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

David Blake, John Cotter and Kevin Dowd

Centre for Financial Markets Working Papers from Research Repository, University College Dublin

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.

Keywords: Pensions--Great Britain; Financial risk; Pension trusts--Finance--Law and legislation (search for similar items in EconPapers)
Date: 2006-11
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10197/1185 First version, 2006 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rru:cfmwps:10197/1185

Access Statistics for this paper

More papers in Centre for Financial Markets Working Papers from Research Repository, University College Dublin Contact information at EDIRC.
Bibliographic data for series maintained by Joseph Greene ().