EU regulation on Danish pension companies ‘has gotten out of control’

Denmark’s Forsikring & Pension (F&P) has warned that the amount of EU regulation on Danish pension and insurance companies has “gotten out of control”.

It stated that the 'rapidly increasing' amount of EU regulation accounted for more than 90 per cent of all new regulation of financial companies in Denmark.

EU regulation takes up more than 3,500 pages for insurance and pension companies alone, which is set to rise to over 6,000 pages with all the regulatory proposals that are on the way, according to F&P.

F&P acknowledged that EU regulation on financial services had, in many ways, created better consumer protection, a more robust financial sector and strengthened competition.

However, it warned that the industry was having to follow regulations that are increasingly taking place via EU authorities, and therefore without a political mandate, describing this as “problematic”.

“It is as if the good will has run out with the system,” commented F&P CEO, Kent Damsgaard.

“Of course, the purpose is both important and necessary, but it seems to our companies that the amount of regulation has gotten out of control.

“We need to put up some fence posts and define that it is within this field that we all play on.

"The politicians need to know the consequences of the major regulation, and when it is unclear what we must deliver and not deliver, then the regulation becomes too detailed.

“No one benefits from that. We could wish for something more targeted in what we are presented with. We will work on this systematically in the coming time.”

F&P outlines five proposals for better EU regulation: New EU regulation must always be based on impact analyses; fewer but better rules; increased openness about EU regulation; stop European retail regulation without a political mandate; and a strong Danish imprint on European financial supervision.

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