FTK delay denied
A spokesperson for the Dutch social affairs ministry has flatly denied market rumours that the new Financial Assessment Framework for pension funds had been delayed again.
There was bond market chatter that the FTK – which has already been delayed once already – was set to be delayed, with traders positioning themselves accordingly. The source of the rumours was unclear.
The FTK, the Financieel Toetsingskader, was delayed to the start of January 2007 by the central bank in September last year – after initial denials. The central bank declined comment.
Any further delay if it occurred would be welcomed by the industry, observers say. Fixed income traders are monitoring the situation alongside the pension industry because the FTK will potentially hit pension funds’ asset allocations.