Financial risks and the Pension Protection Fund : can it survive them?

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Title: Financial risks and the Pension Protection Fund : can it survive them?
Authors: Blake, David
Cotter, John
Dowd, Kevin
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Date: Nov-2006
Abstract: This paper discusses the financial risks faced by the UK Pension Protection Fund (PPF) and what, if anything, it can do about them. It draws lessons from the regulatory regimes under which other financial institutions, such as banks and insurance companies, operate and asks why pension funds are treated differently. It also reviews the experience with other government-sponsored insurance schemes, such as the US Pension Benefit Guaranty Corporation, upon which the PPF is modelled. We conclude that the PPF will live under the permanent risk of insolvency as a consequence of the moral hazard, adverse selection, and, especially, systemic risks that it faces.
Type of material: Working Paper
Publisher: University College Dublin. School of Business. Centre for Financial Markets
University College Dublin. School of Business
Copyright (published version): 2006, Centre for Financial Markets
Subject LCSH: Pensions--Great Britain
Financial risk
Pension trusts--Finance--Law and legislation
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Language: en
Status of Item: Not peer reviewed
Appears in Collections:Centre for Financial Markets Working Papers

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