CEA calls for level regulatory playing field for pension providers
16 November 2010
In its response to the EC Green Paper on pensions, the CEA calls for the principle of “same risks, same rules” to be applied to the regulation covering life insurers, institutions for occupational retirement provision and mutual funds offering guaranteed benefits.
The new Solvency II regulatory regime for the insurance industry applies risk-based valuation and regulatory capital requirements, while the IORP Directive still follows a non-risk based approach. Applying Solvency II-type rules to IORPs would strengthen the single market for pensions, address regulatory gaps and avoid regulatory arbitrage.
“The Solvency II principles are appropriate for pension funds, provided the economically significant differences between pension products and schemes are taken into consideration,” says the CEA in its response to the Green Paper.
“We can see no reason why Solvency II principles should be appropriate for only one significant segment of the industry,” said Michaela Koller, director general of the CEA. The EC must launch an immediate project — including an impact assessment — for the application of Solvency II-type regulatory principles to IORPs.
© CEA - Comité Européen des Assurances
