Learn about the new rules in Portugal regarding information duties in pension funds

Regulatory Standard No. 7/2025-R, of August 26, implements what is established in the legal regime for the constitution and operation of pension funds and pension fund management entities (RJFP), approved by Law No. 27/2020, of July 23, regarding information duties.

By approving this Standard, the supervisor aimed to promote consumers’ access to quality information about their savings, reinforcing comparability and transparency in their relationship with pension fund management entities, enabling more conscious and informed long-term savings decisions, and protecting the interests of participants and beneficiaries.

In practice, our experience shows that participants often subscribe to these products without fully understanding their characteristics or properties, which can result in significant long-term losses. Therefore, it is essential to reinforce the clarity and accessibility of the information provided to participants and beneficiaries.

The mentioned Regulatory Standard introduced some innovative aspects. Firstly, it introduced standardized methodologies for risk assessment calculation, presentation of historical return indicators, rules regarding the disclosure of cost structure and unit values, as well as retirement benefit projections.

Regarding the requirements for information documents, the supervisor chose not to impose predefined models, although some mandatory sections are established, with minimum elements and a defined order of presentation. The use of colors or logos that may obscure information is prohibited, and documentation must be free and available in durable format (paper or digital).

On the other hand, for individual subscriptions to open pension funds, there is a requirement to assess the risk profile, through a questionnaire applied by the distributor, and mandatory disclosure of the results of this assessment, in a standardized format.

It is also foreseen to include sustainability elements in the information documents, aligned with European regulations and without prejudice to the requirements established in Regulation (EU) 2019/2088, regarding the disclosure of sustainable financial information.

ASF also decided to regulate the reporting duties of pension fund management entities to the supervisor, aiming to strengthen the information available for statistical and supervisory purposes regarding closed pension funds and collective subscriptions to open pension funds, as well as to create an information disclosure system that gathers and presents, in a systematic and easily accessible way, various information about individual subscriptions to open pension funds, including information on costs, guarantees, historical returns, and risk indicators.

Regulatory Standard 7/2025-R thus establishes greater transparency regarding pension funds, seeking to demystify these products which, as a rule, are little known and understood by the general population.

Belzuz Abogados S.L.P. – Portugal Branch has a multidisciplinary team with extensive experience in Insurance Law, with expertise in regulatory compliance, analysis, constitution, and negotiation of pension funds, which can be an excellent support for its clients.

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