Research and publications

How Costly Is Regulatory Short-Termism for Defined-Benefit Pension Funds?

The recent pension crisis has triggered a fierce debate in most developed countries between advocates of tighter regulation designed to provide explicit incentives for pension funds to increase their focus on risk management and those arguing that imposing short-term funding constraints and solvency requirements on such long-term investors would only increase the cost of pension financing.

Author(s) :

Lionel Martellini, Vincent Milhau

Summary :

The recent pension crisis has triggered a fierce debate in most developed countries between advocates of tighter regulation designed to provide explicit incentives for pension funds to increase their focus on risk management and those arguing that imposing short-term funding constraints and solvency requirements on such long-term investors would only increase the cost of pension financing.

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Type : EDHEC Publication
Date : 10/06/2008
Keywords :

Institutional Investment