JP Morgan Asset Management welcomes news on ‘Solvency II for pensions
News that European Commissioner Barnier has confirmed that a Directive for pension schemes will not include solvency requirements has been welcomed by JP Morgan Asset Management.
Paul Sweeting (pictured), European head of Strategy, said: “It is good to hear that the concerns of so many stakeholders across Europe have been heard. Commissioner Barnier’s announcement means that important issues relating to governance and disclosure can be addressed without forcing pension schemes into a solvency framework designed for insurance companies.”
However, Sweeting warned that the issue could return. This is because Barnier’s statement suggests the decision not to include solvency requirements depended on a lack of data. Should more data become available in future, then it could be put back on the agenda.
“However, for the time being pension schemes can concentrate on strengthening their finances under existing funding regimes.”