📋 Tender Overview
The European Insurance and Pensions Authority (EIOPA) published today a follow-up report to the 2019 peer review on the application of the Prudent Person Rule for IORPs according to the IORP II requirements. IORPs are required to invest their capital in the best interest of members and beneficiaries and respect specific investment rules. The report assessed how national competent authorities (NCAs) implemented the recommended actions identified in 2019.
The 2019 peer review issued 27 recommendations across seven areas to 28 NCAs. Of these, 8 recommendations were fully fulfilled, 10 were partially fulfilled but 9 were not fulfilled. Recommendations regarding the application of look-through methodology when IORPs are investing in collective investment vehicles have been predominantly addressed. However, recommended actions regarding the assessment of the governance of the investment process and the use of the on-site inspections have not been fulfilled. In other areas compliance is mixed.
Implementation of recommended actions often depended on the implementation status of the IORP II Directive. For those NCAs still transitioning to a risk-based approach, some of the secondary legislation and development of supervisory practices still needs to be implemented and this has an impact on the status of the fulfilment of recommended actions or implementation of best practices. Among the reasons for non-fulfilment of the recommendations were lack of resources and other priorities.
EIOPA invites NCAs that have not yet fulfilled the recommended actions to consider the identified best practices as inspiration for the development of their national supervisory practices. EIOPA will continue to closely monitor the implementation of the recommended actions.
