02 April 2013

IPE: Developments in Dutch pooling

Asset pooling, the joint investing by more than one investor, such as pension funds, insurance companies, other institutional investors, has charted an impressive course during the last decade.

Recent agreements with other countries on the tax transparency of the Dutch asset pooling vehicle Besloten Fonds voor Gemene Rekening (FGR) have made the Netherlands an attractive jurisdiction for asset pooling. This is relevant because recent regulatory developments (such as AIFMD) will trigger asset managers to review the preferred location for their activities and fund vehicles. In this respect, it should be noted that the attractiveness of the Netherlands could even further increase in the near future, taking into consideration its aim to conclude similar agreements also with further countries.

Attention should be paid to the fact that the Netherlands can not only be considered as an attractive asset pooling location, but also as a good location for pension pooling. The Netherlands has, based upon the EU IORP Directive, created an international pension pooling entity in its national legislation in the form of the Premiepensioeninstelling (PPI). The PPI can be used for operating defined contribution (DC) schemes.

In addition, as of February 2013, the Dutch ministries of social affairs end finance, initiated a consultation process on a future Algemene Pensioeninstelling (API), a new cross-border pensions vehicle that should be able to operate all types of pension schemes – DC, DB and hybrid. The availability of both the PPI and the API will, besides its attractiveness as an asset pooling location, contribute to the increased attractiveness of the Netherlands as a location for international pension pooling.

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