The provider says regulatory changes would be needed for it to be able to offer a full collective DC offering, but that it can still bring a proposition to market within the existing regulatory framework. It has not disclosed which providers it is talking to about a UK launch, or when such a launch could take place.
It wants to duplicate some of the features of its hybrid Danish offering, where a certain level of pension is guaranteed, with the balance index-linked. The provider says its scale and investment expertise mean it can achieve better returns for investors, its fund having returned 6.9 per cent a year on average since 2000.
Morten Nilsson, head of ATP International Operations says: “We have been looking at the UK for some time and are sure we can offer cost-efficient quality pensions here. We have been in talks with employers to see if they agree with our approach and feedback has been positive. We need to start talking to consultants and see how they see our offering.
“In Denmark we have seen that guaranteed funds have done so much better than those without guarantees. People in this country say the guarantees are too expensive, but this is not the case.
“In the UK you cannot give too many promises on a DC scheme before you become deemed a DB scheme. If we were to deliver everything we are capable of, then that would need legislative changes, but we can do a lot still with what there is.”