Regional Report European Union Level

1. EFRP European Federation for Retirement Provision Regional ReportEuropean Union Level Dr. Kees Van REES Chile, 15 March 2001 II International Pension Conference

2. Regional report – European Union Level EFRP European Federation for Retirement Provision Overview  EU Treaty Process towards an EU Directive Proposal EU country updates

3. Regional report – European Union Level EFRP European Federation for Retirement Provision Treaty – 3 Freedoms freedom of movement for - persons - capital - goods & services

4. Regional report – European Union Level EFRP European Federation for Retirement Provision History of Proposal for a Directive  study pension funds and capital markets - 1968  Leon BRITTAN initiative - 1989 - freedom for cross border affiliation - freedom for cross border pension fund management - freedom for cross border asset allocation  proposal for a Directive 1991  modified 1993 - withdrawn in 1994  Communication end 1994  ECJ decision in 1995 to withdraw Communication

5. Regional report – European Union Level EFRP European Federation for Retirement Provision Green Paper on Supplementary Pensions - 1997  analysis of social, economic and financial context  investment restrictions impair performance • prudent man favoured • EU prudential framework  labour mobility  taxation obstacles  numerous responses

6. Regional report – European Union Level EFRP European Federation for Retirement Provision Communication -Single Market of Supplementary Pensions - 1999  comprehensive approach  3 pillars under subsidiarity principle  main lines of action * Prudential rules for pension funds * Remove obstacles labour mobility * Coordinate taxation  EP and ESC supportive yet strict supervision

7. Regional report – European Union Level EFRP European Federation for Retirement Provision EFRP European Federation for Retirement Provision EFRP European Federation for Retirement Provision Proposal DirectiveonInstitutions for Occupational Retirement Provision(IORP) - 2000 Key elements : * liberalization of investment practice * prudential standard * cross border membership

8. Regional report – European Union Level EFRP European Federation for Retirement Provision EFRP European Federation for Retirement Provision EFRP European Federation for Retirement Provision Proposal DirectiveonIORP means to achieve these objectives: * minimum conditions for the operation * prudent principles* powers to supervisors * cross border procedures

9. Regional report – European Union Level EFRP European Federation for Retirement Provision EFRP European Federation for Retirement Provision EFRP European Federation for Retirement Provision Proposal DirectiveonIORPfirst assessment PRO: - institutional approach - pension fund specific - IORP response to heterogeinity - qualitative supervision favoured - coordination is appropriate

10. Regional report – European Union Level EFRP European Federation for Retirement Provision EFRP European Federation for Retirement Provision EFRP European Federation for Retirement Provision Proposal DirectiveonIORPfirst assessment DOUBTS: - no 100% single license - (too?) strong consumer protection instead of B2B - increased stringency as option- direct link to life-insurance

11. Regional report – European Union Level EFRP European Federation for Retirement Provision EFRP European Federation for Retirement Provision EFRP European Federation for Retirement Provision Proposal DirectiveonIORPnext steps  co-decision EP-Council with qualified majority voting • reading by EP & report by ESC • Council negotiations • adoption 2002? • implementation 01/01/2004

12. Regional report – European Union Level EFRP European Federation for Retirement Provision Country developments - 2000 legislative changes • 2nd pillar coverage • major shifts and developments

13. EFRP European Federation for Retirement Provision Regional ReportEuropean Union Level Dr. Kees Van REES Chile, 15 March 2001 II International Pension Conference