NETHERLANDS - Competition from Luxembourg and Ireland has prompted the Dutch Ministry of Finance to promote its own tax-transparent vehicle for international asset pooling.
Demand from Dutch pension funds was a key factor stirring the authorities to elevate its support for the Fund for Joint Account (FJA), or Fonds voor Gemene Rekening, a spokesman for the finance department told Global Pensions.
The vehicle, which has existed for many years in The Netherlands, has been given official backing to operate on a par with the Irish Common Contractual Fund (CCF), and the Fonds Commune de Placement (FCP), in Luxembourg.
Martin Vink, a partner with PricewaterhouseCoopers, said the demand had been exacerbated by the presence of many large multi-national companies in the Dutch pension fund market.
In response to the demand, the Ministry of Finance established a working committee, he said, which resolved to lend its support to companies and their pension funds should they face difficulties certifying their arrangements with other tax treaty countries.
“The vehicle itself is quite good, and we also have support from the The Dutch central bank (De Nederlandsche Bank / DNB) and authorities for the fiscal markets,” said Vink.
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