Date: 19th September 2018
Author: BETTER FINANCE
Type: In the news
BETTER FINANCE wishes to stress that providing EU citizens with a really safe PEPP is critical for their future pension adequacy. It is happy to see that the MEPs approved some of the improvements for pension savers it has been supporting, such as:
- the collective redress provision,
- the right for independent saver associations to subscribe a PEPP on behalf of their members (the inclusion of these associations as subscribers of PEPP products was indeed important as these associations have proven to be very effective in providing a better balance to the relationship between providers and pension savers),
- the annual fee cap of 1% for the basic PEPP,
- and the disclosure of the past performance of the PEPP since its inception and not just for five years (however, there is no requirement to also disclose the provider’s benchmark performance alongside that of the PEPP itself – as currently required for UCITS funds, thus preventing PEPP savers from assessing whether the provider has met its performance objectives or not).
However, despite BETTER FINANCE’s repeated warnings and meetings with representatives of the EU citizens at the Parliament, the ECON committee today decided to adopt a capital “protection” scam for the “basic PEPP” which is clearly against EU consumers.
Read the full press release here.