On 3 September 2018, the European Parliament published a press release announcing that its Committee on Economic and Monetary Affairs (ECON) has voted to approve the creation of a European market for additional personal pensions to increase investment choices for retail clients. The Pan-European Personal Pension Product (PEPP) would be portable cross-borders in the EU and therefore better adjusted to a globalised economy with open borders and labour mobility. The vote follows on from ECON’s draft report of February 2018 on the Commission’s proposal for a Regulation on a PEPP,

The press release notes that ECON MEPs have introduced a Basic PEPP to be a default, easily accessible, investment option. This Basic PEPP should allow a saver to recoup the capital and its overall costs, and fees should not exceed 1% of the accumulated capital per annum

The final shape of the text adopted will be subject to upcoming negotiations between the European Parliament, the Austrian Presidency and the Commission.