07/02/2011
By Laura Blows
KAS Bank has launched a pension custodian service designed specifically for the Premium Pension Institution (PPI) - a new cross-border EU defined contribution pensions vehicle.
It’s pension custodian service for PPIs will ensure the separation of the PPI pension assets, mitigate the contamination risk that the assets of one retirement plan are allowed to offset the liabilities of another and act as an independent supervisor of the PPI’s management.
The PPI is an excellent opportunity for the Dutch pension sector to raise its profile internationally, KAS Bank claimed.
According to the investment bank, the introduction of PPIs is a very positive development for the Dutch pensions industry, and a constructive response to the opening of European borders to pension providers from other member states.
Since 1 January 2011, the PPI can be established in the Netherlands to operate defined contribution schemes across Europe.
To prevent assets from being comingled, the PPI is required by law to separate all assets under administration. To this end, each PPI must appoint an independent pension custodian, in order to meet the requirement for fully independent supervision, transparency and risk management.
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