According to a survey carried out by EFAMA –the European Fund and Asset Management Association - of its corporate members, 100% of asset managers already showed support to its idea for a “European Personal Pension” – a proposed cross-border personal pension product.
The proposal complements EFAMA’s 2013 recommendation for a European brand of personal pension product. It now includes an analysis on how personal pension providers would adapt their business models and options for default funds.
By centralising certain functions related with administration and investing, EFAMA believes the product would allow asset managers to gain economies of scale and would help disclosing all charges in a way the public could understand.
In the 2014 edition of “Pension Savings: The Real Return”, BETTER FINANCE called for a simple retirement savings vehicle that is readily accessible, without need for advice and its associated commissions and is supervised by public bodies. We believe this vehicle is of the uttermost importance for the protection of long-term purchasing power of savings. A pan-European Personal Pension Plan would definitely be welcomed by EU savers if it matches these requirements and if it is not disadvantaged in terms of taxation.
EFAMA’s report “Towards a Single Market for European Personal Pensions: Building Blocks for an EU legislation” is available here.