AEIP submits its feedback to the European Commission’s consultation on rationalisation of reporting requirements
The European Association of Paritarian Institutions (AEIP) has submitted its feedback to the European Commission’s consultation on rationalisation of reporting requirements. AEIP welcomes the Commission’s initiative to ease burdensome reporting requirements. In the past years, the regulatory burden on Institutions for Occupational Retirement Provision (IORPs) has increased significantly due to the 2016 review of the IORP Directive and applicable horizontal legislation such as sustainable finance legislation and Digital Operational Resilience Act (DORA). This has detrimental effects resulting in additional financial burdens on their members and beneficiaries, ultimately diminishing pension benefits.
AEIP underlines that striking the right balance between regulatory oversight and the operational needs of pension funds is essential to ensure the long-term financial well-being of pension funds and pension beneficiaries. Furthermore, AEIP advocates for the stabilisation of regulations. The continual evolution of reporting requirements necessitates the adjustment of national systems and procedures, leading to unwarranted and counterproductive complexity.
Simone Miotto, the Executive Director of AEIP said:
“It is crucial to recognize the inherent distinctions between paritarian institutions, such as occupational pension and healthcare funds, and pure financial market entities. Belonging to the welfare state and offering social protection, paritarian institutions exhibit distinct qualities compared to other participants in the financial market. For instance, they operate on a ‘not-for-profit’ basis, they lack shareholders and, notably, refrain from product sales. Likewise, rather than customers, paritarian institutions have members and beneficiaries.”
AEIP strongly believes that transparency and accountability are crucial in managing pension and healthcare funds, still overly excessive reporting requirements can have detrimental effects on these funds’ efficiency. AEIP suggests that the way forward is to make reporting simple and relevant (proportional) and always consider a cost-effective approach for pension and healthcare funds and their members and beneficiaries.
To read our full feedback please see here.
For further information please contact: panayiotis.elia@aeip.net
Panayiotis Elia, AEIP Policy Advisor, Pension & Financial Affairs