The creation of a harmonised legal framework to allow the establishment of pan-European pensions has been suggested by the European pensions watchdog.
The European Insurance and Occupational Pensions Authority has launched a consultation into continent-wide saving schemes.
To achieve this, EIOPA has said there would have to be a level playing field between all pension providers, along with the removal of barriers to cross-border business.
EIOPA has said that Pepps could prove to be more cost-effective because they can easily access new foreign markets and could make it easier for people to move around the EU for work.
The 51-page consultation paper said: “Providers will need to adhere to a high level of consumer protection requirements. For the Pepp these requirements can be shared across the product and by placing obligations on providers and intermediaries.”
EIOPA has said that while the product will be standardised, it does not expect the same to be true for decumulation options, and has said this will be determined by what is permissible under national legislation.
The consultation ends on 5 October.
Adviser view
James Gardiner, a financial planner with London-based Westminster Wealth Management, said: “The ability to move around the EU could be an upside, but a potential downside for this is that countries will have some control over how they apply the rules around pensions.
“Whether it is a good thing, or even manageable, I don’t know.”
