IORP II: KEY INSIGHTS INTO THE DIRECTIVE


Estimated reading time: 5 min.
 

 

WHO IS CONCERNED?

The IORP II Directive builds on the initial IORP framework and applies to all European Institutions for Occupational Retirement Provision — regardless of size, portfolio diversification, or investment strategy.

For a complete list of national pension fund associations, visit Pensionseurope.

 

 

 

WHEN DID IT TAKE EFFECT?

The Directive was published on 23 December 2016, and all EU member states were required to transpose the rules into national law by 13 January 2019.

Two key milestones marked the start of IORP II reporting obligations:

  • Q3 2019: first quarterly report in XBRL
  • Year-end 2019: first annual report

 

 

 

WHY WAS IT INTRODUCED?

The IORP II Directive establishes common European standards designed to safeguard pension scheme members and beneficiaries. Its objectives include:

  • Stronger governance, including own risk assessments and risk evaluation rules
  • Mandatory appointment of a depositary
  • Promotion of ESG factors within investment policy
  • Greater transparency at every stage of the pension lifecycle: pre-enrollment, membership, and post-retirement
  • Facilitation of cross-border transfers of pension schemes

For the full text of the Directive in all EU languages, see the European Union website.

 

 

HOW TO COMPLY?

Institutions must submit quarterly and annual reports in XBRL format to their national regulator. To meet transparency requirements, the process involves four key steps:

  1. Collect relevant data for each investment: issuer (LEI, country, NACE sector…), security (CIC level 2, ESA 2010 classification, duration, rating value…)
  2. Calculate portfolio measures for all positions
  3. Compile external and portfolio data in the prescribed reporting templates
  4. Transform files to XBRL format for submission to the regulator

 

 

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