The Dutch central bank (DNB) is concerned that small and medium sized pension funds cannot cope with the demands being made on them, reports Monday’s Financieele Dagblad.

The relatively high cost of small pension funds means higher premiums for employers, says the paper. The bank also doubts that small fund managers are capable of dealing with today’s market demands.
The Netherlands has some 700 pension funds, of which 130 have pension obligations of below €10m, the paper says. Under Dutch law, funds are not allowed to merge to create greater economies of scale.