NETHERLANDS - Nederlandsche Bank (DNB), the supervisor for the financial sector in the Netherlands, has increased its spending on pension fund supervision since 2004 by e1.8m, to e20.8m.
Announcing its 2005 Budget, DNB – which merged with the Pensions and Insurance Supervisory Authority of the Netherlands (PVK) last year – said insurer supervision spending would also rise in 2005, up e2.8m to e20m.
“The increase of pension fund and insurer supervision costs represents the balance of integration effects, intensification, inflation effects and wage increases,” the DNB said.
The 2005 Budget is the first for the new merged organisation.
Total budgeted costs for 2005 run to e271.4m, e10.1m below the combined 2004 budgets of DNB and the PVK.
DNB said the net figure reflected a reduction in operational costs by e17m and a e6.9m increase in banknote purchases.
“Operational costs declined as a result of the integration and reorganisation of DNB and the PVK,” the supervisor said.
“In addition to the structural reinforcement and synergies achieved in the performance of both DNB’s and the PVK’s duties, their coalescence has also brought efficiency gains. Efficiency enhancements are reducing total costs involved in supervision by e6.1m, from e96.1m in 2004 (combined DNB and PVK) to e90m in 2005.
“The overall reduction of supervisory costs masks an increase in the costs of insurer supervision… e1.4m of which is attributable to necessary investments in the improvement of the supervision of this sector.”
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers