PEPP Regulation: New Legal Notice and MFSA Consultation Document

Regulation (EU) 2019/1238 (the PEPP Regulation) came into force on the 22nd March 2022, and regulates the setting up and distribution of pan-European Personal Products.

These products aim to target the younger generation and mobile workers and to help facilitate further the right of European Union citizens to live and work across the European Union.

A new legal notice titled the ‘Malta Financial Services Authority Act (Pan-European Personal Pension Product (PEPP)) Regulations, 2022’ (L.N. 133 of 2022) was issued on the 6th May 2022. The main aim of this new legal notice is to designate the MFSA as the authority responsible for the registration procedure and for the supervision of the PEPP itself, and providers and distributors thereof.

The MFSA has today published a draft of ‘MFSA Rule 5’, which contains information in relation to the pre-application process of the PEPP, guidelines on PEPP supervisory reporting and the conditions pertaining to the accumulation and decumulation phase.

The MFSA is also proposing to introduce new fees in relation to the application, supervision and deregistration of PEPPs. The MFSA is welcoming feedback on the consultation document until the 31st May 2022.

Should you wish to participate in the consultation process or require any information in relation to the above, please do not hesitate to contact our financial services team at dfcs@dfadvocates.com.

Photo Credit: FTAdviser