Cross-border activities

In accordance with the Directive (EU) 2016/2341 of the European Parliament and of the Council of 14 December 2016 on the activities and supervision of institutions for occupational retirement provision (IORPs) (hereinafter as „IORP II Directive”) IORPs which in the territory of the Slovak Republic represent supplementary pension management companies (hereinafter an ‘SPMCs’) may carry out cross-border activity in another Member State. With effect from 1 January 2019, SPMCs can also make a cross-border transfer of assets between SPMCs and IORPs. This follows from Articles 11 and 12 of the IORP II Directive, which have been transposed into Sections 37a to 37d of the Supplementary Pension Scheme Act and applies to SPMCs.

In order to support supervisory convergence and identify good practices for smooth and efficient IORPs cross-border transfers and cross-border activities, the EIOPA´s Board of Supervisors (European Insurance and Occupational Pensions Authority) adopted the Decision of the Board of Supervisors on the collaboration of the competent authorities of the Member States of the European Economic Area with regard to the application of Directive (EU) 2016/2341 of the European Parliament and of the Council of 14 December 2016 on the activities and supervision of institutions for occupational retirement provision (IORPs) (EIOPA-BoS-18/320) (hereinafter as „EIOPA Decision”) with effect from 13 January 2019.

Národná banka Slovenska (hereinafter as „NBS”) in order to ensure a uniform procedure and legal certainty in the application of certain provisions of Sections 37a and 37d of the Supplementary Pension Scheme Act and in accordance with the IORP II Directive and EIOPA Decision issued Methodological Guideline of the Financial Market Supervision Units of the Národná banka Slovenska No. 7/2021 of 6 September 2021 on the conditions for carrying out cross-border activities and on the conditions for carrying out cross-border transfers in pursuant to Sections 37a and 37d of Act No. 650/2004 Coll. on Supplementary Pension Savings and on amendments to certain acts as amended (hereinafter as „NBS Guideline”). (In Slovak language only)

The purpose of NBS Guideline is to establish uniform and comprehensible procedures for SPMCs, which will ensure

1. smooth and efficient carrying out activities in the territory of the host Member State (cross-border activity) by SPMCs,
2. transfer of assets or part thereof between SPMCs and IORPs (cross-border transfer),
3. as well as adequate protection for potential participants (potential members), participants (members) and beneficiaries (pension beneficiaries).

The NBS Guideline regulates the procedure for a SPMC that intends to perform cross-border activities pursuant to Section 37a (1) of the Supplementary Pension Scheme Act as well as the procedure for SPMC which already carries out a cross-border activity and intends to amend the plan of its business activities or the pension plan or intends to collect contributions from another employer in the host Member State. The NBS Guideline regulates in more detail what kind of information and facts the SPMC shall provide to NBS in order for the NBS to properly assess whether SPMC´s organizational, material and personnel arrangements, scope of business and its financial situation are adequate in relation to the proposed cross-border activity.

The NBS Guideline also regulates the procedure of a SPMC that intends to accept assets of an IORP or its part according to Section 37d of the Supplementary Pension Scheme Act, in relation to the method of submitting the relevant application for prior approval of the NBS for a cross-border transfer pursuant to Section 26 (1) m) of the Supplementary Pension Scheme Act.

In order to ensure efficient procedures and to facilitate the exchange of information and cooperation between the competent supervisory authorities, as well as the processing of notifications and applications within the NBS, standardized forms are included in the annexes to the NBS Guideline, namely Application form for formal notification of a proposed cross-border activity, Application form for prudential assessment of a proposed cross-border activity and Application for prior approval of the NBS for a cross-border transfer. (In Slovak language only )

Like SPMCs may perform their cross-border activities in the territory of another Member State, IORPs may perform cross-border activities in the territory of the Slovak Republic. In order to perform IORP´s cross-border activities in the territory of the Slovak Republic, the IORP shall take into account and comply with respective Slovak national rules and regulations. For these purposes, the NBS issued the Notice on the scope of regulations applicable to IORPs (note: this document is not legally binding and is for informational purposes only) which includes information of the scope of social law, labour law, information obligations and rules for investment and administration of property acquired during the performance of IORP´s activities in the territory of the Slovak Republic. Information on the scope of applicable regulations pursuant to Section (2) and (3) of the Supplementary Pension Scheme Act, the NBS will send to the competent authority of the home Member State of the IORP that will be interested in performing cross-border activities in the territory of the Slovak Republic.