Commercial Union’s Pension Fund has successfully transferred its assets to Bank Handlowy, a member of Citigroup.
Commercial Union’s Pension Fund has successfully transferred its assets to Bank Handlowy, a member of Citigroup.
The transfer, which was completed on Friday 3 January, was undertaken due to a change in the charter of the CU Pension Fund, approved by the Insurance and Pension Funds Supervisory Committee.
CU’s Pension Fund, founded in 1999, formerly held its assets at BRE Bank, which is part of the Commerzbank banking group.
“We decided to change banks in an attempt to lower fund members’ costs. We estimate that by collaborating with Bank Handlowy, we will save over 500,000 zlotys annually.
“In the process of choosing a new depository bank, we looked at its activities and financial potential. A major factor in Bank Handlowy’s favour was that it will provide the fund with a wide range of foreign transaction opportunities,” said Piotr Szczepiórkowski, chief executive of CU’s Pension Fund Company.
According to Polish pension fund law, the depository bank's task is the custody of the fund assets. It must ensure that funds are invested according to legal regulations and the fund's charter, and that any agreements relating to the fund assets’ accounts are cleared on time.
Polish banking law also stipulates that only banks with equity equivalent to €100m (approximately 400m zlotys) may be used for depository functions.
As of 30 September 2002, Bank Handlowy’s capital base was nearly 6bn zlotys, and BRE Bank's capital amounted to 1.8bn zlotys.
Both Bank Handlowy and BRE Bank are market leaders in depository services offered to pension funds. According to information published in the December 2002 "Monthly Bulletin" of the Insurance and Pension Funds Supervisory Committee, Bank Handlowy looks after the assets of five pension funds and BRE Bank takes care of six.
Further information:
Grazyna Goslings, Corporate Communications Director of the CU Poland Group, Tel: + 48 22 653 98 86, Fax: + 48 22 653 96 37, e-mail: bohdan_bialorucki@cu.com.pl.
Additional information about the Commercial Union Poland Group can also be found on the website http://www.commercialunion.pl