- Report Addresses Implementation of IORP Directive
- May 19, 2008
- Law Firm: Faegre & Benson LLP - Minneapolis Office
The Committee of European Insurance and Occupational Pension Supervisors (CEIOPS) released on March 31 a comprehensive report that provides analysis of IORP Directive 2003/41/EC on the Activities and Supervision of Institutions for Occupational Retirement Provision.
While the advantages of implementing pan–European pension arrangements include reduced costs, improved governance and better risk management, companies considering such a step should be aware of the CEIOPS findings set out in this report. The report incorporates comments from member state supervisors on areas that have been problematic due to interpretation and implementation differences across member states.
The CEIOPS report, Initial Review of Key Aspects of the Implementation of the IORP Directive, essentially represents the practical experience of participating member states. While the report confirms that the supervisory process is working under the IORP directive, it states there are “some areas where action appears to be needed for clarity and for supervisory convergence.”
The report also notes that member states have “definitional differences” and that clarification is required in four areas: cross-border activity, subordinated loans, ring-fencing and investment regulations.