France. Aviva creates a first pension fund “à la française”
A first supplementary occupational pension fund (FRPS) has just been created in France. Aviva France has obtained the approval of the French Prudential Supervisory Authority (ACPR) to create a FRPS. According to a decision published on Tuesday in the “Official Journal”, the insurer will be able to transfer into this new entity called “Aviva Retirement Professional” pension portfolios.
Sometimes presented in a rather swift way like “pension funds à la française”, the FRPS – wanted by Emmanuel Macron when he was Minister of the Economy and established by the so-called Sapin II law of December 2016 – offer above all a prudential regime ad hoc for occupational retirement savings activities. The commitments to be lodged there will thus benefit from a treatment more compatible with their long-term nature than under Solvency II, the prudential rules applying to the European insurance sector.
A win-win model
However, insurers have not yet rushed to the FRPS, since the transfer of pension contracts to these instruments could have an impact on their Solvency II ratio. Only Malakoff Médéric announced in August that he had filed an application for approval with the ACPR.
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