EU regulator allays Solvency II fears

Gabriel Bernardino chairman of the European Insurance and Occupational Pensions Authority used his speaking slots at the NAPF's conference to dispel any doomsday scenarios for forthcoming European directive on pensions.

"If there was an intention to apply SolvencyII we would have said so. There should be a separate project for pensions. It's not a copy and paste exercise."

He added that the holistic balance sheet, where the corporate sponsor's health was taken into consideration alongside assets and liabilities was not intended to bring an end to defined benefit schemes, but to allow the possibility of more being created.

"The reality is that in your country DB is killed. We want to create conditions from a supervisory perspective to help them grow. We are not a bunch of crazy lunatic guys in Frankfurt. We know about pensions. We have the possibility to create something that would an added value to pensions. It is not the objective of the holistic balance sheet to kill DB schemes."

He also sought to allay fears that the new directive would force schemes to change their asset allocation.

"Let me be clear," he said. "The objective is not that we will all invest in the same sort of assets. We want them to continue to invest for the long term."

In contrast to the frosty reception received by Lazlo Andor, the European Commissioner for employment and social affairs and inclusion, at last year's conference, Bernardino brought warm applause after a speech full of reassurance and numerous compliments for the UK pension system.

Bernardino called the UK system a personal "inspiration", "one of the most sophisticated in Europe" and that it was a "pleasure" to attend the conference.

During questions he shook his head when a trustee of the Lloyds Superannuation Scheme, Charles Pannell, said that the directive would be another nail in the coffin of DB schemes and reassured that this was not his intention.

Bernardino finished by calling for responses to the quantitative impact study being compiled by EIOPA. Responses are sought by December and a report will be produced in the spring.