AI Summary of Article 48 Powers of intervention and duties of the competent authorities
The competent authorities hold a pivotal role in ensuring that Institutions for Occupational Retirement Provision (IORPs) maintain robust administrative and accounting practices, coupled with effective internal controls. Member States must empower these authorities to enforce administrative sanctions for breaches of national provisions related to this Directive, ensuring these measures are effective and proportionate.
Moreover, the authority to restrict or prohibit IORP activities exists under specific conditions, such as inadequate asset management or failure to protect member interests. Importantly, decisions must be well-reasoned and communicated, ensuring transparency while preserving financial stability and member rights through a structured appeal process.
Article 48 Powers of intervention and duties of the competent authorities
1. The competent authorities shall require every IORP registered or authorised in their territories to have sound administrative and accounting procedures and adequate internal control mechanisms.
2. Without prejudice to the supervisory powers of competent authorities and the right of Member States to provide for and impose criminal sanctions, Member States shall ensure that their competent authorities may impose administrative sanctions and other measures applicable to all infringements of the national provisions implementing this Directive, and shall take all measures necessary to ensure that they are implemented. Member States shall ensure that their administrative sanctions and other measures are effective, proportionate and dissuasive.
3. Member States may decide not to lay down rules on administrative sanctions under this Directive for infringements which are subject to criminal sanctions under their national law. In that case, Member States shall communicate to the Commission the relevant criminal law provisions.