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.

    Share Story:

Recent Stories

Podcast: The benefits of private equity in pension fund portfolios
The outbreak of the Covid-19 pandemic, in which stock markets have seen increased volatility, combined with global low interest rates has led to alternative asset classes rising in popularity. Private equity is one of the top runners in this category, and for good reason.

In this podcast, Munich Private Equity Partners Managing Director, Christopher Bär, chats to European Pensions Editor, Natalie Tuck, about the benefits private equity investments can bring to pension fund portfolios and the best approach to take.

Podcast - The power of three: Using Common Contractual Funds to improve tax outcomes for investors
Large asset owners are still investing in equities in a way where they are taxed on their income. The implication is that they get a poorer return. They need to, and can, improve this, but how?

In this podcast, AMX Head of Client and Manager Development, Aaron Overy, and AMX Product Tax Specialist, Kevin Duggan, discuss with European Pensions Editor, Natalie Tuck, about three options to help ensure good withholding tax outcomes for institutional investors.

Mitigating risk
BNP Paribas Asset Management’s head of pension solutions, Julien Halfon, discusses equity hedging with Laura Blows