Government clarification: no ban on fiduciary management at pension funds
In our previous In context article, we reported that when the Second Chamber of the Dutch parliament adopted the 2019 Pensions Collection Bill, it also passed an amendment about outsourcing activities. The amendment’s explanatory memorandum stated that this would lead to a ban on fiduciary management. The Minister of Social Affairs and Employment has now set out his interpretation of the amendment by stating that the amendment simply clarifies that pension providers have final responsibility for preparing the pension fund’s strategic policy on asset management and for supervising the asset management. This responsibility remains when the pension fund’s asset management has been outsourced: pension fund boards cannot outsource the end responsibility to an asset manager. We believe that the Minister’s recent clarification means that the amendment on outsourcing will have little meaning in practice. The 2019 Pensions Collection Bill was adopted by the First Chamber on 11 December 2018.
This article is also available in Dutch, click here to read it.