This will pave the way for a new voluntary EU-wide scheme for people to save for their retirement, and a broad range of financial institutions across the EU will be able to offer it.
Today, the pan-European personal pension product (“PEPP”) Regulation,
adopted in 2019, starts to apply. PEPP – a key part of the Commission's Action Plan to
strengthen the Capital Markets Union – will be available as a complement
to public and occupational pension systems, alongside existing national
private pension schemes.
PEPP will offer pension savers more choice, and the benefit of
greater competition, enhanced transparency and flexibility in product
options. PEPP providers will benefit from a real single market for the
PEPP and from facilitated cross-border distribution, which will allow
them to pool assets and create economies of scale.
At the same time, PEPP will help channel savings towards capital markets and benefit investment and growth in the EU.
Commissioner Mairead McGuinness, responsible for Financial Stability, Financial Services and Capital Markets Union, said:
“With this new framework for a pan-European personal pension product
(PEPP), people will have more choice when saving for their retirement,
while enjoying strong consumer protection. As a complement to public
pensions, PEPP caters for the needs of today's younger generation and
allows people to better plan and make provisions for the future. From
today, personal pension providers are able to provide PEPP across the EU
with one single registration. And by channelling savings towards
long-term investments, PEPP will help boost growth in the EU.”
Background
The June 2017 Commission proposal on PEPP is part of the Commission's Action Plan
to strengthen the Capital Markets Union. The PEPP regulation was agreed
and adopted on 25 July 2019 with the purpose to contribute to building
an internal market on personal pensions, enhancing the possibilities for
providers to provide personal pension products cross-border and
providing consumers with a competitive alternative to save for
retirement.
Commission
© European Commission
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article