EIOPA Enhances IORPs Liquidity Risk Management

Opinion on the supervision of liquidity risk management of Institutions for Occupational Retirement Provision (IORPs)

Introduction

The European Insurance and Occupational Pensions Authority (EIOPA) has issued an Opinion aimed at enhancing the supervision of liquidity risk management within Institutions for Occupational Retirement Provision (IORPs). This initiative is designed to bolster the stability of IORPs and the broader financial system, while also improving the protection of pension fund members and beneficiaries.

Background and Context

In late 2024, EIOPA conducted a public consultation to gather insights and feedback on the draft Opinion. The final Opinion, published on 10 July 2025, outlines expectations for IORPs to improve their monitoring, assessment, and management of liquidity risks. This is crucial for maintaining the financial health of these institutions and ensuring they can meet their obligations to pensioners.

Key Recommendations

EIOPA's Opinion emphasizes the need for IORPs to adopt robust liquidity risk management frameworks. This includes regular stress testing, scenario analysis, and maintaining adequate liquidity buffers. The Opinion also highlights the importance of transparency and communication with stakeholders to ensure confidence in the management of liquidity risks.

Impact on the Financial Sector

The implementation of these recommendations is expected to have a significant impact on the financial sector, particularly in terms of enhancing the resilience of pension funds. By improving liquidity risk management practices, IORPs can better withstand financial shocks and continue to provide stable returns to their members.

Conclusion

EIOPA's Opinion represents a proactive step towards strengthening the financial stability of IORPs. By adhering to these guidelines, IORPs can enhance their risk management practices and ensure the long-term sustainability of pension funds.

Quelques pistes pour l'intégration opérationnelle dans votre dispositif :

- Mettre en place des tests de résistance réguliers pour évaluer la résilience face aux chocs de liquidité.

- Maintenir des coussins de liquidité adéquats pour faire face aux obligations imprévues.

- Améliorer la communication et la transparence avec les parties prenantes pour renforcer la confiance.

- Intégrer des scénarios de crise dans l'analyse des risques pour anticiper les défis potentiels.

- Assurer une formation continue des équipes sur les meilleures pratiques en gestion des risques de liquidité.