Update Leidraad Pensioenadvies

The AFM has issued a comprehensive guideline on pension advice in the second pillar – Leidraad tweedepijler-pensioenadvies – which applies when pension advisors advise employers on a pension product in accordance with Article 4:23 of the Financial Supervision Act (Wft). In this guideline, a pension product encompasses not only offerings from premium pension institutions and insurers but also the placement of a pension plan with a pension fund.
This document delineates the scope of pension advice, emphasizing the importance of understanding and managing individual assets based on specific data. Advisers are urged to provide clear explanations, especially when dealing with financial products that fall outside the realm of standard financial instruments.
A significant highlight of the release is the timeline set for the industry. In contrast to pension funds, not all deadlines apply to insurers and premium pension institutions. However, the the statutory deadlines are similar. By 1 October 2026, both the risk preference research and the Product Development Process – Productontwikkelingsproces (PARP) should be in place, even though they have no designated legal date. Furthermore, a robust implementation and communication plan is expected to be ready by 1 October 2026. Continuous engagement with participants will commence post this date, focusing on the implications of their choices and the nuances of compensation. The compensation period is slated to conclude on 1 January 2037.
Figure 1: Transition timeline. Statutory deadlines for pension funds

The guideline also underscores the principles of pension advice. Advisers are encouraged to be well-versed with the products they recommend and ensure they meet the standards of good service. The document also touches upon the importance of understanding an employer’s financial position, knowledge, experience, objectives, and risk tolerance. A notable mention is the emphasis on the investment policy and collective risk sharing, where advisers are reminded to prioritize the interests of employees.
The guidelines, while not legally binding, are expected by the AFM to be considered by pension advisors in their advisory practices.