This article appeared in Finance Magazine

Directive will lead to ‘wall of money’
A ‘wall of money’ should enter the equity markets as a result of the EU’s Pension Funds Directive, the head of the Irish Association of Pension Funds, John Feely, told delegates at the eighth annual International Fund Management Conference held on April 7th and 8th in Amsterdam, Netherlands.
Addressing the conference, Feely said that the current 2.5 trillion euro invested in pension assets in Europe was going to build very significantly over the next 10 years, to as much as six trillion euro.
This is as a result of the European Directive on occupational pensions that was passed by the European Parliament in March.

With this growth in pension funds, Feely said that taxation would become increasingly important and he expressed concern that the various pension taxation cases at the European Court of Justice, could lead to a ‘free-for-all’ scenario where taxation neutrality became an issue.

However, while noting that the Directive is a ‘step in the right direction’, Feely said that the Directive as it stands is a compromise, and that, ‘this Directive is not perfect for everyone’.
This article appeared in the April 2003 edition of Finance Magazine.