The Occupational Pension Schemes (Cross-border Activities) (Amendment) Regulations 2018

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations implement the requirements relating to cross-border activity and cross-border transfers in Articles 6, 9, 11, 12, 33 and 48 of the European Union Directive on the activities and supervision of institutions for occupational retirement provision (Directive (EU) 2016/2341) (OJ No. L 354, 23.12.2016, p.37) (“the Directive”). The Directive is a recast of the original EU Directive 2003/41/EC on the same subject matter (OJ No. L 235, 23.9.2003, p.10).

Regulation 2 amends Part 7 (cross-border activities within European Union) of the Pensions Act 2004 (c. 35) to implement changes made by the Directive in relation to the procedure for authorisation and approval of cross-border activity.

Regulation 3 amends the Occupational Pension Schemes (Cross-border Activities) Regulations 2005 (S.I. 2005/3381) to implement changes made by the Directive in relation to the regime and procedure for authorisation and approval for cross-border activity. It also implements the requirement under Article 9(3) of the Directive for the Pensions Regulator to communicate information from the register (compiled and maintained by the Pensions Regulator under section 59 of the Pensions Act 2004) to the supranational Regulator, the European Insurance and Occupational Pensions Authority. It also implements the new requirements under Article 12 of the Directive in relation to cross-border transfers.

Regulation 4 revokes regulation 11B of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991 (S.I. 1991/167), and an associated interpretative provision under regulation 1 of the same regulations. Regulation 11B made provision for transfers to a European pensions institution without consent. This revocation is made so that the new requirements under the Directive as implemented by these Regulations now govern cross-border transfers.

Regulation 5 adds to the list of registrable information in the Register of Occupational and Personal Pension Schemes Regulations 2005 (S.I. 2005/597) so that where there is cross-border activity, the name of the host EEA state will also be registered. This is in accordance with Article 9(2) of the Directive.

Another set of regulations, the Occupational Pension Schemes (Governance) (Amendment) Regulations 2018 (S.I. 2018/1103) also implement the Directive.

An assessment of the impact of these Regulations on business, charities and the voluntary sector has been made and is published with the Explanatory Memorandum and Transposition Note which are available alongside these Regulations on www.legislation.gov.uk. Copies may be obtained from the Better Regulation Unit of the Department for Work Pensions, Caxton House, Tothill Street, London SW1 9NA.