EFRP issues legal commentary on Pension Funds Directive

13 October 2004

The Europeean Federation of Retirement Provision (EFRP) has published a legal commentary on 'Directive 2003/41/EC on the Activities and Supervision of Institutions for Occupational Retirement Provision'. Among others, EFRP thinks that its cross-border provisions must be based on a single supervisor approach.

This principle is firmly anchored in the Directive. If any host State prudential rules are imposed on non-domestic EIORPs, the primary enforcer is the EIORP’s own home State authority. The single EU licence also means that even where mutual recognition does not apply, such as any relevant national rules on social and labour law, these will be enforced in the first place by the home State supervisor.

CEIOPS will play a major role as regards the Directive. But its mandate precludes it from “addressing” national social and labour law issues; it will have to confine itself to “communicating“ national rules. This confirms EFRP concerns on possible problematic cross-border cooperation when it comes to compliance with relevant host State social and labour law.

Press release

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