Pension funds must comply with various statutory requirements on being set up and when administering pension schemes. The requirements of pension funds are twofold. On the one hand they focus on promoting the solidity of pension funds (prudential requirements) and on the other hand they focus on pension funds’ control or joint control structures and the relations between the employees, employer and the pension provider (material requirements). These requirements are intended to protect members, deferred beneficiaries and pension beneficiaries.
The Pension Act (for company pension funds and industry-wide pension funds), the Obligatory Occupational Pension Schemes Act (for occupational pension funds) and the secondary legislation based on these Acts impose prudential requirements on pension funds in the following areas (this is not an exhaustive list):
The Pension Act (for company pension funds and industry-wide pension funds), the Obligatory Occupational Pension Schemes Act (for occupational pension funds) and the secondary legislation based on these Acts impose material requirements on pension funds in the following areas (this is not an exhaustive list):
The prudential and material requirements are worked out in more detail in the secondary legislation and relate to all sorts of operational, technical and financial aspects of pension funds. The provisions in the secondary legislation take account of the various risks involved.
Liability-Driven Investment funds (LDI funds) mainly invest in long-term government bonds and long-term interest rate derivatives. The use of these interest rate derivatives exposes LDI funds to liquidity risks in case of large interest rate fluctuations.
Read more Limited liquidity risks in Euro LDI funds
This week, the European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) have published their final reports on greenwashing in the financial sector.
Read more European Supervisory Authorities publish reports on greenwashing in the financial sector
In the first quarter of 2021, Dutch pension funds saw their financial position improve again. Due to rising interest rates in financial markets, the value of aggregate liabilities fell EUR 111 billion to EUR 1,576 billion, outstripping the EUR 15 billion decline in aggregate assets to EUR 1,676....
Read more Dutch pension funds’ financial position improved
On Tuesday 28th May from 3:00-4:45 PM CET DNB will organize an online information session about fit and proper assessments.
Read more Information session about fit and proper assessments DNB
