Speaking at the
AEIP Conference in Dublin, Commissioner McCreevy talked on the most topical issues currently being debated in the pensions and investment sectors.
McCreevy reiterated the positive role of hedge funds in Europe underlining that the way in which this business is maturing in Europe does not currently give rise to any need for specific legislation. “Hedge fund investing may offer important diversification benefits for pension funds, and help them to boost returns on the overall portfolio” the Commissioner said. Nevertheless, such investments must be valued on a prudent basis and in full accordance with the general 'prudent person' principle. “This “prudent person rule” will also be a feature of the Solvency II proposal for insurance companies”, McCreevy added.
McCreevy raised the question to extend Solvency II to IORPs. “Although Institutions for Occupational Retirement Provision are not addressed in the Solvency II proposal, we need to consider whether these IORPs ought to be subject to a similar regime”, he said. Therefore, the Commission has encouraged CEIOPS’ Occupational Pensions Committee to start a fact-finding exercise which the Commission will begin in 2008.
With regard to the portability of supplementary pension rights the Commissioner regretted that it was not possible to find a political agreement at the Council meeting on 30 May. “The discussions among the Member States over the last 18 months resulted in a clear indication that they should focus on the acquisition conditions and preservation of dormant rights”, he said. “But most ministers felt that transferability should not be addressed at this stage; in part because of the technical difficulties involved in the transfer of rights between pension schemes.”
Full speech
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