09/06/2011
By Matt Ritchie
Dutch cross-border pension vehicles made possible by the implementation of the European directive for Institutions for Occupational Retirement Provision (IORP) can offer substantial cost savings to companies across borders, according to the Holland Financial Centre (HFC).
Following implementation of the IORP, the Netherlands designed the Premium Pension Institution (PPI) - a cross-border pension vehicle for the provision of defined contribution pensions.
The HFC has just published a special report, PPI: Feasibility study of a tax-qualifying pension scheme: Netherlands and the UK, looking into the feasibility and attractiveness of running a crossborder scheme using the PPI.
According to the study, it is possible to either develop a central administration with country specific modules or compartments, or to develop decentralised administrations with shared components.
The report finds that a PPI offers several competitive advantages over running two ‘traditional’ national pension schemes, including enabling a single governance structure to be operated across a multinational’s UK and Dutch pension activities.
Only having to deal with one supervisory authority and one “relatively straightforward” set of supervisory regulations will also offer a competitive advantage, the HFC said. Further, a PPI creates economies of scale in the investment process, increasing the assets under management and generates new, potentially attractive, investment opportunities.
To access the HFC’s report, click here
Other stories you may find of interest:
Industry responds to EIOPA consultation
Pension and investment associations across Europe have expressed different views on what they see as the future of cross-border pension provision, as the European Investment and Occupational Pension Association (EIOPA) closed its consultation on the IORP Directive yesterday
KAS Bank launches custodian service for PPI
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
