Clifford Chance

Prudent pension investments: Court nullifies Dutch Central Bank instruction

16 April 2012

The Court of Rotterdam recently nullified a binding instruction given by the Dutch Central Bank ("DNB") relating to the application of the prudent person rule. DNB had instructed a pension fund to reduce its investments in gold from 13% to 3% of its total investments. The Court also ruled that it will investigate whether DNB is liable for losses incurred by the pension fund, said to be estimated at approximately €10 million.

 

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