On 19 December 2023, the European Insurance and Occupational Pensions Authority (EIOPA) issued a recommendation to the Registrar of Institutions of Occupational Retirement Provision (Registrar) responsible for supervising Institutions for Occupational Retirement Provision (IORPs) in Cyprus on actions necessary to restore compliance with the IORP II Directive. The recommendation refers to a breach of Union law affecting a number of IORPs operating domestically in Cyprus. The Registrar failed to fulfil its obligation as foreseen in the IORP II Directive to register these IORPs, that have been operating for several years without registration.
According to the IORP II Directive, IORPs should be either registered or authorised by the national competent authority before they can be allowed to operate domestically and across borders. The registration or authorisation requirement is the fundamental requirement of the IORP II Directive to ensure the protection of members and beneficiaries and the good functioning of the internal market.
The Registrar is recommended to promptly assess all available measures under the IORP II Directive and the IORP National Law and based on the concrete action plan decide on the most appropriate action to restore compliance with Article 9(1) of the IORP II Directive with regard to the identified IORPs. In doing so, the Registrar should also have adequate, qualified resources and obtain the necessary powers to enforce the law on non-compliant IORPs.
The Registrar has already taken some steps to address the issue during the investigation procedure and is processing the pending registrations.
Legal basis
This recommendation has been issued in accordance with Article 17 of the EIOPA Regulation which mandates EIOPA to act in case of non-compliance with Union law by competent authorities.
Read the summary of the recommendation