If Ireland can achieve its aim of becoming the recognised European centre for managing occupational pensions schemes up to 6,000 skilled jobs could be created, Brendan Logue, manager in the financial services division of IDA Ireland, told delegates at an Irish Association of Pension Funds (IAPF) Conference on Europe in Dublin on October 17th.
Pointing to the fact that the asset value of European occupational pension schemes is believed to be worth approximately E3 trillion, Logue said that the provision of pan-European pensions from one centre is ‘the Holy Grail for the European financial services industry and we ignore the opportunity at our peril’.
Logue added that centralising this industry could generate significant cost efficiencies and Ireland should actively seek out the opportunity. ‘This could be equivalent in size to the mutual funds sector which represents about 50 per cent of current IFSC activity,’ said Logue.
He said there were major benefits for Ireland in terms of increasing skilled jobs and generating increased revenue flows to the national economy.
While other locations were already actively targeting this sector, Logue said that Ireland had advantages in terms of its corporate tax structure, regulatory environment and availability of skilled actuarial, legal and fund management services.
Also speaking at the seminar was IAPF chairman, John Feely who said that the introduction of PRSAs early next year would provide an ideal vehicle for targeting the European market.
‘Companies that enter the PRSA market will need to develop the necessary administration systems, skills and internet communications platforms to be an effective provider of PRSAs in Ireland, these same capabilities could give Ireland the opportunity to provide similar products across Europe,’ said Feely. |
