EU regulator EIOPA will require pension plans to be more transparent on derivatives

The European Union Pension Funds Regulator will require occupational pension plans to report their derivative positions in order to identify risks and better protect investors, starting January 1, 2025.

The European Insurance and Occupational Pensions Authority said on Friday that pension plans, known in the EU as occupational pension institutions, or IORPs, will have to report their derivative risks, including through investment funds, to European national supervisory authorities.

According to EIOPA, the derived information will help regulators evaluate the actual hedging of various types of risk.

New data requirements for quarterly derivatives and cash flow reporting will be mandatory for IORPs with more than €1 billion ($1.1 billion) in assets under management.

Defined contribution and defined benefit funds will also need to better report on the contents of investment funds, including the underlying assets of enterprises in collective investments in transferable securities funds, known as UCITS funds, which can be registered in Europe and sold to investors around the world. .

EIOPA said it has decided to close “important emerging risk data gaps” and wants to see better cross-border data, with national regulators tracking cross-border plan operations accurately.

Content Source

News Press Ohio – Latest News:
Columbus Local News || Cleveland Local News || Ohio State News || National News || Money and Economy News || Entertainment News || Tech News || Environment News

Related Articles

Back to top button