European Insurance and Occupational Pensions Authority
Peer review on outsourcing - EIOPA publishes report - 19 July 2022
The European Insurance and Occupational Pensions Authority (EIOPA) has published a report (dated 22 June 2022) (EIOPA-BoS-22/383) following its peer review on outsourcing. The peer review considered the application and supervision by national supervisory authorities (NSAs) of the relevant regulatory provisions and guidelines related to outsourcing covering the period between 1 January 2016 and 31 December 2020.
The report suggests that EU undertakings are making increasing use of outsourcing, mainly in the field of technology, and that the level of outsourcing varies greatly across the EEA. These differences in the penetration of outsourcing help explain why member states' supervisory frameworks are also at different stages of maturity.
The peer review identified several areas for improvements to the outsourcing framework and outsourcing supervisory practices including among other things the supervision of shared services providers in cases of intra-group outsourcing and the provision of personnel as a form of outsourcing.
EIOPA Report (EIOPA-BoS-22/383)
Press release
IDD - EIOPA publishes guidance and feedback statement on integration of sustainability preferences - 20 July 2022
EIOPA has published guidance (EIOPA-BOS-22-391) on integrating customers’ sustainability preferences in the suitability assessment under the Insurance Distribution Directive ((EU) 2016/97) (IDD). The guidance follows EIOPA’s April 2022 consultation on draft Guidelines on integrating sustainability preferences.
The guidance aims to help national competent authorities (NCAs) and firms implement the changes introduced to the IDD regime by Commission Delegated Regulation (EU) 2021/1257. From 2 August 2022, firms must integrate their customers’ sustainability preferences into the sales process when they provide advice on insurance-based investment products. EIOPA stresses that the guidance is not binding and should not be considered as guidelines or a supervisory convergence tool.
In the accompanying feedback statement, EIOPA notes that it is pausing its work on the draft Guidelines and is instead publishing the guidance to promote better understanding of the new rules coming into effect.
Various respondents to EIOPA’s earlier consultation noted that a lack of data makes it difficult for intermediaries to have investment products on offer which would match sustainability preferences. Respondents also raise concerns about the impact of a misalignment between the application of the new IDD rules and that of the Commission Delegated Regulation under the Sustainable Finance Disclosure Regulation ((EU) 2019/2088), which requests that NCAs allow for a phased-in approach to the inclusion of sustainability preferences.
Guidance on the integration of sustainability preferences in the suitability assessment under the Insurance Distribution Directive (IDD) (EIOPA-BOS-22/391)
Feedback Statement: EIOPA consultation on IDD Guidelines on the integration of customer sustainability preferences in the suitability assessment under IDD (EIOPA-22/704)
Press release
UK Government and Pensions Dashboards Programme
Pensions dashboards - Policies underpinning draft Regulations, standards and guidance published - 15 and 19 July 2022
The Department for Work and Pensions (DWP) has published a summary of the key policies underpinning the draft Pensions Dashboards Regulations 2022 (the draft Regulations). The key policies follow the government’s response to the January 2022 consultation on the draft Regulations. The draft Regulations set out the requirements to be met by pensions dashboard service providers and by trustees or managers of relevant occupational pension schemes in Great Britain.
The revised draft Regulations have not been made available. The DWP notes that the Regulations will be laid before Parliament at a later date, subject to parliamentary timetabling.
Separately, the Pensions Dashboards Programme (PDP) has published a consultation on draft pensions dashboards standards and guidance (the draft Standards). These set out the technical and operational detail underpinning the pensions dashboards ecosystem. They specify mandatory requirements on qualifying pensions dashboard service (QPDS) and pension providers (both DWP- and FCA-regulated), detailing how they must meet the duties set out in DWP legislation and FCA rules in practice. Operating as a QPDS will be an FCA regulated activity under legislation to be introduced by HM Treasury in due course. The FCA will also introduce QPDS Conduct of Business rules, which will be subject to a separate consultation.
The PDP has also published a call for input on design standards aimed at prospective QPDS providers, which will set out requirements for presentation of the pensions data on dashboards and design of the dashboards. A further consultation will take place on the design standards in autumn 2022.
The deadline for responses is 30 August 2022. The new legislative framework will be in place from April 2023.
Summary of key policies: Draft Pensions Dashboards Regulations 2022
Updated webpage
PDP Consultation: standards, specifications and technical requirements
Webpage
