Responding to the European Commission’s Green Paper on pensions, the Investment Management Association says a single pensions market across Europe would benefit savers, but regulation should not damage existing pension provision.

Jonathan Lipkin, Head of Research at the IMA, commented: “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.“

“With regard to Solvency II, it is inappropriate to apply a solvency regime to pension schemes that has been designed for insurance policies. As we move forward, it is essential to recognise that a defined contribution pension is not the ‘poor relation’ of a defined benefit pension. DC pensions can offer significant advantages to savers: a high degree of ownership, transparency and portability.”

Press release