Background
The PEPP Regulation (the Regulation), was published on 25 July 2019, with entry into force on the 14 August 2019. The Regulation will enter into application 12 months after the delegated acts required by the Regulation are published in the Official Journal, this has not yet occurred. The Regulation enables the establishment of the PEPP which is designed to be transparent, consumer friendly and portable, and is intended to complement existing pension schemes and products. Key aspects of the Regulation are as follows:
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Distribution: A wide range of financial institutions will be able to offer the PEPP e.g. Insurers, asset managers, banks, etc. PEPP providers will be able to sell PEPPs online and distribute them across the EU with one single product registration.
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Portability: The PEPP enables consumers to continue contributing to the PEPP even where they change residence to another EU member state.
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Provider switching: Consumers can switch PEPP providers every five years.
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Transparency on costs and fees: the regulation seeks to achieve this through a standardised Key Information Document (KID), a Benefit Statement and having a cost cap on costs and fees.