French asset management association AFG has reiterated its position against the controversial French pension scheme decree that was published by the French government on 9 May 2017 and tightens the investment framework of pensions schemes of so-called liberal works in France.
AFG plaids for an amendment of the decree and has launched a work group to make proposals for further amendments.
This follows the publication of an open letter of seven asset management companies mid-June in which they announced they would lodge appeal to French prime minister Edouard Philippe against the decree.
The AFG said that the text, due to enter into force in January 2018, is “hardly understandable” and pinpointed its implementation would raise legal uncertainty concerns from the pension schemes concerned by the decree
Also the French asset management association warned that the “very restrictive rules” set by the decree would impact negatively the yield of pension schemes’ reserves, therefore rendering harder the match of their assets with their liabilities.
AFG explained that the mutual funds’ structure proposed by the decree would be difficult to implement and complex to access. In addition, it regretted that no impact study has been made yet to assess the consequences of the decree.