solvency and financial condition of the PEPP provider, allowing them easy access to this informationBy way of derogation from paragraph 5, where a PEPP offers the PEPP saver a range of options for investments, such that all information with regard to each underlying investment option cannot be provided within a single, concise and stand-alone document, the key information document shall provide at least a generic description of the underlying investment options and state where and how more detailed pre- contractual information documentation related to the investment products backing the underlying investment options can be found.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 23 – paragraph 5

5. ~~Potential PEPP savers shall also be provided~~The key information document shall be drawn up as a short document writ~~h information~~ten in a concise manner and of a maximum onf 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 saverree sides of A4-sized paper when printed, which promotes comparability, and layered to consider the practicality of the PEPP KID when delivered using durable media other than paper. It shall: (a) be presented and laid out in a way that is easy to read, using characters of readable size; (b) focus on the key information that PEPP savers need; (c) be written in a clear manner, using clear, succinct and comprehensible language, avoiding the use of jargon and avoiding technical terms where everyday words can~~d PEPP beneficiaries~~ be used instead.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 23 – paragraph 5 a (new)

5a. Where colours are used in the key information document, they shall not diminish the comprehensibility of the information if the key information document is printed or photocopied in black and white

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 23 – paragraph 5 b (new)

5b. Where the corporate branding or logo of the PEPP manufacturer or the group to which it belongs is used in the key information document, it shall not distract the PEPP saver from the information contained in the document or obscure the text.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 23 – paragraph 5 c (new)

5c. In addition to the PEPP key information document, PEPP providers and PEPP distributors shall provide potential PEPP savers with a summary of and references to any reports on the solvency and financial condition of the PEPP provider, allowing them easy access to that information.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 23 – paragraph 5 d (new)

5d. Potential PEPP savers shall also be provided with information on the past performance of investments related to the PEPP, covering the years the PEPP or a personal pension product with the same investment option offered by the same provider has been operating.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 23 a (new)

