Pension funds, it appears, are coming to France. Of sorts, at least.
The main providers of French supplementary pensions – insurers, mutual and institutions de prévoyance (a form of assurer) – have received a reprieve.
A law proposed by Michel Sapin, the finance minister, foresees the creation of a new legal entity and regulatory regime intended to allow these providers to bypass Solvency II, the EU legal framework to which insurers are subject.
The problem, according to the government, is that the new rules for the insurance sector – effective since January 2016 – prevent France’s retirement insurers from being able to effectively carry out their activity as long-term investors.