DENMARK - The recent European Court of Justice ruling on pensions will likely spark increased competition in the pension market, resulting in lower prices and new products for the Danish public, Aon has claimed.
The Danish government was found to have breached European law by not granting tax deductions on contributions made under contracts with foreign pension institutions.
While the Danish government has yet to respond to the ruling, Aon benefits consultant Niels Warming claimed the move could benefit Danish citizens and boost pension savings.
“If larger European providers find the Danish market interesting, we could see increased competition with lower prices and even new products the Danes haven't yet seen,” said Warming.
“However, both Winterthur and Zurich have previously tried to enter the Danish market but with no success... so we will have to wait and see if the situation has improved for prospective new players.”
The recent ruling will not have come as welcome news to the Danish government, who filed a plea calling for the case to be declared inadmissible. That request was rejected by the ECJ.
Tenders for first-time fiduciary management mandates will be mandatory, must be conducted on a closed basis, and will apply to any mandate for over 20% of a scheme's assets, the Competition and Markets Authority (CMA) has confirmed.
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