Dutch pension provider TKP joins race for PPI licence
NETHERLANDS - Pension provider TKP has applied to the Dutch regulator for a licence to operate a Premium Pension Institution (PPI) for defined contribution schemes.
The company, which services 22 pension funds with approximately 1.7m participants, will offer the new transparent cross-border vehicle with mainly in-house solutions under the legal entity of a foundation, Erik Hof, commercial manager at TKP Pensioen, told IPE.
With more than 12 years of experience with DC plans for large multinationals, TKP Pensioen will carry out administration and communication, while the €12bn TKP Investments will be the preferred asset manager, Hof said.
"But, as a tailor-made approach is paramount, clients will have the option to add other asset managers," he added.
Hof said TKP would be able to mediate between clients and insurance company Aegon for risk insurance.
Recently, Aegon - TKP's parent company - announced that it had also applied for a PPI licence with pensions supervisor De Nederlandsche Bank (DNB).
According to Hof, TKP Pensioen is targeting pension funds and affiliated larger companies that want to place their scheme at some distance - because of risk, costs and governance reasons - but consider outsourcing their scheme to an insurer a step too far.
"In our PPI, they will find a transparent solution, executed by an efficient and experienced provider," he said.
TKP's PPI will offer a default life-cycle investment, which participants will be able to adjust online.
"People who opt for a personal investment plan will be reminded every year to have a look at their choice again," Hof said.
TKP's commercial manager declined to comment on when the PPI was expected to start, "as we don't want to raise false expectations".
So far, the DNB has issued PPI licenses to BeFrank - the joint venture between BinckBank and insurer Delta Lloyd - and asset manager Robeco.