SIX Financial Information is offering a data service in connection with the revised Swiss Ordinance on Occupational Retirement, Survivors' and Disability Pension Plans (BVV 2)
Zurich – SIX Financial Information is now offering a tailor-made data service for managers of pension fund assets. Thanks to this new service, investments can be classified quickly, efficiently and accurately in accordance with BVV 2.
The new ordinance makes a clear distinction between traditional and alternative investments in bonds. In making this differentiation, legislators intend to ensure that pension funds do not underestimate the increased risk of complex bonds in comparison to traditional bonds. Together with hedge funds, private equity and commodities, these bonds shall now also be classified as "alternative investments". Pension funds are now permitted to invest a maximum of 15% of their assets in alternative investments.
The regulation has been in effect since 1 July 2014. As of 31 December 2015, pension funds will prepare their annual financial statements in accordance with the revised BVV 2 for the first time. This will entail a significant amount of extra work for pension funds and their asset managers. With its BVV 2 data service, SIX facilitates the correct classification and reporting of instruments by automatically marking those which are considered alternative investments.
"SIX prepared the regulatory framework for the flagging of data in consultation with the Federal Social Insurance Office (FSIO) and the relevant supervisory authorities," says Jürg Stalder, Product Manager at SIX. "Our automated service covers all current and newly-opened instruments. Clients can be sure that these instruments are classified accurately and objectively in their reports. The assignment of assets to investment categories can thus be reported in the annual financial statements in accordance with the BVV 2 requirements."
About SIX Financial Information
SIX Financial Information is a leading global provider of data services and solutions for financial and insurance firms, corporations and the media. Aggregated in real-time from over 1,500 worldwide sources, SIX’s financial information is comprised of corporate actions, pricing, reference and market data for 16 million instruments and
is unique in terms of information depth, breadth and structure. With offices in 23 countries, SIX combines the advantages of local expertise with global reach to offer financial specialists comprehensive data services for securities administration, risk management and compliance, investment advisory, and portfolio management.
Financial Information is one of four business areas of SIX which offers global premium services in securities trading, clearing and settlement, payment transactions, and financial information.