Insurance Europe has published its comments on the European Insurance and Occupational Pensions Authority’s (EIOPA) draft opinions on the supervision of defined contribution (DC) Institutions for Occupational Retirement Provision (IORPs) long-term risk assessment and IORPs costs reporting.
EIOPA's proposals for IORPs should better consider the minimum requirements laid down in the IORP II Directive, existing rules applicable to IORPs at national level and the diversity of pensions across Europe.
EIOPA's proposals on cost reporting and on DC long-term risk assessment could significantly increase costs and compliance burdens for IORPs without adding clear value.
Insurers have witnessed an increased use of supervisory tools (level 3) in relation to IORPs since the adoption of the IORP II Directive. During its negotiation, policymakers decided not to introduce any level 2 measures, leaving it up to members states to implement and supplement as they see fit the minimum harmonization requirements introduced by the Directive; having so much detail at level 3 somehow contradicts this political agreement. More generally, it is important that the “soft” powers granted to EIOPA by its establishing Regulation do not replace ordinary regulatory and legislative procedures.