As part of a broader consumer protection framework, the insurance and pensions sector are supervised through a range of specific measures. In the context of the insurance market, there are common capital requirements within the Solvency II framework to ensure that insurance companies are able to withstand difficult times and protect policy holder’s interests. Regulators have also implemented rules that require appropriate segregation of client assets as well as providing protection from money laundering and fraudulent activities.
In the pensions sector, occupational pension funds benefit from the principles of free movement of capital and free provision of services in the EU. This means that pension funds in one EU country can manage occupational pension schemes for companies established in another EU country. Pan-EU companies can have a single pension fund for all their subsidiaries throughout the EU.