Monitoring implementation and enforcement of Directive 2016/2341/EU. The regulatory developments run in parallel with the ever-pressing need for trustees to consider the potential impact of the climate crisis on their investments. IORP II – national implementation . In this publication we have summarised the key legal developments in the Pensions space for 2019 and looked forward in predicting likely themes for 2020. IORP II is designed to raise the minimum standards within IORP I (2003), ... the UK, Germany, the Netherlands and Belgium – please click here1. These regulations require, amongst other things, the Regulator to deliver a Code in order that the UK is compliant with the IORP II governance requirements (see Pensions Bulletin 2018/42). IORP II sets several new minimum standards for IORPs, including new rules for the governance and risk assessment of IORPs. Whether or not the new IORP Directive will be implemented in the UK is clearly uncertain following the outcome of the recent EU referendum and will depend upon the timing and terms of the UK’s exit. With a target implementation date that is close to when the UK is expected to leave the EU, it is currently unclear how IORP II will be enacted into UK legislation. a pension scheme) coming within the scope of IORP II, unless the Member State disapplied some of the provisions of IORP II for smaller schemes. Amending and supplementary acts. Belgium implemented the Directive by adopting a new legal framework. The IORP II Directive does not impose any quantitative capital requirement, considered unrealistic from a practical point of view, but it does aim to harmonize the risk assessment, members’ publications, and investment principles in social and responsible activities at European level. The implementation of the IORP II directive offers a reinforcement of the governance practice, but also leads to various dilemmas. Information about Directive 2003/41/EC including date of entry into force and links to summary and consolidated version. en ... Search. Ireland has indeed left it late to act on IORP II (the deadline for implementation was actually in mid-January) but it seems the government is now ready to act. Questions such as: ‘how to set up key functions according to the nature and complexity of the fund’ or ‘what can I expect from the outsourcing of key functions’ have yet to be answered. transpose the directive into UK law. The IORP II Directive sets common standards by ensuring the soundness of occupational pensions and better protecting pension scheme members and their beneficiaries, by means among others: new governance requirements, new rules on IORPs’ own risk assessment, new requirements to use a depositary and enhanced powers for supervisors. Aon Italy estimates the implementation of IORP II could cost Italian pension funds about €100,000 each, depending on their specific situation. The Governance Regulations focus on requirements to establish an effective system of governance. The outcome of the UK assessment resulted in all UK schemes with fewer than 15 members being excluded from IORP II and the implementation made voluntary for schemes with 15-99 members following its cost benefit analysis. Austria. Where the sponsoring undertaking and the IORP are located in the same Member State, the mere fact that members or beneficiaries of a pension scheme have their residence in another Member State does not in itself constitute a cross-border activity. “IORP II”) must be transposed by the UK on 13 January 2019. To this end Codes of Practice 9 (internal controls) and 13 (defined contribution) will be reviewed first, as will content from Codes of Practice 14 (public service schemes) and 15 (master trusts). Q1. The Commission works with … 12 I actuarial association of europe PROPOSED REVISION OF IORP DIRECTIVE Commission Proposal: IORP II The European Commission … PensionsEurope welcomes the modernised rules for EU pension funds - September 2016.pdf. Home - European Commission. Skip to main content. You are here: Home; Publications; Occupational retirement provisions directive (IORP 2) - transposition status; Occupational retirement provisions directive (IORP 2) - transposition status. + 49 69-951119-19; email: info@eiopa.europa.eu site: https://eiopa.europa.eu/ ©EIOPA 2018 The requirements apply to local regulators, who then specify the details required in their jurisdiction. This article reflects our current understanding of the position. The recast directive places greater emphasis on effective corporate governance for pension scheme trustees. Taking these points into account, we believe that, if the IORP Directive were to undergo material changes, the implementation timeframe would need to be significantly longer than the five year period adopted for Solvency II in the insurance industry. The rules are proposed to take effect on 1 May 2019 and apply to firms that only offer occupational pension insurance. Modernised rules for EU pension funds: IORP II Directive. Scope, Guiding Principle, and Objectives. This instrument will implement those articles in IORP II which relate to workplace pension scheme governance into UK law. The extent (if at all) to which the UK will need to comply with IORP II is unlikely to be known until the terms of Brexit become much clearer. As part of the Year in Review, Year to Come series, our UK Pensions team has contributed a UK Pensions Year in Review and Year to Come publication. The next stages are as follows: > Once the Directive has been enacted, states must transpose its provisions into national law by 31 December 2016. pension countries: UK, Germany, The Netherlands. for implementing IORP II in the UK. On 27 March 2014, the Commission released a proposed text for revising the Directive, and to recast it consolidating the other pension related Directives. The latest Directive (also referred to as “IORP II”) was nearly three years in the making, with the EU Commission’s initial proposal for a new Directive having been published in March 2014. Legal Commentary on the Pension Funds Directive [dir. IORP II is set to have a positive impact on Austrian Pensionskassen as the country has done away with quantitative caps on how much funds can invest in different asset classes.