Having defined the rules for the Pan-European Personal Pension Product (or PEPP), Luxembourg is now ready for the entry into force of the harmonized EU PEPP scheme on 22 March 2022.
On March 4, 2022, the law of February 25, 2022 laying down the rules concerning, among other things, Regulation (EU) 2019/1238 concerning a pan-European personal retirement product (the PEPP regulation) and amending the law of July 16, 2019 laying down the rules relating to the EuVECA, EuSEF, MMF, ELTIF and STS securitization regulations entered into force.
In a nutshell, the new law provides:
- the designation of Financial Sector Supervisory Commission (CSSF) and the Insurance Commissioner (CAA) as competent authorities to oversee compliance with the PEPP framework; and
- the description of the powers attributed to the CSSF and the CAA, including the applicable powers of sanction.
The PEPP Regulation establishes a new individual pension product with pan-European characteristics. It contributes to a single European market for private pensions and aims to give savers more choice and offer them more competitive individual pension products when saving for their retirement, while benefiting from investor protection. PEPP providers – i.e. credit institutions, life insurance undertakings, certain institutions for occupational retirement provision (IORP), investment firms and UCITS management companies as well as alternative fund managers – will be able to benefit from a single European market for individual pensions and cross-border distribution facilitation, including an EU passport. This is an opportunity for Luxembourg to take advantage of this new pension product to become the privileged place for the creation and distribution of such cross-border products.
To read the newly published law, click here_
To read the PEPP Regulation, click here__