The EU’s two pan-European personal pension product (PEPP) providers have formed an association to improve market awareness of the product and support providers.
The Pan-European Personal Pension Providers Association (PEPPPA) is also aiming to shape the next version of the EU’s PEPP Regulation, which is in the process of being reviewed following a proposal for changes from the European Commission last year.
PEPPPA was co-founded by Finax and LifeGoals, the only two providers that the PEPP regime has managed to attract since it came into effect in August 2020.
The association has been active since September and is currently appealing for academics to join as free members. This outreach is being managed by Irene Agathocleous in her capacity as chief growth, strategy & market development adviser for PEPPPA.
“PEPPPA is not just about PEPP providers but also about educating the public and for that you need statistics, evidence, research, and that’s why we’re inviting academics to join us,” she told IPE.
“We want everyone involved.”
The Cross-Border Benefits Alliance – Europe (CBBA-Europe), of which LifeGoals is a member, maintains an open dialogue with PEPPPA, according to Panayiotis Mavromichalis, executive director for strategy and asset management at LifeGoals and a board member of PEPPPA.
The association also aims to be of practical use to existing and potential new PEPP providers. In this vein, it is working on an internal database for members to help them comply with PEPP rules in different member states.
“The PEPP Regulation leaves some discretion to member states on issues such as taxation, accumulation and decumulation and reporting rules, so even if it’s relatively straightforward to register your intention to distribute the product the reality is that localising systems for each country is a lot of work,” says Mavromichalis.
“The PEPP is a low margin product so it makes sense to share a common effort.”
As part of its Savings and Investment Union strategy, in November the Commission launched a proposed revision of the PEPP Regulation, which will next be considered by the European Parliament and Council. PEPPPA members and the association itself have already seen some of their views reflected in the Commission’s proposal and plan to continue to engage with the EU’s co-legislators.
“There is room for improvement,” said Mavromichalis.
Areas of consensus for PEPPPA include the benefit of the new regulation facilitating a workplace PEPP, which Mavromichalis insists would not be in competition with second pillar pensions, and including PEPP in the push for auto-enrolment across member states.
