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03 February 2015

PensionsEurope welcomes the extension of the clearing obligation exemption for pension funds


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"Thanks to this, for at least two more years, we will avoid adding the excessive costs that mandatory clearing of OTC derivatives would impose on pension schemes and their beneficiaries," the Chair of PensionsEurope said.


PensionsEurope welcomes the publication of the EC’s report proposing to extend by two years the temporary exemption from the clearing obligation of OTC derivatives granted to pension scheme arrangements under the Regulation on OTC derivatives, central counterparties and trade repositories.

Joanne Segars, Chair of PensionsEurope, said: “We welcome today’s announcement which gives the green light for extending the clearing obligation exemption for pension funds until August 2017. 

With this report, the Commission acknowledges that a one-size-fits-all approach is not appropriate for these highly complex matters. Pension funds are essentially not-for-profit institutions which serve the sole purpose of providing retirement income to future European pensioners. As long-term investors with long-term liabilities, pension funds have in place specific business models and governance structures which significantly differ from those of other financial institutions. We would now urge the Commission to extend the exemption for pension funds permanently.”

Matti Leppälä, PensionsEurope Secretary General and CEO, added: “Pension funds are significantly different from other financial institutions. Similar exemptions should be extended to other areas such as the Financial Transaction Tax (FTT) and the upcoming rules on margin requirements for non-cleared OTC derivatives. The impact of such measures on pension scheme arrangements and, consequently, on the retirement income of future European pension beneficiaries, must not be ignored”.

Full press release



© PensionsEurope


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