A single pensions market across Europe would benefit savers, provided it is designed in a way that does not damage existing pension provision says the Investment Management Association.
The IMA believes a cross-border pensions wrapper would benefit EU consumers. But the organisation has joined with other UK bodies in attacking plans for an EU solvency regime for defined benefit pensions similar to the Solvency II approach being applied to insurance products.
Jonathan Lipkin, head of research at the IMA says: “A single European market for pensions is difficult to achieve, but has significant potential benefits for savers. The removal of obstacles to cross-border pension provision and the creation of a pan-European pensions wrapper would facilitate both portability and economies of scale.
“For now though, pension provision remains at a national level. Care must be taken to ensure that regulatory requirements do not damage existing provision. While it is understandable that the Commission seeks robust protection mechanisms for savers, there is no ’one size fits all’ approach.
“With regard to Solvency II, it is inappropriate to apply a solvency regime to pension schemes that has been designed for insurance policies.”