The PEPP could become the new UCITS

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The PEPP is well on the way to becoming an attractive EU-wide savings vehicle, provided the different funds achieve a minimum size. It is therefore essential that EIOPA maintains responsibility for authorisation of a PEPP, to allow it to monitor the number of providers with regard to market efficiency. It could become an attractive and simple pan-European pension product. Critics will argue that the tax element is crucial if it is going to take off, meaning that contributions should be tax exempt, and that this will make or break the PEPP. A good design will steer some member states towards giving the product a favourable treatment. The first mover effect will follow.

Karel Lannoo is General Manager of ECMI. This article is based on a contribution for the 2018 Life & Pension Conference in Copenhagen, 19 September. Comments from Cosmina Amariei and Jorik van Zanden are gratefully acknowledged.