Article 23a Information in the PEPP key information document 1. The title ‘PEPP key information document’ shall appear prominently at the top of the first page of the PEPP key information document. The PEPP key information document shall be presented in the sequence laid down in paragraphs 2 and 3. 2. An explanatory statement shall appear directly underneath the title of the PEPP key information document. It shall read: ‘This document provides you with key information about this pension product. It is not marketing material. The information is required by law to help you understand the nature, risks, costs, potential gains and losses of this product and to help you compare it with other products. 3. The PEPP key information document shall contain the following information: (a) at the beginning of the document, the name of the PEPP and whether it is a basic PEPP, the identity and contact details of the PEPP provider, information about the competent authority of the PEPP provider and the date of the document; (b) where applicable, a comprehension alert which shall read: ‘You are about to purchase a product that is not simple and may be difficult to understand.’; (c) under a section titled ‘What is this product and what happens when I retire?’, the nature and main features of the PEPP, including: i. any minimum or maximum period for belonging to the PEPP scheme; ii. the legal information about the retirement age of the Member State which law is applicable; iii. the Member States in which the provider offers a PEPP; iv. the investment options, including the default option; v. information on the portability service; vi. information related the investment policy of the PEPP in terms of environmental, social and governance factors including how this policy is compatible with the Union’s climate and sustainability objectives as set out in the Paris agreement, Sustainable Development Goals, and the United Nations Guiding Principles on Business and Human Rights; vii. information on the investment exclusion policy related to severe environmental damage, serious violations of human rights and the production of weapons viii. description of the retirement benefits and the extent to which they are guaranteed and the way of out-payments , including a description of the decumulation options and a statement that it may be prudent to consider advice on options before retirement; ix. information on any impact the timing of retirement may have on the risks and retirement benefits for the PEPP. x. a description of decumulation options and a statement that it may be prudent to consider advice on options before retirement; xi. the objective of retirement and the means for achieving an optimal result for the PEPP saver, in particular whether the objective is achieved by means of direct or indirect exposure to the underlying investment assets, including a description of the underlying instruments or reference values, a specification of the markets the PEPP invests in and, where applicable, specific environmental or social objectives targeted by the product, as well as how the return is determined; xii. a description of the type of pension saver to whom the PEPP is intended to be marketed, in particular in terms of the ability to bear investment loss and the investment horizon; xiii. where the PEPP offers insurance benefits, details of those insurance benefits, including the circumstances that would trigger them; xiv. the term of the PEPP, if known; (d) under a section titled ‘What are the risks and what could I get in return?’, a brief description of the risk-reward profile comprising the following elements: i. a summary risk indicator, supplemented by a narrative explanation of that indicator, its main limitations and a narrative explanation of the risks which are materially relevant to the PEPP and which are not adequately captured by the summary risk indicator; ii. the possible maximum loss of invested capital, including, information on: – whether the PEPP saver can lose all invested capital, or – whether the PEPP saver bears the risk of incurring additional financial commitments or obligations, including contingent liabilities in addition to the capital invested in the PEPP, and – where applicable, whether the PEPP includes capital protection against market risk, and the details of its cover and limitations, in particular with respect to the timing of when it applies; iii. appropriate performance and forward-looking scenarios, and the assumptions made to produce them; iv. the integration of environmental, social and governance factors into the PEPP investment strategy and risk mitigation technique; v. where applicable, information on conditions for returns to PEPP savers or built-in performance caps; vi. a statement that the tax legislation of the PEPP saver’s home Member State may have an impact on the actual payout; (e) under a section titled ‘What happens if [the name of the PEPP provider] is unable to pay out?’, a brief description of whether the related loss is covered by an investor compensation or guarantee scheme and if so, which scheme it is, the name of the guarantor and which risks are covered by the scheme and which are not; (f) under a section titled ‘What are the costs?’, the costs associated with an investment in the PEPP, comprising both direct and indirect costs to be borne by the PEPP saver, including one-off and recurring costs, presented by means of summary indicators of these costs and, to ensure comparability, total aggregate costs expressed in monetary and percentage terms, to show the compound effects of the total costs on the investment. The PEPP key information document shall include a clear indication that advisors, distributors or any other person advising on, or selling, the PEPP will provide information detailing any cost of distribution that is not already included in the costs specified above, so as to enable the PEPP savers to understand the cumulative effect that these aggregate costs have on the return of the investment; (g) under a section titled ‘How long should I hold it and can I take money out early?’ i. where applicable, whether there is a cooling off period or cancellation period for the PEPP; ii. an indication of the recommended and, where applicable, required minimum holding period; iii. the ability to make, and the conditions for, any disinvestments before maturity, including all applicable fees and penalties, having regard to the risk and reward profile of the PEPP and the market evolution it targets; iv. information about the potential consequences of cashing in before the end of the term or recommended holding period, such as the loss of capital protection or additional contingent fees; (h) under a section titled ‘How can I complain?’, information about how and to whom a PEPP saver can make a complaint about the product or the conduct of the PEPP provider or a person advising on, or selling, the product; (i) under a section titled ‘Other relevant information’, a brief indication of any additional information documents to be provided to the PEPP saver at the pre-contractual and/or the post- contractual stage, excluding any marketing material. 4. Layering of the information required under paragraph 3shall be permitted, whereby detailed parts of the information can be presented through pop-ups or through links to accompanying layers, so as to ensure the PEPP key information document is able to fulfil the obligation regarding its length set out in Article 23(5). 5. In order to ensure consistent application of this Article, the ESAs shall, through the Joint Committee of the ESAs, develop draft regulatory technical standards: (a) specifying the details of the presentation and the content of each of the elements of information referred to in Article 23 together with the requirements needed to present that information in a standardised format allowing for comparison; (b) specifying the calculation methodologies necessary for the information under paragraph 3.d.(i), 3.d.(iii), 3.d.(iv) and 3.f;(c)specifying, where layering of information is permitted, which of the information should be in the core presentation, and which information is provided in the additional layers of detail. When developing the draft regulatory technical standards the ESAs shall take into account the various types of PEPPs, the differences between them and the capabilities of PEPP savers as well as the features of the PEPPs so as to allow the PEPP saver to select between different underlying investments or other options provided for by the product, including where this selection can be undertaken at different points in time, or changed in the future. The ESAs shall submit those draft regulatory technical standards to the Commission by ... [xxx after the date of entry into force of this Regulation] Power is conferred on the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010, of Regulation (EU) No 1094/2010 and of Regulation(EU)No 1095/2010.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 23 b (new)

