Peer review examined supervisory practices of national competent authorities in their assessment of how institutions for occupational retirement provision invest their capital in the best interest of their members and beneficiaries

A risk-based approach or a risk-based approach complemented with quantitative limits is more effective than a compliance-based approach

Supervisory practices are determined by legislative frameworks, types of scheme and the maturity of the pension industry

The review resulted in 27 recommended actions for 19 NCAs in 16 countries

Today, the European Insurance and Occupational Pensions Authority (EIOPA) published the findings of its peer review examining how national competent authorities (NCAs) ensure that institutions for occupational retirement provision (IORPs) comply with the Prudent Person Rule.

The review considered the basis for the interpretation of the Prudent Person Rule, legal and regulatory frameworks, information gathered for assessment, assessment methods and supervisory actions taken. The review was conducted among 27 NCAs from 24 European Economic Area countries.

Institutions for occupational retirement provision should invest their capital in the best interest of members and beneficiaries, i.e. prudently. The IORP Directive therefore requires these institutions to adhere to the Prudent Person Rule and lists a limited number of investment rules that must be respected by all IORPs.

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