Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)

This is Chapter 2 of Part 4 of the Bill which to my knowledge covers from section 26 to section 43 and is a detailed and complex section. From the briefing I got I do not believe I will oppose it. It provides for a transposition of EU directives or instructions regarding regulatory own funds making sure that pension funds have the required moneys to meet their liabilities and to increase the minimum standards for private pension funds. That is welcome because it will ensure that in future there will not be shortfalls or collapses as we have seen in other countries and which we might see in some cases here in the near future. I am supportive of the principle of the section but I ask the Minister to give us an explanation beyond that in the explanatory memorandum, which is quite technical. What will be the outcome? What will be the impact on the pensions industry here? Will it do what it says on the tin? Will it ensure that private pension funds will actually deliver for those who have taken out a scheme with them? Is there anything in it to address the huge costs involved in administrating these funds?

People put money into private pension funds and they expect to get it out at the other end with interest. Then they find that many costs and charges have been imposed by the scheme organisers. It is an industry and they need to make some money but the information I have is that the percentage take by the industry from pension funds in Ireland is much more than in other jurisdictions. Does this section address that issue?

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