Article 23b Civil liability 1. The PEPP manufacturer shall incur civil liability on the basis of the key information document, including any translation thereof, where it is misleading, inaccurate or inconsistent with the relevant parts of legally binding pre- contractual and contractual documents or with the requirements laid down in Article 19. 2. A PEPP saver can claim damages from the PEPP manufacturer in accordance with national law in case of loss resulting from reliance on a key information document under the circumstances referred to in paragraph 1, when making an investment into the PEPP for which that key information document was produced. The PEPP manufacturer shall not incur civil liability when it can be demonstrated that either the information was not misleading, inaccurate or inconsistent or the loss of the PEPP saver does not result from relying on a key information document. 3. Elements such as ‘loss’ or ‘damages’ as referred to in paragraph 2 of this Article which are not defined shall be interpreted and applied in accordance with the applicable national law as determined by the relevant rules of private international law. 4. This Article does not exclude further civil liability claims in accordance with national law. 5. The obligations under this Article shall not be limited or waived by contractual clauses.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 25 – title

Specification of demands ~~and need~~, needs and preferences and provision of advice

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
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~~, needs and preferences, including ESG related preferences 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.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
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 Regulation shall provide the PEPP saver with a personalised recommendation explaining why a particular PEPP would best meet the PEPP savers’s demands ~~and need~~, needs and preferences, including ESG related preferences.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 25 – paragraph 4

4. Where a PEPP provider or distributor referred to in Article 19(c) of this Regulation informs the PEPP saver that it gives its advice on an independent basis, it shall give that advice on the basis of an ann providing advice at any stage during the contract, the PEPP provider shall obtain the necessary information regarding the PEPP saver’s knowledge and experience in the investment field relevant to the PEPP, that person’s financialy si~~s of a sufficiently large number of personal pension products available on the market to enable it to make a personal recommendation, in accordance with~~tuation including his or her ability to bear losses, and his or her investment objectives including his or her risk tolerance and investment proefe~~ssional 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~~rences. In particular, the PEPP provider or distributor shall proactively inquire the PEPP saver’s non-financially material ESG preferences. This information shall enable the PEPP provider, intermediary 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 providedto recommend to the PEPP saver or potential PEPP saver that the PEPP is suitable for him or her and, in particular, is in accordance with his or her risk tolerance, and ability to bear losses and sustainability preferences and interests.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 25 – paragraph 5

5. PEPP providers and PEPP 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~~Regulation. Member States shall publish the criteria to be used for assessing such knowledge and competence.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 25 – paragraph 5 a (new)

5a. EIOPA shall issue by ... [xxx after the date of entry into force of this Regulation] guidelines specifying criteria, for the acquisition of information on the PEPP savers’ ESG related preferences under paragraph 4 and on the assessment of knowledge and competence required under paragraph 5. Those guidelines shall be adopted in accordance with Article 16 of Regulation (EU) No 1094/2010.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 26

~~[...]~~deleted

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 28 – paragraph 1

1. The PEPP Benefit Statement shall include, at least, the following key information for PEPP savers: (a) saver, name of the PEPP provider, information on pension benefit projections, 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; (b) the Member State in which the PEPP provider is authorised or registered and the name of the competent authority; (c) full or partial guarantees under the PEPP scheme and if relevant, the nature of the guarantee and mechanisms protecting accrued individual entitlements; (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; (e) by the PEPP provider at least over the last 12 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.deleted personal details of the PEPP where applicable, information on a breakdown of the costs deducted

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 28 – paragraph 1 a (new)

