Several regulatory initiatives relevant to insurance distribution have progressed in recent weeks. While the Retail Investment Strategy (RIS) is approaching formal adoption, the reviews of the Sustainable Finance Disclosure Regulation (SFDR), the Pan-European Personal Pension Product (PEPP) framework and the Institutions for Occupational Retirement Provision (IORP) framework continue to move forward through the European legislative process.<\/p>\n\n\n\n
These files reflect a broader European policy agenda aimed at promoting sustainable investment, strengthening retirement preparedness and improving the way financial products are designed, disclosed and distributed to consumers.<\/p>\n\n\n\n
Since Becobra’s April update on the Retail Investment Strategy (RIS), the file has moved one step closer to formal adoption.<\/p>\n\n\n\n
On 9 June 2026, Member States endorsed the compromise package negotiated between the European institutions at COREPER level. While this does not yet constitute formal adoption, it confirms that the political negotiations have effectively been concluded and that the legislative process is entering its final stage.<\/p>\n\n\n\n
The European Parliament is currently expected to vote on the package later this year, with publication in the Official Journal anticipated by the end of 2026 or early 2027. Member States would subsequently have 24 months to transpose the new rules into national legislation, followed by a further six-month period before the framework becomes fully applicable.<\/p>\n\n\n\n
The official consolidated texts have not yet been published. While provisional versions are circulating among stakeholders, a definitive legal analysis will only be possible once the final texts have been released.<\/p>\n\n\n\n
The package introduces amendments to both MiFID II and the Insurance Distribution Directive (IDD). Although many discussions have focused on investment products and insurance-based investment products (IBIPs), several changes extend beyond investment-related activities and may also affect broader insurance distribution practices.<\/p>\n\n\n\n
The practical impact of the reform will depend not only on the Level I legislation itself, but also on the future Level II measures, including delegated acts, implementing measures and technical standards that will further clarify how key provisions should be applied in practice.<\/p>\n\n\n\n
Attention is therefore gradually shifting from the political negotiations themselves towards implementation. The coming years will determine how the new principles are translated into operational requirements, supervisory expectations and day-to-day distribution practices.<\/p>\n\n\n\n
The review of the Sustainable Finance Disclosure Regulation (SFDR) continues to progress through the European legislative process.<\/p>\n\n\n\n
The European Commission presented its proposal in November 2025 and the European Parliament’s ECON Committee published its draft report in May 2026. Discussions are ongoing within the Council and further negotiations between the European institutions are expected throughout 2026.<\/p>\n\n\n\n
The review was launched following concerns that the current framework had become overly complex and increasingly difficult to apply in practice. While SFDR was originally conceived as a transparency regime, it gradually evolved into a de facto product-labelling system, creating uncertainty for both manufacturers and distributors. The reform therefore seeks to improve transparency, reduce complexity and introduce a clearer categorisation of sustainability-related products.<\/p>\n\n\n\n
For insurance intermediaries, one of the most significant developments is that both the European Commission and the European Parliament support excluding financial advisers from the direct scope of SFDR. The underlying rationale is that advisers and distributors do not manufacture or manage financial products, but help clients identify products that correspond to their sustainability preferences.<\/p>\n\n\n\n
If confirmed, this approach would remove several entity-level disclosure obligations that currently apply to advisers, including disclosures relating to sustainability risks, principal adverse impacts (PAIs) and remuneration policies. This would represent a meaningful reduction in compliance and reporting requirements for intermediaries.<\/p>\n\n\n\n
At the same time, the practical importance of SFDR for distributors should not be underestimated. The proposed reform introduces new product categories, revised sustainability disclosures and additional anti-greenwashing measures. These changes are expected to be reflected in the sustainability-preference framework under the Insurance Distribution Directive (IDD), meaning that intermediaries will continue to play a key role in translating sustainability-related product information into meaningful advice for clients.<\/p>\n\n\n\n
