EIOPA published today a Consultation Paper on the creation of a standardised pan-European Personal Pension Product (PEPP).
In its paper, EIOPA put forward a substantial proposal for the creation of the PEPP which is envisaged to be a long-term retirement savings product. It also noted that while it had initially considered the introduction of a passport system to accredit all personal pension products (PPPs), it would focus on introducing a second, parallel PPP system that met certain minimum standards.
The consultation suggested that the goal of a PEPP system would be to deliver value for money for consumers through economies of scale as providers operated across national borders, whilst supporting the development of multi-pillar pensions in countries yet to establish strong second-pillar systems.
EIOPA outlined a number of high-level investment principles it felt should apply to all PEPPs, including a de-risking strategy – such as a lifecycle fund – for default strategies where contributions were not guaranteed.
The deadline to submit comments is 5 October 2015.
EIOPA also announced it will host a public event on 7 September 2015 in order to provide stakeholders with the opportunity to actively contribute and share ideas on the creation of the PEPP.
More information is available here.