Estonia, Financial Services, Funds, Investments, Legislation

The amendments to the investment funds' law that will be sent to approval rounds in autumn would allow pension funds to invest money in long-term investment projects, for example wind energy parks or gas networks; they are also considering investments in precious metals that are forbidden now.

"Since the savings pension system has been in operation for over ten years already, it is appropriate to revise certain restrictions and change them if it is justified," said finance ministry financial markets policy department head Thomas Auväärt, adding that the changes should motivate fund managers to invest the money of pension funds more in the Estonian economy.

Fund managers admitted that the changes in the investment restrictions are necessary since the current framework is becoming outdated.

Estonian Fund Managers' Union board chairman, Danske Capital's CEO Silja Saar said that the proposals made by the union were based on global context and the need of pension funds to find ways to disperse their assets better.