The European Parliament is expected to continue its work on the file during the summer, while discussions within the Council remain ongoing. Once both institutions have established their positions, trilogue negotiations can begin. The timing of a final agreement remains uncertain at this stage.<\/p>\n\n\n\n
The review of the Pan-European Personal Pension Product (PEPP) framework has entered a more active phase. On 24 June, the Council of the European Union reached its negotiating position on the proposed revision, while discussions in the European Parliament are expected to continue in the coming months. Once Parliament has adopted its position, trilogue negotiations between the institutions can commence.<\/p>\n\n\n\n
PEPP was introduced in 2019 as a voluntary personal pension product that can be offered across the European Union and remain portable when individuals move between Member States. The initiative forms part of the broader European objective of strengthening supplementary retirement savings and encouraging greater participation in long-term capital markets.<\/p>\n\n\n\n
The current review follows a period of limited market uptake and seeks to make the framework more attractive and workable in practice. Discussions are focusing on several aspects of the regime, including the role of advice, disclosure requirements and the allocation of responsibilities between product manufacturers and distributors. Recent Council discussions have also revisited several elements of the Commission proposal, including value-for-money requirements, supervisory arrangements, tax-related provisions and the possibility of facilitating employer contributions while preserving the personal and third-pillar nature of the PEPP.<\/p>\n\n\n\n
The current discussions include, among other things, the conditions under which advice should be provided for Basic PEPPs, additional product oversight and governance requirements for distributors and the scope of disclosure obligations in the PEPP Key Information Document. These discussions also reflect wider regulatory debates that can increasingly be observed across European financial-services legislation.<\/p>\n\n\n\n
While PEPP itself remains a niche product in many Member States, the review provides useful insight into the direction of European policymaking on retirement savings, long-term investment and pension distribution. It also illustrates how broader regulatory themes such as consumer outcomes, product governance and the allocation of responsibilities across the distribution chain continue to shape European financial-services legislation.<\/p>\n\n\n\n
The review of the Institutions for Occupational Retirement Provision (IORP) framework has entered a new phase, with discussions progressing in both the Council and the European Parliament. The European Parliament’s Employment Committee (EMPL) is expected to discuss the proposed amendments on 22 June and vote on its opinion on 15 July. In parallel, the lead ECON Committee has published its draft report.<\/p>\n\n\n\n
IORP provides the European framework for occupational pension schemes, commonly organised by employers or sectors as part of the second pension pillar. The current review forms part of a broader European reflection on the adequacy, transparency and accessibility of retirement provision in an ageing society.<\/p>\n\n\n\n
Beyond technical governance requirements, the ongoing discussions increasingly focus on how citizens can gain a better understanding of their future retirement income. Topics such as pension information, pension transparency and financial literacy feature prominently in the debate, reflecting a wider policy objective of helping individuals make more informed retirement planning decisions.<\/p>\n\n\n\n
The review also highlights the continuing discussion on the respective roles of Member States, social partners and European institutions in shaping pension policy. While occupational pensions remain primarily a national competence, policymakers are exploring ways to improve transparency and comparability across the European Union.<\/p>\n\n\n\n
From an intermediary perspective, it is noteworthy that the latest parliamentary discussions have not introduced additional changes to the proposed amendments to the Insurance Distribution Directive (IDD). Nevertheless, discussions continue regarding the information obligations that may apply where occupational pension arrangements are distributed through insurance undertakings or intermediaries.<\/p>\n\n\n\n
As discussions continue in both the Council and the European Parliament, the final shape of the framework remains open. Becobra continues to monitor developments through BIPAR and will keep members informed of any relevant implications for occupational pension schemes and pension distribution activities.<\/p>\n\n\n\n
Becobra will continue to monitor these developments closely and contribute through Bipar and keep members informed of any significant implications for insurance distribution and advisory activities.<\/p>\n","protected":false},"excerpt":{"rendered":"
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