Pensions - Articles - J.P. Morgan welcomes news on ‘Solvency II for pensions’

 The European Commission has announced that a directive for pension schemes will be put forward in the Autumn of 2013.

 However, Commissioner Barnier has confirmed that this proposal will not include any rules on pension scheme solvency. Paul Sweeting, European Head of Strategy at J.P. Morgan Asset Management, welcomed the news:

 "It is good to hear that the concerns of so many stakeholders across Europe have been heard. Commissioner Barnier's announcement means that important issues relating to governance and disclosure can be addressed without forcing pension schemes into a solvency framework designed for insurance companies."

 However, Sweeting warned that the issue had not been completely abandoned.

 "In his statement, Commissioner Barnier makes it clear that the funding aspects of the directive are being shelved due to a lack of data at present. This suggests that these aspects could find their way back on to the agenda at some point in the future. However, for the time being pension schemes can concentrate on strengthening their finances under existing funding regimes."