Institutions for Occupational Retirement Provision - IORP
The IORP (Institutions for Occupational Retirement Provision) Directive established an EU regulatory framework for the pension sector. The current Directive follows a non-risk based approach to the regulatory requirements for pension funds. Investments in all alternative asset classes may not exceed 30% of the total assets of the IORP.
The proposed reform of the Directive, known as IORP II, was approved politically in June 2016 and does not propose any new capital requirements for the European pension industry.
On a parallel track – and despite the absence of any reference to capital rules in IORP II – the European Insurance and Occupational Pensions Authority (EIOPA) continues its work on a risk-based framework for occupational pension funds in the EU (Holistic Balance Sheet) that could lead to the introduction of Solvency II style solutions for pension funds.
Invest Europe Position
With pension funds providing more than 30% of the investment into European private equity any reform to their capital requirements will impact on Invest Europe members and might deter investments into private equity.
EIOPA’s continued work in this area is of significance for Invest Europe members and we remain closely involved in it.
Response to EIOPA Consultation on Solvency for IORPs >
EVCA-PAE, January 2015
Commissioner Barnier Announced Postponement of Reform >
May 2013, European Commission
Re-think is Needed on IORP Revision >
July 2012, Group of eight