The CBFA, Belgium’s pension regulator, has finally clarified its position on solvency for the new OFP pension vehicle – so far a ‘missing link’ in the legislation.A CBFA spokesman told IPE today his organisation earlier this month communicated its stance on solvency requirements for OFPs (organisations for financing pensions) - a new legal structure introduced this year to spearhead Belgium’s push to become a pension domicile under the EU’s pension directive.
The spokesman stressed no changes have been made to the current legislation, and the regulator merely held a seminar to clarify the legislation to fund.
However, pension expert Karel Stroobants commented to IPE last month the CBFA’s interpretation of the solvency requirements under the legislation were unknown to the sector and this was seen as a hindrance for social partners who might decide taking their pension fund to Belgium.
“We all missed the interpretation of the CBFA, that was a problem,” he said today, adding that the regulator’s clarification is welcome news.
“The usual interpretation in the market, the guarantee which has been outlined in the Belgian legislation, was very strict, and this was never the intention of the legislation [in terms of the OFP],” said Strootbants.
Under the OFP, pension funds will decide their individual financing and funding rules on the basis of their own ALM, and calculate the necessary buffer.