Rabobank introduces online service for Pension Fund Managers

First Published: e-Forex Magazine 22 / News / January, 2006

As of 1 January 2007, Pension Funds in The Netherlands are faced with a new set of regulations under the FTK (Financieel Toetsingskader or Financial Assessment Framework). These regulations force Pension Fund Managers to increase their focus on Assets and Liability Management. Within the FTK Framework, Collateral Management has been introduced to mitigate the credit risk between the Pension Fund and the Bank. It is a two-sided mechanism to minimise exposures stemming from long-dated transactions. Hereby both parties agree upfront to deliver cash, government or corporate bonds as collateral to minimise this risk.In preparation for this development, Rabobank has introduced an online service for Pension Fund Managers called the Collateral Management Tool (CMT). The CMT, accessible via Rabobank’s TreasuryWeb website, offers the ultimate support function for a Pension Fund. It features online information, access and valuation of posted collateral and the mark-to-market of the underlying transactions on a...continued

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