NETHERLANDS - Pensions provider Brand New Day (BND) is targeting a market share of at least 10% within 10 years of the launch of its cross-border PPI, through low costs and transparency.

The company this week started offering collective defined contribution arrangements for employers, after it received the third PPI licence from the regulators De Nederlandsche Bank (DNB) and the Authority Financial Markets (AFM).

As of 1 January, the new PPI will be serving 15 companies with over 4,500 employees, including payroll organisation Please Payroll and internet start-up Mangrove.

According to BND, companies can offer their workers a pension for a fee of as of €25 a year, indicating that its disability and life insurance will be sharply priced as well.

Employers will be able to choose five different modules for pension arrangements, such as against minimal risks, investments based on set risk profiles or with full choice of investments, the provider explained.

As of 25 years before retirement, the equity risk will be gradually decreased every year through life cycle investment, it explained.

Because employers can submit all staff changes online and data is processed instantly, both company and workers would be able to access accurate pension information instantly.

"As a result, administrative bother as well as costs can limited to a minimum," it stressed.

To safeguard the pension capital, BND said it has placed the assets with custodian KAS Bank.

The BND PPI is a joint venture of BND and insurer ASR Netherlands, with ASR the exclusive risk carrier of the insurance brokered by the PPI, BND indicated.

Earlier in the year, the pure play asset manager Robeco and BeFrank - a joint venture between BinckBank and insurer Delta Lloyd - received a PPI licence.