Competition Authority: Residents should be able to switch pension funds more often ({{commentsTotal}})

The Estonian Competition Authority proposed to the Finance Ministry to allow individuals to switch their pension fund more often than the present set number of three times per year.

Finance Minister Sven Sester (IRL) introduced a bill for a so-called Investment Funds Act. This would increase competition between companies managing retirement funds. According to proposals, different requirements would be made more flexible.

The cost of switching funds would be lowered as well, and in such a situation, there was reason to ease restrictions on switching funds as well, the Competition Authority found.

According to the authority, it is hard for a new service provider to enter the market because its potential customers are by law restricted to a set number of fund changes every year. With this, the established funds have an unfair competitive advantage over newcomers.

Editor: Editor: Dario Cavegn

Source: BNS



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