New HBS approach to increase transparency – Clifford Chance

first_imgHe said the industry group questioned “what had driven EIOPA to come up with new proposals”, lacking a formal request from the European Commission.Kloosterboer also noted that the period for the industry to comment on EIOPA’s recommendations, as well as the amount of time the supervisory authority would have to flesh out technical specifications, would be very short – particularly “given its intention to introduce new regulation in early 2015”.But Clifford Chance’s Van Meerten claimed the suggested frameworks were of “sloping strictness”, varying from a “Solvency II-ish” regime to an alternative in which the HBS could by deployed as a risk-management tool.“The introduction of the last and least strict model doesn’t even require new European legislation for capital requirements,” he said.“In the last model, the HBS is part of the governance and risk-management of pension funds.”Van Meerten acknowledged that EIOPA’s six frameworks were not appropriate for purely defined contribution schemes, including the Dutch pensions vehicle PPI, and said the advisory body would come up with additional proposals for this category.The legal expert also argued that the fact EIOPA wants assets and liabilities to be discounted against market rates, rather than just liabilities, is a positive.“Such a balanced approach seems much more logical,” he said.“As a result, Dutch funds might no longer be allowed to calculate their contributions against expected returns.”He also noted that the higher buffer requirements in the initial HBS proposals – previously criticised by the Dutch pensions sector – had now been forced on pension funds through national legislation, including the new financial assessment framework (FTK) in the Netherlands.He said the delegated competence for the European Commission to issue additional rules might have been removed from the revised IORP proposals, but he added that the debate over the issue was not over.“The important European Principal Treaties grant the EC the competence to issue detailed rules, which could also apply to prudence requirements for pension funds,” he said. EIOPA’s new principles-based approach to the proposed holistic balance sheet (HBS) is a positive development, as its central thrust is to increase “clarity” for pension funds’ participants, according to Hans van Meerten, an expert in European pensions at law firm Clifford Chance.He argued that all six of EIOPA’s suggested frameworks for the HBS focused on providing clarity on the composition of pension assets, when and how rights cuts are permitted, and how the principle of solidarity is shaped.The Dutch Pensions Federation, however, was sceptical.Its spokesman, Gert Kloosterboer, said: “We are not yet convinced of the benefit or the necessity of an HBS approach combined with quantitative rules.”last_img read more

Trump confirms death of Osama bin Laden’s son

first_imgPresident Trump confirmed the death of Hamza bin Laden, the son of Osama bin Laden in a statement on Saturday.Hamza bin Laden emerged as a high member of al-Qaeda following his father’s death.Trump said in a statement released by the White House that he was killed in a counterterrorism operation near the Afghanistan-Pakistan border, but did not provide an exact date for the death.“The loss of Hamza bin Ladin not only deprives al-Qaeda of important leadership skills and the symbolic connection to his father but undermines important operational activities of the group,” Trump said in the statement. “Hamza bin Ladin was responsible for planning and dealing with various terrorist groups.”In early August, news reports indicated that bin Laden’s son had died.However, it was not confirmed by officials at that time.Hamza bin Laden reportedly made his last public statement in 2018.He rose to fame through his father, who headed the terrorist group responsible for the 9/11 terrorist attacks.The State Department earlier this year offered a $1 million reward for information leading to his capture and labeled him an “emerging” leader in al-Qaeda.He was believed to be in his early 30s.last_img read more