Communication between pension administrators and asset managers must improve

Middle administration as a translation agency
With the introduction of the new pension contract, the pension industry is facing one of the most profound changes ever. One of the issues raised by this transition is closer cooperation between asset managers and pension administrators. They have different ways of thinking and struggle to understand each other's language. A much-discussed solution is the (temporary) introduction of a middle administration. This middle layer brings the data of asset manager(s) together and translates it into usable information for pension administrators.

An a lternative b en approach
However, the question is whether the focus should be on creating a middle administration or improving communication and cooperation between asset managers and pension administrators. Creating a new implementation layer in the form of this middle administration looks like a stopgap rather than an immediate solution to the problem of poor communication and cooperation between the parties involved. It is therefore better to focus immediately on developing a common language and unambiguous allocation of responsibilities.

Additional implementation layer
Since there are time constraints, a middle administration can provide a practical interim solution. Nevertheless, it is wise to go straight for a more sustainable approach. To start with good agreements and standards between different suppliers within the sector. This approach can pave the way for a seamless exchange of information without unnecessary complexity and costs. Then, in time, the middle administration can also be abolished as an extra layer of implementation.

Sustainable solution
The debate on the role of middle administration in the pension sector will undoubtedly continue. But one thing is clear: it is essential to address the problems of poor communication and cooperation between asset managers and pension administrators, and the ultimate solution will have to contribute to a more efficient and transparent pension landscape.

Source: Pensioenwet maakt nieuwe uitvoeringslaag noodzakelijk