Danish pension funds hit out at cross-subsidy regulation


Proposals by the Danish Financial Services Authority (FSA) to dramatically reduce the potential for schemes to cross-subsidise between policyholders are a serious threat to the sector’s future viability, according to senior figures in the industry.

The proposed rules are currently in consultation ahead of a January 2011 implementation date. They will require bonuses to be paid from dedicated earmarked funds to policyholders with guarantees within one percentage point bands, or with certain

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