Today, the consultation phase for EIOPA’s proposal on a fees cap on the pan-European pension product (PEPP) ends. EIOPA had consulted on draft standards to cap all costs and charges at 1% except for costs related to capital guarantees of savings products. In their contributions to the consultation, several European lobby groups complained about the plan to include all fees and charges in the fees cap of the new European insurance product. EFAMA and Insurance Europe suggest to exclude charges related to advice from the fees cap.
MEP Sven Giegold, financial and economic policy spokesperson of the Greens/EFA group commented:
“The industry’s resistance against the PEPP fees cap shows their unwillingness to offer savings products that truly benefit consumers. Exorbitant fees and charges nurturing the industry often prevent savers from having the fair returns necessary for maintaining a good life during retirement. Excluding charges for advice from the fees cap gives the wrong incentives to PEPP providers. It is high time for the insurance and fund industry to offer truly beneficial savings products at low cost.
The industry contradicts itself when warning against the risks of higher concentration in the investment sector on the one hand and refusing to offer more favourable investment products on the other hand. Large international asset managers providing low-cost passively managed funds continue to increase their market share. But the growing ownership concentration in the hands of BlackRock & Co is a risk to our social market economy.”