Date: 2021-06-04Category: Not ApplicableState: Union GovernmentCountry: Europe
Commission Delegated Regulation (EU) 2021/896 of 24 February 2021 supplementing Regulation (EU) 2019/1238 of the European Parliament and of the Council with regard to additional information for the purposes of the convergence of supervisory reporting (Text with EEA relevance)
Executive Summary:
Commission Delegated Regulation (EU) 2021/896 supplements Regulation (EU) 2019/1238 regarding additional information for the convergence of supervisory reporting for Pan-European Personal Pension Products (PEPPs). It aims to standardize information required for supervision, beyond sectoral law, to prevent divergent national reporting requirements. The regulation was adopted on 24 February 2021 and will come into force twenty days after publication in the Official Journal of the European Union.
Key Points / Main Content:
* **Additional Information Requirements:**
* PEPP providers must provide additional information as per Article 40(1) to (5) of Regulation (EU) 2019/1238.
* This includes data related to risk management systems, business activities, written policies, valuation principles, and relevant risks.
* **Specific Information Categories:**
* Description of the risk management system, including governance for managing risks deriving from PEPP products.
* Description of the business pursued, including investment types, management strategies (active/passive), guarantees, risk mitigation, size (contributions and asset values), and a list of home and host Member States.
* Information on written policies addressing relevant risks.
* Information on valuation principles applied for solvency purposes.
* Overview of relevant risks (financial, liquidity, market, credit, reputational, ESG) and how the PEPP provider intends to manage them.
* Information on the capital structure of the PEPP provider, including capital ratios and levels of leverage.
* Information on contracts held by the PEPP provider, including obligations towards PEPP savers during the decumulation phase and for the provision of PEPP sub-accounts.
* **Entry into Force:**
* The regulation enters into force on the twentieth day following its publication in the Official Journal of the European Union.
* The regulation is binding in its entirety and directly applicable in all Member States.
Impact Analysis:
**PEPP Providers:**
* *Impact:* PEPP providers are subject to new requirements for supervisory reporting, mandating them to disclose additional information related to their risk management, business operations, and financial stability.
* *Action Required:* PEPP providers must review and update their reporting procedures to include the additional information specified in the regulation.
**Competent Authorities (including European Supervisory Authorities):**
* *Impact:* Competent authorities will receive more standardized information from PEPP providers, facilitating better supervision and comparability across different entities and member states.
* *Action Required:* Competent authorities need to adapt their supervisory processes to accommodate the new reporting requirements and utilize the information for effective oversight of PEPP providers.
**PEPP Savers:**
* *Impact:* PEPP savers may benefit from increased transparency and oversight of PEPP providers, potentially leading to greater confidence in the products and better protection of their investments.
* *Action Required:* No direct action is required.
Key Entities Referenced
European Union: A political and economic union of member states located primarily in Europe.
European Commission: An institution of the European Union, responsible for proposing legislation, implementing decisions, upholding the EU treaties and managing the day-to-day business of the EU.
Regulation EU 2019/1238: Regulation of the European Parliament and of the Council on a Pan-European Personal Pension Product (PEPP).
European Parliament: The parliamentary body of the European Union.
Council of the European Union: A part of the government of the European Union
Pan-European Personal Pension Product (PEPP): A personal pension product that can be offered across the European Union.
European Supervisory Authorities: The collective term for the three European financial supervisory authorities.
European Insurance and Occupational Pensions Authority: The EU authority responsible for supervising and regulating the insurance and occupational pensions sectors.
4.6.2021 E N O f f i c i a l J o u r n a l o f t h e E u r o p e a n Union L 197/5
COMMISSION DELEGATED REGULATION (EU) 2021/896
of 24 February 2021
supplementing Regulation (EU) 2019/1238 of the European Parliament and of the Council with
regard to additional information for the purposes of the convergence of supervisory reporting
(Text with EEA relevance)
THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Regulation (EU) 2019/1238 of the European Parliament and of the Council of 20 June 2019on a pan-
European Personal Pension Product (PEPP)(1)and in particular Article 40(9), first subparagraph thereof,
Whereas:
(1) Pan-European Personal Pension Product (PEPP) providers are subject to several Union and national sectoral
legislation within the financial services field, and the corresponding sectoral reporting requirements to their
competent authorities, including the European Supervisory Authorities. It is necessary to take a standardised
approach as regards the information that is necessary for the purposes of supervision in addition to the information
provided under the relevant sectorial law in order to mitigate the possibility of national divergent substantial
additional reporting requirements. The Commission invited the European Insurance and Occupational Pensions
Authority to provide technical guidance.
(2) A standardised set of information is necessary for improved comparability and greater efficiency and to avoid double
reporting linked to sectoral information requirements,
HAS ADOPTED THIS REGULATION:
Article 1
The additional information referred to in Article 40(1) to (5) of Regulation (EU) 2019/1238 shall include the following
information:
(a) a description of the risk management system of the PEPP provider, including its governance, for managing the risks
deriving from PEPP products;
(b) a description of the business pursued by the PEPP provider relative to the sector in which the PEPP provider operates,
including the type of investments made and their management, whether the investments are active or passive, whether
guarantees are offered or not, the implementation of risk-mitigation techniques, the size in terms of contributions and
asset values, and a list comprising the home Member State of the PEPP provider and any host Member States of the
PEPP provider;
(c) the information on which written policies PEPP providers are to have in place addressing relevant risks;
(d) information on the valuation principles applied for solvency purposes, where applicable;
(e) an overview of the relevant risks pertaining or linked to the provision of PEPP and how the PEPP provider intends to
manage those risks, including but not limited to financial and liquidity risks, market risks, credit risks, reputational
risks and risks related to environmental, social and governance factors;
(f) the information with regard to the capital structure of the PEPP provider, including capital ratios and levels of leverage;
(g) information on contracts held by a PEPP provider, or regarding contracts entered into with third parties, including the
obligations towards PEPP savers during the decumulation phase, or for the provision of PEPP sub-accounts.
(1) OJ L 198, 25.7.2019, p. 1.L 197/6 E N O f f i c i a l J o u r n a l o f t h e E u r o p e a n Union 4.6.2021
Article 2
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the
European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 24 February 2021.
For the Commission
The President
Ursula VON DER LEYEN