Recently, two cases were taken to court by a pension fund in an attempt to avoid following the instructions of the DNB in relation to their investment policies in place.
In the first case Stichting Pensioenfonds Vereenigde Glasfabrieken invested approximately 13% of its total funds in gold. DNB argued that such exposure to gold does not correspond with pursuing an investment policy in line with the "prudent person" rule. Hence, DNB instructed the pension administrator to reduce the exposure to 1-3% of total funds. The District Court of Rotterdam ruled in interlocutory proceedings on 8 February 2011 that the pension fund indeed acted in conflict with the Pensions Act and therefore rejected its appeal.
The second case concerns a company pension fund struggling with an insufficient coverage ratio, namely Stichting Pensioenfonds SDB, which argued that DNB should approve its recovery scheme as the affiliated company was willing to provide two subordinated loans. DNB instructed the pension fund to draw up an alternative recovery scheme, arguing that the subordinated loans did not qualify as equity capital. The District Court of Rotterdam rejected the pension fund's appeal.
These proceedings mark DNB's commitment over the last few years to enforce pension regulations, especially with a view to ensuring prudent investment policies in line with the prudent person rule.