FINLAND - The government has proposed temporary measures to ease pressure on pension funds to sell shares into a slumping market.
"The aim is to strengthen private sector employment pension institutions' financial stability so that they aren't obliged to sell shares, including Finnish stocks, in an unfavorable market," the government said.
The government is reacting to a credit crisis that sparked the biggest global stock-market drop since the Great Depression. Finland's OMX Helsinki 25 Index has lost 45% of its value this year.
One of the measures would increase insurers' stock index- based technical reserves to 10% of all underwriting reserves from 4%.
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MPs failed to place legislation into the Financial Guidance and Claims bill that would have made pension guidance default, which Just Group director Stephen Lowe said left a "bitter taste".
Aegon has called for the government to double the tax exemption on employer-arranged pension advice, up from £500 to £1,000.
Institutional investor confidence in Europe rose by 8.9 points in April with each region showing growing appetite for risk, according to State Street Global Exchange.