AEIP input to: Insolvency laws: Increasing convergence of national laws to encourage cross-border investment
AEIP has submitted today its input to the Commission’s call for feedback on the proposal for a directive harmonising certain aspects of insolvency law.
In our input we underline that pension funds honour their pension obligations as well as welcome efficient insolvency procedures for investors that can lead to a better functioning Capital Market Union.
We point out that the current proposal insufficiently respects employees’ rights. In this aspect the proposal should complement the already applicable national insolvency rules and recognise national approaches and procedures that protect the interests of members and beneficiaries of pension schemes in case a sponsoring undertaking becomes insolvent. In line with existing national approaches and procedures, pension premium claims should remain collectible and enforceable. Additionally, pension funds welcome the aim of the proposal to make insolvency proceedings more efficient by removing any obstacles to a well-functioning Capital Market Union. Nevertheless, AEIP would like to underline that as social institutions IORPs fall under the provisions of national social and labor law. Notable, in relation to pension funds the proposal should improve cross-border procedures and assist cross-border activities, but significantly not through interfering with national social or labour law or tax law.
To read our full input please see here.
Our input is also available at the ‘Have your Say’ portal here.