Dutch central bank urges pension funds to guard against UK-style crisis
The Dutch central bank is calling on the country’s pension funds to consider boosting holdings of cash and other liquid assets to ensure that they can avoid the turmoil that has hit the UK.
Officials at the De Nederlandsche Bank have asked local retirement funds to check for signs of stress, recommending that they review liquidity rules and report on any need for fire sales of assets, people briefed on the matter told the Financial Times.
The move comes as UK pension schemes have scrambled to sell assets in response to a drop in government debt prices that sparked collateral calls in hedging strategies, following Westminster’s ill-fated “mini” Budget.
This story originally appeared on: Financial Times - Author:Martin Arnold
