Regulatory Alerts2023-06-29
Better explanation of possible consequences of pension increases needed
The Dutch Authority for the Financial Markets (AFM) issued a report in November 2023 finding that many pension funds failed to adequately communicate the consequences of temporary indexation decisions under the relaxed Indexation Decree. The regulator found that while information was provided, it was often not sufficiently accessible, lacked quantitative generational impact data, or failed to explain the balance of interests and potential negative long-term effects for certain participant groups. The AFM urges all pension providers to improve transparency and communication quality, particularly regarding the distribution of collective pension assets, to prepare for the upcoming transition to the new pension system.
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