15 November 2002

Commission Communication commenting the Council Common Position on Pension Funds Directive

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The European Commission released a communication on the Councils Common Position on the Pension Funds Directive reached on 05 November 2002. The Communication states that the Common Position takes account of nearly all the amendments proposed by Parliament and accepted by the Commission. These have been incorporated, in some cases after being reworded in the interests of internal consistency of the text. Three of Parliament's amendments that were accepted by the Commission have not, however, been taken on board.

The Common Position develops and clarifies the main provisions of the Commission proposal concerning in particular the scope of the instrument (Article 2), optional application to life assurance companies (Article 4), conditions of operation (Article 9), information to be given to members and beneficiaries (Article 11), technical provisions (Article 15), investment rules (Article 18), management and custody (Article 19) and cross-border activities (Article 20). A new Article 21 on cooperation between Member States and the Commission has also been added.

The Commission takes the view that the common position adopted unanimously by the Council preserves the main thrust of its proposal as well as the substance of the amendments proposed by the European Parliament and accepted by the Commission. Despite the large number of amendments made to its initial proposal, the Commission is convinced that the common position strikes a satisfactory balance between, on the one hand, upholding a high standard of prudential control and security of pensions and, on the other, maintaining the efficiency of existing schemes and a high level of financial accessibility of pensions. It therefore hopes that the Directive will be adopted by the end of the year in accordance with the timetable set by the Heads of State and Government at Barcelona.

Subject to the above comments, in particular those related to the full consistency with the conclusions on financial stability, supervision and integration to be drawn by the Council soon, the Commission can approve the common position and accordingly recommend that the European Parliament approve the common position.

Commission communcation

© European Commission