Pension funds in limbo as EC leaves Emir exemption gap
Funds could be subject to CVA charge for period of weeks or months
Pension funds in Europe find themselves in a weird, legislative grey area, after the European Commission (EC) extended a key exemption too late. The safe harbour may take effect in days or in months, and in the meantime dealers may be expected to start applying a new capital charge to trades with pension fund customers.
The EC suggests the charge should not be levied during this period - the European Court of Justice has allowed legislation to apply retrospectively in other cases "under certain
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