1a. The PEPP Benefit Statement shall include, at least, the following key information for PEPP savers which shall be provided annually: (a) personal details of the PEPP saver, name of the PEPP provider, information on pension benefit projections, 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; (b) a clear indication of the statutory retirement age of the PEPP saver, the retirement age laid down in the pension scheme or estimated by the PEPP provider, or the retirement age set by the PEPP saver, as applicable; (c) the name of the PEPP provider and its contact address and identification of the PEPP scheme of the PEPP saver; (d) information on pension benefit projections based on the retirement age as specified in point (b), and a disclaimer that those projections may differ from the final value of the benefits received. These shall be illustrated on the basis of economic scenarios, including a best estimate scenario and an unfavourable scenario, taking into consideration the specific nature of the PEPP scheme (e) information on the accrued pension entitlements or accumulated pension capital taking into consideration the specific nature of the PEPP scheme; (f) information on the contributions paid by any third party and the PEPP saver into the PEPP scheme, at least over the last 12 months, taking into consideration the specific nature of the PEPP scheme; (g) 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; (h) a breakdown of the costs deducted by the PEPP provider at least over the last 12 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. (j) information on the funding level of the PEPP scheme as a whole. (k) information related to the investment policy of the PEPP in terms of environmental, social and governance factors including how this policy is compatible with the Union’s climate and sustainability objectives asset out in the Paris agreement, Sustainable Development Goals, and the United Nations Guiding Principles on Business and Human Rights; (l) information on the investment exclusion policy related to severe environmental damage, serious violations of human rights and the production of weapons

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 28 – paragraph 2

2. The Commission shall adopt delegated acts in accordance with Article 62 setting out rules to determine the assumptions on pension benefit projections referred to in point (a) of paragraph 1. Those rules shall be applied by PEPP providers to determine, where relevant, the annual rate of nominal investment returns, the annual rate of inflation and the trend of future wagesPension Benefit Statement shall specify where and how to obtain supplementary information including: further practical information about the PEPP savers options provided under the PEPP scheme.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 28 – paragraph 3

3. ~~In accordance with Article 55, Member States shall exchange best practices with regard to the format and the content of the PEPP Benefit Statement~~The Commission shall, in consultation with the European Central Bank, EIOPA and national supervisors, adopt a delegated act in accordance with Article 62 setting out rules to determine the assumptions on pension benefit projections referred to in point (a), the presentation of past performance ) and the presentation of costs. Those rules shall be applied by PEPP providers to determine, where relevant, the annual rate of nominal investment returns, the annual rate of inflation and the trend of future wages.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 31 a (new)

Article 31a Disclosure of information relating to environmental, social and governance factors For the purpose of Articles 5, 6, 23b, 28 and 32 of this Regulation, PEPP providers and distributors shall disclose the following information: (a) a description of specific environmental, social and governance risks, which could arise in the short-, medium-, or long-term and could have a material and financial impact on the PEPP product; (b) a description of the processes that are used to determine which risks could have a material or financial impact on the PEPP product and how these are integrated into its risk mitigation techniques; (c) a description of significant concentrations of exposures against greenhouse gas-related assets, including risks related to the depreciation of assets, due to regulatory change if these are material; (d) a best estimate of the relative carbon footprint of the investment portfolio expressed in kg CO2 emitted per million euro of assets invested; (e) a description of the processes that PEPP provider uses to identify, evaluate and manage these risks; (f) whether a the do-no-harm principle according to ESG risk analysis is effectively integrated by the institution management. 2. EIOPA, in close co-operation with ESMA, shall develop draft regulatory technical standards to specify further details on the disclosure requirements provided for in paragraph 1 and submit them to the Commission by July 2020. Power is conferred on the Commission to adopt the regulatory technical standards in accordance with Articles 10 to 14 of Regulation (EU) No1093/2010.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 32 – paragraph 1 – point a

(a) to assess the system of governance applied by the PEPP providers, the business they are pursuing, the valuation principles applied for solvency purposes, the risks faced and the risk-management systems, including the integration of ESG related risks, and their capital structure, needs and management;

