Pension Funds: Mandatory New Classification by Investment Policy in 2027

Key data

Pension fund managers registered in the Special Register have two critical dates on the immediate horizon. The Order ECM/973/2026, published on September 18, 2026 and in force since January 2, 2027, makes a typology of funds that was already being communicated internally to the supervisor since 2019 a public obligation. The change is more in form than in substance, but the deadlines are demanding and the affected documents are specific.

The classification is based on the declaration of investment policy of each fund, not on the actual composition of the portfolio at a given time. This nuance is relevant: if a fund has doubts between two categories, the regulation establishes that the one with higher risk is assigned.

What does this regulation establish?

Order ECM/973/2026 creates an official typology of pension funds based on their investment policy. Until now, this classification existed de facto in internal communications with the supervisor, but had no public regulatory status and did not require it to be reflected in the documents that participants receive.

The three documents that each manager must update before April 1, 2027 are:

• Key information document for the participant
• Fund operating rules
• Declaration of investment principles

Additionally, there is a prior and independent obligation: in the information for the fourth quarter of 2026 —which must be submitted before February 10, 2027— the category assigned to each fund must already appear.

The rules for assigning a category are clear:

• The category is determined based on the declaration of investment policy, not the actual portfolio.
• In case of doubt between two categories, the one with higher risk is assigned.

The stated objective of the regulation is to improve comparability and transparency for participants and beneficiaries, making it easier for them to compare funds from different managers on a homogeneous basis.

Economic and operational impact

The regulation itself recognizes that it does not generate additional costs for managing entities, since it formalizes a practice that has already existed since 2019. However, the operational impact is real: three types of documents must be reviewed and updated for each managed fund, and this must be done within a specific timeframe.

The effort is concentrated on two fronts:

• Short term (before February 10, 2027): Assign the category to each fund and include it in the fourth quarter 2026 report. This is the first concrete and most immediate obligation.
• Medium term (before April 1, 2027): Update the key information document for the participant, the operating rules, and the declaration of investment principles for each fund.

For managers with a large number of funds under management, the administrative burden can be significant simply due to volume, although the classification process itself should not be complex if the investment policy of each fund is well documented.

For participants and beneficiaries, the impact is positive: they will have a homogeneous category label in the documents they receive, which facilitates comparison between funds from different managers.

Who does it affect?

• Pension fund managers registered in the Special Register: required to classify their funds and update documentation.
• Pension funds registered in the Special Register: each fund must receive a category according to its declared investment policy.
• Participants and beneficiaries of pension funds: benefit from greater transparency and comparability in the information they receive.
• Financial advisors and consultants who work with pension funds: must know the new typology to correctly guide their clients.
• CFOs and financial directors of companies that manage employee pension plans: must verify that the manager meets the deadlines and that the plan documentation is updated.

Practical example

A manager that administers 12 pension funds must, before February 10, 2027, have assigned a category to each of those 12 funds and included it in the fourth quarter 2026 report that it submits to the supervisor.

Suppose that one of those funds has an investment policy that could fit into two categories: one of moderate risk and another of high risk. According to Order ECM/973/2026, the manager must assign the category of higher risk. This decision must be reflected in the declaration of investment principles, in the operating rules, and in the key information document for the participant, all of it updated before April 1, 2027.

If the manager does not update the key information document on time, the participant will continue to receive information without the official category, which can generate inconsistencies with the information submitted to the supervisor in the quarterly report.

What should companies do now?

1. Review the declared investment policy of each fund under management to determine the category that corresponds according to the new typology. Doing it as soon as possible avoids rushing in February.
2. Assign the official category to each fund following the criterion of higher risk in case of doubt between two categories.
3. Include the assigned category in the fourth quarter 2026 report, which must be submitted before February 10, 2027. This is the first obligation with a fixed date.
4. Update the key information document for the participant of each fund with the new category, before April 1, 2027.
5. Update the operating rules of each fund to reflect the assigned category, before April 1, 2027.
6. Update the declaration of investment principles of each fund, before April 1, 2027.
7. Coordinate with legal and compliance advisors to verify that the three updated documents are consistent with each other and with the category communicated to the supervisor.

Official source

Consult complete regulation in official source

Notice: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-19423