About private equity

How private equity invests in privately-owned businesses, supports jobs and creates prosperity.


Login to access your exclusive member-only content and account information.


Not a member? Join us

  • Operate to the highest level of professional standards
  • Access authoritative industry research and data
  • Navigate the complex EU regulatory environment
  • Network and engage with industry leaders
News & opinion

Capital rules for workplace pensions on hold

31 May 2013

The European Commission has decided to put on hold plans for strict capital adequacy rules on workplace pensions that would have put many people’s retirement at risk.

They would have deterred pension funds from investing in long-term investment vehicles like private equity funds because they would have to hold a disproportionate amount of capital to do so.

These solvency rules were part of an overhaul of rules for occupational pensions as part of revisions to the Institutions for Occupational Pensions (IORP) Directive.

But pension funds need the strong returns private equity can make in order to pay for our pensions in the future, especially because Europe has an aging population. (Read more here).

It could stop much-needed investment into European businesses by private equity funds as well – and this at a time of crisis!

Invest Europe has long argued for a different, less volatile approach to pension reform, along with our partners in the Group of Eight

We weren’t the only ones- UK pensions minister Steve Webb  warned that imposing solvency rules on IORPs would be devastating.

Fortunately the European Commission listened and Internal Market Commissioner Michel Barnier announced the rules would be dropped for the time being.

Invest Europe Secretary-General Dörte Höppner welcomed the news. “As a driving force in this crucial debate we are pleased that the European Commission has decided to give this important issue more time and thought,” she said.

Matti Leppälä, PensionsEurope Secretary-General and CEO said: “The European pension funds and other IORPs have to be able to contribute to the growth of European economy and employment and the solvency rules have to enable this.”

This is an encouraging step in the right direction. We at Invest Europe now hope that it is repeated in Solvency II – the long-delayed capital regulation for insurers. Insurers are another vital investor in private equity.

Lighter capital requirement for investments by long-term investors, like insurers, into long-term asset classes like private equity funds can help revitalise Europe’s economy and insurers meet their liabilities.

You can read more about long-term investing here and more about the relationship between private equity funds and pensions here.

James Crisp, Media Manager, EVCA

Want to discuss?

We are always keen to hear from you.


What can I do to manage cookies stored on my computer or phone?

You can accept or refuse cookies. Accepting cookies is usually the best way to make sure you get the best from a website.

Most PCs automatically accept them but you can change your browser settings to restrict, block or delete cookies if you want. Each browser is different, so check the 'Help' menu of your particular browser (or your mobile phone's handset manual) to learn how to change your cookie preferences. Many browsers have universal privacy settings for you to choose from.

Help on how to set and customise your cookie settings for your browser

How to manage cookies in Internet Explorer

Cookie settings in most versions of Internet Explorer can be found by clicking the tools option and then the privacy tab.

How to manage cookies in Firefox

Cookie settings in Firefox are managed in the Options window's Privacy panel. See Options window - Privacy Panel for information on these settings.

How to manage cookies in Chrome

Click on the spanner icon on the toolbar, select settings, click the under the bonnet tab, click on content settings in the privacy section.

How to manage cookies in Opera 

You can manage cookies in Opera if you Click on settings, then Preferences, then Advanced and finally Cookies

How to manage cookies in Safari

Choose Safari, then preferences and then click security. You should then be able to specify if and when Safari should accept cookies.

To manage cookies on your mobile phone please consult your manual or handbook.

Get more help about how cookies work with specific browsers.

What happens if I don't accept cookies?

If you decline cookies, some aspects of Invest Europe site may not work on your computer or mobile phone and you may not be able to access areas you want on the website. For this reason we recommend that you accept cookies.

What happens if I delete my cookies?

If you delete all your cookies you will have to update your preferences with us again and some aspects of our site may not work.

What happens if I change computers or mobile?

If you use a different device, computer profile or browser you will have to tell us your preferences again.

If you'd like to learn more about cookies in general and how to manage them, visit aboutcookies.org.

We can't be responsible for the content of external websites.

Opt-out of cookies


Join today

This is for members only. To view in full login or join Invest Europe today.