The European Insurance and Occupational Pensions Authority has given an indication of its views in advance of providing its advice to the European Commission on the review of the IORP directive.

In a press conference at the House of Finance at the Goethe University in Frankfurt, Germany, EIOPA chair Gabriel Bernadino said the authority will advocate the holistic balance sheet approach as the means of including all security mechanisms available in the different national frameworks.

EIOPA will call for transparency, comparability, comprehensiveness, and market consistency in the valuation of capital requirements of IORPs.

On governance, the authority will argue for the ‘strengthening of fit and proper’ criteria for proportionate implementation of IORPs, robust internal and external controls, and a sound risk management framework.

The authority will propose a ‘key information document’ be produced in defined contribution schemes, providing members and beneficiaries with the necessary information to enable them to have confidence in their scheme regardless of where it is located in the EU.

“We believe that this document will be a huge step towards greater transparency and confidence in the occupational pensions field.”

EIOPA’s advice, to be released in full in the coming days, was formed after the authority received 170 comments from interested parties.

Bernadino pointed out that the advice is just the first step in the process, and “further reflections” will be made taking into account the results of a quantitative impact study carried out with the involvement of a number of national supervisory authorities.

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