| The Dutch association of industry-wide pension funds pushes its own governance code |
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| 12/09/2004 | |
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Dutch pension funds are now close to having their own governance code. The Dutch Association of Industry-wide Pension Funds (VB) has launched this summer a consultation for a code on pension fund governance that would apply to its members and that other pension funds could voluntarily follow. The aim is to have the equivalent of the Tabaksblat code, the existing Dutch corporate governance code. The final version of the code is set to be adopted at the public autumn general meeting of the VB on 16th November 2004, once the consultation among the members of the association and pension fund stakeholders that is currently taking place ends in the first week of October. The 82 schemes member of the VB, which together represent over 75% of the total number of participants in group pension schemes and combined invested assets of more than 300 billion euro, will adopt the code once its final version comes into force. Code for all The draft of the code, which follows the appeal made by the State Secretary for Social Affairs and Employment of Netherlands during the previous General Meeting of the VB, is rooted in various principles, the first of which being that that all Dutch pension funds, and not only the VB members, be able to comply with the Code. It also puts much emphasis on control and supervision, specifying that the board of management of the pension fund should consist of representatives of employee and employer organizations, this board of management being accountable to the supervisory board, composed of the various economic stakeholders of the pension funds. As a matter of enforcement, the Code requires that the supervisory board have the power to force the resignation of the board of management for serious reasons. The equivalent of the trustees in the British pension system, it is also expected that the members of the board of management and members of the supervisory board meet concrete and verifiable requirements with regard to expertise and education. The code also says that the external auditor must not be associated with the firm of the external actuary. The VB expects the adoption of the Code to be a major adjustment for many pension funds since there exists no underlying basis to the Code. The Tabaksblat code was indeed preceded by the 40 recommendations drawn up by the Peters commission as its point of departure. "The pension fund Code has no such fully-fledged precursor", says the VB. "A generous period of transition when the code takes effect is therefore essential". Julien Laplante |
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Articles of the same Topic : Pension funds Western Europe
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