Type

Working Paper

Authors

Kevin Dowd
John Cotter
David Blake

Subjects

Economics

Topics
adverse selection pension trusts finance law and legislation pensions great britain pension protection fund financial risks moral hazard financial risk pension funds

Financial risks and the Pension Protection Fund : can it survive them? (2006)

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 theregulatory regimes under which other financial institutions, such as banks andinsurance companies, operate and asks why pension funds are treated differently. Italso reviews the experience with other government-sponsored insurance schemes,such as the US Pension Benefit Guaranty Corporation, upon which the PPF ismodelled. We conclude that the PPF will live under the permanent risk of insolvencyas a consequence of the moral hazard, adverse selection, and, especially, systemicrisks that it faces.
Collections Ireland -> University College Dublin -> School of Business
Ireland -> University College Dublin -> Centre for Financial Markets Working Papers
Ireland -> University College Dublin -> College of Business

Full list of authors on original publication

Kevin Dowd, John Cotter, David Blake

Experts in our system

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John Cotter
University College Dublin
Total Publications: 93