The European Insurance and Occupational Pensions Authority has confirmed that expats who have UK pensions will not treat these private savings plans as ‘cross border’ contracts.
This clarification may ease the minds of many of those living abroad who are concerned about the potential impact of a no-deal Brexit on these savings.
The statement covers both pension and insurance products that have been bought in the UK, even if pensions are not yet in payment.
While the EIOPA can only issue ‘recommendations’ it has made it clear that it expect all EU regulators to make every effort to comply.
Aegon pension director Steven Cameron says he looks forward to national regulators within the EU to confirm without delay that these contracts are not considered ‘cross border’.
Cameron adds: “There have been concerns that in the event of a no-deal Brexit, UK financial services providers might have been limited in what services they could offer to customers who took out pensions and insurance policies while in the UK but who now live in another EU country.
“It was feared that regulators in other EU countries might have treated these policies as ‘cross border’, which could have stopped UK providers offering ongoing servicing such as collecting contributions, issuing regular statements or even paying claims unless they set up separate operations in each EU country.”
He adds: “We are very pleased to see EIOPA set out what actions it expects national regulators across the EU to take to minimise any hardship a no-deal Brexit could have been caused for expats in this situation.”
He says further clarification from individual regulators will give reassurance to thousands that their pensions and insurance products can continue as planned, even in the event of a no-deal Brexit.