European Insurance and Occupational Pensions Authority (EIOPA)
The 2008 financial crisis revealed many shortcomings in financial supervision. It brought to light the lack of cooperation, coordination and coherency between Member States in the national management of the practices of financial institutions. This Regulation is intended to rebuild the trust of European citizens and to prevent the risks of destabilising the global financial system with regard to insurance and occupational pensions.
Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/79/EC.
This Regulation establishes the European Insurance and Occupational Pensions Authority (EIOPA). It forms part of the package of measures put in place to reform the European System of Financial Supervision (ESFS) which creates three authorities to supervise financial activities:
- the European Systemic Risk Board;
- the European Banking Authority;
- the European Securities and Markets Authority.
The package also reforms existing legislation on financial matters with the Omnibus Directive and includes the Regulation conferring specific tasks upon the European Central Bank.
Supervision of the financial system of the European Union (EU) is further reinforced by the activities of:
- the Joint Committee of the European Supervisory Authorities;
- the competent or supervisory authorities of Member States.
Establishment and legal status of the EIOPA
The objective of the EIOPA is to safeguard the stability and effectiveness of the financial system. It acts mainly in the field of activities of:
- insurance and reinsurance undertakings;
- financial conglomerates;
- institutions for occupational retirement provision;
- insurance intermediaries;
- corporate governance;
- financial reporting.
The EIOPA has a legal personality and has its seat in Frankfurt am Main.
Tasks and powers of the EIOPA
The EIOPA is responsible for carrying out certain tasks, such as:
- contributing to the establishment of regulatory and supervisory standards and practices;
- monitoring and assessing the market and trends in the area of its competence;
- fostering the protection of policyholders, pension scheme members and beneficiaries.
In order to meet these objectives, the EIOPA has a leading role which consists in particular of:
- developing draft regulatory and implementing technical standards;
- issuing guidelines and recommendations;
- providing a centrally accessible database of financial institutions in the area of its competence.
The EIOPA also carries out activities relating to consumer protection, for example by analysing consumer trends or by developing training standards for industry.
Organisation of the EIOPA
The EIOPA has a Board of Supervisors that is responsible for giving guidance on its activities. The Board is composed of:
- a Chairperson;
- the head of the competent national public authority;
- a representative of the Commission;
- a representative of the ESRB;
- a representative of each of the two other European Supervisory Authorities.
The EIOPA also has a Management Board.
Joint bodies of the European Supervisory Authorities
The joint bodies of the European Supervisory Authorities are:
- the Joint Committee of European Supervisory Authorities which is responsible for cooperating with them as regards financial conglomerates, accounting and auditing, micro-prudential analyses, retail investment products, measures combating money laundering and information exchange with the ESRB;
- the Board of Appeal which provides legal advice on the legality of the exercise of the EIOPA’s exercise of its powers.
Any natural or legal person may appeal against a decision of the EIOPA, in writing, within two months of the date of notification of the decision. The Board of Appeal has a period of two months as from the appeal being lodged to confirm the decision taken by the EIOPA or to remit the case to a competent body.
This Regulation repeals Decision 2009/79/EC.
|Act||Entry into force||Deadline for transposition in the Member States||Official Journal|
Regulation (EU) No 1094/2010
OJ L 331, 15.12.2010
- European Insurance and Occupational Pensions Authority
- Financial Supervision, Directorate-General Internal Market - Financial Services