Pensions fund regulation 'should not copy insurance laws'

26 November 2007
EU insurance laws should not be applied to UK pension funds, according to the National Association of Pension Funds (NAPF).

The group's comment comes after the European Federation for Retirement Provision (EFRP) suggested the proposal at its congress in Frankfurt, Germany, last week.

Such a move would involve the application of EU solvency rules, which regulate the funding of insurance companies, to the regulation of UK pension schemes.

Nigel Peaple, director of policy for the NAPF, argued that pensions and insurance are two very different entities.

The use of insurance regulation for pension funds would also be "inappropriate", given the existence of the Pension Regulator and the Pension Protection Fund in the UK, he noted.

"The NAPF is working closely with the UK government and our EU colleagues to ensure that any new proposals are clearly based on logic and good sense," Mr Peaple said.

NAPF chief executive Joanne Segars recently argued that deregulation is the key to sustaining good workplace pensions after an independent panel of external reviewers appointed by the government conducted a deregulatory review on the issue.

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