The European Fund and Asset Management Association is proposing a blueprint for a European brand of personal pension products that can be distributed on a cross-border basis - the Officially Certified European Retirement Plan (OCERP).
Under the proposal, the association says, investors will find it easier to choose from a range of investment options. It is also intended to help them ensure that providers maintain a robust governance framework and administrative systems.
At the same time, any product that meets the standards could be distributed with an EU passport.
Peter De Proft, director general of the association, says the creation of a European brand would help overcome the current fragmentation of the pensions market and make cross-border fund distribution more cost-efficient.
In a report - The OCERP: a proposal for a European pension product - the association sets out a set of key standards these products should meet.
It also proposes different legislative scenarios where an EU passport for the OCERP could be provided, as well as conditions under which financial institutions could provide the product across Europe.
“We recognise that there are legal, prudential and tax hurdles for the emergence of a single market for personal pension products and this report does not set out to provide clear-cut solutions for each of these issues,” De Proft says.
“Instead, we will look to use it as a working document in our continued dialogue with European legislators and decision makers.”
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