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 32 – paragraph 2 – point b

(b) to obtain from the PEPP providers any information regarding contracts which are held by PEPP providers or regarding contracts which are entered into with third parties; ~~and~~

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 32 – paragraph 2 – point b a (new)

(ba) to obtain from the PEPP providers any information regarding environmental, social and governance factors in accordance with Article 31a;

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 33 – paragraph 1 – point a

(a) the assets shall be invested in the best long-term interests of PEPP savers as a whole. The long-term interests of beneficiaries include integrating environmental, social and governance factors into the investment decisions. In the case of a potential conflict of interest, a PEPP provider, or the entity which manages its portfolio, shall ensure that the investment is made in the sole interest of PEPP savers; PEPP providers shall engage regularly with their clients to ensure their concerns and preferences are properly integrated into the investment decisions.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 33 – paragraph 1 – point b a (new)

(ba) assets shall be invested in a way that mitigates new or emerging risks relating to climate change, use of resources and the environment. In particular, this shall involve a thorough examination of the regulatory risk to financial assets resulting from activities, such as fossil fuel extraction and processing where future regulations in line with the Union’s objectives are likely to substantially diminish the value of those assets.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
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 level~~shall not exceed 20% of the total assets;

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 33 – paragraph 1 – point f

(f) tThe assets shall not be invested in countries on the Common EU list of third country jurisdictions for tax purposes. The assets shall not be invested in a high- risk and non-cooperative jurisdiction identified by the Financial Action Task Force and by the Commission Delegated Regulation (EU) 2016/1675 supplementing Directive (EU) 2015/849 of the European Parliament and of the Council by identifying high-risk third countries with strategic deficiencies;

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 33 – paragraph 1 – point f a (new)

(fa) the PEPP provider formulates, publishes and regularly reviews a policy to exclude the investment of assets in certain products or conducts related to severe environmental damage, serious violations of human rights and the production of weapons.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 33 – paragraph 1 a (new)

1a. For the purpose of paragraph 1, point (ba), and taking into account the experience acquired in the application of regulatory technical standards referred to in Article 31a, EIOPA in close co- operation with ESMA shall issue by July 2022 draft regulatory technical standards for developing a methodological standard for identifying, measuring and managing sustainability risks and factors related to the investment of PEPP assets, including risks related to the depreciation of assets due to regulatory change. Power is conferred on the Commission to adopt these regulatory technical standards in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 33 a (new)

Article 33a Additional investment rules for SPEPP In addition to the investment rules listed in Article 34, SPEPP providers shall invest in accordance with the following rules: 1. SPEPP providers shall engage at least annually with their clients to ensure their concerns and preferences are properly integrated into the investment decisions. 2. The SPEPP provider shall only invest in assets which qualify as sustainable according to the EU’s sustainable finance taxonomy. 3. The investment portfolio as a whole shall not exceed X kg CO2 emitted per million euros of assets invested. Power is conferred to the Commission to adopt a delegated act in accordance with Article 62 to specify subparagraphs 1 to 3 by 1 July 2022.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 34 – paragraph 2 a (new)

2a. PEPP providers shall offer the default investment option and may offer alternative investment options

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 37 – paragraph 1

1. The default investment option shall be cost-effective and ensure capital protection for the PEPP saver, on the basis of a risk-mitigation technique that results in a safe investment strategy.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 37 – paragraph 1 a (new)

1a. PEPP providers shall offer the default investment option under the conditions of Article 39, paragraph 2.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 37 – paragraph 2

2. Capital protection shall allow the PEPP saver to recoup the capital invested, including fees, costs and inflation.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 37 – paragraph 2 a (new)

2a. The overall management fees of the default option shall not exceed 0.75 % per annum.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 39 – paragraph 1 – introductory part

