The German financial supervisory authority, BaFin, has disclosed new reporting obligations on investments for Pensionskassen and Pensionsfonds.
The new reporting obligations come after the authority’s publication of two collective decrees at the end of July.
One decree relating to reporting obligations of investments of insurances applies to Pensionskassen and small insurance companies, replacing an older decree from 2011.
The new decree includes rules on the reporting requirements for investments, the value of assets in financial statements, and hidden reserves.
It also orders that Pensionskassen must report on the coverage of actuarial liabilities on a quarterly basis. The Pensionskassen are also required to show to the financial supervisory authority sufficient coverage of actuarial liabilities at all times during the year.
If actuarial liabilities point to underfunding, Pensionskasse have to inform BaFin about intended measures to restore the coverage.
Pension funds have to report on the development of thelid coverage situation and the progress of measures introduced if underfunding persists during one quarter
Under the new reporting obligations, Pensionskassen must provide an overview of assets, sorted by type, on a quarterly basis. They must submit a report on derivative financial instruments, pre-sales and structured products on a quarterly basis.
Under the section “Fund” of the document to use to report on investments, the Pensionskassen should list all investments in accordance with the Ordinance on the Investment of Security Assets of Pensionskassen, Sterbekassen and small insurance companies (AnlV).
An example of a template shows that Pensionskassen would have to disclose the name of the fund, the management company, if it is a domestic or an EU fund, and if it is a Spezialfonds or an Undertakings for the Collective Investment in Transferable Securities (UCITS), among other things.
The second collective decree issued in July refers to the reporting obligations on investments for Pensionsfonds.
With the latest collective decree, BaFin has for the first time designed obligations for Pensionsfonds to report on investments and coverage.
Pensionskassen and Pensionsfonds are required to comply with the new reporting requirements as of 31 December 2021.