European Commission Proposes Directive on Occupational Pensions

Washington, DC, October 26, 2000 - The European Commission issued a proposed directive on occupational pensions that, among other things, would establish European-wide standards for the management of pension assets. The proposal would establish prudential standards for pension funds while permitting funds sufficient flexibility to determine their own investment policies. The proposal also takes the first step in allowing pension plans to be managed on a cross-border basis. The Commission also intends to propose appropriate tax initiatives for pension contributions in the coming year to facilitate further cross-border management of pension plans. Earlier this year, the Institute commented on these issues to the "Committee of Wise Men on the Regulation of European Securities Markets."