NETHERLANDS - The e74.4bn PGGM pension fund and the e196.3bn Stichting Pensioenfonds (ABP) have criticised two laws which caused them to be fined by the Dutch central bank over the marketing of their levensloop products.
Both PGGM and ABP have lodged appeals after they were were fined earlier this year by the pensions supervisory body De Nederlandsche Bank (DNB) over the marketing of their daughter-organisations, respectively Caeron and Loyalis.
The fine followed on the heels of criticism from The Association of Insurance Companies (Verbond van Verzekeraars) about the way these products were marketed among the funds' own participants.
According to Dutch law, activities of pension funds may not be mixed with activities that are also offered by commercial parties.
A PGGM spokeswoman today told Global Pensions that the wet BpF - Wet bedrijfstakpensioenfondsen (taakafbakeningen van pensioenfondsen), which governs what pension funds can and can’t do, and the wet VPL - wet VUT (regelt de fiscaliteit rond prepensioen en de introductie van levensloop), which governs levensloop and pre pension arrangements, were contradictory.
“If you look at those two laws, there is a contradiction about what we can do out of the BPF, and what we are not allowed to do under the VPL,” she said.
“We are allowed to have a daughter organisation with the levensloop, but as a mother company we are not allowed to mention the name of our daughter and that’s the main thing we don’t agree about.”
A spokesman for ABP said the pension fund was in agreement with the arguments put forward by PGGM.
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