By the book

Russia's five-year old third pillar pension system started to expand just as the financial crisis swept across the globe - and a deadly combination of high inflation and low government bond yields leaves the sector facing a risk management conundrum. Aaron Woolner reports

The violent swings in equity values and interest rates during the past 18 months have brought a variety of regulatory responses. For example, the Dutch regulator gave schemes an additional two years to complete their recovery, while its Danish and Swedish counterparts both adjusted their methods of calculating funds' liabilities.

For the Federal Financial Markets Service (FFMS), which regulates Russia's nascent third pillar pension sector, however, the solution to the problem of asset values