December 28, 2023
Payment of Pensions
The Insurance and Pension Funds Supervisory Authority (ASF) approved, on 19 December 2023, Regulatory Standards no. 13/2023-R, on the payment of pensions through a pension fund using the value of the individual account, providing, among other things, a set of rules on the payment of pensions and the transfer to other pension fund(s).
The Regulatory Standard repeals Regulatory Standard no. 8/2018-R, of December 28, and shall enter into force 60 days after its publication in Diário da República - the official gazette of Portugal.
December 22, 2023
ASF PUBLIC CONSULTATION – LIFE BRANCH – BCFT
The Insurance and Pension Funds Supervision Authority («ASF») submitted a Draft Regulatory Standard for public consultation on preventing and combating money laundering and terrorist financing, which aims to adapt the duties and procedures set out in the Law No. 83/2017, of 18 August , the nature, size and complexity of the obliged entities supervised by the ASF and the characteristics of the insurance, insurance distribution and pension fund management activities.
The Draft Regulatory Standard establishes as entities subject to its regulatory framework all Life Industry players , including (i) pension fund management companies authorized in Portugal; (ii) insurance companies and insurance intermediaries based in Portugal; (iii) Portuguese branches of insurance companies and insurance intermediaries based in another EU member state; (iv) insurance companies and insurance intermediaries based in another EU member state that carry out activity in Portugal under a community passport and (v) Portuguese branches of insurance companies from a third country.
In terms of normative content, the Draft Regulatory Standard provides for a densification of the obligations and principles set out in Law no. 83/2017, particularly with regard to the policies, procedures and controls provided for in article 12 of Law no. 83/2017; assessing the effectiveness of policies, procedures and controls; the responsibility of the management body; and, above all, the obligation to submit an annual PBCFT report to the ASF, to be carried out by all obliged entities by April 15th of each year, through the ASF Portal.
Comments on the draft regulatory standard must be sent, in writing, by January 22, 2024, to the following email address: consultapublicas@asf.com.pt.
December 19, 2023
Use of the Legal Entity Identifier (LEI)
In sequence of the Public Consultation No. 7/2023, the ASF approved Regulatory Standard No. 11/2023-R, which regulates the use of the Legal Entity Identifier (LEI) by entities subject to supervision by the Insurance and Pension Funds Supervisory Authority (ASF).
This Regulatory Standard is aimed at insurance and reinsurance companies, pension fund management companies, pension funds, insurance intermediaries and other entities related to the insurance and pension fund sector. These entities are now required to have a LEI issued by a Local Operating Unit (LOU), and must request the issuance of the LEI within 30 days from the date of entry into force of Regulatory Standard No. 11/2023-R. Furthermore, the respective issuance or expiry of the LEI must be communicated to the ASF within five working days from the date of its issuance or expiry.
This Regulatory Rule entered into force on 13 December 2023 and is available here.
December 15, 2023
Pension Plans and Health Benefit Plans Funded by Pension Funds
After undertaking the respective Public Consultation, the ASF approved Regulatory Rule no. 12/2023-R, of 12 December, which amends Regulatory Rule no. 8/2021-R, of 16 November, which establishes the rules for calculating the minimum value of liabilities arising from defined benefit pension plans and health benefit plans financed by pension funds.
In this regard, it should be noted that the minimum value of liabilities must be calculated by applying the TV 88/90 mortality table and the interest rate calculated through the sum of the following instalments, and cannot be less than 2.5%:
- Risk-free interest rate at the reference date of valuation of the liabilities, for the Euro currency and 15-year maturity, subject to the volatility adjustment for the Euro currency, published by the European Insurance and Occupational Pensions Authority (EIOPA), in accordance with article77.º-E of Solvency II Directive;
- 1,3%.
Regulatory Rule no. 12/2023-R, of 12 December, came into force on December 13th and is available here.