1. The ~~Commission shall be empowered to adopt a delegated act~~ use of risk-mitigation techniques shall ensure that the investment strategy for the PEPP is designed so as 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. The applicable risk- mitigation techniques shall include provisions (a) or (b) or (c) or a combination thereof: (a) provisions for using appropriate financial guarantees to protect against investment losses; (b) provisions for gradually adapting the investment allocation to mitigate the financial risks of investments for cohorts corresponding to the remaining duration; (c) provisions establishing reserves from contributions or investment returns, which shall be allocated to PEPP savers in a fair and transparent manner, to mitigate investment losses. 2. If a PEPP under Article 37 of this Directive is offered without the provision of point a or based on a combination of the provisions under paragraph 1 of this Article, the PEPP provider or distributor should clearly explain the existence of a PEPP based solely on capital guarantees, the reasons for recommending a~~ccordance~~ PEPP based on the provisions of points b and c or a combination of the above provisions and clearly demonstrate any additional risks that these might entail in comparison to a capital guarantee based PEPP, in writ~~h Article 62 specifying:~~ ten format. 3. In order to establish criteria for effective risk-mitigation techniques that can be applied in a consistent manner, EIOPA shall develop draft regulatory technical standards specifying the details of the provisions for the risk-mitigation techniques. EIOPA shall submit those draft regulatory technical standards to the Commission by … [xxx after the date of entry into force of this Regulation]. Power is conferred on the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Article 10-14 of Regulation (EU) No 1094/2010.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 39 – paragraph 1 – point a

~~(a) the risk-mitigation technique to ensure capital protection under the default investment option;~~deleted

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 39 – paragraph 1 – point b

~~(b) the risk-mitigation techniques to be applied for the alternative investment options.~~deleted

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 45 – paragraph 2

2. The PEPP saver ~~may~~has the right to switch ~~PEPP~~ providers ~~no more frequently than once every five years after conclusion of the PEPP contract~~during the accumulation and decumulation phases at any time.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 48 – paragraph 3

3. TSwitching PEPP provider no more frequently than once every five years shall be free of charge for the PEPP saver. In case of more frequent switching, 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 10.5 % of the positive balance to be transferred to the receiving PEPP provider.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 48 – paragraph 4

4. ~~Fees and charges, if any, applied by the transferring or t~~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 with~~may only charge the actual costs of th~~at PEPP provider~~e switching service.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 49 – paragraph 5 a (new)

5a. Member States shall ensure that cross-border complaints and redress mechanisms are set up, allowing for individual as well as collective compensatory redress across borders.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 52 – paragraph 1 a (new)

1a. For the default investment option, a minimum of 80% of out-payments in the form of annuities shall be mandatory

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 62 – paragraph 2

2. The power to adopt delegated acts referred to in Article 24(3), Article 26(3), Article 28(2), Article 32(7), Article 33a (2) and Article 39 shall be conferred on the Commission for an indeterminate period of time from the date of entry into force of this Regulation.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 62 – paragraph 3

3. The delegation of powers referred to in Article 24(3), Article 26(3), Article 28(2), Article 32(7), Article 33a (2) and Article 39 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 62 – paragraph 5

5. A delegated act adopted pursuant to Article 24(3), Article 26(3), Article 28(2), Article 32(7), Article 33a (2) and Article 39 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of three months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by three months at the initiative of the European Parliament or the Council.

2018/04/30
Committee: ECON

Bas EICKHOUT

Proposal for a regulation
Article 63 – paragraph 2

WThe re ~~the evalu~~port shall cover all issues concerning the functioning of the Regulation, identifies important problems with the functioning of the Regulation, the Report should outline how the Commission is intending to address the identified problems, including steps and timings of the potential revisionn particular the following: (a) portability; (b) development of the compartments and partnerships; (c) the switching mechanism; (d) the uptake of the basic PEPP; (e) the complains procedure; (f) the application throughout the Union; (g) the integration of ESG factors in the PEPP investment policy. The Commission shall set up a panel with relevant stakeholders to continuously monitor the development and implementation of the PEPP. The panel shall include at least EIOPA, the national supervisors, industry and consumer representatives and independent experts, including at least one ESG expert. The secretariat of the panel shall be EIOPA.

2018/04/30
Committee: ECON

110 Amendments of Bas EICKHOUT related to 2017/0143(COD)

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