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Daily Insurance Industry News
Saturday 20th of January 2018
March 27, 2012

ABI speaks out on IORP Directive

by Gill Montia

Story link: ABI speaks out on IORP Directive

Giving evidence to the House of Commons Work and Pensions Select Committee yesterday, the Association of British Insurers (ABI) cautioned against making changes at a European level that could impact UK pension reform.

Maggie Craig, the Association’s director of financial conduct regulation, said: “The ABI is a strong supporter of the pension reforms in the UK, in particular automatic enrolment, and has urged the European Commission not to engage in any activity as part of its pension policy that could derail these reforms or undermine them in any way.”

In particular, the ABI believes that there needs to be further consideration and analysis around plans to read across aspects of Solvency II to the IORP (Institutions for Occupational Retirement Provision) Directive.

Commenting on this issue, Ms Craig added: “When considering Solvency II as a benchmark for amending the IORP Directive, it must be emphasised that, in the UK, pensions offered by insurance companies and employer sponsored occupational pension schemes are not the same and these differences merit different regulatory approaches.

“In the UK, defined benefit pension schemes must meet funding standards and the pension protection fund protects members if schemes fail.

“As a result, we believe there are already appropriate and suitable levels of beneficiary protection in this area.”

 

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