ROMANIA - Bucharest-based Bancpost bank has launched a new division called its Bancpost Fond De Pensii, targeting Romania's mandatory second pillar market.

The bank, which is a member of the Eurobank EFG group, is the latest provider in Romania to launch a second pillar pension provision, which became mandatory earlier this year.

The new proposition, launched late last month according to the Bancpost website, is expected to focus exclusively on the private management of employees' pension contributions.

This new fund will work together with "authorised private enterprises" and asset managers, to maximise the returns of the fund.

Romania's second pillar market opened for business in mid-September.

Under new legislation, passed in January, companies wanting to offer second pillar pension funds have to set up a separate second pillar entity which then has to gain approval from the Private Pension Supervision Commission (CSSPP) regulator.

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