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21
Irish Pensions Magazine Spring 2013
exempted. The Court was asked to examine whether
workplace defined benefit pension funds should have
to pay VAT on investment management services. In
England alone pension schemes could have saved
100 million a year in VAT if the Court of Justice had
agreed to exempt investment management services
according to the NAPF.
Green Paper on Long-Term Financing
On 25 March 2013, the European Commission
adopted a Green Paper on how to foster the supply of
long-term financing (LTF). The EC will identify possible
policy actions after having received the consultation
responses. Characteristics and different sources
of LTF are identified in the Green Paper, as are the
market players involved (households, governments,
commercial banks, corporates, investors). IORPs are
explicitly mentioned by the EC as “suitable” long-term
investors. LTF often forms an important part of IORPs’
investment activities, due to the match thereof with the
long duration and maturities of their liabilities.
This is intertwined with the review of the IORP
Directive. It is encouraging that the EC deems it to
be “important to ensure that new prudential rules for
occupational pension schemes do not discourage
sustainable long-term financing” and that “the review
of the IORPs Directive will therefore need to
take into account the potential impacts on long-term
financing and economic growth”. If Solvency II-like
rules are incorporated into the revised IORPs Directive,
such short term security measures would simply inhibit
LTF by IORPs. IORPs are increasingly faced with the
consequences and costs of such legislation, which
decreases their financing sources and/or capabilities.
Deadline for responses to the Green Paper is 25 June
2013.
Preliminary Results of Quantitative Impact
Study (QIS) on IORP Directive
The European Insurance and Occupational Pensions
Authority (EIOPA) published the preliminary results
of the quantitative impact study (QIS) on Institutions
for Occupational Retirement Provision (IORPs)
conducted by EIOPA in October – December 2012.
The purpose of this QIS is to assess the impact of
the different options included in EIOPA’s advice on
valuation and security mechanisms for the financial
requirements for IORPs. The QIS is part of the process
to advise the European Commission on the review of
the IORP Directive.
It is envisaged that the final report on the QIS outcome
together with EIOPA conclusions will be published in
mid-2013.
Article Author
David Fox
Projects Officer
IAPF
News
IAPF WEBCASTS
Did you know a selection of IAPF
events can be viewed online?
Speaker presentations are recorded
and can be assessed only by
members via the IAPF Website. To
view go to:
DATE FOR YOUR DIARY!
IAPF Benefits Conference
1st October 2013
The Convention Centre
Dublin
8.30am- 100pm
