1. What is the Future of the European Pension Business and which are the opportunities for European/International pension funds to move? 2006 Anne Maher Chief Executive The Pensions Board 12 April 2006

2. 2 Agenda  How will cross-border pension business develop?  What will influence/impact on cross-border business?  Where will cross-border business locate? 2

3. 3 Development of Cross-Border Business Types of Cross-Border IORPs  Existing plans which relocate  New employer sponsored cross-border plans  New commercial cross-border arrangements 3

4. 4 Development of Cross-Border Business Who is Interested  Multinational Employers For pooling or merging  Employers with Existing Pension Plans For regulatory or financial advantage  Commercial IORPS Providers Looking to sell pensions cross-border 4

5. 5 Development of Cross-Border Business Reasons to relocate  Multinational employer Better governance/control Single governance regime Economies of scale/cost savings Facilitate corporate change/culture Accommodate mobile employees  Single employer/single country plan Regulatory/supervisory regime? Financial advantage? 5

6. 6 Development of Cross-Border Business Drivers  Commercial Beneficiaries For-profit IORPs providers Advisers to multinationals Potential providers of cross-border management and administration services 6

7. 7 Influence on Cross-Border Business Choice of Location  Tax arrangements  Investment opportunities  Pension tradition/services available  Availability of tried and tested pension skills/resources  Regulatory/compliance structures and environment  Ability to accommodate countries outside EU 7

8. 8 Impact on Cross-Border Business Regulation  Balance between reasonable cost and member protection  Transparent/open environment  Reasonable level of investment freedom  Respected regime  No regulatory arbitrage 8

9. 9 Impact on Cross-Border Business Obstacles  Social and Labour Law  Tax  Defined Benefit Funding Standards  Pension Reform  Member State attitude  Inexperience  First mover disadvantage 9

10. 10 Location of Cross-Border Business  Any Member State  Attraction of Luxembourg, Ireland, UK pooling vehicles?  Netherlands? 10

11. 11 Ireland as Pensions Location  Tax arrangements Irish law incorporates cross border tax releifs  Investment Opportunities Common Contractual Fund (CCF)  Pension tradition/services available Ireland has long established private pension structure  Availability of tried and tested pension skills/resources Investment, Actuarial, Accounting, Legal, Benefit consulting, Benefit administration, Compliance skills available in Ireland  Regulatory/compliance regime Acceptable and balanced regulation by open and accessible regulators supervisors in Ireland  Ability to accommodate countries outside EU Global services available in Ireland 11

12. 12 Ireland as Pensions Location  Pan-European Pensions Task Force Examining opportunities in international pensions area Will facilitate initiatives/changes  Suite of asset pooling vehicles Unit Trust (Fixed Income Investments) Limited Partnership UCITS CCF (Equities Investments) Non-UCITS CCF (Alternative Investments) 12

13. 13 Next Steps  Clarification of some Directive requirements  Protocol in place between Member State pension supervisors  Consideration and decision on location by pension scheme sponsors and commercial providers 13

14. 14 In Conclusion  Pensions Directive Is first step in single market for pensions Provides a framework for change Investment/asset pooling is happening Liability pooling and centralised administration are next steps  Full Pan-European Pension Funds Will take time But WILL come about 14