|
|
Michel Denizot, international activities director at AG2R La Mondiale, said that La Mondiale's IORP fund – which would focus exclusively on France and not seek external business in Europe – could cover all the assets under the second and third pillars managed by the French pensions provider. However, he stressed that AG2R La Mondiale would launch the fund only if the European Insurance and Occupational Pensions Authority (EIOPA) reconsidered the revised Directive for institutions for occupational retirement provision (IORP). "If we see a distortion of competition between the new Solvency II regulation and the revised IORP Directive, we will then convert our retirement products into an IORP vehicle", he said.
"Without any changes made to the current revised Directive, we will retain our products as they are." The launch of an IORP fund could also be subject to other restrictions, according to Denizot. "Our French clients mainly want guaranteed pension products, which would be backed by our insurance business", he said.
"But since the insurance unit will have to comply with Solvency II requirements, the cost that will rest with the provider AG2R La Mondiale for operating such an IORP vehicle will be way too important." If launched, the fund would be likely under Luxembourg law due to the linguistic links with France, as well as the insurance activities AG2R La Mondiale has already undertaken in the country.
Full article (IPE subscription required)