Prudent rules may be mandatory within four years
EUROPEAN DIRECTIVE SPECIAL – The prudent person investment rule for European pension funds could be mandatory throughout the EU within four years, following proposals for a review of the timeframe for the abolition of quantitative rules voted by the European Monetary Affairs Committee (EMAC) today (June 19).
According to Finnish MEP, Piaa-Noora Kauppi, speaking to IPE-Newsline after the controversial EMAC hearing, article 18.6 of the Karas report, which proposes an eight year transition period for countries to abolish quantitative investment rules, could be speeded up by a review, which has now been set at four years after the directive’s implementation.
Kauppi comments: “ If the review shows that all the Member States have a very developed culture then it could be that the restrictions are abolished right away.
“ Of course it is up to the Member States to decide if they want these quantitative limits within this time frame.”