|
A version of this article first appeared in Total Derivatives.
Total Derivatives is the prime source of real-time news and analysis of the global fixed income derivatives markets.
|
|
In late January, the European Court of Justice issued its clarification of member states’ responsibilities for failed or underfunded pension funds (go to totalderivatives.com for full details of the judgment). It seems certain that the conclusion was not the extreme one that the UK government dreaded but ultimately didn’t expect.
Reactions range from panic to relief. At the panic-stricken end of the reaction scale is Colin Mouque, a director at Alexander Forbes Financial Services, who told IPE.com that "this could be a terrible blow for the Pension Protection Fund (PPF). If the High Court orders full compensation, the PPF will be bust within two years."
Cruel fate
Given that the UK’s PPF only became operational on April...
